White paper: Reducing Costs with Open SourceCloud — A Cost-Efficient Alternative to Commercial Solutions
Executive Summary
As businesses continue to expand their digital operations, managing cloud infrastructure costs has become a critical challenge. Open-source software and platforms offer a powerful solution, significantly reducing costs while maintaining high performance.
This whitepaper presents how leveraging Open Source Cloud (OSaaS), specifically using open-source video processing components, can result in substantial cost savings compared to commercial alternatives.
We provide a comparison between the costs of using Open Source Cloud and commercial cloud vendors for two typical use cases:
- Transcoding Video on Demand (VOD) content.
- Running a Free Ad-Supported Streaming Television (FAST) channel 24/7.
Through these examples, we demonstrate how Open Source Cloud offers a simple, transparent pricing model that enables businesses to create scalable, efficient video workflows without the burden of high operational expenses associated with commercial cloud vendors.
Introduction
With the increasing demand for high-quality video content, businesses face mounting pressure to optimize their media pipelines and reduce costs. While commercial cloud vendors provide ready-made services, their pricing models are often opaque and can lead to inflated costs, particularly for long-term and large-scale operations. Open-source solutions, when deployed on a flexible platform such as Open Source Cloud (OSaaS), can offer a significantly more cost-effective alternative while still delivering enterprise-grade performance.
What is Open Source Cloud?
Open Source Cloud is a cloud-based platform designed to host open-source components for media and video processing workflows. It allows businesses to use industry-standard open-source tools like SVT Encore transcoder, and others in a cloud environment at a fraction of the cost of commercial vendors.
Cost Comparison: Open Source Cloud vs. Commercial Vendors
Use Case 1: Transcoding Video on Demand (VOD)
Commercial Vendor Pricing
Transcoding video is a critical operation in any media pipeline. Commercial cloud vendors typically offer transcoding services at a cost that can range up to €4.5 per hour of input video. This price often includes fees for infrastructure usage, proprietary software, and sometimes additional costs for varying resolutions, formats, or output profiles.
Open Source Cloud Pricing with SVT Encore
Using the open-source SVT Encore transcoding component in Open Source Cloud, the cost for transcoding one hour of input video is €0.9 per hour. This price reflects the efficiency of open-source software, which leverages ffmpeg cutting-edge compression algorithms while running on scalable, cost-optimized infrastructure.
Cost Savings
The table below summarizes the potential savings:
Savings per hour: €3.6, or 80% reduction in costs.
Use Case 2: Running a FAST Channel 24/7
Commercial Vendor Pricing
Running a Free Ad-Supported Streaming Television (FAST) channel involves managing both live streams and video-on-demand (VOD) content. Commercial vendors charge up to €450 per month to maintain a 24/7 FAST channel, factoring in server costs and software usage.
Open Source Cloud Pricing
In comparison, Open Source Cloud offers the same service using open-source components for as little as €199 per month. This includes the server costs and software usage to keep the channel live around the clock.
Cost Savings
The table below highlights the cost difference:
Savings per month: €251, or 55% reduction in costs.
Benefits of Using Open Source Cloud
- Transparent and Predictable Pricing
Open Source Cloud employs a simple and transparent pricing model that removes the uncertainty often associated with commercial vendors. This model enables businesses to accurately predict operational expenses and avoid unexpected costs.
2. Scalability with Flexibility
Because Open Source Cloud is built on open-source components, you can easily scale your video workflows as your business grows. Whether you’re transcoding large volumes of VOD content or running multiple live streams simultaneously, Open Source Cloud provides a flexible infrastructure that adapts to your needs.
3. Customizable Workflows
One of the key advantages of using open-source software in the cloud is the ability to customize your workflow. With Open Source Cloud, you can easily combine various components to create a complete video processing pipeline. For example, you could pair SVT Encore with other open-source tools for packaging and streaming — all while maintaining low operational costs.
4. No Vendor Lock-In
Open Source Cloud eliminates vendor lock-in, a common concern when using commercial solutions. You have full control over your data, tools, and infrastructure, ensuring that your workflows remain flexible and future-proof.
Conclusion
In a competitive media landscape, optimizing costs without compromising on performance is crucial. Open Source Cloud presents a compelling alternative to traditional commercial cloud vendors by offering powerful open-source components with simple, transparent pricing. As demonstrated in this whitepaper, the savings potential is substantial — up to 80% for VOD transcoding and 55% for running a 24/7 FAST channel.
By leveraging Open Source Cloud, businesses can create robust, scalable video workflows while drastically reducing their cloud infrastructure costs. Open-source solutions offer a sustainable and financially viable path for growth in the ever-evolving world of digital media.
Call to Action
To learn more about how Open Source Cloud can optimize your video workflows and reduce operational costs, visit https://www.osaas.io/.
