Archive for the ‘ Business ’ Category

The KPN CDN

This summer we helped KPN to deploy their CDN. KPN has licensed our VideoExchange CDN software suite.

Like all telecom operators KPN has multiple strategical, technical and commercial reasons to deploy an on-net CDN.

Let’s start with some details about KPN for those who only know the US market players: Read more

2009
08/12
POSTED BY
Stef
CATEGORY
Business
Distribution
ISP's
Uncategorized
Video Working Group
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Horizontal or vertical

I get many questions whether CDN’s should be a horizontal or a vertical service.

I say horizontal. For a number or reasons:

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2009
08/06
POSTED BY
Stef
CATEGORY
Business
ISP's
Value chain
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Teaser ad

This is an ad for VideoExchange in Streaming Media Magazine.

Sorry for making fun of investors behind al those loss leading CDN’s. We just couldn’t resist.

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2009
08/06
POSTED BY
Stef
CATEGORY
Business
Marketing
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CDN in a Box

StreamZilla introduced the CDN in a Box service. Wholesale CDN resellers want to offer white labelled services to their customers. They want to be able to provision their own customers.

The StreamZilla CDN in a Box service is powered by VDO-X, so all their customers have a market leading self-service cockpit to manage assets, live streams and statistics. The customers can use advanced, open standards based API’s to integrate and automate their workflow.

What makes the CDN in a Box service unique, is that the wholesale resellers get dedicated resources within the CDN.

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2009
08/06
POSTED BY
Stef
CATEGORY
Business
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Focus!

The CDN industry is still very young. It is an immature industry. Technology is advancing. New players enter the market and existing players keep changing their proposition. They are in trouble.

Lack of focus is killing. I’ve been around 15 years in this industry and I have seen so many companies come and go. Their problem was lack of focus.

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2009
08/05
POSTED BY
Stef
CATEGORY
Business
Value chain
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The Netherlands: digital media hub

Although I am not a chauvinist, I want to share some insights about the Netherlands and why Dutch companies are influential, even though we are a tiny country.
Dutch people speak two, three, sometimes four or even five languages. We are a very open society and we have always been internationally oriented, both culturally and trade-wise. We are not that chauvinistic and are open to do business with anyone. As long as you pay :-)
We happen to sit on top op the world’s largest internet hub: the Amsterdam Internet Exchange. Many gigabits per second of global Internet traffic flows through the Netherlands.
With over 80% we have the highest broadband penetration in the world. Fast broadband! Average households get 6 to 20Mbps. Early adopters get up to 100Mbps broadband. Broadband consumption is extremely high. The 2008 Olympics live streams were watched (per capita) 10x as much by Dutch people compared to the US market.
Next to the USA and the UK, the Netherlands are number three in content formats and export. Endemol and Eyeworks (we work for both) are famous for their shows like Big Brother, Deal or no Deal, Starmaker, Extreme Makeover and hundreds other global broadcasted formats. The Hilversum Media Park is the largest media hub in the world, where broadcasters, studios, producers, and hundreds facilitating companies are located.
Forget wooden shoes, windmills and tourism. Similar to the Rotterdam Harbour (the largest harbour in the world), the Netherlands are a significant accelerator for digital media services.
To improve partnering, form better value chains and do more international export, Dutch companies teamed up in the Dutch Media Hub. The hub is supported by the Secretary of Economic Affairs, who specifically mentioned Jet Stream as one of the key examples of successful, innovative exporting companies in the digital media industry.

Although I am not a chauvinist, I want to share some insights about the Netherlands and why Dutch companies are influential, even though we are a tiny country.

Dutch people speak two, three, sometimes four or even five languages. We are a very open society and we have always been internationally oriented, both culturally and trade-wise. We are are open to do business with anyone. As long as you pay :-)

We tend do do things lean and mean: innovative, efficient to the bone, so we can be competitive, even though salaries and taxes are higher than in most other countries.

We happen to sit on top op the world’s largest internet hub: the Amsterdam Internet Exchange. Many gigabits per second of global Internet traffic flow through the Netherlands.

