Virtualization in the encoder market is expected to grow from 34% of the market in 2014 to 44% in 2020, according to ABI Research.
As service providers look to expand their service offerings, the desire for flexibility in launch and maintenance of these services grows as well.
A shift in encoding formats with the upcoming HEVC focus, along with a multitude of new devices and device types to support it, is pushing the industry to embrace unified headends to satisfy these needs.
"Traditionally, video infrastructure components have been disjointed and independent from each other, making for an inflexible platform," says Eric Abbruzzese, research analyst at ABI Research. "Virtualizing video delivery components and unifying them will solve this inflexibility and make supporting newer and popular IP video services alongside traditional TV services easier.”
Those that already offer virtualized products, including Cisco, Elemental, Envivio and others, will have an early market advantage. Cisco, with their V2P system, and Elemental, now part of Amazon Web Services, are leaders in the space.
Implementing virtualized and unified solutions could reduce total cost of ownership by 30% through lessened CAPEX and OPEX.
Easier integration of new services, such as cloud DVR, will also benefit those looking to expand their current offerings.
The differing demands between broadcast video and unicast-focused video can be supported more easily with a unified and virtualized infrastructure.