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Summary

Building digital customer engagement is the top business priority for more than a third (36%) of media enterprises in 2017, according to Ovum's 2016/17 ICT Enterprise Insights (ICTEI) survey. The survey also revealed that 15% of media enterprises have moved the majority of their content supply chain to IP, adopting cloud infrastructure to meet changing business requirements. As media enterprises embark on the journey toward building a robust UHD living-room experience, leveraging their back-end cloud infrastructure, they will be pushed toward next-generation media acquisition workflows. This will enable high-performance large file transfer across the content supply chain along with higher network utilization rates.

Data Expedition, Inc. (DEI), which developed the ExpeDat file transfer solution, introduced CloudDat in April 2017. CloudDat offers enhanced capabilities for third-party integration, configuration, and in-transit encryption based on DEI's proprietary Multipurpose Transaction Protocol (MTP/IP) framework.

Ovum believes that increased investment in UHD (high bit rate) content repositories and digital transformation (including cloud) will drive demand for high-performance file-processing solutions to make the media acquisition workflow more efficient. Improved file transport will play a key role here by improving operational efficiencies and profitability, thereby reducing total cost of ownership (TCO).

A seamlessly integrated, high-performance file transport workflow is vital for the retention of digital users

Historically, media enterprises have utilized a legacy TCP/IP data and file transport framework for their digital properties. The TCP/IP network's block approach to file transfer is insufficient to meet today's business need to access data anywhere, everywhere, across the content supply chain in real time. Furthermore, the TCP/IP framework fails to address the growing need for a higher utilization network path to reduce TCO as the proliferation of data and files continues due to the majority of media enterprises embracing a digital-first strategy. This has paved the way for DEI to not only launch its new-age file transport solution, CloudDat, to improve cost synergies and network path utilization rates for margin-pressed media enterprises, but also extend its cloud competencies. CloudDat's value propositions are as follows:

  • pre-integration with Oracle Digital Cloud and DIVA (previously Front Porch Digital)

  • targeting of cloud TV and video platforms such as Amazon Web Services (AWS), Google, and Microsoft Azure

  • support for high latency and congestion

  • ease of deployment (negligible in-depth configuration) and third-party integration with legacy systems

  • higher cost synergies due to improved network throughput and negligible maintenance due to automated performance management

  • in-transit encryption

  • flexible pricing models (i.e., pre-embedded AWS license to cost $1.5 per hour, with a basic on-premises package for $3,000).

DEI's CloudDat has seen strong adoption in the media and entertainment sector, and the adoption of a digital revenue model across multiple business segments has enabled the company to secure tier-1 reference customers in other sectors too, such as healthcare and defense. Its flagship media and entertainment customers include Amagi, Disney, the Associated Press, and NBCUniversal.

Finally, as digital user retention and engagement become the main KPIs for profitability for media enterprises in the connected digital world, these companies will need secure, cost-effective, high-performance file-processing solutions across the content supply chain to distribute personalized content anywhere, everywhere, in real time.

These changing market dynamics will drive adoption of new-age file transport technology stacks, such as CloudDat, across both media and the enterprise video market in sectors such as education, healthcare, and financial services in the next 12–18 months.

Appendix

Author

Kedar Mohite, Senior Analyst, Media & Broadcast Technology Services

kedar.mohite@ovum.com

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