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Network Strategy Partners Study Analyzes TCO of Multicast-to-Storage(TM) Vs. Streaming Video for Video-on-Demand Services

Posted on: Tuesday, 4 March 2008, 12:00 CST

CONCORD, Mass., March 4 /PRNewswire/ -- A new study by Network Strategy Partners (NSP) analyzes the Total Cost of Ownership (TCO) of a Multicast-to- Storage(TM) solution developed by Intercast Networks versus streaming video for delivery of video-on-demand (VOD) services.

-- Multicast-to-Storage(TM) (M2S) architecture shows a 61% TCO savings over a five-year period as compared to the streaming video architecture resulting from 57% in CapEx savings and 65% in OpEx savings. Sensitivity studies highlight the following: -- Concurrency of 10% produces a 50% TCO savings for M2S as compared to streaming video. This increases to 82% TCO savings at 40% concurrency. -- Annual price declines for personal storage of 20% results in 55% TCO savings for M2S as compared to streaming video. The savings further increase to 63% with an annual price decrease of 45%. The full report can be downloaded at http://www.nspllc.com/

According to the study the M2S solution yields substantially lower TCO than streaming video. This significant effect is achieved by substituting low cost personal storage for higher-cost video server capacity thereby dramatically reducing bandwidth requirements on the service providers' IP access network.

"Multicast content delivery technology is scalable, network efficient and supports massive content delivery at a fraction of the cost of unicast content delivery. Multicast, however, is not personalized and as such cannot support diversified consumer taste as unicast does," said NSP's Michael Kennedy, Managing Partner and author of the study. "Multicast-to-Storage combines the scalability of multicast with the personalization of unicast to create broadcast-like network scalability and economic efficiencies, while still meeting consumers' demand for control of their TV viewing experience."

The study compares the cost to build-out and operate a server-centric architecture (Streaming Video) to the cost of the M2S architecture over a typical metro area during a five year period. The analysis compares the associated costs of personal and server-based storage, and drills down into the cost structure of content distribution over IP access networks.

About Network Strategy Partners

Network Strategy Partners, LLC (NSP) - management consultants to the networking industry - helps equipment vendors, service providers, and enterprises around the globe make strategic decisions, mitigate risk and affect change through custom consulting engagements. NSP's consulting includes network security analysis, business case and ROI analysis, go-to-market strategies, development of new service offers, pricing and bundling as well as infrastructure consulting. NSP's consultants are respected thought-leaders in the networking industry and influence its direction though confidential engagements for industry leaders and through public appearances, whitepapers, and trade magazine articles. Contact NSP at http://www.nspllc.com/.

About Intercast Networks

Intercast Networks' Multicast-to-Storage(TM) (M2S) offers a new technological approach to optimize content delivery over IP networks. M2S delivers massive amounts of personalized, high quality content on-demand to various storage equipped consumer devices such as PCs, Set-Top-Boxes and Gaming consoles. Intercast Networks is pioneering the use of Multicast for the efficient delivery of large scale digital content such as standard and high definition video and next generation video games over IP infrastructures.

Intercast Networks' solution enables network operators to leverage their current infrastructure roll out to deliver an order of magnitude more personalized content at a fraction of the cost without additional network investments. M2S can be utilized to introduce a variety of profitable Internet based services including a personalized, high definition and on-demand TV experience with broadcast-like network scalability and economic efficiencies.

For further information, please visit http://www.intercast.com/ or contact Adam Erlich at adam@intercast.com

Network Strategy Partners

CONTACT: Michael Kennedy, Network Strategy Partners, LLC,+1-978-287-5084, mkennedy@nspllc.com

Web site: http://www.nspllc.com/http://www.intercast.com/

Source: PRNewswire

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