Professional Documents
Culture Documents
Table of Contents
List of Figures ...................................................................................................6
1
Introduction.................................................................................................7
1.1
1.2
1.3
1.4
1.5
Page | 2
3.1.2
Application Delivery Networks (AND).................................................................................. 50
3.1.3
Future Applications.............................................................................................................. 51
3.1.4
Mobile CDN ......................................................................................................................... 52
3.2
Federated CDN ........................................................................................................................... 69
3.3
CDN in the Cloud ........................................................................................................................ 71
Page | 3
4.6.4
Threats ................................................................................................................................ 88
4.7
MaxCDN ...................................................................................................................................... 88
4.7.1
Strengths ............................................................................................................................. 88
4.7.2
Weaknesses ........................................................................................................................ 89
4.7.3
Opportunities ....................................................................................................................... 89
4.7.4
Threats ................................................................................................................................ 89
4.8
CacheFly ..................................................................................................................................... 89
4.8.1
Strengths ............................................................................................................................. 90
4.8.2
Weaknesses ........................................................................................................................ 90
4.8.3
Opportunities ....................................................................................................................... 90
4.8.4
Threats ................................................................................................................................ 90
4.9
Highwinds .................................................................................................................................... 91
4.9.1
Strengths ............................................................................................................................. 91
4.9.2
Weaknesses ........................................................................................................................ 91
4.9.3
Opportunities ....................................................................................................................... 91
4.9.4
Threats ................................................................................................................................ 91
4.10 Internap ....................................................................................................................................... 92
4.10.1 Strengths ............................................................................................................................. 92
4.10.2 Weaknesses ........................................................................................................................ 92
4.10.3 Opportunities ....................................................................................................................... 93
4.10.4 Threats ................................................................................................................................ 93
4.11 Akamai ........................................................................................................................................ 93
4.11.1 Strengths ............................................................................................................................. 94
4.11.2 Weaknesses ........................................................................................................................ 95
4.11.3 Opportunities ....................................................................................................................... 95
4.11.4 Threats ................................................................................................................................ 95
4.12 CDNetworks ................................................................................................................................ 95
4.12.1 Strengths ............................................................................................................................. 96
4.12.2 Weakness............................................................................................................................ 97
4.12.3 Opportunities ....................................................................................................................... 97
4.12.4 Threats ................................................................................................................................ 97
4.13 Level 3 Communications Inc ....................................................................................................... 97
4.13.1 Strengths ............................................................................................................................. 98
4.13.2 Weakness............................................................................................................................ 98
4.13.3 Opportunities ....................................................................................................................... 99
4.13.4 Threats ................................................................................................................................ 99
Page | 4
Page | 5
List of Figures
Figure 1: CDN Delivers Many Content Types to Many Device Types.......................................................... 13
Figure 2: Content Distribution Schemes ..................................................................................................... 14
Figure 3: CDN Distributed Servers .............................................................................................................. 17
Figure 4: CDN Procedures to Retrieve Data. ............................................................................................... 20
Figure 5: CDN Equipment Configuration..................................................................................................... 32
Figure 5: Video Suggestions ........................................................................................................................ 34
Figure 7: CDN Revenues 2014 - 2019........................................................................................................ 107
Figure 8: CDN Overall Service Revenue by Region 2014 2019 ................................................. 109
Figure 9: CDN Video Service Revenue by Region 2014 - 2019 ..................................................... 109
Figure 10: CDN Non-video Service Revenue by Region 2014 - 2019........................................... 110
Figure 11: CDN Video Service Revenue by Category 2014 - 2019 ............................................... 110
Page | 6
1
1.1
Introduction
Executive Summary
The user's proximity to your web server has an impact on response times.
Deploying your content across multiple, geographically dispersed servers
will make your pages load faster from the user's perspective. A content
delivery network (CDN) is a system of servers, or computers interconnected
over the Internet, that are placed closer to users across the globe to reduce
the distance content travels.
The digital content market is poised to reach a new stage in its evolution
with the coming pipeline of next generation applications and solutions.
Content consumption among consumers is exploding due to many factors
including higher bandwidth, low cost digital devices, and smart devices
(phones, tablets, and wearable wireless) devices.
CDNs provide solutions for efficiently and effectively managing content of
all types.
cellular networks supported by 4G/LTE broadband wireless, and Cloudbased applications, facilitates the need for more intelligent content
solutions.
Today one can view the highlights of Dancing with the Stars, American Idol,
and other reality types of programs; watch your favorite TV program;
Page | 7
Page | 8
1.2
Topics Covered
Market
Analysis
and
Forecasts:
global
and
regional
assessment of the market size and forecasts for the CDN market
from 2014 till 2019
Page | 9
1.3
What will be the regional outlook for revenue in the CDN market?
Which vendors are leading the market and what key strategies for
vendors capitalizing on?
1.4
Target Audience
Investment Firms
Infrastructure Vendors
Page | 10
1.5
Companies Mentioned
Accelia
Akamai
Alcatel-Lucent
Amazon CloudFront
BitGravity
BroadMedia
CacheFly
CDNetworks
CloudFlare
EdgeCast
Ericsson
Internap
Limelight Networks
MaxCDN
NaviSite
Velocix
Verizon
Page | 11
Bare-metal
option: Accton,
Quanta,
Edge-Core,
Aberdeen,
Penguin
2.1
Page | 12
Page | 13
Page | 14
upgrading the bandwidth (as in the case of providing the contents directly).
The last figure depicts how the CDN employs the edge servers to offload
the origin server.
In addition, since distributed servers will be used to host data far from the
content provider original network, the CDN will offer a noticeable protection
for the content provider network and save a lot of resources. As the content
provider business tends to grow, the company will take advantage of the
CDN to avoid continuous upgrade of the infrastructure. Thus CAPEX is
dramatically reduced.
CDN technology also adds another advantage to the content provider over
the web. The distributed servers can be simply viewed as data redundant
storage. The data redundancy allows for a graceful degradation in case of
the content has been lost or corrupted from one segment in the network.
For instance, if a hacker attacks the source of the data causing the data to
be lost or damaged one segment only can be affected, thus the content can
be easily restored from any other segment in the network.
Generally, there are a lot of vendors that build and operate these types of
networks. All CDN operators tend to achieve revenue through charging
content providers for digital content hosted and delivered to end users.
CDN operators provide infrastructure for all possible Internet service
providers in order to take advantage of their facilities to host CDN servers.
Over the past few years, CDN were used to be built and managed
completely under the CDN operator that owns the servers. However, more
recently CDNs are moving toward the peer-to-peer (P2P) technology. This
means that the content will be distributed over a huge number of machines
Page | 15
owned by users all over the world rather than the CDN servers. The content
will be available to any user that runs P2P client software over the internet.
Additionally, another approach to form a CDN is the hybrid model. The
hybrid model will simply utilize both network types. For instance, the CDN
operator will host some servers dedicated to the services and employ user
owned terminals to serve as peers to the content. Further description to
these trends will be introduced in the next few chapters.
Page | 16
2.2.1
In order to make this simple technique possible, the DNS service is typically
used. DNS stands for Domain Name System which is defined according to
Wikipedia as a hierarchical distributed naming system for computers,
services, or any resource connected to the Internet or a private network.
