Portfolio Assessment:

Cisco IPT V/Multi-screen Portfolio

Report Date:

February 27, 2012

Analyst:

W estfall, Ron

Service:

Service Provider Infrastructure

Market:

Digital Media Infrastructure

Class:

IPTV/Multi-screen Solutions

Current Perspective:

Buying Criteria Ratings

Buying Criteria Ratings

Summary
Portfolio Description
Ciscos IPTV/multi-screen solution resides primarily in its Videoscape solution. The Videoscape portfolio integrates the cloud, netw ork and
client components required to deliver high quality of service (QoS)/quality of experience (QoE) multi-screen experiences and transition the
economics of netw ork operations. It is built upon its medianet architecture for providing an end-to-end IP netw ork optimized for media
services. Ciscos medianet provides the infrastructure for an IPTV/multi-screen solution that is cloud, netw ork and client aw are. Ciscos
medianet also provides the infrastructure for Ciscos Videoscape solution w hich delivers unified content experiences across multiple
screens.
The cloud component addresses the evolution of the video head-end to a common data center architecture. This media platform uses Cisco
data center and video command-and-control technologies to deliver multi-screen services.Cisco Videoscape cloud components include the
follow ing:
Cisco Unified Computing System (UCS) and Cisco Nexus family designed to integrate server, storage, netw ork and virtualization
resources into a unified Ethernet environment.
Cisco Videoscape Media Suite, w hich provides unified content management and entitlement to manage and publish content across TV,
PC, tablet and mobile device screens, including search and navigation across all content sources such as linear broadcast, VoD and usergenerated content.
Cisco Media Processor and Cisco Transcode Manager provide multiformat adaptive bitrate (ABR) encoding and transcoding functions to
deliver live and on-demand content to any screen, in the best video quality based on the available bandw idth.
Cisco Conductor for Videoscape, orchestrates the various services, devices and subscriber management functions across clients, clouds
and netw orks, including managed and unmanaged services, to support presence, real-time app data, resources, social netw orking and
command-and-control functions.
Cisco Conductor Back Office delivers quadrature amplitude modulation (QAM)-based session management, resource management,
entitlement, and video service management capabilities to cable operator subscribers as w ell as video control plane and service
management capabilities during cable operator transitions to all-IP video platforms.
The Cisco Videoscape IP Next-Generation Netw ork (NGN) component supplies the IP transport, content distribution netw ork (CDN) and
cable solutions components. This includes embedding video intelligence w ithin netw ork platforms to achieve netw ork goals such as
assuring a consistent subscriber experience over multiple endpoints, hitless sw itchover and inline video monitoring and total cost of
ow nership (TCO) benefits.
Cisco Videoscape IP NGN components include the follow ing:
Cisco IP NGN Video Optimized Transport Solution, w hich extends transport capabilities to cloud-based media and applications. It uses
Cisco service provider IP routing and video back-office infrastructure portfolio, including the CRS-3 Carrier Routing System and ASR 9000
Aggregation Services Routers (ASRs).
Cisco Content Delivery System (CDS), w hich extends the CDN platform designed for personalized media delivery. This includes TV

