Comparison of operating costs between streaming using Elisa Viihde’s CDN and Google’s Media CDN

Abstract

This study aims to compare the operating costs of Elisa Viihde’s existing on-premises streaming infrastructure against an on-cloud streaming solution that utilizes Google’s Media CDN. The rationale behind this work stems from the need to optimize the streaming process and reduce unnecessary costs. The Research process followed to reach this goal started with studying relevant literature and studying the system of Elisa Viihde to identify the key components and cost-driving factors. Then, Elisa Viihde’s system was simulated on Google Cloud. The cost comparison is based on the cost associated with utilizing both streaming solutions under a specific data traffic. On-cloud simulation costs were calculated using Google cloud forecasting mechanisms, while on-premises costs were estimated based on hardware, electricity, real estate, and labor. Total cost of ownership (TCO) over 3 years was calculated to be 14.5 million EUR for streaming on Google Cloud versus 1.2 million EUR for the current on-premises system, with Media CDN and hardware ownership being the largest contributors. The results suggest that on-premises is more economical. This initial quantitative cost comparison provides a baseline to inform decision-making, but more research accounting for dynamic pricing, improving simulations with real usage data, and weighing qualitative factors will enable a more holistic evaluation.