The DNS simply associates and stores many information about a computer
or any network resource or domain. All these information are retrieved from
the DNS server along with the domain name translation to the original
numerical form of IP address. The IP address and the stored information
will be used to locate the network resource all over the globe (commonly
DNS also serve the local network intranet as well as internet).
Page | 17
Page | 18
user to a physically close server that suffer from over overloading, the DNS
will look up for the next close and less loaded server.
2.2.2
Accessing Content
In order to access the data on the edge server, the request will maintain a
cache similar to web browser cache. The reason for this is that the server
must ensure that the data exist and not expired in faster ways. For
instance, when the edge server receives a request, it matches the request
cache key with the server cache to make sure that the content exits.
Simply, if the cache is correctly matched the content will be served directly
to the user. Otherwise, if the content cache has expired or doesnt exist in
the edge server, it will be requested from the origin since it is the source of
all data. In this case the data will be received from the origin and stored to
the edge server then served to the user. Additionally, the server will store
the data in its cache header in order to directly serve it to user in the future
(until the cache expires or the data is deleted).
Page | 19
Page | 20
Page | 21
users simply upload and download files (which are referred to as static files
and it will be discussed pretty soon). Unlike those FTP servers, edge
servers act as a proxy, since the edge server will only carry requests to
the origin (that typically knows and instructs what content should be
delivered) and the respond back to the user. This why in the last scenario
yahoo combo handlers lie on the origin.
Furthermore, the CDN works commonly with static type content and this is
for a good reason. Static content denotes all sorts of media and supporting
files for web pages this may include JavaScript, CSS, images, Flash, audio,
and video. Static means that the content doesnt frequently change. The
reason that lies behind this limitation is that the CDN acts upon on cache
basis. Therefore if the content frequently change the cache will expire and
every time a change occur the data subsequently will be retrieved from the
origin directly making a useless case of the CDN.
Moreover, huge numbers of CDN users shall gain benefit from these static
files. In case of dynamic pages, contents are customized per user; caching
these customized contents to an edge server will possibly result to
redundancy and waste of resources. Additionally, the cache in case of
dynamic content will be required to update itself as many times as the
content changes. For instance, customized home pages are considered a
poor candidate for CDN.
2.2.4
Cache Expiration
Expiration of the cache is pretty important to empty space for other files that
are frequently used (some cached files may remain unused for a very long
time in the edge server thus wasting space). In order to overcome this issue
expiry headers are added to the cache, allowing the CDN to achieve
Page | 22
optimum use of resources. Yet the static assets must remain available at
the CDN for maximum possible time to avoid overloading the origin itself
(as long as the content doesnt change). Therefore, the cache of such static
content should have far-future expire headers.
Also, doing so will allow the browser to cache the static resources for longer
period. This means the file may be cached in at least two distinct places.
Therefore, strict naming conventions must be followed in order to alert
caching repositories of a newer version of the cached content. This
technique shall allow the user to receive most up to date versions of the
content, while maintaining far-future cache expiry.
2.2.5
There are many protocols used by CDN to deliver the content across the
web. One basic protocol suit is the Internet Content Adaption Protocol
(ICAP). It was developed in 1990s. Another protocol is the Open Pluggable
Edge Service (OPES) protocol, and the Edge Side Includes (ESI). The ESI
protocol is pretty important protocol made originally to support the edge
level of the dynamic web content assembly. It is considered a promising
solution to the caching issue of the dynamic content which was illustrated
earlier.
2.2.6
CDN Architecture
Page | 23
code for identifying specific application types and handling traffic based on
predetermined policies (QoS, SLA, etc.)
2.2.7
Architecturally
Server Types
speaking,
servers
used
by
CDNs
are
two
main
2.2.8
Page | 24
At their core, CDN hardware requirements are much like any Cloud
implementation including the need for content routers, servers, firewalls,
and supporting equipment.
purposes:
Content Routing
Content Switching
Page | 25
Cisco
SA-7
and
Cisco
SA-14
Cisco CE510
Cisco CE565
Cisco CE7305
Cisco CE7325
CPU
One 1.7
GHz Intel
Pentium 4
processor
with 128
KB Layer 2
cache
One 1.7
GHz Intel
Pentium 4
processor
with 128
KB Layer 2
cache
One 2.4
GHz Intel
Pentium 4
Prestonia
processor
with 512
KB Layer 2
cache
Two 2.4
GHz Intel
Pentium 4
Prestonia
processors
with 512
KB Layer 2
cache
System
Bus
400 MHz
system bus
(100 MHz
Front Side
Bus [FSB]
at four data
transfers
per cycle)
400 MHz
system bus
(100 MHz
FSB at four
data
transfers
per cycle)
400 MHz
system bus
(100 MHz
FSB at four
data
transfers
per cycle)
400 MHz
system bus
(100 MHz
FSB at four
data
transfers
per cycle)
Synchron 512 MB
ous
DRAM
(SDRA
M)
1 GB
2 GB
4 GB
Maximu 80 GB
m
System IDE
Storage
(with
Storage
Array if
396 GB
936 GB
936 GB
252 or
504 GB
Page | 26
Applicab
le)
Baseline 40 GB
Internal
Storage IDE
72 GB
144 GB
432 GB
252 or
504GB
Maximu 80 GB
m
Internal IDE
Storage
72 GB
External No
Storage
Array
Support
Yes
432 GB
432 GB
252 or
504 GB
Yes
Network Two
Two
Two
Two
Interface 10/100/100 10/100/100 10/100/100 10/100/100
s
0BASE-T 0BASE-T 0BASE-T 0BASE-T
Flash
128MB
Memory
128MB
128MB
MPEG
Yes
Yes
No
Decoder
(Option) MPEG-1, 2 MPEG-1, 2
DB-15
audio
connector
DB-15
audio
connector
BNC
composite
video
output
BNC
composite
video
output
128MB
No
Page | 27
7-pin DIN
S-video
output
7-pin DIN
S-video
output
Bus type:
fiber-optic
media
(short-wave
50 micron)
Bus type:
fiber-optic
media
(short-wave
50 micron)
Bus type:
fiber-optic
media
(short-wave
50 micron)
Bus type:
fiber-optic
media
(short-wave
50 micron)
Bus transfer
rate: 200
Mbps
maximum
at half
duplex and
400 Mbps
at full
duplex
Bus transfer
rate: 200
Mbps
maximum
at half
duplex and
400 Mbps
at full
duplex
Bus transfer
rate: 200
Mbps
maximum
at half
duplex and
400 Mbps
at full
duplex
Bus transfer
rate: 200
Mbps
maximum
at half
duplex and
400 Mbps
at full
duplex
Power
200W AC
200W AC
Hotswappable
redundant
AC (DC
available
mid-2003)
Hotswappable
redundant
AC (DC
available
mid-2003)
AC (DC
availabl
e mid2003)
Rack
Units
1RU
1RU
2 RU
2 RU
3 RU
One serial
port
One serial
port
One serial
port
One
Ultra160
SCSI port
(dualchannel
integrated
One
Ultra320
SCSI port
(dualchannel
integrated
One
Ultra320
SCSI port
(dualchannel
integrated
One
Ultra160
SCSI
port
(dualchannel
integrate
d
controlle
Fibre
Channel
Adapter
(Optional
)
Page | 28
Availabl
e PCI
Expansio
n Slots
One
66/100/133MHz 64-bit
PCI-X slot
on the
system
board
controller)
controller)
controller)
r)
One
66/100/133MHz 64-bit
PCI-X slot
on the
system
board
and
and
Height
1.72 in.
