Video and identity platforms: worldwide forecast

Transcription

1 Video and identity platforms: worldwide forecast Gorkem Yigit

2 2 About this report This report provides forecasts for communications service provider (CSP) spending on video and identity platforms (VIP) software and related services for It provides details on spending by delivery type, service type, sub-segment and region. The report also provides recommendations for how vendors and CSPs can meet the changing demands of consumers and enterprises with VIP-enabled service innovation. The report is based on several sources, including: Analysys Mason s research from the past year interviews with CSPs and vendors worldwide. GEOGRAPHICAL COVERAGE Worldwide Central and Eastern Europe Developed Asia Pacific Emerging Asia Pacific Latin America Middle East and North Africa North America Sub-Saharan Africa Western Europe SUB-SEGMENT COVERAGE Video management and delivery (VMD) Subscriber data management (SDM) including identity management (IdM) Telecoms application servers (TAS) data only KEY QUESTIONS ANSWERED IN THIS REPORT What are the key trends and factors that will affect the video and identity platforms software market during ? What are the growth rates in each of the sub-segments? What are the regional factors that will drive growth? What should vendors do to exploit new business opportunities? How will professional services for video and identity platforms perform during the forecast period? What are the major drivers and inhibitors that will influence CSP spending on video and identity platforms? WHO SHOULD READ THIS REPORT Vendor strategy teams that need to understand where growth is slowing and where it is increasing across different sub-segment categories. Product management teams responsible for feature functionality and geographical focus, and product marketing teams responsible for growth. Professional services vendors that want to understand the growth opportunities over the next 5 years. CSPs that are planning network and digital transformation journeys and want to identify the key areas of investment in video and identity services.

3 4 Three key trends expected during Traditional broadcast services will increasingly shift to IP-based/OTT delivery. The shift to linear OTT TV and video delivery will lead to strong growth in the volume of unicast streaming and peak traffic, which will make these services vulnerable to quality and scalability issues. To replicate the QoE of traditional services, operators need to redesign their video delivery chain end-to-end using elastic CDN/optimisation (SDN/NFV, orchestration, multicast ABR), low-latency delivery (for example, CMAF) and advanced analytics and monitoring. 5G and cloud-native solutions will be the main driver of growth in VIP after G will be a driver of new VIP investment to support a growing number of subscribers and connected devices. CSPs will also invest in VIP to deliver new 5G services (slicing, edge) and to address increasing video consumption and optimisation requirements. 5G will also present an alternative to traditional video delivery networks and will drive new mobile-centric video services and business models. Investment will focus on solutions with cloud-native architectures.. Revenue from video professional services will increase faster than revenue from product-related services, driven by demand for SaaS- and cloud-based services, as well as SI and consulting. Pay-TV operators will increasingly invest in SaaS and cloud-based managed video solutions to deliver new services (such as OTT, mobile and UHD/HDR) quickly and profitably. Demand for systems integration (SI) and consulting will grow as operators seek support for migration to IP/OTT and hybrid cloud/nfv infrastructures, and deeper integration with third-party content providers and business and operational (automation and DevOps) support. 1 SDN: software-defined networking; NFV: network function virtualisation; multicast ABR: multicast adaptive bit rate; CMAF: common media application format.

