How Cisco is innovating in video solutions across business, private and public sectors and what the future of video implies for service providers.

1. The Future Is Video Cisco Internet Business Solutions Group (IBSG) June 10, 2011

2. Global Consumer Internet Traffic Growing 500% Between 2009 and 2014 36% CAGR 2009–2014 15% 27% 10% 46% * VoIP, Online Gaming, and Video Calling contribute 1% or less in 2014 Source: Cisco Visual Networking Index (VNI) Global Forecast, 2009–2014 - www.cisco.com/go/vni

3. Mobile data traffic will increase 39-fold from 2009 to 2014 4% 5% 108% CAGR 2009–2014 8% 17% Exabytes/mo 66% Mobility An Even Faster Growing Subset Source: Cisco Visual Networking Index (VNI) Global Forecast, 2009–2014 - www.cisco.com/go/vni

4. Video Driving Explosive Network Growth Global Consumer Internet Video CompositionVideo traffic increasingly driven by live video and TV 52% CAGR 2009–2014 16% 16% 17% 42% Source: Cisco Visual Networking Index (VNI) Global Forecast, 2009–2014 - www.cisco.com/go/vni

5. If All Video Minutes Were 3D in 2014, the Video Forecast Would Be 3X Higher

6. Consumers Are Widely Embracing Internet Video Content Watching Internet Video (by Age) Watching Internet Video (by Content) 93% 80% 81% 67% 61% 55% 52% 51% 38% 25% User-created Short Clips (youtube) TVPrograms Professional Short Clips (news) Movies Sporting Events 2.6 hours 1.1 hours 47min 43min 1.7hours Time per week Base: U.S. Broadband Consumers Source: Cisco IBSG Connected Life Market Watch, 2010 Consumer Behavior Is Fueling the Growth

7. Lifestyle is also Driving Adoption Living Situation Employment Status Base: US Broadband Consumers Source: Cisco IBSG Connected Life Market Watch, 2010

8. Rise of “On-Demand” Models The Consumer Cloud For the Consumer: Capabilities that enable consumers to easily & securely access the content, applications, and infrastructure they seek from any location or device. For the Service Provider: Capabilities that provide companies with a re-usable, expandable, and agile common services engine for quick time to market and better insight & control over consumers’ end-to-end experience.

9. The CDN ImperativeThe Case for Federation Definition A multi-footprint, CDN capability built from resources that are owned and operated by autonomous members. Objectives Allow individual members to sell Internet wide delivery Extend ONnet differentiators (quality, scale ...) across footprints Simplify contracting with content providers New interconnect model to complement IP transit & peering Reduce local transport costs Platform for value added services and SP retail services

10. Which CDN Components Need to Be Interconnected? Request-Routing system: Redirecting client requests to an “appropriate” federated CDN/Cache for delivery Content Distribution* system: Distributing content from one CDN to another Accounting system: Moving accounting data between CDNs for billing and reporting purposes (both Retail and Wholesale) *Not to be confused with “Delivery” of content from a Cache to the client

11. CDN Federation Market OpportunityFoundation for Retail and Wholesale Services Content, Service & Application Revenues Public Cloud Mobile Services TVEverywhere nScreen Services Saas Virtual Private Cloud Application Stores Content Stores Digital Locker Content Management & VAS Revenues Syndication Storage Metadata Mgt Transcoding Analytics Customizable Players Security Payments Hosting Ad Insertion Authentication Enhanced Delivery Revenues Apps Acceleration Cloud Acceleration Site Acceleration Multicast Qos HD Proximity On-demand Delivery Revenues Object Delivery Live Streaming Download IP Transit Peering IP Core Network Cost Reduction IP Aggregation CDN CDNI Gateway CDNI Gateway Content Provider CDN CDN CDNI Gateway CDNI Gateway

12. Current CDN Market Scope Mostly Basic/Enhanced Delivery + Some VAS Content, Service & Application Revenues Public Cloud Mobile Services TVEverywhere nScreen Services Saas Virtual Private Cloud Application Stores Content Stores Digital Locker Content Management & VAS Revenues Syndication Storage Metadata Mgt Transcoding Analytics Customizable Players Security Payments Hosting Ad Insertion Authentication Revenues Enhanced Delivery Revenues Apps Acceleration Cloud Acceleration Site Acceleration Multicast Qos HD Proximity On-demand Delivery Revenues Object Delivery Live Streaming Download IP Transit Peering IP Core Network Cost Reduction IP Aggregation CDN CDNI Gateway CDNI Gateway Content Provider CDN CDN CDNI Gateway CDNI Gateway

14. No major disruption on the way CDNs handle Video or work with Content Providers

15. Some Content Providers prefers DIY CDNs to better control their content quality. More than 50% of the Internet Video traffic is not going over commercial CDNs

16. SP’s build OnNet CDNs delivering better quality, more video is consumed

17. Content Providers migrate their premium content to benefit from this guaranteed quality

18. DIY CDN is a less attractive option for Content Providers Source: Frost & Sullivan, Akamai, Limelight, Cisco VNI, IBSG analysis *CDN VAS: Storage, Transcoding, Security, Ad Insertion, Analytics, Consulting...

19. Key Considerations Massive video growth drives both operating challenges, but also new revenue opportunities Determine what your strategy will be for content management and distribution Content management (CDNs) key to handle the increased traffic of video and provide basis for wholesale VAS Emerging federated CDN models may have both regulatory and anti-trust considerations