(43.7 mm)
1.72 in.
(43.7 mm)
3.36 in.
(85.4 mm)
5.0 in.
(127.5
mm)
Width
17.3 in.
(440 mm)
17.3 in.
(440 mm)
17.46 in.
17.46 in.
17.5 in.
(443.5 mm) (443.5 mm) (444
mm)
Depth
16.75 in.
16.75 in.
27.48 in.
27.48 in.
20.4 in.
(425.5 mm) (425.5 mm) (698.0 mm) (698.0 mm) (519
mm)
Weight
Power
Page | 29
Universa Input
l Input
voltage low
range 100127 VAC
Input
voltage
high range
200-240
VAC
Input
voltage low
range 100127 VAC
Input
voltage low
range 100127 VAC
Input
voltage low
range 100127 VAC
Input
voltage
high range
200-240
VAC
Input
voltage
high range
180-265
VAC
Input
voltage
high range
180-265
VAC
Input
voltage
low
range
90-136
VAC
Input
voltage
high
range
198-257
VAC
Maximu 200W
200W
200W
200W
m Power (115 to 230 (115 to 230 (115 to 230 (115 to 230
VAC)
VAC)
VAC)
VAC)
Operating Environment
Operatio 50 to 95F 50 to 95F 50 to 95F 50 to 95F
nal
(10 to 35C) (10 to 35C) (10 to 35C) (10 to 35C)
Temperat
ure
50 to
95F
(10 to
35C)
Nonoper
ational
Temperat
ure
-40 to
140F
(-40 to
60C)
-40 to
140F
(-40 to
60C)
-40 to
140F
(-40 to
60C)
-40 to
140F
(-40 to
60C)
-40 to
140F
(-40 to
60C)
Maximum
altitude:
2133 m
(7000 ft)
Maximum
altitude:
2133 m
(7000 ft)
Maximum
altitude:
2133 m
(7000 ft)
Maximum
altitude:
2133 m
(7000 ft)
Maximu
m
altitude:
2133 m
(7000 ft)
Page | 30
UL 1950
UL 1950
UL 1950
UL 1950
UL 1950
FCC Part
FCC Part
FCC Part
FCC Part
FCC
15 (CFR
15 (CFR
15 (CFR
15 (CFR
Part 15
47) Class A 47) Class A 47) Class A 47) Class A (CFR
47)
ICES-003 ICES-003 ICES-003 ICES-003 Class A
Class A
Class A
Class A
Class A
ICESEN 55022 EN 55022 EN 55022 EN 55022 003
Class A
Class A
Class A
Class A
Class A
with UTP
with UTP
with UTP
with UTP
cables
cables
cables
cables
EN
55022
Class A
CISPR22
CISPR22
CISPR22
CISPR22
Class A
Class A
Class A
Class A
with UTP
with UTP
with UTP
with UTP
VCCI
cables
cables
cables
cables
Class A
ASNZ 3548
Class A
with UTP
cables
ASNZ 3548
Class A
with UTP
cables
ASNZ 3548
Class A
with UTP
cables
ASNZ 3548
Class A
with UTP
cables
Page | 31
EN 55024
EN 55024
EN 55024
Page | 32
the routing of traffic. This means that the latency between the server and
the client will be reduced thanks to the CDN.
When latency is being reduced, this means the delivery of real-time video to
clients will be much better and faster. When we watch video on the internet
we can see the video buffering from time to time. This happens because
the delay resulting from buffering permits a relatively smooth delivery to
occur. With most of the content on the internet became free now more data
usage has been consumed. Videos become distributed all over the Internet
even in the little ads on the side of any Web page.
When someone goes to YouTube, or any video streaming website, and
watch a video he/she will find other videos suggestions on the side of the
page as illustrated in the following figure:
Page | 33
Page | 34
benefits for both consumer and service provider. Also CDN can reduce the
latency in streaming videos and improve the performance of the Web
pages.
Also there are some disadvantages of the CDN, as the internet is a global
network most Web publishers get visitors from all around the world. This
means that all organizations must maintain duplicate servers strategically
located around the world.
Thus most, if not all, organizations with a large Web presence need to rely
upon third-party CDN operators that have globally distributed in-place
networking equipment whose facilities are connected to the Internet.
Because most organizations need to use a third party, this results in those
disadvantages associated with the use of any third-party technology
provider, including cost and support as well as the need to ensure that the
CDN provider can update the Web publishers server changes in a timely
manner throughout the content delivery network operated by the third party.
Also, a Web publisher must make sure that the CDN provider he is dealing
with has a near location where he gets most of the users. For example,
persons accessing Yahoo News might be expected to primarily reside in
the eastern United States, while the online readership of the MSN news
might be primarily in the northwestern United States. Thus, one website
would more than likely have a significantly different requirement for the
characteristics of a CDN than the other website.
2.3.1
Page | 35
CDNs are engineered and optimized for delivering streaming audio, video,
and Internet television (IPTV) programming, although an Internet service
provider (ISP) may also use one to deliver static or dynamic Web pages.
The market drivers for CDNs are therefore due to the need largely to the
needs of data-intensive applications such as video surveillance, HD
movies, interactive gaming, and other forms of entertainment.
However, it is important to note that the market drivers for CDNs include a
variety of
different
including
downloadable objects (media files, software, documents), applications (ecommerce, portals), live streaming media, on-demand streaming media,
and social networks. Emerging market drivers for CDN include enhanced
corporate communications, e-learning solutions, and next generation pointof-sale kiosks and video displays.
While there are a variety of ways in which these market driver demands
may be met, CDNs have evolved to represent an optimal choice. CDNs
also offload the traffic served directly from the content provider's origin
infrastructure, resulting in cost savings for the content provider.
CDNs
2.3.2
Page | 36
Page | 37
2.3.3
Content Rating
In
contrast, dynamic content such as HTML, API, Ajax calls, or anything else
that requires application logic, changed frequently, and therefore causes a
variety of problems including the fact that it is generally considered to be
un-cacheable. Traditional CDNs are unable to cope with the demands of
real-time services, as their infrastructures have been built to cache and
deliver static content only.
The so-called next-generation CDN providers (Instart Logic, Aryaka Net,
Fastly, MaxCDN, Yottaa, MdotCDN, Saguna) have solved the problem of
delivering dynamic content thanks to employing certain technologies that
meet these demand while providing additional benefits such as greater
flexibility and transparency of content delivery and monitoring.
Streaming media may either be live (real-time) or on-demand. Real-time
content is delivered immediately from the encoder to the Media server, and
then onto the media client. In case of on-demand delivery, the content is
encoded and then is stored as streaming media files in the media servers.
