ISPs eye OTT opportunity from Open Caching | Infrastructure | News | Rapid TV News
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The Open Caching technologies market shows no sign of slowing and is challenging public and private CDNs, but a fight is brewing among its component parts and questions are emerging as to the impact on the video delivery market says a Rethink TV study.
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Putting down a baseline for its report, the study says CDNs currently reign supreme in video delivery but Open Caching could be a new disruptor on the block. It adds that Open Caching specifications allow for ISPs to create a caching system within their networks that could significantly reduce their operational costs, while also netting them payments from the OTT content providers (CPs) that are trying to reach those fixed-line broadband customers.

To gain these advantages, an ISP could implement the technology independently or they could use a vendor that has implemented Open Caching capabilities within their portfolio. This would mean, said Rethink TV, that CDN firms would thus be “left in the lurch”, as the CPs would pay the ISPs for delivering video, and in so doing, the CPs would reduce their spend with the CDNs.

Rethink TV also noted that CDN providers themselves could pursue Open Caching and adding more complexity to the sector is the push towards Telco CDN, a term that describes how CDNs have begun brokering deals to locate their caching servers within the ISP networks, a move that the analyst says looks quite similar to Open Caching.

Addressing the issue of standards, the analysis observed a number of technology vendors are pursuing early pre-standard Open Caching wins aggressively, acting as the middlemen between the CPs and the ISPs until that global API program is implemented. Rethink TV warned of the risk that these early programs lead to incompatible islands, depending on how different the finalised Open Caching standards are to what is being currently installed.

In all, the analyst said that there was still a lot of uncertainty on the commercial side of the Open Caching proposition. It cautioned that while there was consensus that the underlying technologies are sound and achievable, this was a story that the video industry has heard and told many times, and the business model is ultimately what makes or breaks a new approach.

The study predicted that the arrival of both Open Caching and Telco CDN, as well as the impact of Multicast-ABR, WebRTC, and Decentralised-CDN, will mean that traffic growth will begin to slow. Revenue growth is expected to slow sooner, but this is no surprise to those in the delivery game.