Asia-Pacific Broadcasting (APB) June 2018 Volume 35, Issue 5 - Page 14

14 NEWS & VIEWS June 2018 Pay-for-success model of cloud video Transformation from traditional on- premise infrastructures to the cloud is now under way in all sectors of the video service industry, including legacy pay-TV operators, pure over-the-top (OTT) service providers and content owners/creators. This transformation is reducing friction and cutting costs across the whole content supply chain. The cloud helps deliver a radically new economic model for the infrastructure itself, for both hardware and software. On the hardware side, video service providers can convert upfront capital costs into more operating costs. By us- ing commoditised hardware with vir- tualisation, public cloud providers can exploit economies of scale to deliver resources more cost-effectively than in-house data centres. Amazon Web Services (AWS) is playing a pivotal role in this transformation by providing infrastructure including storage, video processing and encoding facilities, as well as security components. Private virtualised clouds run by video service providers can also ex- ploit similar factors to cut costs. The software-as-a-service (SaaS) model converts licences to ongoing service agreements in which operators pay just for what they use. SaaS avoids having to provision for larger numbers of customers or viewing levels than might occur. Furthermore, the fact that the infra- structure is virtualised so that function- ality is dissociated from location opens up the ecosystem to new operational benefits not previously possible. Third- party ecosystems can be connected or accessed very easily just by relocating content using pointers. Because of industry-wide cloud adoption, content owners, distributors and service providers are converging around a new content ecosystem con- nected by the cloud. And new revenue streams are being created by expanding this marketplace and reducing friction for trading within it. The bottom line is this: the predict- ability, flexibility and scalability of a cloud platform enable a “pay-for-suc- cess” model that reduces the financial risk of launching new video services when operators do not have visibility into how many subscribers they will have on a month-by-month basis. Unstoppable forces Many functions have been available in the cloud for some time, but there For remote production where connectivity is key, Dejero is offering the Dejero GateWay router that enables the transfer of data between remote locations and the broadcast facility. Dejero provides a gateway from field to cloud Steve Oetegenn, President, Verimatrix Because of industry- wide cloud adoption, content owners, distributors and service providers are converging around a new content ecosystem connected by the cloud. has been reticence in putting the entire video delivery workflow in the cloud. However, unstoppable industry forces are moving away from traditional data centres to virtualised infrastructures incorporating a complete SaaS model. The conversation is quickly changing as the economic gains and enhanced functionality of the cloud become dif- ficult to ignore. Video service providers are em- bracing the cloud in contrasting ways and at different rates. The Verimatrix Secure Cloud is designed to cater to these variations, offering a flexible cloud-based alternative to on-premise systems for all its product families. It can help operators and content owners create a secure SaaS-based workflow to extend their reach, target new market segments and attract addi- tional customers across all screens. It helps harness the cloud’s strengths, including speed to market, as well as the ability to respond to trends, com- petitive forces and customer demands through new agile development meth- ods. There is a big gain in elasticity and ability to exploit more efficient and flexible business models for procure- ment and infrastructure around SaaS. 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