Page | 38
Due to the need to manage various network needs including capacity, QoS,
and optimizing asset utilization, content distribution is a very important
aspect of content management and rating.
delivery is based on the type and frequency of specific user requests. The
simplest and most brute force way to plan and execute content delivery is
full-site content selection and delivery in which the surrogate servers
perform entire replication in order to deliver the total content site to the
end users. The downside is that this method uses an inordinate amount of
resources, which does not scale well as the volume and size of Web
objects ever-increases.
decreasing the cost of storage, there remains the issue of having sufficient
capacity to store all content. Accordingly, other methods entail partial-site
content selection and delivery, wherein surrogate servers perform partial
replication to deliver only embedded objects.
Page | 39
2.3.4
CDN has improved through the years, as there were many technical
problems with the Web and series of servers has been created by
government agencies and other organizations to overcome these issues.
There were two problems directly related to content networks, both of this
problems was a result from the growth of the number of Web servers in
which the total number of Web pages was increasing at exponential rate.
While search engines such as Yahoo! and Google facilitated the location of
Web-based information, if a person required access to a series of data from
different locations, he or she would need to spend an inordinate amount of
time repeating the Web-page location processes on a daily basis. Another
problem results from the global expansion of the Internet is the global
location of Web Servers. Because a user in the UK require to access to a
server located in the United States, Web queries would need to flow
thousands of miles through a series of routers to reach their destination. As
each query reached the destination server in the US, the computer there
would process the request and return an applicable Web page. That Web
page would flow in a reverse manner to the query, through a series of
routers back to the client.
Each router needs a small period of time to examine the header of each
data packet to determine where to send the packet, network delays are
primarily a result of the number of router hops between source and
destination computers as well as the traffic flowing through the router. Thus,
Page | 40
Page | 41
with respect to resolution since the VGA standard was developed, fullresolution video is commonly used today. Other commonly encountered
resolutions include 320 240, in which the width and height are reduced by
a factor of two (which reduces data storage by a factor of four), and 160
120 (which is referred to as quarter-resolution and which reduces the total
amount of data by a factor of 16).
In the movie theater, the frame rate of a film is typically 24 frames per
second. On a TV, due to the refresh rate, images are displayed at a rate of
30 frames per second. A slower frame rate can result in images having a
jumpiness quality. In the distribution of images to computers, the initial use
of video occurred at frame rates as low as 15 and even 10 fps to reduce
data requirements by a factor of two or three. While this was almost a
necessity a decade ago, advances in data storage capacity as well as the
data rate of cable and DSL communications allows a 30-fps rate.
Color depth refers to the number of pixels used to represent the color of
each pixel displayed. The use of black and white requires one bit per pixel,
while what is referred to as true color and full color uses 8 bits each of
red, blue, and green data; requires 24 bits per pixel; and represents the
maximum amount of color the human eye can distinguish. The next-smaller
reduction results in the use of 16 bits, which can represent thousands of
colors and provides a one-third reduction in the quantity of data. Because
video is typically shot using a 24-bit color-depth device, trimming the color
depth from 24 to 16 bits, which is referred to as quantization, can distort
transitions within frames.
Of all the techniques previously mentioned, data compression provides the
largest reduction in the quantity of data used to represent a video. For full-
Page | 42
motion video, there are several data-compression methods that are used. A
few of those compression methods include Windows Media Video (WMV),
which is based upon Microsofts implementation of the Moving Picture
Experts Group (MPEG) 4, Part 2; and Adobes Flash Video, which in
versions 6 and 7 used the Sorenson Spark, a codec (coder-decoder) for
FLV files, while Flash Player 8 and newer revisions now support the use of
ON2 Technologies VP6 compression as well as various versions of MPEG.
While each version of data compression performs differently with respect to
its support of low-, medium-, and high-bit-rate transfers and compression
efficiency, in common, they all considerably reduce the size of data storage
requirements as well as data transmission time. However, to effectively
view a video, the client must have either a compatible browser or a
compatible plug-in in the browser.
Page | 43
These five groups make up a content distribution value chain, the purpose
of which is to connect consumers to purveyors of content. Note that there is
overlap among access ISPs, backbone carriers and hosting providers.
Some backbone carriers offer access and hosting services, and many
access ISPs offer hosting services.
Each of these providers has a specific role and they complete each others.
There are two business models for CDN. The first is a content provider-
Page | 44
centric model driven by the needs of content owners, and the second is an
Internet access provider-centric model driven by the needs of ISPs.
2.4.1
Revenue models for CDN providers are based on a few factors including
traffic amount, storage, and any additional services provided.
In some
Page | 45
For larger players that can generate large volumes, or at least commit to
higher volumes, pricing is driving towards $.01/GB on 10PB+/month of data
transfer volume. More typical pricing for lower volumes is more like At
$.04/GB at 350TB/month and $.02/GB at 5PB/month of data transfer
In terms of pricing for CDN storage, have historically been in the range of
$.15/GB to $.75/GB, depending on the volume.
By way of example, it
would be typical for a CDN customer to pay $200/month for 1TB of storage.
A snapshot of some recent CDN storage pricing from some representative
industry players is as follows:
Page | 46
2.4.2
Carrier Role
There is a huge opportunity for carriers to connect all their CDNs together.
This will results in one federating Content Delivery Network. Lately
operators started to take serious actions towards this concept. They have
created a new cooperation called Operator Carrier Exchange. The idea of
the OCX is for carriers and telecoms to share ideas, come up with some
CDN standards and allow one another to connect their CDN networks.
The whole idea from this cooperation is to take control of delivering video
across the carriers own network. As carriers are the last mile and all, its
the best for them to take control of the video delivery networks. There are
several carriers in the world which is trying to build their own CDNs. BT,
France Telecom, Telstra, Telecom Italia, Telefonica, KPN, TeliaSonera,
Polska Telekom, Bell and others are all starting to spending some serious
CAPEX on their CDN initiatives and others like Verizon are already far
along.
Page | 47
As the CDN market was relatively small five years ago, carriers werent
interested to build their own CDN. With the introduction of 3G and LTE
video delivery increased dramatically. Carriers used to partner and resell
solutions from the traditional CDNs and spent very little money on any kind
of On-net build-out. The OCX will put forth in terms of how their federated
CDN model works is still not known. One model could be where the carrier
has a direct relationship with the content owner and then uses the
exchange to get access to many other CDNs and a wider footprint. Another
model could be where one carrier or a group of carriers act as a broker for
the CDN services of every company in the exchange. However the
exchange works, carriers will obviously have to have some kind of bilateral
agreements with each other and there are many different kinds of
interconnection models that could potentially work.
This all is easy to implement on paper, but when it comes to the actual work
it will take time and more CAPEX. The CDN market will be growing in the
Long run. In the short-term, operators will not be able to compete with the
tradition CDN providers. There are several reasons that support the
previous statement. For instance, the introduction of the LTE will increase
the demand for video delivering and content delivery as well. Also the
network operators are the last mile in the delivery of content, which means
is that it makes a lot of sense for them to create their own CDNs.
With both IPDC and MBMS this should not be an issue, as all the parties
engaged will benefit once the system is implemented and the services
launched. Services such as mobile TV, which here will be treated as a
model service, offer attractive market opportunities for all especially for the
m-commerce industry. But to make it possible, the telecommunications,
Page | 48
Page | 49
3 CDN APPLICATIONS
3.1 Current Applications
There are several applications for the CDN; video, Small objects,
Application delivery, Software downloads and Ecommerce. Each one of
them represents a specific task to the CDN as a whole
3.1.1
Hulu
YouTube
DailyMotion
They cache videos on their servers so the user can access the videos
faster.