streaming for content delivery to digital TVs and STBs and Internet streaming to deliver content and apps to connected IP devices;
ingest, store and deliver live and on-demand content and apps to any device.
Cisco Videoscape CDN Analytics provides reporting and analytics to enable operators to collect info from their CDN or third-party CDN
deployments and assess netw ork performance in real-time, including traffic distribution and volume, capacity use, asset popularity,
billing trends, and bandw idth consumption to improve services and support capabilities.
Cisco Converged Cable Access Netw ork, w hich employs a DOCSIS 3.0 access platform, including the Cable Modem Termination System
(CMTS) 3G60 and CMTS DS384 line cards.
The Cisco Videoscape Clients include the follow ing:
Cisco Videoscape Multiscreen Gatew ays that are designed purposely for delivering IP-based video services in the home, including STBs,
tablets, smartphones, and game consoles.
Cisco Videoscape Media Gatew ays integrated linear and online video, voice, mobility, data, and routing capabilities on a centralized hub
to support apps, entertainment and communications in the home netw ork and interw orking w ith cloud-based services such as lifestyle
management apps and video streaming.
Cisco Videoscape STBs combine linear and on-demand TV, DVR recordings, premium programming, and online entertainment in STB form
factors.
Cisco Videoscape Soft Clients are reference softw are development kit (SDK) user interfaces developed to customize TV and the digital
media content across multiple screens. This includes providing a common interface to the operator cloud and the ability to embed the
clients in CPE devices such as gatew ays, STBs, smartphones, gaming consoles, etc.
To ease operator adoption of Videoscape, Cisco includes Videoscape Quickstart (i.e., pre-integrated, pretested TV Everyw here solution),
Videoscape Voyager Virtual (i.e., cloud-based apps delivered to legacy STBs), Cisco Voyager Vantage (i.e., w eb-based softw are platform for
TV navigation and app experience platform), and Cisco Services (i.e., professional services).
Portfolio Positioning
Cisco has converted its thought leadership on video traffic grow th (i.e., Visual Netw orking Index) and global data center and cloud-based
IP traffic grow th (i.e., Cloud Index) into compelling propositions for video delivery (i.e., CDS), transport (i.e., ASR), cloud (i.e., CloudVerse
architecture) and next-generation netw orking (i.e., medianets). Leveraging client, netw ork and cloud components of its Videoscape
framew ork, Cisco offers its service provider customers a single vendor solution that delivers cohesion and coherence for its diverse digital
media portfolio.
Ciscos corporate vision and strategy around medianets differentiates its video netw orking solutions from major rivals by effectively
articulating how Ciscos vast portfolio assets can best meet the overall IP netw orking needs of all video and rich media customers including
service providers, content providers, enterprises and consumers. Ciscos medianets relies on three distinct areas of technology and
marketing focus, w hich translates into device, netw ork and media aw are sessions for optimal rich media experiences.
Ciscos medianets marketing and sales strategy emphasizes the enablement of a comprehensive video experience through the offering of
three fundamental building blocks: (1) IPTV and RF head-ends and content delivery systems; (2) Intelligent IP Netw ork via carrier routing
platforms such as the 7600, CRS-1, and ASR platforms; and (3) Connected Home consumer products such as set-top boxes (STBs) including
those w ith built in digital video recorders (DVRs), broadband gatew ays and a w ide range of home netw orking systems and appliances.
Cisco submitted its CloudVerse framew ork for testing to the European Advanced Netw ork Test Center (EANTC) for an independent and
comprehensive test of the framew ork that combines the foundational elements needed to enable organizations to build, manage and
connect public, private and hybrid clouds, including for media data center and video applications.. The Cloud Applications and Services
component of CloudVerse included testing of the Videoscape platform and its capabilities in the comprehensive video transcoding, multiformat video delivery, Cisco Mediasuite, ABR scalability, live streaming redundancy, transcoder redundancy and mobile video areas. Test
outcomes included verification that a single Cisco CDS could deliver just about 40Gbit/s of HLS Video on Demand content to 12,002
subscribers.
Portfolio Traction
Cisco has generated high profile w ins for elements of its Videoscape multi-screen solution, including Rogers Communications of Canada,
YES of Israel recently announced at the CES 2012 show . Telstra, Ciscos first Videoscape customer, is deploying Cisco CDS technology. BT
W holesale is building its online video CDN, branded Content Connect, w ith Ciscos CDS technology. Numericable in France is a key account
that uses Cisco Videoscape as a TV platform that brings together digital TV and online video content w ith social media and communications
applications. AEG Digital Media has standardized on the Inlet-originated Spinnaker appliance for live internet streaming, as w ell as Cisco
core netw orking infrastructure. NET, Brazils largest cable operator, adopted the CDS solutions for its new VoD offering, KT and Telenor
have selected the MediaSuite and Media Processor products, TELUS uses Videoscape MediaSuite and Clients to extend its Optik TV services
to mobile devices through its 'Optik on the go' offering w hile Spains Digital+ adopted the iPlus decoder platform to dynamically record and
reproduce Digital+ content.
Ciscos partnership w ith NBC for the 2010 W inter Olympics the largest all IP video netw ork deployed for a televised sporting event
provides high level industry visibility for Ciscos medianets technologies. Cisco has also added Portugal Telecom as a service provider
reference account and enlisted AT&T to adopt its w ireless IPTV solution featuring new w ireless receivers and w ireless access points
(W APs), across the entire AT&T U-verse TV footprint, demonstrating continued depth of traction w ithin key telco operator accounts.
Cisco has gained early mind share in advancing operator build-out of CDNs as w ell as federated CDNs. Federated CDNs are defined as a
multi-footprint, open CDN built from the netw ork resources ow ned and operated by independent operators, enabling operators to deliver
Internet-w ide CDN services extending beyond the footprint of their ow n netw ork. Cisco has already conducted pioneering trials w ith major
operators, such as BT, KDDI, Orange, Telecom Italia, and SFR in proving the viability of CDN federations and puts the company in a solid
competitive position to capitalize on the burgeoning federated CDN market (i.e., up to $12 billion by 2015).
Current Perspective
Ciscos Videoscape solution for multi-screen/IPTV video delivery is threatening to the solution sets of rival vendors. The
solutions strength emanates from Ciscos possession of an integrated and end-to-end video netw orking solution that is explicitly linked to
the companys cloud, netw ork and client portfolio assets w hich few if any rivals can match directly w ithout relying on multiple partners. The
acquisition and subsequent integration of Scientific-Atlanta, now the core of Ciscos Service Provider Video Technology Group, significantly

