Presentation | P2P Media Summit CacheLogic Advanced Solutions for P2P Networks Presentation by Andrew Parker, CTO Addressing the cost and performance challenges of digital media content delivery P2P Media Summit Addressing the cost and performance challenges of digital media content delivery BROADCASTERS | AGGREGATORS | FILM STUDIOS | VIDEO PORTALS MUSIC LABELS | SOFTWARE VENDORS | COMPUTER GAMES VENDORS

CacheLogic Advanced Solutions for P2P Networks Presentation | P2P Media Summit Introduction to CacheLogic Market leader in the provision of P2P management solutions to the ISP/telco sector P2P-Management Protocol-based P2P recognition and on-network caching solutions Streamsight Analysis Network Layer-7 application layer DPI network providing Internet traffic analysis for ISPs VelociX Hybrid peer-assisted platform for digital media delivery Large object, digital asset delivery service for content owners: film, video, broadcast, music and software vendors Global Coverage and Support Commercial Overview Headquartered in Cambridge, England, regional offices in the USA and Singapore July 2006: closed $20 Million Series C funding round

CacheLogic Advanced Solutions for P2P Networks Presentation | P2P Media Summit P2P as future of distribution P2P has been at the forefront of the exponential growth in demand for on line digital media 1999 to present: fuelled by Napster, KaZaA, eDonkey and BitTorrent More than 60% of P2P traffic is video Asia - 50% Objects > 2.5Gb !! P2P usage is widespread and growing 2004 – 3 million unique IP addresses in 30 days 2006 – 3 million unique IP addresses in 8 days Continuing Impact on ISPs 50-65% of downstream traffic is P2P 75-90% of Upstream Traffic is P2P CacheLogic Research Breakdown of File-Types on Major P2P Networks CacheLogic Research Internet Protocol Breakdown

CacheLogic Advanced Solutions for P2P Networks Presentation | P2P Media Summit P2P is a global phenomena

CacheLogic Advanced Solutions for P2P Networks Presentation | P2P Media Summit Why is P2P so attractive ? Decreasing Revenue per GB Big disparity between Audio and Video HD will make this problem even worse iTunes $1.00 (5Mb Audio) $1.79 (500Mb Video) DVD - 5Mbps x 90 minutes3.5GB Rental Model: Commercial value~ $3.50 Value/data density$1 per GB Purchase Model: Commercial value:$16.00 Value/data density$4.57 per GB MP3 Single (e.g. iTunes) Typical MP3 file size5MB Commercial value$1.00 Value/data density$0.20 per MB/ $200 per GB Scalability Existing distribution and streaming technologies penalise content owners for success! The economics of P2P delivery are much closer to broadcast economics

Presentation | P2P Media Summit CacheLogic Advanced Solutions for P2P Networks Sounds Great….But

CacheLogic Advanced Solutions for P2P Networks Presentation | P2P Media Summit Todays Internet is not Designed for Symmetric Traffic The Internet has been built on the premise of core-to- edge distribution High Capacity Data Centres, Large Core, Asymmetric Small Edge Cost and performance optimised by Peering and Private interconnects with content P2P places the burden of content distribution on the access network

CacheLogic Advanced Solutions for P2P Networks Presentation | P2P Media Summit Broadband Access Network Design - DSL ADSL and Cable modem were designed for asymmetric traffic Web VOD ADSL Download <7Mbps Upload < 800kbps 11:1 ADSL2+ Download <24Mbps Upload < 1Mbps 24:1 Asymmetry is increasing

CacheLogic Advanced Solutions for P2P Networks Presentation | P2P Media Summit Impact of P2P on Service Providers – Transit/Peering 50-65% of downstream traffic is P2P P2P is expensive bandwidth In most countries 90% of P2P traffic crosses international boundaries P2P applications aggressively consume all available bandwidth

CacheLogic Advanced Solutions for P2P Networks Presentation | P2P Media Summit Impact of P2P on Service Providers – Access P2P is inherently symmetrical Most traditional protocols are download orientated (e.g. web) This makes Peer-to-Peer a huge problem for last mile providers Responsible for 75-90% of upstream/last mile traffic on the network. But … I thought P2P was making efficient use of underutilised upstream capacity in the network

CacheLogic Advanced Solutions for P2P Networks Presentation | P2P Media Summit VelociX: introduction VelociX Performance Statistics: Comparison of content download times pure P2P vs. VelociX peer-assisted delivery Parameters: 60 minutes television programme (sample 1 - encoded at 1Mbps and sample 2 – encoded at 2Mbps) downloaded over a 10Mbps connection BROADCASTERS | AGGREGATORS | FILM STUDIOS | VIDEO PORTALS | MUSIC LABELS | SOFTWARE VENDORS | COMPUTER GAMES VENDORS Worlds first multi-protocol peer-assisted media delivery platform - creating an environment for secure, scalable and cost effective media distribution to mass and niche markets Economic benefits and scalability of P2P Resilience, accountability and efficiency of a physical delivery network Resolves ISP Neutrality Key Benefits: High-speed delivery Mass audience scalability Cost-effective large object distribution

Presentation | P2P Media Summit CacheLogic Advanced Solutions for P2P Networks CacheLogic, NTL, BitTorrent

How it Works Content P2P Server Legitimate content provided by the service is placed on the Servers Tracker Server Look Up The Tracker works as normal to find Peers that can support the download If it is legitimate content, a cache is added into the Peer group.

The Results of the Trial content: Film H comment: Unbelievable speed! 18 mins for a 1.2Gb file. Awesome! content: Episode 3 comment: 350mb in 5mins! epic! content: Episode 2 comment: 350mb in 7 mins!!!!???? awesome!!! Trialists on a 10 MB/s service saw a x14 average increase Trialists on a 2Mb/s service saw a x9 average increase Trialists on a 1Mb/s service saw a x6 average increase It works! No longer upload constrained (& less upstream traffic)

CacheLogic Advanced Solutions for P2P Networks Presentation | P2P Media Summit Summary Economics for existing content distribution are broken, and will get worse as content continues to grow. P2P can resolve the economic challenges, but is transferring the burden of the cost elsewhere…. The ISP The ISPs interests can also be balanced, ala NTL Reduced costs Increased legal content to drive network usage and stop ISPs becoming commoditised bit-pipes

CacheLogic Advanced Solutions for P2P Networks Presentation | P2P Media Summit Thank You!

CacheLogic Advanced Solutions for P2P Networks Presentation | P2P Media Summit Traditional Content Delivery vs. P2P Host Backbone Access Consumer Content Flows like this But in a P2P world it flows like this Host Backbone Access Consumer Content