3.1.2
Page | 50
3.1.3
Future Applications
The future of CDN application looks very promising and there are yet new
applications to be developed. Mind Commerce expects that the future for
CDN applications will be focusing more on mobile applications. This is due
to the expansion in telecommunication service along with the introduction of
LTE and other high speed service. Also the introduction of the PC tablets
and wearable devices will help in this expansion.
Mobile content tends to load so slowly on mobile devices and is so often
interrupted by the spinning wheel and plagued by slow response times.
This means that the direction of the CDN will be moving towards mobile
content; Mind Commerce expects that mobile content will be the heart of
the CDN in the next few years.
Page | 51
3.1.4
Mobile CDN
Page | 52
Page | 53
Page | 54
facilitators
of
commercial
transactions.
Instead,
through
experiences
in
the
mobile
commerce
environment.
Personalization aims to provide the users with what they need or want
without explicitly having to ask or search; context-awareness provides a
mechanism to implicitly infer the current needs of the user.
The focus on mobility in m-commerce applications naturally leads to new
avenues and opportunities for connecting merchants and providers of
services with their potential customers carrying mobile devices. In a
traditional commerce environment, a customer has to be physically present
at a merchants location to make a purchase; in e-commerce applications, a
transaction can occur only when the customer is at a computer accessing
the web site of the merchant. Mobile commerce breaks the barriers
imposed by the physical location of the merchant or the tethered network
connection of the customers computer. M-commerce naturally lends itself
to create more serendipitous opportunities for commercial transactions.
With anytime availability of online storefronts, mobile customers are able to
access them anywhere using their mobile devices. Today we are beginning
to witness an emergence of pervasive m-commerce services. Currently,
customers can access most modern m-commerce services anywhere and
Page | 55
Page | 56
Page | 57
Page | 58
by simple pressing the two cellular phones against each other. In the same
way, Bluetooth connections can be set up without any manual
configuration. If this idea is accepted by consumers and companies, the cell
phone could be the only device needed when a person leaves the house,
since it in addition to being a phone also is a set of keys, an ID card and a
wallet.
All of this will need a well-managed Mobile CDN. Mobile advertising is
raising the bar for the CDN. Googles assertive mobile advertising strategy
is not occurring in a vacuum. Its success trajectory is challenged by the
threat posed by two other technology behemoths Apple and Facebook.
Before his untimely demise in late 2011, Apple CEO Steve Jobs introduced
iAd during the company's iPhone 4.0 media briefing. iAd is a platform that
constitutes Apple's re-imagining of advertising on smartphones. While
Google has extended the keyword advertising model it popularized on the
desktop, Apple's approach is to let iPhone app developers offer ads within
the apps themselves.
Jobs wrote off Google's practice of putting ads in its search results. "When
you look at a mobile device, a phone, it's not like a desktop," Jobs said
during the event. "On the desktop, search is where it's at. That's where the
money is. But on a mobile device, search hasn't happened. Search is not
where it's at; people aren't searching on a mobile device like they do on a
desktop. What's happening is they're spending all of their time in apps." In
Jobs' example, when iPhone users want to find a restaurant, they go to the
Yelp app for the iPhone instead of searching Google. This is anathema to
Google, which sees itself as the gateway to connect users to what they
want to find online.
Page | 59
Jobs noted that the average iPhone user spends 30 minutes using
applications per day, Jobs said Apple could put up an ad every three
minutes. Each iPhone user would glimpse 10 ads within applications per
day, or roughly as much as people might see in a television show. Apple
expects to have 100 million iPhone and iPod touches on the market this
summer, providing 1 billion ad impressions per day for developers who
choose to pair ads with their applications. Apple will give application
developers 60 percent of the sales from the 185,000-plus apps available
through Apple's App Store.
Facebook is poised to enter the mobile advertising race, boosting the social
networking giant's revenue stream in advance of its much-anticipated initial
public offering, Bloomberg reported in October 2011. Citing two sources
with knowledge of Facebook's plans, Bloomberg states Facebook is
expected to roll out mobile ad services by the end of March 2012.
Facebook originally planned to introduce the mobile ad platform earlier this
year and the project could face additional delays, one of the sources adds.
Facebooks advantage is that it reportedly has over 800 million users with
the company expecting to break the billion mark through mobile devices.
According to the site, around 350 million of these users already access
Facebook through mobile devices. Facebooks other advantage is that it
can gather priceless marketing information about its users and their friends,
enabling advertisers to target potential customers more directly than
Google or Apple. Among the proposals under discussion is inserting
Facebook's Sponsored Stories ads-- which spotlight friends' interactions
with brands--directly into the mobile News Feed, which enables users to
view status updates, photos and other content. The addition of Sponsored
Stories has helped Facebook reach what eMarketer estimates will be $3.8
Page | 60
billion in global ad revenue, up from $1.86 billion in 2010. But the format
has also come under legal challenge from users who allege it violates a
California law giving people the right to control how their names and images
are used in endorsements. A federal court judge rejected a Facebook
motion to have the case dismissed.
In late December 2011, The Wall Street Journal reported Facebook is
moving closer to an initial public offering that would value the social
networking giant at more than $100 billion--sources familiar with the matter
say the firm is looking to go public between April and June 2012 and
expects to raise $10 billion. Although Facebook founder and CEO Mark
Zuckerberg has publicly expressed his reluctance to take the company
public, Facebook is currently in internal discussions over the timing of its
Securities and Exchange Commission filing.
In September 2011, Nielsen stated Facebook is now the most popular
mobile app across all operating systems. The ad effort will be modest -"Sponsored Stories" will prominently appear in a Facebook users News
Feed. Until now, Facebook apps on Android and iPhone have been
completely ad-free. Of its 800 million users, 350 million access Facebook
on mobile devices. None of them see ads, and Facebook's clients cannot
reach them on their phones. In Android, Google has provided a vast free
medium for Facebook, and now Facebook intends to sell ads on it. How
long will it be before Google demands a cut of that revenue? Given the
significant size of Facebooks user base an advertising play makes sense
for the company. However, Facebooks ad revenues have been hampered
by marketers belief that the ads are not effective at driving clicks and that
Page | 61
they can engage consumers on Facebook without the need to pay for
advertising.
A mobile advertising play could help Facebook drive further growth from
advertising. The benefit to advertisers in using Facebook could come from
the substantial information the social network has on its users, which could
be used to help advertisers target potential customers. Facebook would
need to tread carefully with how it approaches the use of customer data
because privacy advocates and regulators are keeping a watchful eye on
mobiles data collection practices. Facebook recently revamped its app for
Android to make it quicker and easier to use as it looks to attract more
developers. Meanwhile, Apple originally required marketers to commit to a
spending limit of at least $1 million, but this was later cut down to $500,000.
Also, Apple was charging marketers every time a user tapped an ad, which
would quickly eat through the budget. But Apple is now making some
changes in order to beef up its failing ad service. For starters, it reportedly
plans to drop the spending limit from $500,000 to $400,000. It will also put a
cap on its tap-related charges, where advertisers pay $10 every time an ad
is viewed 1,000 times and only $2 whenever the ad is tapped.