bolstered Ciscos multi-screen/IPTV Solution proposition via the addition of STB, video distribution and video system integration portfolio
assets. Ciscos Advanced Video Services Group effectively leverages the acquired Scientific-Atlanta video expertise, evidenced by end-toend systems integration w ins at Virgin Media in the UK, VoD launch and integration w ins at ASTER in Poland, as w ell as providing the
service support for over 1,000 digital HEs w orldw ide, including over 300 in North America, and supporting over 10,000 uplink channels
w orldw ide. Ciscos CDS video server platform is one of the few to support multiple protocols, providing a common architecture for enabling
service providers to deliver video content to the three screens, and is leading multiple CDN architecture efforts to support service provider
IP video delivery requirements.
How ever, Cisco faces challenges w ith respect to its multi-screen/IPTV solution sales efforts. For instance, Ciscos telco-based deployment
credentials remain limited in comparison to its key service provider infrastructure rivals, such as Alcatel-Lucent, Ericsson, Huaw ei, and
Google/Motorola. Cisco has terminated its ISDP middlew are offering and plans to support Microsoft Mediaroom, how ever, Ciscos
Mediaroom support trails the established presence and expertise of Microsoft partners Alcatel-Lucent and Google/Motorola. In addition,
although Ciscos CDS platform has benefited from the incorporation of Flash technology, (i.e., improved streaming capacity from solid state
drives, and greater cache capacity w ith larger drives), the CDE 250 still trails most competitors in terms of solid state cache capacity. Thus,
the jury is still out as to how extensively Cisco can emulate its historical and ongoing success in the cable, satellite, and broadcaster realms
w ithin the telco IPTV realm.

Solution Elements
Solution Elements
Elements

Content Security

Encoder Model D9034-S; Model D9054 HDTV; DCM;

