Saturday, August 5, 2023

OTT is a Business Principle, Not Simply a Method of App Access

Some observers view “over the top” as a term referring to video streaming services or to apps provided by hyperscalers such as Google or Meta. In that understanding, OTT means internet-delivered content or apps that end users can access, without the app provider having a formal business relationship with an internet service provider. 


It is much more than that. In fact, OTT is the way all apps, content and services are delivered over any IP network, no matter what entity “owns” the apps, content or services. In other words, both a telco’s own products, and those of any other entity, using the internet for access, are delivered the same way: “over the top” of the transport and access functions, and in a disaggregated way. 


What often is missed is the reality that IP imposes key business model constraints and possibilities. Even if some products sold by a “telco” or any other “public network” provider can be provided using some more-proprietary method--or a private IP network--the “normal” way all content, apps and services are provided in the internet era is using the public internet. 


Fundamentally, that means most products can be created by any third party, and delivered to its users or customers, without the need for a formal business relationship with any internet service provider.


Everything is “permissionless.” In other words, no ISP can prevent any lawful internet app from being used by any ISP customer. 


So “OTT” essentially refers to the method used by nearly every app or service to reach end users. “Direct to consumer” is an expression illustrating that principle. 


So OTT illustrates the key principle of “disaggregation” as it applies to nearly every connectivity network as well as the foundational way apps, services and content now reach users and customers. 


At a high level, the shift from proprietary to open source might be considered a form of disaggregation, as open source allows multiple hardware suppliers to use a common operating system, rather than each hardware supplier creating their own. 


The mobile virtual mobile operator concept also illustrates the concept: network infrastructure ownership is separated from operating functions. Some might argue that the shift to cloud computing abstracts or disaggregates computing hardware from software; asset ownership; job functions and roles. 


Trend

Description

Example

Open Systems Interconnection and IP Models

These models decoupled the hardware and software layers of computing and networking, making it possible to mix and match components from different vendors.

The rise of Ethernet and the Internet

Open Source

Open source software is developed and maintained by a community of developers, which makes it more flexible and adaptable than proprietary software.

The Linux operating system and the Apache web server

Cloud Computing

Cloud computing provides businesses with access to computing and storage resources on demand, which can help them to save money and be more flexible.

Amazon Web Services, Microsoft Azure, and Google Cloud Platform

Software-Defined Networking (SDN)

SDN decouples the control plane from the data plane of a network, making it possible to manage networks more flexibly and efficiently.

Cisco Open SDN and VMware NSX

Network Functions Virtualization (NFV)

NFV virtualizes network functions, such as firewalls and routers, which makes it possible to run these functions on commodity hardware.

VMware vRealize 

Object Oriented Programming

Object oriented programming (OOP) is a programming paradigm that allows developers to create modular software that can be easily reused. This has helped to drive the disaggregation of software applications, as developers can now create reusable components that can be easily integrated into different applications.

The Java programming language is a popular example of an object oriented programming language.

In similar fashion, the shift from proprietary to “open source” or “open” operating systems; object oriented programming; mobile virtual network operator business models; wholesale capacity and the internet in general provide other examples of disaggregation. 


Year

Function

Vertically Integrated Model

Disaggregated Model





2000

Operating systems

Proprietary

Open source

2005

Network operators

Vertically integrated

Virtual network operators

2010

Cloud computing

On-premises

Public cloud

2015

Software development

In-house

Cloud-based

2020

Connectivity

Closed, Permission based

Layers, Permissionless


The full-on embrace of the TCP/IP framework for next-generation networking also separates and disaggregates “applications” from network ownership. By design, all apps can run on all networks. Access becomes permissionless. As an access provider, you control whether a person or entity can “connect” to IP and other networks for purposes of packet exchange.


No access provider can bar lawful applications used by its access customers, though. Application access and network access are formally separated.


No comments:

Have LLMs Hit an Improvement Wall, or Not?

Some might argue it is way too early to worry about a slowdown in large language model performance improvement rates . But some already voic...