In addition, Apple has created a training program in order to show potential
advertisers what they can get out of participating in the iAd service. OMD,
Apple's media buying agency, has brought its advertising clients to Apple
headquarters in Cupertino, California for a tour where Apple designers offer
information on its products and marketing, complete with a stop in the
Apple store on the way out where companies can buy Apple products at a
discount. Apples pricing model is being reviewed and training is being
introduced for the new medium, says the Wall Street Journal. Meanwhile
Page | 62
caps are being introduced to limit the costs for advertisers. Apple charges
$10 per thousand views, but $2 for every click or tap. Google is more
flexible, charging between $4 and $12 per thousand views.
If Facebook embraces mobile ads, it could set off a fascinating corporate
strategy fight with Apple and Google, writes Business Insider. Google is
virtually printing money from mobile ads running on its Android system,
says BI. FB's mobile ad move comes as Apple, in an October stand-off,
blocked Facebook Credits on iPhone and iPad when the social network
refused a 30% cut of those revenues, setting a precedent for standing up to
FB. The Journal also reports that Apple has been inviting and entertaining
senior marketing executives including those from PepsiCo, Clorox and J.C.
Penney, who have paid visits to Apple headquarters.
Facebook confirmed that it was running a test on its ad platform, but the
social network said it was being conducted solely to allow marketers to
indicate that theyre interested in optimizing their campaigns for actions. If
the social network went to a pay-per engagement payment model instead
of the standard pay-per-click system, marketers would likely pay a higher
unit price, but receive a better return on their investments, since they would
only be paying for users who actually engaged with their content. Facebook
already has access to data of a large mobile user base that could help
advertisers more accurately target potential customers than a mobile
browser or app. Facebook says nearly half of its nearly 800 million users
already log in via mobile devices, giving the network momentum in a market
estimated to be worth $630 million.
In mid-2011, Google announced that it has completed the first campaign
that integrates AdMob with its DoubleClick ad server. AdMob ran rich media
Page | 63
ads for Intel, serving 1 million impressions in June. Google reports that 19.5
percent of users who saw the ad engaged with it by tapping on it or visiting
the mobile Web site that it linked to. Google also recently highlighted a
campaign for Lynx Excite, which saw an average engagement of two
minutes, while a recent Campbell's Soup campaign in Apple's mobile iAds
program saw average engagement of nearly one minute.
As Google assertively tests and proves the value of its mobile advertising
products, it is challenged by several industry-wide and company-wide
activities that directly affect its strategic growth opportunities. The Mobile
Marketing Association, for example, is taking another stab at developing
standardized mobile ad formats for the industry a move that will force
Google and others to re-evaluate its offerings. The MMA issued two
documents early in 2011Mobile Advertising Guidelines (v5.0) and
Universal Mobile Ad Package.
By June, however, it acknowledged there were shortcomings to these
guidelines. Now it is rolling out its third attempt, standardized formats for a
handful of commonly-used mobile ad types. MMA says this effort is
particularly significant as includes collaboration from the sales side,
including ad networks, rich media vendors and publishers, along with direct
input from the buy side at global ad agencies.
There is a comment period and then MMA hopes to introduce the six units
next year. All the major ad networks have agreed to support the new
standard set of units, MMA says.
MMA noted that most of the mobile ad impressions are being delivered to
mobile devices that operate on the iOS or Android systems. However, it
Page | 64
added, it is aware that many advertisers will want to create and place
advertising on devices that operate on Windows, Rim (Blackberry) or
Symbian (Belle update) systems. MMA will also offer initial guidance as to
what tablet ad unit sizes are gaining traction with both buyers and sellers. It
will continue to offer refreshed guidance every 6 months going forward.
Meanwhile, Google continues to tussle with government regulators in the
U.S. and Europe. The U.S. Federal Trade Commission began a formal
review of Google's strategies for building its search business, as well as the
tactics it is using to integrate search into its Android mobile operating
system.
The European Commission is investigating whether Google has unfairly
manipulated search results by lowering the rankings of competing services
and elevating its own offerings in unpaid results. The Korean Fair Trade
Commission is gathering information about Google, allegedly limiting
access to rival search engines on its Android mobile operating system
European regulators have been looking into Googles tactics since mid2010 and are fast approaching a decision. It is also reviewing Google's
pending bid to acquire Motorola Mobility, and regulators recently
suspended that review until Google produces additional documents
essential to its evaluation.
The challenge for regulators, if they determine that Google has acted
unlawfully, is devising a solution. One possibility is they will make it more
difficult for Google to acquire companies. Or it could create a regulatory
structure around the way Google generates its search results in browsers,
both desktop and mobile. Google continues to be embroiled in patent
litigation. Oracle has sued Google, while Microsoft and Apple have either
Page | 65
sued or threatened to sue companies that make devices that run Google's
Android and Chrome operating systems. Google has struggled to combat
the challenges, leading the company's chief legal officer, David Drummond,
to blog about "a hostile, organized campaign against Android by Microsoft,
Oracle, Apple and other companies, waged through bogus patents."
Google sports a small portfolio of patents, which has made it a bigger target
for such litigation and a key reason, according to Google Chief Executive
Larry Page, why it is purchasing Motorola Mobility. The company is a large
holder of mobile-device patents, which could help Google protect itself
against future litigation. Google will likely continue to acquire patents in
2012 to bolster its defenses against future lawsuits.
Marketers developing a mobile advertising strategy should closely follow
the strategic movements Google, Apple, and Facebook will make in early
2012. Each of their mobile advertising products will likely afford marketers
highly lucrative opportunities at competitive prices. The evidence continues
to mount for the emergence of mobile advertising as a highly effective way
to reach customers. And as awareness continues to grow, there will be
more segmentationboth by vertical and by specific technology from
Google, Apple, and Facebook that will allow marketers to target potential
customers with greater precision.
Theres little doubt that any of the three companys offerings will afford
advertisers the critical chance to deliver highly targeted pitches to
consumers in the mobile space. But consumers will come to understand the
benefits of reduced access fees and improved network services for the
sake of a somewhat intrusive branded mobile experience. Google and
Facebook will need to work hard to gain the users trust and prove their
Page | 66
Improved measurability via Google Analytics but beyond clickthrough rates. But advertisers should hold Google accountable for
providing consistent hard data on campaign successes.
Page | 67
One of the most popular features in mobile app and Web use over the past
year has been location based services. Facebooks Places and
Foursquare are bellwether location-based advertising vehicles. Facebooks
acquisition of Rel8tion, a mobile advertising company specializing in
locational services, shows the companys commitment to expanding its
location-based advertising strategy. AllThingsDigital reports that the ninemonth-old startup was focused on developing hyper-local advertising
solutions, and that Facebook will likely use it in conjunction with Places to
target users based on where they check in. According to PRWire,
NAVTEQs ad network LocationPoint recently teamed up with Poynt to offer
location based coupons and ads to their users. Poynt is a popular GPS
based mobile app for finding local restaurants, shops, and entertainment.
Together, NAVTEQ and Poynt will be able to send their users discounts
and offers to businesses near them. Mind Commerce expects that mobile
search, especially localized search, will be the dominant activity for
marketers to engage consumers with branded communications but they
should not ignore the potential of downloadable applications, streaming
video, and, most certainly, mobile messaging.