Pow er Vu; Cisco Transcode Manager; Cisco Media
Processor
D9854 HD AVC decoder

Content Delivery Systems

Cisco CDS

IPTV Middleware

N/A

STB Range and Interoperability

IPN330HD; IPN430MC; IPN603MCG

Head-end Systems/Encoders

Strengths/Weaknesses
Strengths
The Cisco Videoscape proposition offers an integrated and end-to-end video and content delivery solution w hich explicitly integrates
Ciscos cloud, netw ork and client portfolio assets, w hich position the company as a strategic provider of digital media solutions. Ciscos
Videoscape extends an open, standards-based architecture to deliver content reliably from the headend to end user devices, enhancing
the overall customer experience w ith capabilities such as QoS, video admission control, error repair, improved channel-change time and
enhanced multicast capabilities.
The CDS 250 model 2S6 supports 30 Gbps of MPEG and HTTP streaming for up to 8,000 SD MPEG-2 streams (at 3.75 Mbps each) per tw o
RU chassis, and over 176,000 streams per rack, w hich is one of the highest streaming density platforms on the market. W ith 8 Gbps of
ingest capacity, Ciscos CDE 250 model 2S6 can ingest up to 2,000 simultaneous MPEG-2 SD streams. W ith the CDE 250s 40 Gbps of I/O,
this ingest capacity does not impact full stream concurrency. Ciscos stream ingest metric leads all rival platforms by a significant order of
magnitude.
Ciscos CDS leverages Ciscos IP Next Generation Netw ork (NGN) architecture, w hich employs the companys proven advanced service
routing intelligence to bind content delivery to IP netw ork transport. It forms part of Ciscos medianets strategy for delivering an end-toend rich media-aw are IP infrastructure w hich can serve nearly 2 million emulated IP video subscribers from a single metro PoP, according to
a simulated test conducted by European Advanced Netw ork Test Center (EANTC).
By extending Videoscape to mobile Internet scenarios, w ith its MOVE framew ork, Cisco is applying its medianet architecture to mobile
netw orks. Ciscos MOVE framew ork leverages its established video, routing, and w ireless netw orking expertise to advance its mobile
Internet proposition. The Content Application Engine (CAE) incorporates video transcoding softw are on Ciscos UCS platforms, providing a
virtualized platform to adapt content for multi-screen/mobile video service delivery. Videoscapes integrated data center-based approach
delivers a differentiated approach for scaling video transcoding by leveraging centralized and virtualized data center resources.
Ciscos Advanced Video Services Group possesses more than 55 years of experience in the media industry, and continues to capitalize on
expanding digital media/IPTV integration opportunities. Evidence of continued traction and momentum for Ciscos Advanced Video Services
Group includes end-to-end systems integration w ins at Virgin Media in the UK, VoD launch and integration w ins at ASTER in Poland, and
supporting Numericables 3-D consumer service launch.
Ciscos Videoscape framew ork leverages its proven IP NGN infrastructure and key enabling technologies based on its Content Delivery
System (CDS), Unified Computing System (UCS), Cable Modem Termination System (CMTS), Aggregation Services Routers (ASR) and Carrier
Routing System (CRS) platforms. This further positions Cisco as a strategic provider of multi-screen video solutions for enabling the delivery
of rich media content across both managed and un-managed netw orks, and to any IP-enabled device.
Weaknesses
Although Cisco, via its video netw orking assets and related IP NGN assets, possesses undeniable credibility w ithin the cable space for
scaling video applications, its established traction in the IPTV space primarily centers around IP STBs and aggregation/core routing
infrastructure. IPTV solution rivals w ill continue asserting that the jury is still out as to how much further influence and significance Cisco can
achieve w ithin the telco IPTV market, e.g., in terms of scaling efforts vis--vis their ow n established and broadly deployed IPTV/IP video
solutions.
The Videoscape architecture embodies several moving parts including cloud, netw ork and client solution elements. Cisco Videoscape sales

and marketing efforts risk a biting off more than it can chew aspect that can dilute messaging initiatives and potentially confuse the
market on the true value of adopting its Videoscape solutions.
The availability of the Cisco Conductor platform, w hich is designed to integrate the video control plane and video back office elements of
the Cisco Videoscape portfolio, does not assure Cisco can drive operator adoption of the Videoscape architecture, let alone the platform
itself. W hile making the Cisco Conductor available is a vital first step in unifying the cloud, netw ork and client elements of the Videoscape
portfolio in the back office, Cisco w ill face a more daunting task in driving the Conductor platform deeper into service provider netw orks and
the overall market.
W hile Cisco has benefited from the incorporation of flash technology (i.e., improved streaming capacity from solid state drives, and
greater cache capacity w ith larger drives), the CDE 250 platform still trails most competitors in terms of solid state cache capacity.
Meanw hile, despite the benefits of improved processing performance and platform density, converged applications for TV and Internet
streaming from a single CDE appliance remains on the product roadmap.
Ciscos video optimization technology (i.e., MOVEs video transrating and transcoding capabilities) is still in customer testing, and
therefore unproven relative to more established products from rivals. In addition, in light of Ciscos Inlet acquisition, the incorporation of
Ciscos ow n transcoding softw are in the MOVE framew ork highlights a potential conflict betw een Ciscos R&D and M&A efforts. Specifically,
w ill Inlets technology supplant or complement Ciscos internal R&D efforts?
As a result of Ciscos decision to terminate its ISDP middlew are offering for IPTV deployments, the company intends to transition tow ards
supporting the Microsoft Mediaroom platform. How ever, the transition to Mediaroom support trails established presence and expertise of
Microsoft partners Alcatel-Lucent and Motorola.