4 15 Recommendations for CSPs 1 CSPs should begin their transition to automated, cloud-native VIP now to maximise their 5G opportunities. Virtualisation of most VIP components is underway, but most initiatives lack scale (with the exception of those of a few leading CSPs). CSPs that have made an early move towards fully automated/orchestrated, cloud-native VIP architectures for their video and mobile networks (both for new 5G core with SBA/SBI and NSA deployments, and at the edge) will have a distinct advantage over others because full utilisation of underlying technologies (SDN, NFV, open source, AI/analytics) involves a steep learning curve and technological and organisational change. 2 Pay-TV operators should invest in VMD to replicate traditional pay-tv QoE in linear OTT TV. In order for linear OTT TV services to be successful, operators need to deliver a comparable QoE/QoS to traditional pay-tv services. Despite the limited control and visibility associated with Internet-based content delivery, proper planning, design, orchestration and monitoring across the delivery chain can help operators to improve scalability, reliability and latency. Also, in addition to their own offerings, operators are well-positioned to enable other providers to deliver more-scalable and reliable live OTT TV services, which would elevate their position in the value chain. 3 CSPs should consider SDM as a focal point of their network transformation investments. SDM is evolving beyond its traditional role to become a centralised data repository (common data layer UDR and UDSF functions in 5G core) for key network data (VNF state, session, configuration, policy), which will be an enabler of cloud-native 5G networks. Operators should make SDM an integral part of their network PaaS, exposing its data sources and APIs horizontally across multiple domains and services to support their orchestration. This will help CSPs to move away from legacy data siloes and facilitate their move to end-to-end automation platforms.

5 16 Recommendations for vendors 1 Established VIP vendors should accelerate their progress to cloud-native architectures because softwarecentric challengers/entrants pose a significant threat. All VIP markets will be driven by investments in cloud-native solutions. Established vendors are at different stages of rearchitecting their solutions to comply with cloud-native principles. Challengers and new entrants that are more advanced in this race have an opportunity to expand their market shares, especially if they can provide preintegrated/pre-packaged VNFs with major orchestration and automation platforms in the market. 2 VMD vendors should identify opportunities for collaboration across and beyond the video delivery chain. Increased scalability and low-latency delivery requirements will spur VMD vendors to collaborate on developing more-advanced technologies, standards, protocols and operational capabilities with CSPs, industry groups (including open-source initiatives) and other vendors; this includes multi-vendor interworking in the highly fragmented video market. VMD vendors should also establish partnerships with vendors outside the traditional video market to deliver automation capabilities such as NFV/SDN, orchestration and AI/ML in pre-integrated solutions. 3 Monetisation and PS capabilities will be key differentiators for vendors in the video market. The high cost of content and minimal differentiation in the video infrastructure market inhibits CSP VMD spending. Vendors should focus on differentiated analytics and digital identity-based monetisation and personalisation solutions (for example, dynamic advertising, content search/discovery and UI) to address CSPs specific video service strategies. Vendors also have a PS opportunity to assist CSPs with the transition to IP/OTT/cloud-based video delivery; for example, most CSPs are not ready to move to cloud video operations and absorb DevOps methodologies.

6 Contents Executive summary Recommendations Forecast Market drivers and inhibitors Business environment Market definition About the author and Analysys Mason

7 50 About the author Gorkem Yigit (Senior Analyst) is the lead analyst for the Video and Identity Platforms programme and a contributor to the Digital Infrastructure Strategies and Network Automation and Orchestration programmes, focusing on producing market share, forecast and research collateral. He started his career in the telecoms industry with a graduate role at a leading telecoms operator, before joining Analysys Mason in late He has published research on NFV/SDN services business cases, identity management in the digital economy, and has been a key part of major consulting projects including Telco Cloud Index and IPTV/OTT procurement. He holds a cum laude MSc degree in Economics and Management of Innovation and Technology from Bocconi University (Milan, Italy).

8 51 Analysys Mason s consulting and research are uniquely positioned Analysys Mason s consulting services and research portfolio Consulting We deliver tangible benefits to clients across the telecoms industry: communications and digital service providers, vendors, financial and strategic investors, private equity and infrastructure funds, governments, regulators, broadcasters and service and content providers Our sector specialists understand the distinct local challenges facing clients, in addition to the wider effects of global forces. We are future-focused and help clients understand the challenges and opportunities new technology brings. Research Our dedicated team of analysts track and forecast the different services accessed by consumers and enterprises. We offer detailed insight into the software, infrastructure and technology delivering those services. Clients benefit from regular and timely intelligence, and direct access to analysts.

9 52 Research from Analysys Mason

10 53 Consulting from Analysys Mason

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