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Leading organizations have already outsourced a major chunk of IT services and have tested and proved that outsourcing and off-shoring works. Now organizations are clearly focusing on outsourcing their business processes to a specialist as they feel that most transactional activities done today are non core in nature. With current technology advancements in internetand security it has become easier to manage and execute business processes from any part of the world where good infrastructure is available. So this has become an increasing focus area for CXO’s to carve out core and non core activities within a process and outsourcethrough a managed services model using captive or third party providers.In this current economic situation companies seeking to improve their fi nancial performance have already started looking Business Process Outsourcing as a key enabler in streamliningbusiness processes and also improving operational performance. While F&A and HR outsourcing have been around for quite sometime, procurement outsourcing is becoming increasingly accepted as a more viable strategy for both cost and performance improvements.The current trend clearly shows that companies are pursuing procurement outsourcing usingas an incremental approach to test and prove the concept works.This is similar to what happened in 1940’s when manufacturing companies started focusing on core manufacturing of key components and also on designing, development and marketing and outsourced all other component manufacturing to specialists. A concept of moving from“Vertically Integrated Supply Chain to Virtually Integrated Supply Chain”
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Prepared By: S. Ann Earon, Ph.D., President Telemanagement Resources International Inc. Sponsored by Vidyo
VIDEO CONFERENCING
NETWORK ISSUES: COSTS & OPTIONS
Video Conferencing Network Issues: Costs & Options By:S.AnnEaron,Ph.D.
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Introduction
Successful video conferencing is dependent on having a network robust enough to handle the demands video places on it. Historically, video conferencing has not tolerated network problems very well. Calls have been dropped, pictures have become unclear, and information has been lost. Some traditional solutions adapt to a limited amount of packet loss (loss of information) by employing error resiliency algorithms, but only work well in like-to-like video calls and typically add a tremendous overhead to the data stream, consuming even more bandwidth. Other video conferencing systems have no ability to compensate for network issues. To overcome these problems, many customers use networks with a high level of quality of service (QoS). But high QoS bandwidth is expensive. Recently, a new breed of video conferencing solutions has emerged based upon Scalable Video Coding (SVC), an extension of the H.264 video compression standard, which is inherently error resilient and performs well over general purpose IP networks. The network challenge becomes even more pronounced as the number of video conferencing endpoints grows by an order of magnitude with the shift from room based to desktop and personal device based deployment strategies. With ongoing operating costs typically representing twice the amount of the initial investment and maintenance in deploying a video conferencing system, video conferencing solutions and architectures that are designed to minimize the cost of the networks required to support them will emerge as the leaders of the next generation of video conferencing. The costs and options of various types of networks are explored in this paper in the context of their impact on the economics of video conferencing solutions. QoS Options & Topologies
Bandwidth availability is an integral part of QoS. Each link of the network needs to have sufficient bandwidth to support the voice and video traffic expected, as well as the existing data applications that use those same connections. As video conferencing has evolved, organizations have begun deploying increased bandwidth to benefit from high definition video quality. Traditional video conferencing used 128 Kbps or 384 Kbps of bandwidth, while high definition systems can use as much as 4 - 6 Mbps for voice and video transport. Over time, traditional video conferencing networks have migrated from ISDN (integrated services digital networks) only, to converged IP or IP overlay networks. All video conferencing traffic is real-time traffic and has traditionally needed proper QoS support both in the local area network (LAN) and the wide area network (WAN). High definition video conferencing has the same needs as standard video conferencing traffic, but with higher bandwidth requirements. As the demand for remote desktop users
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grows, the demand for bandwidth will accelerate rapidly. Many organizations use a wide area network service provider to connect locations. Network Service Providers (NSP) address the demand for video conferencing using a variety of QoS techniques. These include: • MPLS (Multi Protocol Label Switching) – MPLS allows the service provider to
configure the appropriate bandwidth and offer classes of service to support the needs of high bandwidth, real-time data flow. Packets are labeled with specific routing and delivery parameters which results in faster throughput for priority data.
• RSVP (Reservation Protocol) – RSVP allows the reservation of network resources
in each node, creating a reserved end-to-end path for the data to travel. • DiffServ (Differential Service) – DiffServ prioritizes certain types of traffic over
others, resulting in decreased packet loss, faster handling, and more consistent throughput.