Buying/Selecting Criteria
Back-Office Compatibility

COMPETITIVE

Benefit Cisco has incorporated its ExtendMedia acquisition into its Videoscape Media Suite back-office, w hich serves as the cloud-based
platform for managing multi-screen video services. Combined w ith the Cisco Conductor, Cisco offers netw ork and cloud-based product
enhancements to fulfill multi-screen video back-office functionality as w ell as service and device management.
Benefit Ciscos ROSA video management platform leverages deep experience solving video management challenges such as the control
and monitoring of third-party gear and the effective support of remote operations. Ciscos ROSA platform supports over 725 devices via
SNMP and proprietary protocols to ease overall back-office integration efforts as w ell as to demonstrate clear differentiation in the range
of back-office compatibility options.
Benefit Ciscos Conductor QAM Back Office, an outgrow th of the Cisco/BNI acquisition, enables video control plane and service
management capabilities for subscribers accessing content over any netw ork or device, and allow operators to roll out differentiated video
services in a potentially more rapid and profitable fashion. QAM video support w ill be the initial instantiation w ith IP video being added
during H2 2012.
Benefit The June 2008 DiviTech acquisition bolstered Ciscos video netw ork management platform w ith a service-oriented layer that
offers IPTV operators and broadcasters an efficient solution that reduces the complexity in managing the ever-increasing volume of digital
content. The DiviTech platform synchronizes and validates metadata management, ensuring electronic program guide (EPG) accuracy, and
it reduces manual intervention by automating configuration management.
Issue The availability of the Cisco Conductor platform, w hich is designed to integrate the video control plane and video back office
elements of the Cisco Videoscape portfolio, does not assure Cisco can drive operator adoption of the Videoscape architecture, let alone
the platform itself. W hile making the Cisco Conductor available is a vital first step in unifying the cloud, netw ork and client elements of the
Videoscape portfolio in the back office, Cisco w ill face a more daunting task in driving the Conductor platform deeper into service provider
netw orks and the overall market.
Issue Ciscos Videoscape Media Suite multi-screen content management proposition, w hich leverages its ExtendMedia acquisition, is
potentially vulnerable to rivals that possess the back-office platforms for managing various operational and business systems, such as for
subscriber and billing management. As a result of this portfolio gap, Cisco is potentially vulnerable to rivals that can create more
compelling end-to-end offers w ith more explicit ties betw een video delivery, content management and back-office solutions.
Issue Cisco has decided to terminate its ISDP middlew are offering, evidence that the company has been unsuccessful in differentiating
the platform (or generating revenue). W hile Cisco intends to transition to supporting the Microsoft Mediaroom platform, Ciscos end-to-end
IPTV proposition suffers somew hat from the lack of its ow n middlew are assets to control and influence subscriber personalization of video
experiences. In addition, the transition to Mediaroom support trails the established presence and expertise of Microsoft partners AlcatelLucent and Motorola.
Content Delivery System Scalability

STRONG

Benefit Ciscos family of Content Delivery Engines (CDE) are part of the companys softw are-based, distributed CDS, w hich provides a
common architecture for supporting multiple on-demand applications, such as serving video to TVs, PCs, gaming consoles and mobile
devices. The CDE 250 supports multiple protocols, including MPEG-2/4, H.264, Adobe FMS, Microsoft W indow s Media, Apple QuickTime,
Microsoft Smooth HD, HTTP Progressive Dow nload, 3GPP, Adobe Dynamic HTTP Streaming, and Apple HLS Streaming. The CDE 250 model
2S6 provides a common platform for both TV on demand and Internet streaming applications (though not yet from the same server).
Benefit The CDS 250 model 2S6 supports 30 Gbps of MPEG and HTTP streaming for up to 8,000 SD MPEG-2 streams (at 3.75 Mbps
each) per tw o RU chassis, and over 176,000 streams per rack, w hich is one of the highest streaming density platforms on the market.
W ith 8 Gbps of ingest capacity, Ciscos CDE 250 model 2S6 can ingest up to 2,000 simultaneous MPEG-2 SD streams w ith standard IP
frames (1,000 streams/RU) and 4500 MPEG-2 SD streams w ith jumbo IP frames (2,250 stream/RU).. W ith the CDE 250s 40 Gbps of I/O,
this ingest capacity does not impact full stream concurrency. Ciscos stream ingest metric leads all rival platforms by a significant order of