Many
vendors,
including
traditional
yellow
pages
publishers,
Page | 68
business address. Mobile search and display ads are expected to pass
messaging in 2012. Increases in mobile search advertising also coincide
with growing smartphone penetration. Search and display also rely on
faster and more pervasive mobile- Internet connectivity.
Page | 69
BT
France Telecom
Telstra
Telecom Italia
Telefonica
KPN
TeliaSonera
Polska Telekom
Bell
Verizon
TSP and OCX will collaboratively achieve a revenue stream. Merely, the
internet basically works between a group of free and paid peering networks
and the federated CDNs shall attain larger user base. One remarkable
opportunity is increasing the cost per benefit ratio through accommodating
larger traffic.
What makes federated CDN relatively remarkable than the traditional CDN
is that it will possibly overcome large number of obstacles that hinder the
Page | 70
Page | 71
Page | 72
computing can be used in the mobile applications and the impact of the
cloud computing on the telecommunication industry as a whole.
Cloud computing has a number of technologies, so before we move into
building systems in the cloud, we should understand the variety of cloud
infrastructure models. The most model that used nowadays is Amazon web
service. There are two types of cloud platforms, Infrastructure as a Service
(IaaS) and Platform as a Service (PaaS).
Platform as a service provide users with an infrastructure as well as
complete operational and development environments for the development
of their applications. Users can program using the vendors specific
application development platform and let the vendor worry about all
deployment details. The most commonly used example of pure PaaS is
Google App Engine. To leverage Google App Engine, the users write their
applications in Python against Googles development frameworks with tools
for using the Google file-system and data repositories. This approach works
well for applications that must be deployed rapidly and dont have
significant integration requirements.
The problem with PaaS approach is vendor lock-in. With Google, for
example, the user must write the application in the python programming
language to Google-specific APIs. While Python is a useful programming
language, however, its not a competency of most development teams.
Even if the enterprise has Python skills on staff, they must contend with the
fact that their Google App Engine application may only ever work well
inside Googles infrastructure. For the infrastructure as a service (IaaS) is
the core of the cloud. For example, Amazon web services have a number of
competitors who have different takes on the IaaS problems. These different
Page | 73
Page | 74
Amazon CloudFront
Amazon Simple DB
The Amazon Elastic Cloud Compute is the core of the Amazon cloud
business. It provides a web services API for provisioning, managing and
de-provisioning virtual servers inside the Amazon cloud. Any application on
the internet can launch a virtual server in the Amazon cloud with a single
web service call. Amazon EC2 has three data centers on the East Coast of
the U.S. and two in Western Europe. Any user can sign up separately from
an Amazon European data center account, but no one can mix and match
U.S. and European environments. Amazon EC2 uses highly customized
version of the Open Source Xen hypervisor using para-virtualization. This
Xen environment enables the dynamic provisioning and de-provisioning of
servers, as well as the capabilities necessary to provide isolated computing
environment for guest servers.
For the Amazon S3, its a cloud-based persistent storage. It operates
independently from other Amazon services. In matter of fact, the
applications that the users write for hosting their own servers can leverage
Amazon S3 without any need to otherwise be in the cloud. Amazon S3 is
not a simple storage as it seems like, its the feature set not the ease of
use. Amazon S3 enables the user to simple put data in the cloud and pulls
it back out. So the user does not need to know how it is stored or where is it
actually stored. Technically speaking Amazon S3 is not a remote filesystem. Amazon S3 is way more primitive than a File-system. User does
not really store files in the Amazon S3 they store objects. The objects are
stored in buckets not directories. Although these distinctions may appear to
be semantic, they include a number of important differences:
Page | 75
Buckets exist in a flat name space shared among all Amazon users.
The buckets and objects can be set to the general public for
viewing.
Before accessing S3, the user needs to sign up for Amazon Web services
account. The user will be asked for default storage in either the United
States or Europe. Storing data is not simply a function of where the user
lives, as regulatory and privacy is a main concern when signing up. Users
will be using the closest region to them to access the S3. The Amazon S3
is available through both SOAP API and REST API.
The Amazon Web Services APIs support the ability to:
Each bucket can optionally place in a specific location in which the buckets
contents should be stored.
Page | 76
Page | 77
Akamai
CDNetworks
Limelight Networks
BitGravity
BroadMedia
Accelia
NaviSite
Alcatel-Lucent
Ericsson
Some CDN providers are free (like PeerCast), but more enterprise-class
CDN providers offer initial account costs of $500 and go into the thousands
of dollars with larger business accounts. There are many notable vendors
Page | 78
who entered the CDN business. This offered a great boost the service by
tremendous bunch of solutions. The list includes but not limited to:
Device management
Fixed-mobile convergence
Hosting
Integrated provisioning
Inventory management
IPTV
Mobile backhaul
Mobile TV
Page | 79
Strengths
4.1.2
Weakness
Opportunities
Page | 80
4.1.4
Threats
4.2 Ericsson
Ericsson is the world's leading provider of technology and services to
telecom Carriers. Ericsson is the leader in 2G, 3G and 4G mobile
technologies, and provides support for networks with over 2 billion
subscribers and has the leading position in managed services. The
company's portfolio comprises mobile and fixed network infrastructure,
telecom services, and software, broadband and multimedia solutions for
Carriers, enterprises and the media industry.
The Sony Ericsson and ST-Ericsson joint ventures provide consumers with
feature-rich personal mobile devices. Ericsson is advancing its vision of
being the "prime driver in an all-communicating world" through innovation,
technology, and sustainable business solutions. Working in 180 countries,
more than 90,000 employees generated revenue of SEK 203.3 billion (USD
28.2 billion) in 2010. Founded in 1876 with the headquarters in Stockholm,
Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ
New York.
4.2.1
Strengths
Page | 81
Weakness
Opportunities
Threats
Strengths
Page | 82
Weakness
Opportunities
Threats
4.4 CloudFlare
CloudFlare is another American CDN provider. It was founded in July 2009
and headquartered in San Francisco, California, US. It produces
Page | 83
4.4.1
Strengths
Good customer base: the company has several contracts inside and
outside the US.
Diversity of Products
4.4.2
Weakness
Page | 84
4.4.3
Opportunities
4.4.4
Threats
Competition
Advances in the CDN technologies: CDN technologies change
every day especially with the market expansion.
Page | 85
4.5.1
Strengths
Weaknesses
Opportunities
The expansion of the CDN market: The market for the CDN is
expanding worldwide.
Threats
Page | 86
Competition: there are several startp-ups in the CDN arena and they
are a threat for Akamai as they provide lower prices.
4.6 EdgeCast
EdgeCast is an American company launched in 2006 and headquartered in
Santa Monica, California US. It offers a CDN services for some popular
content
providers
such
as:
Pinterest,
Mashable,
Yahoo!,
Sony
Strengths
Diversity of products
Verizon acquisition
4.6.2
Weaknesses
Lack of Support
4.6.3
Opportunities
Page | 87
The expansion of the CDN market: The market for the CDN is
expanding worldwide.
Threats
Competition: there are several startp-ups in the CDN arena and they
are a threat for Akamai as they provide lower prices.
