My Boss Told Me to Transcode in the Cloud….

1. My Boss Told Me to Transcode in the Cloud…. Jim Duvaljimd@telestream.net +1 530 470 5345 27-Oct-2014

2. Founded in 1998 • Transcoding products since 2000 • FlipFactory • Episode (Popwire) • Agility (Anystream) • Vantage • More transcoding expertise than all other vendors combined • Headquartered in Nevada City, California • Video expertise located in Europe, Asia, and US

3. Products at the heart of every digital media echo system…. • 95% of US top broadcasters • 80% of Fortune 100 companies • and…literally millions of consumers…

4. Why? • Why transcode in the Cloud? • Cloud Service Models • Cloud Price Models • Security • Applications and Workflows • Telestream Demo

5. Why Transcode in the Cloud? • Compelling Economics (perhaps) • Avoid cyclical HW refresh expenses • Avoid physical plant costs • Easy scalability • Project Agility • Shorten development cycles • Rapid prototyping & deployment • Application Benefits • Global access • Redundancy • Massive, available storage • Internet delivery optimization Platform

6. Cloud Service Models • SaaS (Software as a Service) • Application, Software & Hardware • Infrastructure managed by provider • Pre-set configurations & workflows • GUI and API interfaces • PaaS (Platform as a Service) • Hardware & Software infrastructure • Runtime, database, web server, tools • IaaS(Infrastructure as a Service) • Hardware infrastructure • Physical system management • Building, power, cooling, network, security • Hybrid • Combined on-premise system with cloud system Source: http://cloudcelebrity.wordpress.com/2011/11/22/introduction-to-cloud-services-iaas-paas-saas/

7. Public and Private Clouds

8. Pricing Models for Cloud Transcoding • Price per minute of encoded content • Price per GB of source video • Pre-purchased capacity • Price per hour of usage

9. Pricing Model Summary 1. Easy cost forecasting 2. Studio Option 3. Highly predictable within agreement 4. User controllable hardware type and scale 5. Elemental data extrapolated from Jan Ozer Streaming Media paper, July, 2014. Numbers are preliminary and subject to change.

10. Price Comparison Example • Zencoder Traction • $300/Month for 10K output minutes • $0.03/output minute/layer for overage • Encoding.com Studio • $400/Month for 100 GB source • $1.80 for each additional GB • Elemental 1 • $2,995/Month • $20/hour • Telestream Vantage Cloud Subscription • $875/Month + $10/running hour • Assumptions • XDcam HD 50 source (22.5 GB/h) • 5 layer HLS output • Real-time transcoding for all systems 1. Elemental data extrapolated from Jan Ozer Streaming Media paper, July, 2014. Numbers are preliminary and subject to change.

11. Security • Physical Security • Physical server redundancy • Power redundancy • Fire protection • NOC access security • Compliance • AWS Security white paper (http://aws.amazon.com/security/)

12. Telestream Vantage Cloud Subscriptions

13. Vantage Cloud Subscriptions • Vantage, the workflow and transcoding software of choice of the most demanding media companieson the world’s leading cloud computing platform. Easily deliver compelling new products and services to your customers and organizations. • Financially flexible Pay-As-You-Go pricing. • Secure, world wide accessibility. • 15 minute provisioning of hundreds of Vantage servers. • Includes: • Vantage Virtual Domains • Vantage Cloud Manager DomainDB SAN S3 Object Storage Vantage Cloud Manager Manage Create Monitor

14. Vantage Virtual Domains • Output applications • Broadcast • IPTV VOD Transport streams • Adaptive Bit Rate • Metadata processing • Content assembly • Content Analysis • Performance Enhancement • Lightspeed • Vantage Array • CPU and CPU/GPU Transcode servers • Up to 6 TB RAID SAN • Internet I/O Protocols • S3, ftp, sftp, http, Aspera DomainDB SAN S3 Object Storage Vantage Cloud Manager Manage Create Monitor

15. Applications

16. Workflows Define Configurations • Internet Distribution • Internet Distribution • Content files are produced and refreshed routinely from one location • Planned media migration policy • Partition by file size and output round trip requirements • Hybrid topology and automated rule based sorting optimizes results • Distributed Acquisition • Event driven activity. • Content is produced from many locations • Media processing scales as needed • Topology depends on upload file size. • Distributed Acquisition • Content library • Content library • Large, mostly static, cloud content store • Recurring requirement to produce the library in new formats • Keep the content near the transcode computes • Distribute from the cloud (CDN) • Well suited to cloud only topology.

17. Global Access Example • Object storage is separately, globally accessible • Immediate global provision and scale. • Event driven processing capacity can be scaled as needed. Object Storage SAN Server Server Server

18. Relative System Performance DomainDB • Summary • Current generation on-premise Lightspeed GPUs have 2X the capacity of current generation AWS GPUs. • Optionally double EC2 compute resources. • I/O dominates overall throughput results. • It is faster to move computes to large files rather than to move the files to the computes. • Best results are achieved by optimizing workflows based on data location. SAN 21 GB S3 Object Storage • 9 ProRes files (21 GB) stored in S3 • Stress test I/O and processing performance in isolation and overall. • Compare K20 Lightspeed and first generation AWS GPU servers. Transfer time: S3 to AWS 7X faster Transcode time: On-premise LS 3X faster Total time: AWS 22% faster

19. Vantage Cloud vs Vantage Enterprise Financial Breakeven • Assume: • Vantage 4 node Domain • Fully configured Vantage on-premise software • Break even • > than 10 shifts/week • Cloud is 2X enterprise cost at full time usage • Summary • Full time ownership is less expensive than full time rental • Renting is a good financial option for part time usage • Fixed cost/capacity vs Flexible cost/capacity trade-off

20. On-Premises Cloud • Performance- S3 storage is unlimited & inexpensive. Transcoding from S3 is faster at AWS. • Predictability – System capacity scales. • Cloud systems scale for bursts in minutes. • Weeks are saved from project schedules. • Security – AWS security is sophisticated, thorough and comprehensive for banks, governments, and agencies on global scale. • Cost – Would you rather rent or buy a vehicle for your vacation? • Performance - Throughput from highly tuned, local storage to local systems is best. • Predictability – Very well known system performance characteristics and capacity. • Security – Total control within your data center. • Cost– CAPEX cost prediction is more accurate than OPEX.

21. Summary – “The Cloud” is another arrow in the technology quiver. When to Rent? When to Own? • Content is stored in S3 • Internet content distribution • Discretionary capacity • Fast prototype environment • New project startup • World wide access/contribution • Disaster recovery option • OPEX business model prevails • Business plan to reduce data center expenses. • Fastest response to unpredictable demand. • 10 or more production shifts per week. • Automated on-premise system integration • Terrestrial distribution (HD round trip) • CAPEX business model prevails • Data center is a competitive advantage