The Shift in Video Encoding Technology: VPUs and Hybrid Workflows
by Mark Donnigan

Engineers and broadcasters continually seek ways to improve efficiency, reduce costs, and enhance video quality. One of the most significant developments is the growing reliance on VPUs (Video Processing Units). Once considered just another option in encoding infrastructure, VPUs are now essential for delivering high-density, energy-efficient, and cost-effective video processing solutions.
This article explores the major trends in video streaming, drawing insights from Nacho Mileo, Head of Product at Cires 21. We will discuss how VPUs and hybrid cloud solutions are shaping the future of video workflows. If you are an engineer optimizing encoding processes or a broadcaster seeking scalable infrastructure, you’ll find actionable takeaways to help you stay ahead.
VPUs: From Optional to Essential
For years, CPU and GPU-based encoding dominated video processing. While these solutions were effective, they presented several challenges, including high power consumption, poor heat dissipation, and escalating operational costs. As streaming demands continue to surge, video engineers face a new challenge: scaling encoding while maintaining efficiency. This is where VPUs (Video Processing Units) are proving to be a game-changer.
Unlike GPUs, which are designed for general-purpose computing, VPUs are purpose-built for video processing, making them significantly more efficient. With the ability to handle 16 SDI channels in a single rack unit, VPUs provide an unprecedented level of encoding density. Additionally, their power consumption is drastically lower compared to GPUs, making them a sustainable and cost-effective solution for large-scale video operations.
One of the biggest misconceptions in the industry is that GPU-based encoding is the best alternative to CPUs. While GPUs have been widely adopted, they are not optimized for encoding, given that approximately 15% of the die area is dedicated to video processing and encoding functions. VPUs, on the other hand, offer a dedicated hardware solution, ensuring maximum efficiency with minimal power usage as 100% of the silicon is devoted to video encoding, decoding, and processing.
"VPUs are no longer a luxury; they are the foundation of scalable, energy-efficient video streaming."
Nacho Mileo, Cires21
Hybrid Cloud Encoding: The Future of Scalability
For years, hybrid cloud encoding has been an ambitious goal rather than a fully functional reality. Many companies struggled to implement a seamless on-prem and cloud-based encoding workflow due to technical limitations and infrastructure mismatches. However, with advancements in VPUs, AI, and cloud orchestration, true hybrid encoding is now a viable solution.
Cires 21, in collaboration with NETINT and Akamai, is showcasing how hybrid cloud solutions are transforming video processing. A true hybrid cloud workflow enables video engineers to encode content on-premises using VPUs while seamlessly scaling into the cloud when additional processing power is required. This approach ensures maximum efficiency, reduced costs, and improved reliability.
Traditionally, broadcasters have assumed that cloud encoding must operate independently of on-premises solutions. However, the best approach is a hybrid model, where workloads dynamically shift between on-prem hardware and cloud infrastructure based on demand. This ensures that peak traffic periods can be managed without overspending on infrastructure that remains idle during non-peak times.

Video Encoding Efficiency: Lowering Costs Without Sacrificing Quality
The cost of delivering high-quality streaming has always been a concern for broadcasters. Traditionally, video streaming expenses were driven by high CDN costs, inefficient encoding processes, and excessive power consumption. However, with VPUs, AI-driven automation, and hybrid cloud deployment, broadcasters can now achieve greater efficiency at lower costs.
NETINT’s VPUs allow Cires21’s broadcast customers to handle more concurrent streams while consuming significantly less power than traditional encoding solutions. In real-world scenarios, companies have reported a 75% reduction in rack space requirements, a 50% decrease in power consumption, and a fourfold increase in encoding density.
Optimizing encoding efficiency is the key to making large-scale streaming financially viable. By transitioning away from CPU- and GPU-heavy encoding, streaming platforms and video service providers can lower operational expenses while maintaining and even improving video quality.
The Streaming Evolution Has Arrived
The video streaming industry and broadcast markets are experiencing a major technological transformation. VPUs and hybrid cloud video processing are driving an evolution. To stay competitive, engineers and broadcasters must adopt and integrate these innovations into their workflows.
Steps to Implement These Innovations:
- Adopt VPUs to improve encoding efficiency and reduce power consumption.
- Utilize Hybrid Cloud Solutions to balance cost, scalability, and performance.
- Modernize Encoding Infrastructure to replace outdated, power-intensive hardware.
As Nacho Mileo from Cires 21 states:
“These technologies aren’t theoretical - they are real, working solutions ready for deployment today.”
Nacho Mileo, Cires21
Broadcasters and engineers who integrate these advancements will be well-positioned to deliver high-quality, cost-effective, and scalable streaming experiences for years to come.
Ready to see these innovations in action? Watch the full discussion here: https://netint.biz/NAB-Cires21
About the Creator
NETINT
NETINT Technologies is a leading innovator in the field of video processing solutions. We specialize in developing ASIC-based (Application Specific Integrated Circuit) solutions for low-latency video transcoding.




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