Virtual Private Networks (VPN) are often used by small or medium sized organizations to connect their geographically disbursed offices. The cost of a VPN is often much less than a dedicated connection, but considerably more than basic internet connectivity. VPNs are available that connect two offices through a single WAN provider or those that use the open Internet, meaning they may use more than one service provider. Carrying real-time traffic through these open Internet VPNs can be risky for traditional H.323 or SIP based video conferencing solutions because there is usually no QoS capability offered. Using the Internet for real-time traffic carries the same risks for these traditional solutions as the VPN, but with less control. There are two types of networks organizations typically deploy for video conferencing. Converged networks are those where both data traffic and real-time voice and video traffic are being supported concurrently. Dedicated, or overlay networks, carry only real-time traffic and are physically separate from the general purpose data network. If a network analysis indicates there is insufficient bandwidth to support video conferencing deployment there are a few options to resolve the conflict: • Limit Conferencing Traffic • Upgrade Bandwidth • Scalable Video Coding
Video Conferencing Network Issues: Costs & Options By:S.AnnEaron,Ph.D.
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Limit Conferencing Traffic First, the bandwidth used by video conferencing calls can be limited. While better HD video quality can be obtained at 4 Mbps, good quality video can be obtained down to 1 Mbps. It is important to test viewer reaction to lowering the bandwidth. Another way to reduce demand is to manage call volume so a limited number of calls can occur simultaneously. If an office has three video conferencing units, but only two calls can be supported simultaneously, a scheduling policy can be put in place to insure only two systems are used concurrently. A gatekeeper can also be used to manage bandwidth usage. The gatekeeper can control the maximum amount of real-time traffic allowed and refuse additional call requests, acting like a busy signal. This strategy and approach has been employed with some success in the room-based paradigm where a relatively small number of systems were each used an average of 10 hours per month. For organizations shifting to wide scale desktop deployment, the increased number of endpoints, combined with the higher utilization rate per endpoint, renders this approach obsolete. When access is limited, utilization drops and the value that was supposed to be gained by having video conferencing is lost by those rejected calls. Bandwidth Upgrade If insufficient bandwidth is available for video conferencing traffic, the only solution may be upgrading the amount of bandwidth. Performing an analysis of your network is crucial to ensuring enough bandwidth is deployed to meet your communication needs. This becomes particularly important as you grow the number of video endpoints on the network through desktop deployment. Scalable Video Coding Scalable Video Coding (SVC) is an extension to the H.264 video codec standard that is used by next generation video conferencing devices. SVC technology allows video conferencing devices to send and receive multi-layered video streams. Paired with the right architecture, layering provides a dramatically higher degree of error resiliency and video quality with no significant need for higher bandwidth, unlike Forward Error Correction (FEC) employed by traditional video conferencing solutions which can consume nearly twice the bandwidth. Dynamic transrating (adjustment of frame rate) and resolution matching (adjustment of image detail) are made possible via temporal and spatial layers, making error concealment a real-time and transparent operation from the user’s perspective. As a result, a properly implemented SVC solution eliminates the need for QoS enhanced or overlay networks and performs well over converged, general purpose IP networks. It is important to note there are three levels of MPLS – basic, enhanced and premium. Traditionally, video conferencing has been allocated to premium, which is typically $10 - $20 more expensive per Mbps per month. Most enterprises have a basic MPLS pipe to
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provide secure file transfers between locations. The key issue is that the premium bandwidth in the MPLS pipe sits idle when video conferencing is not in use. The bandwidth cannot be dynamically adjusted between premium and basic based upon relative demand and premium applications cannot use basic and basic applications cannot use premium. This leads to having to over subscribe in terms of total bandwidth, which results in a lot of waste. A video conferencing system that dynamically adapts to packet loss and available bandwidth does not require premium MPLS and can run with the rest of the basic MPLS applications on the same shared bandwidth.
Inter-Enterprise Network Connections While it is possible to provision networks to handle voice, video and data within an organization (intra-enterprise) and between its global sites, connecting between organizations (inter-enterprise) presents new challenges for QoS dependent architectures. Unfortunately, when data travels between networks the prioritization benefits offered by QoS networks are typically lost as soon as the traffic crosses different network boundaries. This is because QoS practices used by different service providers vary greatly. As a result, while organizations can deploy voice, video and data communications throughout their global organizations, they must rely on a network service provider who has a peering relationship with other networks if they wish to communicate with others outside their organization, representing another layer of ongoing operating expense. Cost Examples The following chart shows how an organization might deploy video conferencing under three scenarios using an MPLS network versus a general purpose IP pipe:
1. Room systems deployed in corporate offices 2. Room and desktop systems deployed in corporate offices 3. Room system deployed in corporate offices and desktop systems deployed in
home offices. For purposes of the examples, assume the organization is connecting 5 sites at 3 Mbps for one HD room system at each site and 1 Mbps for each of 25 HD desktop systems at each site. A survey of seven tier one carriers revealed that competitive per month pricing for 1Mbps of MPLS bandwidth in the US is $500, while comparable per month pricing for 1Mbps of commodity Internet bandwidth is $5 – one hundred times less than MPLS.