magnitude.
Benefit The CDS leverages Ciscos IP NGN architecture, w hich employs the companys proven advanced service routing intelligence to
bind content delivery to IP netw ork transport. Ciscos CDS technology can also be incorporated into a blade in the ASR 9000, eliminating
the need to deploy standalone content delivery elements, ahead of rival approaches from Alcatel-Lucent and Juniper. Cisco extends its
CDN intelligence further by incorporating caching technology into Videoscape media gatew ay clients.
Benefit The CDE 250 delivers a single platform to support both real-time and on demand (i.e., time shifted) media services. To reduce
overall backbone bandw idth consumption in the netw ork, content is ingested once for persistent storage in the central library, and then
dynamically propagated to regional caches and local streamers. The Segmented Cache-Fill operation of Ciscos CDE technology delivers
sub 500-millisecond latency from ingest to the netw ork edge, enabling real-time, on demand and online content to be seamlessly
integrated into a single video experience.
Issue Although Cisco can point to several leading cable and telco customers that have deployed the CDS solution, Cisco still faces
incumbents that have broader video server deployments in the cable space and first mover advantages in the telco space.
Issue W hile Cisco has benefited from the incorporation of flash technology (i.e., improved streaming capacity from solid state drives,
and greater cache capacity w ith larger drives), the CDE 250 platform still trails most competitors in terms of solid state cache capacity.
Meanw hile, despite the benefits of improved processing performance and platform density, converged applications for TV and Internet
streaming from a single CDE appliance remains on the product roadmap.
Issue Ciscos Videoscape proposition w ould benefit from the diversification and expansion of its Videoscape partnership efforts w ith
consumer electronic suppliers and content providers. Ciscos relative w eakness in this area, needs to be addressed, not only to counter
the more extensive efforts of rivals in this area, but also to boost the prospects of embedding Cisco Soft Client technology in un-managed
devices.
Head-end Systems Flexibility

STRONG

Benefit Cisco possesses strong video headend (HE) processing expertise and global deployment credentials. Cisco can boast
supporting AT&Ts IPTV HE, w hich is the w orlds largest. Cisco has also supported major broadcaster video processing and distribution of
significant events, such as a partnership w ith NBC for delivery of the 2008 Summer Olympics and the 2010 W inter Olympics. The
acquisition of Inlet Technologies (i.e., Cisco Media Processor and Cisco Transcode Manager) brings multi-screen video transcoding
technology into Ciscos portfolio, enabling Ciscos Videoscape solution to address PC and mobile ABR delivery in addition to traditional
STB/TV delivery.
Benefit By extending Videoscape to mobile Internet scenarios, w ith its MOVE framew ork, Cisco is applying its medianet architecture to
rich mobile netw orks. Ciscos MOVE framew ork leverages its established video, routing, and w ireless netw orking expertise to advance its
mobile Internet proposition. The Content Application Engine (CAE) incorporates video transcoding softw are on Ciscos UCS platforms,
providing a virtualized platform to adapt content for multi-screen/mobile video service delivery. Videoscapes integrated data center-based
approach delivers a differentiated approach for scaling video transcoding by leveraging centralized and virtualized data center resources.
Issue W hile Cisco continues to make solid progress selling its encoder gear into the market, products from Ericsson, Harmonic and
Google/Motorola continue to lead the broadcast and IPTV encoder markets. In addition, Ericsson, Harmonic and Motorola continue to make
progress advancing their video headend platforms to support ever increasing video stream densities.
Issue Ciscos mobile video optimization technology (i.e., MOVEs video transrating and transcoding capabilities) is still in customer
testing, and therefore unproven relative to more established products from rivals. In addition, Cisco has yet to distill how the Cisco Media
Processor and Transcode Manager reconciles w ith Ciscos transcoding softw are development efforts related to the MOVE framew ork w hich
could oblige operators to adopt separate solutions for addressing mobile applications.
Issue By incorporating video transcoding and transrating softw are unto its UCS and ASR platforms, Ciscos approach seems w eighted
more tow ards centralizing and virtualizing video optimization scale in its data center and routing platforms. The result is that Ciscos MOVE
framew ork potentially increases overall bandw idth consumption as more transcoded formats need to flow across more of the netw ork.
This is in contrast to some emerging approaches (from Envivio, Juniper and RGB) that look to send intermediate mezzanine content
formats to the netw ork edge for final adaptation and packaging for various device profiles. Cisco could face critiques that it is just shifting
traffic optimization around the netw ork.
IPTV Portfolio Diversity and Depth