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2009
08/04
POSTED BY
Stef
CATEGORY
Business
Distribution
Logistics
Value chain
Video Working Group
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There is no European market

U.S. based CDNs often ten to think that they can enter the European market by having an office in London, Paris or Amsterdam.
Although there is a European Union, without borders, with free economics and a single currency, there is no single market like there is in the U.S.A.
There are over 25 countries and languages in Europe. You will encounter cultural and language barriers. Opening an office in London also means a geographical barrier.
In southern countries, business is done mostly via personal relations. You need to personally meet, drink, eat and laugh. And again and again. And then they may want to deal with you. Business in Eastern Europe is hard. They don’t trust you. And you should not trust them. Let them pay in advance. In other countries, business is very strict. Polish your shoes if you want to do business in Germany. Don’t small-talk too long.
English people can be very rude. They don’t say their name when they call you. “I need a quote, now!”. The French, oh the French are so chauvinistic. They even have their own words for internet protocols. They don’t do business outside France. They still think that France is the center of the world. Like many people from the U.S.A. still think they are the center of the world.
It is changing though. A younger generation grows up with the Internet. And English is the Internet language. It surprises me how well many international customers speak English, especially Italians and Spanish customers.
We have the luck of being in the Netherlands. Dutch people speak two, three, sometimes four or even five languages. We are a very open society and we have always been internationally oriented, both culturally and trade-wise. We are not that chauvinistic and are open to do business with anyone. As long as you pay.
The European market is also dividid for content, both culturally and by language. Shows who are extremely popular in Germany will never work in the UK, even if they were produced locally with local stars in their native language. The Germans don’t get English jokes and the English don’t get German jokes. Really.
Even if you find a content format that works in multiple countries, you have the language barrier. You have to produce content in multiple languages. Some countries require native spoken content. Other countries want dubbed content. And other countries prefer subtitled content. If you do this wrong, no one will watch your content.
Even pan-European broadcasters like MTV and Discovery have custom channels per country or per language region. 95% of all broadcasters are focussed on just one country or one language region.
There is no pan-European advertisement industry. Take the product overview of giants such as Unilever or Proctor & Gamble, and you wil see that the very same toothpaste product has many different names throughout Europe. Heck, we had Dove soap and Dove chocolat.
So there is no European market. If traffic stays for 90% within your own country, why sign up with a global CDN? Why not work together with a regional player?
In Europe there are a lot of regional streaming providers who do local business only. Over 90% of their business is in their own country. Over 90% of their traffic stays within their own country, even though they claim to be a significant European player.
The problem is that these small players can’t innovate fast enough. They can’t compete on support, technology, infrastructure or price.
As far as I know, our own StreamZilla service is the only CDN that has managed to capture a true European market. Over two thirds of our customers (and our traffic) comes from EU countries. We even managed to become dominant in some markets. Only twenty per cent comes from our home country the Netherlands. And about ten percent is delivered to the U.S.A, South America and the rest of the world. Where we have excellent performance too, by the way: A+ status for each streaming protocol.
StreamZilla has grown large enough to compete with larger, USA based CDN’s. We do offer better customer support. Our performance in Europe is better than most global CDN’s can offer. We have been able to invest in technology. And our rates are competitive.
This is also an opportunity for ISP’s. There is no EU market. Imagine you are a content owner. Why sign up with a global CDN if you can do direct business with an operator who controls both access and distribution in the target market?
Build a CDN and do business in your own country, in your own language, in your own cultural way.
So is this a threat to StreamZilla? Yes and no. We may lose some content owners when they can do direct business with ISP’s. But the content owners still need someone to tie the CDN’s together: to act as an overflow platform, to act as an overlay platform.
So is this a threat to local streaming operators? Yes and no. They will lose the innovation race. StreamZilla already proposed some that they stop doing their CDN part and focus instead on value added services: encoding, asset management, translation services, portal services, custom video players. In some markets this turned into a very successful partnership.
So is this a threat to the global CDN’s? Yes. Sorry!

U.S. based CDN’s often tend to think that they can enter the European market by having an office in London, Paris or Amsterdam.

Although there is a European Union, without borders, with free economics and a single currency, there is no single market like there is in the U.S.A.

There are over 25 countries and even more languages in Europe. You will encounter cultural and language barriers. Opening an office in London also means a geographical barrier.

Read more

2009
08/04
POSTED BY
Stef
CATEGORY
Business
Distribution
ISP's
The Last Mile
Value chain
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Why are telecom operators deploying CDNs?

Telecom operators have a four-way strategy to own an on-net CDN. On-net CDNs offer deeper network penetration with better QoS and larger capacity. The CDNs that we deploy support all popular delivery technologies for the web, mobile and IPTV. This means that the telecom operators can:

  1. optimize on-net traffic flow, reduce backbone and peering load
  2. host and deliver on-net web, mobile and IPTV services
  3. sell CDN resources to content owners
  4. Take back the distribution role in the value chain

External CDNs could only have addressed number 3 in this list. Read more

2009
08/04
POSTED BY
Stef
CATEGORY
Business
Distribution
ISP's
Logistics
Technology
The Last Mile
Value chain
Video Working Group
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