Video Conferencing Network Issues: Costs & Options By:S.AnnEaron,Ph.D.
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Scenario Cost of MPLS Bandwidth Cost of Commodity
Internet Access Bandwidth
Notes
Room systems only
$500/Mb x 3Mb/unit x 5 units = $7,500 per month
$5/Mb x 3Mb/unit x 5 units = $125 per month
Additional monthly MPLS fees may include router management and port fees.
Room & desktop – in corporate offices
Rooms = $7,500 (previous) Desktop = $500/Mb x 1Mb/unit x 125 units = $62,500 Total = $70,000 per Month
Rooms = $125 (previous) Desktop = $5/Mb x 1Mb/unit x 125 units = $625 Total = $750 per Month
Notice that the MPLS network does not scale well with large scale growth in number of endpoints
Rooms in corporate offices & desktops in home offices
Rooms = $7,500 (previous) Desktop BW = $62,500 DT Local loop = $1500 x 125 = $187,500 Total = $275,500 per month Monthly Cost per User** = $1,225
Rooms = $125 (previous) Desktop BW = $625 DT Local loop = $30* x 125 = $3,750 Total = $4,500 per month Monthly Cost per User** = $20
* Employees may use existing consumer grade bb connection, eliminating this cost from IT budget. ** Assumes one room system enables 20 users Notice that the cost difference is exasperated by the high and varying cost of local loop needed for MPLS.
Review of the chart indicates that QoS enhanced networks are not an economically viable option for delivering wide scale distributed telepresence via the desktop. Rather new architectures that provide HD quality video with low latency while taking full advantage of error resiliency made possible by scalable video codingare necessary in order to change the economics and deploy wide scale desktop video conferencing over cost effective general-purpose IP networks. While the pricing above is US based, the cost model becomes even more exaggerated in developing countries where local loop costs may be 10x greater than those in the US and MPLS may not even be available.
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Network Impacts for Remote Workers & Telecommuting Telecommuting, the ability to work remotely, often from home, is a fast growing trend. Video conferencing is a natural enhancement to telecommuting, allowing employees to participate in meetings, give remote presentations and attend conferences without the need to be physically present. Telecommuting is one of the driving forces behind the shift to desktop video conferencing and presents a significant network challenge for any video conferencing solution that cannot leverage employees’ existing broadband internet connections without performance degradation. Having QoS enhanced lines connecting a handful of remote offices is expensive, but attempting to connect thousands of employee home offices via QoS enhanced lines is cost prohibitive as illustrated in the table above. Conclusion From Gartner and Frost & Sullivan to the majority of the video conferencing vendors, the industry agrees that explosive growth of video conferencing endpoints is going to occur at the mobile desktop over the next five years. This growth will accelerate the demand for bandwidth as users will expect high quality resolutions that will be made possible by higher quality cameras and higher processing power on desktop computers. Given that meetings among participants are likely to include WAN & LAN participants, the solution must work at times on best effort delivery networks such as the Internet. This growth is going to force IT organizations to rethink their video conferencing architecture and the networks required to support it, as the demand for bandwidth grows by an order of magnitude along with the number of remote locations that will need to be connected. The cost premium of QoS enhanced networks over general purpose IP networks is as much as two orders of magnitude. This cost differential alone will compel organizations to pursue next generation video conferencing solutions that leverage scalable video coding to consistently deliver the quality video experiences users demand over general purpose IP networks. About the Author: S. Ann Earon, Ph.D. is president of Telemanagement Resources International Inc. (TRI), a 27-year-old consulting practice specializing in marketing, communications and training with an emphasis on market research, assessment, design, project management, promotions, and training for collaborative conferencing (audio, web, video ) and telepresence systems. Dr. Earon is the Founding Chairperson of the Interactive Multimedia & Collaborative Communications Alliance (IMCCA) the non-profit industry association for conferencing & collaborative communications and Editor of IT AV Report. Ann can be reached at [email protected].
