Hence, it’s no surprise that the combination of operator CDN technology and transparent caching has received particular attention lately.  For example, EdgeCast and PeerApp teamed up in September to combine EdgeCast’s licensed CDN software with PeerApp’s transparent caching platform.  Alcatel-Lucent and Blue Coat Systems also consummated a global reseller agreement to jointly market their respective CDN and transparent caching platforms to network operators.

 The goal in both these cases was a worthy one, i.e., to let operators cache all content – managed and unmanaged – that is carried across their networks.  Unfortunately, both approaches are based on discrete platforms, leaving network operators with higher capital expenses while fending for themselves in areas such as operations, management and reporting integration.

 This week, however, Verivue addressed this integration dilemma with the first and only solution that offers both carrier CDN and transparent caching in a single, unified platform.  The true integration of these two functions helps streamline network operations while reducing deployment cost.  Now intelligent caches deployed strategically throughout the CDN network can serve dual-purpose as a transparent cache, reducing the network infrastructure and bandwidth costs associated with ‘over the top’ (OTT) content.

 By adding transparent caching as a software feature atop the OneVantage Content Delivery Solution rather than as discrete infrastructure, Verivue addresses both managed and unmanaged content across a single set of devices.  Best of all, the entire platform is software-based, harnessing the advantages of industry-standard server and storage components while providing a more flexible alternative to proprietary server appliances offered by many of our competitors.

With online video showing no sign of slowing down, operators continue to seek innovative ways to optimize revenue while reducing cost.  Verivue’s holistic approach to content delivery solves both problems together, allowing operators to develop a comprehensive content distribution strategy rather than an assortment of costly, discrete solutions.

For example, Google’s answer to the traffic and congestion problems created by Google and YouTube content is to offer operators the option of deploying Google Global Cache (GGC).  GGC is a cluster of Google provided servers installed inside an operator’s network to improve performance by caching popular content locally.  Serving content from the edge of an operator’s network eases backbone congestion and relieves traffic on peering and transit links, saving cost and improving QoE.

On the surface, this concept appears to be a win-win for both Google and the network operator.  But is it really good for operators?  With GGC, Google is put in an exceedingly advantaged position relative to other content providers.  As online streaming becomes ubiquitous and the competition heats up, Netflix and other well financed companies like Apple, Microsoft, Amazon and Dish/Blockbuster may demand this same advantage.  For most operators, physical space for cabinets and cages, conditioned power (including battery backup and power generators) and adequate cooling are in scarce supply.  Hence, it may be impractical to provide a similar arrangement to a broad set of content providers, even as regulators require network operators to treat everyone equally.

To address this dilemma, operators are opting to offer multi-tenant CDN services.  Because they own the access infrastructure, they are able to strategically locate their own caching servers deep in the network, bypassing most network congestion points.  This close proximity to the user base allows them to deliver rich-media content with the lowest latency for a superior QoE.

More importantly, the multi-tenant model allows operator’s to deliver content on behalf of all parties across a single, unified infrastructure rather than deploying individual, physical caches for each content provider.   Instead of becoming real estate agents, networks operators look more like building managers collecting rent in the form of new, revenue-generating services.

For operators that offer their own content, such as Cable MSOs and Telco/IPTV Service Providers, the multi-tenant CDN provides a service delivery platform whose cost can be spread across multiple customers, including the content delivery offerings of the service provider. Economies of scale dictate this shared resource model. After all, the whole idea with cloud services is to share compute cycles and storage among multiple tenants. Why should it be any different at the customer-facing edge of the network when it comes to content caching and delivery?

It is abundantly evident from the many conversations we have with major operators that the time has come for the multi-tenant CDN model.  It’s no longer “every man for himself”, but instead, a new paradigm where content providers “ride the coattails” of network operator deployed content caching and delivery infrastructure.

Case in point, almost everyone has watched an over-the-top video, and most of the under-25 market has watched them on smartphones.  While the smartphone has made content really portable, the impact on both the consumer and the network has been contained by the small size of the screen.  Smartphone users watch short clips of highly compressed video.  Tablet users watch TV and movies on devices with display capabilities as good as a living-room TV.  The numbers prove this.  In the time the tablet has been on the market, the number of people who watch full-length TV episodes or even full-length movies has increased 60% according to a Yahoo! study.

It’s no surprise that operators are worried about the way this impacts their network costs, and it’s not just peering costs that worry them.   More, and longer, videos mean more congestion in the access network itself.  Worse yet, the places that get congested and the timing of the congestion will vary based on things like movie releases, class schedules, transportation delays, and viral video factors.  Operators will need deep caching to move video storage closer to the consumer, but they also need highly flexible caching to contend with highly variable viewing habits.

Next time you see a tablet, don’t think “iPad or Android”, think “movie or TV show”.  Then think about transparent caching and its ability to impact network operator’s costs and improve user Quality of Experience (QoE).