OUTSTANDING

Benefit Ciscos multi-screen solution set features a three-dimensional in-house product portfolio that few if any rivals can match directly
today w ithout relying more on multiple partners. Ciscos approach is centered on the interdependencies betw een cloud, netw ork and
clients critical to the delivery of rich media experiences. The cloud elements include all elements of content preparation, ingestion, storage
and management. The netw ork elements include distribution architectures for a bi-directional content flow s employing unicast and multicast streams. The clients emphasize a mix of managed and unmanaged devices for reaching IP-enabled endpoints.
Benefit The recent Videoscape products and portfolio enhancements (i.e., video in the cloud, Any TV Screen) tighten the cloud, netw ork
and client elements of the overall Videoscape architecture, rendering the Videoscape proposition more compelling. This includes enabling
operators to realize the coordinated media, netw ork and devices aw areness required to scale consistent and high-quality unicast video
experiences across multiple screens.
Benefit W ith the delivery of seven new Videoscape portfolio innovations, including new client technologies, such as the Cisco 9800
series multiscreen gatew ays and Videoscape Voyager Vantage, new cloud components, such as the Videoscape Voyager Virtual, Cisco
Conductor, Cisco Media Processor and Transcode Manager and the Videoscape CDN Analytics netw ork component, Cisco executes sw iftly
on delivering promised 2012 Videoscape roadmap products. This gives operators the assured confidence to invest in the Videoscape
architecture to meet the challenges of supporting multi-screen IP video services.
Issue Cisco lacks direct portfolio assets in the telco access sector today (w ith the exception of active/P2P Ethernet FTTH solutions).

Thus, the company remains somew hat vulnerable to the pace of rivals driving and influencing PON/FTTx/VDSL2 deployments, impacting the
sales progress of its overall IPTV/multi-screen solution proposition.
Issue Although Cisco, via its video netw orking assets and related IP NGN assets, possesses undeniable credibility w ithin the cable
space for scaling video applications, its established traction in the IPTV space primarily centers around IP STBs and aggregation/core
routing infrastructure. IPTV solution rivals w ill continue asserting that the jury is still out as to how much further influence and significance
Cisco can achieve w ithin the telco IPTV market, e.g., in terms of scaling efforts vis--vis their ow n established and broadly deployed
IPTV/IP video solutions.
Issue Related to the lack of telco portfolio assets is Ciscos lack of traditional mobile RAN assets. W hile video netw orking is becoming
more important to mobile operators, radio netw orks still garner much of the attention from mobile operators. Likew ise, Cisco is vulnerable
to RAN vendors w ho are ramping up their video netw orking capabilities. Cisco, unlike those vendors, cannot supply an end-to-end netw ork
solution.
IPTV Professional Service Integration Package

STRONG

Benefit Ciscos Advanced Video Services Group possesses more than 55 years of experience in the media industry, and continues to
capitalize on expanding digital media/IPTV integration opportunities. Evidence of continued traction and momentum for Ciscos Advanced
Video Services Group includes end-to-end systems integration w ins at Virgin Media in the UK, Rogers Cable in Canada, YES in Israel, iPlus
decoder w in w ith Digital+ (Spain), CDS for VoD w ith NET (Brazil), VoD launch and integration w ins at ASTER in Poland, and supporting
Numericables 3-D consumer service launch.
Benefit Cisco differentiates its HE/IPTV service integration package in areas such as video acquisition, video processing, video
encoding, and video management building blocks that are essential for any successful video service. This includes, for example, video
acquisition dimensions such as the physical location of satellite receivers, signal conversion, and off-air and fiber receiver capabilities that
require years of video-specific experience to master.
Benefit Ciscos Advanced Video Services Group possesses the expertise to integrate Cisco and third party applications and
infrastructure to enable service providers to launch video services rapidly and cost effectively. Ciscos Advanced Video Services Group
delivers project management, testing, installation, configuration and training support to service providers.
Benefit Cisco supports The RedPlayer service offering combining Red Bee Media's origination, digital content and media management
services w ith key elements of the Cisco Videoscape platform, creating a one-stop shop for content ow ners to build and expand secure,
Media Grade' video offerings.
Issue - Cisco does not maintain the services profile of key competitors in the service provider netw ork. It does not have the same
services employee resources for example as an Alcatel-Lucent, Ericsson or NSN. It does not yet offer complex multivendor or netw ork
management services. It enjoys less breadth in terms of its telecom product portfolio (not present in the voice core or w ireless), limiting
the reach of its services relevance.
Security and Digital Rights Management (DRM) Efficacy

CONCERNS

Benefit Cisco possesses an extensive track record in executing the content security aspects of traditional cable content offerings.
Ciscos STB technology has consistently proven adept at supporting the conditional access technology required by both legal regulation
and MSO netw ork requirements to aid content security efforts.
Issue Successful service provider implementation of Videoscape w ill also require overcoming critical business model challenges.
Specifically, the CDN intelligence that Videoscape offers, such as caching content in the gatew ay client devices, requires content ow ners to
shift their current stances on content rights for distribution and storage. Similarly, Videoscapes more mobile proposition w ill also require
service providers to earn the confidence of content ow ners to allow their premium content assets to be delivered and transferred from
managed netw orks and devices to un-managed netw orks and devices.
Issue Cisco w ill continue to encounter rival fear, uncertainty, and doubt (FUD) directed at the companys long historical association w ith
cable conditional access methods and the high-profile piracy and theft of cable content over the years (i.e., guilt by association). Such
challenges w ill look to frame Cisco as being less nimble on multi-screen and IPTV security in relation to content security solutions that
w ere purpose-built for IPTV applications in their origin.
Issue Motorolas incorporation of SecureMedia into its Medios solution puts the spotlight on Cisco w ith respect to how it w ill evolve its
content security technology to address the grow ing preponderance of IP-based and multi-screen content delivery, w here softw are-based
technology w ields competitive benefits in terms of low er OpEx and greater deployment flexibility than smart-card alternatives.
Issue W hile Ciscos Digital Media System and Media Experience Engine (MXE) offers visible w atermarking technology, Cisco has not
extended transparent digital w atermarking insertion technology to support consumer video distribution, w hich is a critical enabler for
multi-screen video delivery as w ell as premium video delivery to subscriber homes.

All m aterials Copyright 1997-2012 Current Analysis, Inc. Reproduction prohibited without ex press written consent. Current Analysis logos are tradem ark s of Current
Analysis, Inc. The inform ation and opinions contained herein have been based on inform ation obtained from sources believed to be reliable, but such accuracy cannot be
guaranteed. All views and analysis ex pressed are the opinions of Current Analysis and all opinions ex pressed are subject to change without notice. Current Analysis does
not m ak e any financial or legal recom m endations associated with any of its services, inform ation, or analysis and reserves the right to change its opinions, analysis, and
recom m endations at any tim e based on new inform ation or revised analysis.

recom m endations at any tim e based on new inform ation or revised analysis.
Current Analysis, Inc.
21335 Signal Hill Plaza, Second Floor, Sterling, VA 20164
Tel: 877-787-8947
Fax : +1 (703) 404-9300
Current Analysis, Inc.
2 rue Troyon, 92316 Sevres Cedex , Paris, France
Tel: +33 (1) 41 14 83 17
http://www.currentanalysis.com