4.7 MaxCDN
MaxCDN is a private American company founded in 2009. It is located in
California, US. It delivers CDN solutions and maintains regional Edge
Servers that delivers rich-content with a reduced latency. It serves many
notable customers such as AddToAny, BuySellAds.com, Forbes, Kodak,
MacRumors, Mobify, MyFitnessPal, Nissan Motor Company, Rayovac,
Spiceworks and some others.
4.7.1
Strengths
Page | 88
4.7.2
Weaknesses
Opportunities
The expansion of the CDN market: The market for the CDN is
expanding worldwide.
Threats
Competition.
4.8 CacheFly
CacheFly was founded in 2002 in Chicago, US and launched later in 2005.
The company serves the content providers worldwide. The company major
business is the content delivery networks. The CacheFly CDN uses the
TCP Anycast rather than the traditional DNS load balancing. It offers
instantaneous setup for configuration which makes the company relatively
Page | 89
preferable than some other CDN large providers. The major company using
CacheFly is AppleInsider.
4.8.1
Strengths
Global presence
Innovative products
Lack of advertising
4.8.3
Weaknesses
Opportunities
The expansion of the CDN market: The market for the CDN is
expanding worldwide.
Threats
Competition: there are several start-ups in the CDN arena and they
are a threat for Akamai as they provide lower prices.
Page | 90
4.9 Highwinds
The company is known as Highwinds Network Group, Inc., it is a key player
in the CDN business through a wide range of solution and technologies.
The company is also involved in many business related generally to the
internet technology.
4.9.1
Strengths
Diversity of products
4.9.2
Weak R&D
4.9.3
Weaknesses
Opportunities
The expansion of the CDN market: The market for the CDN is
expanding worldwide.
Threats
Page | 91
Competition: there are several start-ups in the CDN arena and they
are a threat for Akamai as they provide lower prices.
4.10 Internap
Internap is an American public internet service company. It was founded in
1996 and located in Georgia, US. The company offers many internet
related products and services including
Diversity of products
Page | 92
The expansion of the CDN market: The market for the CDN is
expanding worldwide.
Competition: there are several start-ups in the CDN arena and they are a
threat for Akamai as they provide lower prices.
Advances in the CDN technologies: CDN technologies change every day
especially with the market expansion.
4.11 Akamai
Akamai have a range of offerings including products, services and tools that
ameliorate Web content -- ranging from streaming media, static and
dynamic content transport and applications. They also provide content
management and enhancing application delivery on internet.
Akamai is considered is the best CDN provider, but we must know its
SWOT analysis because choosing a CDN provider depends on the network
Page | 93
requirements, size, growth rate and the content the client is aiming to
optimize, the client will need to examine individual content delivery network
services along with their offerings in order to choose the best offering for
them.
Founded in 1998 as a public US company, Akamai is one of the internet
industry giants. It has achieved $1.16 billion in 2011 with a net income
$200.9 million. The company has been in the business of internet content
delivery since 1998.
Akamai offers the CDN services for the most popular social network sites
Facebook and Twitter. It also serve Bing search engine. With these major
content providers the company holds a great share of the CDN market
serving a huge number of users.
4.11.1 Strengths
Big customers: Akamai has the big customers out there such as
military, pharmaceuticals, top media providers, Aerospace, social
media, ecommerce, and sports agencies.
Page | 94
4.11.2 Weaknesses
The expansion of the CDN market: The market for the CDN is
expanding worldwide, and its expected that it will reach $2 billion by
2016 (Without the CDN federation) or $6 Billion with the CDN
federation being installed.
Competition: there are several start-ups in the CDN arena and they
are a threat for Akamai as they provide lower prices.
4.12 CDNetworks
Page | 95
CDNetworks is considered one of the top players in the CDN area. It has
been acquired recently by the KDDI telecom. It's Asias largest CDN service
provider and provides content acceleration with a global network of POPs.
Their customers include Toyota, K2Network, Nexon, Megastudy, NCSoft,
etc.
CDNetworks is one of the major vendors of the content delivery networks
industry. It was previously a privately owned company founded in 2000
located in Seoul, Korea. The company chief executive officer is Jong Chan
Kim. CDNetworks offers content delivery service for a wide range of
internet based services that may include: online gaming, broad cast media,
entertainment, e-learning, social networks, retail, finance and software. The
company operates in 4 major countries including USA, Japan, China and
Korea in addition to EMEA.
4.12.1 Strengths
Good R&D
Page | 96
4.12.2 Weakness
4.12.3 Opportunities
4.12.4 Threats
Competition
Page | 97
Level 3 is considered as one of the top competitor for Akamai. They have a
good market share in the CDN area. Their customers are most of the
medium to large Internet carriers in North America, Latin America, Europe
and selected cities in Asia.
Level 3 is one of the telecom service providers. The company was founded
in 1985. It is headquartered in Colorado, US. The company business
includes wide range of internet and telecom related industries. The
company also has entered the market of the CDN. It provides media
broadcasting over IP and content delivery for many content providers
around the world. This may include North America, Latin America, Asia and
Europe.
4.13.1 Strengths
Unique products
4.13.2 Weakness
Debt problem: Level 3 still paying some debts and they are
struggling to pay it off
Page | 98
4.13.3 Opportunities
4.13.4 Threats
Aggressive competition
Government regulation
Page | 99
4.14.1 Strengths
Financial instability
Page | 100
4.14.3 Opportunities
Acquisitions
4.14.4 Threats
OTT provider are investing in their own CDNs such as: Amazon,
Microsoft and Google
Page | 101
including higher bandwidth, low cost digital devices, and smart devices
(phones, tablets, and wearable wireless) devices.
Mind Commerce continues to see strong revenue growth for CDN
providers. For specific market data and forecasts, see Section Five of this
report.
Page | 102
for their own internal use and are not selling it as a commercial CDN
service.
1. Akami
2. Max CDN
3. Amazon
4. CloudFlare
5. CDNetworks
6. Limelight Networks
7. Internap
8. CacheFly
Page | 103
9. EdgeCast
10. CDNsun
companies that do not need too many POPs. However, will be an issue for
the company that needs truly global coverage.
With approximately 12
global POPs, the companys servers are largely concentrated in the United
States.
Amazon: Good all-around CDN provider.
Page | 104
term, but may be an issue with integration in the near-term. This is not
expected to substantively affect performance. The company leverages a
partner network to effectively realize a greater number of POPs than its
own approximate 11 based in the United States.
CacheFly: The company receives high marks for ease of engagement as
well as performance in all important categories.
The
company has approximately 30 global POPs with about nine of those in the
United States.
EdgeCast: The company boasts a whos who of customers including
Tumblr, AVG, jetBlue, Myspace, Pinterest, SoundCloud, Yahoo! and
Technorati. Perhaps the most impressive thing about this CDN provider is
Page | 105
for
start-up,
low-volume
operations.
The
company
has
Abacast
BitGravity
EdgeStream
Page | 106
2014
2015
2016
2017
2018
2019
5-Yeat
CAGR (%)
- 2014 2019
4,148
5,216
5,402
6,679
7.253
8,736
29%
( Millions $ USD )
4,000
3,000
2,000
1,000
0
2014
2015
2016
2017
2018
2019
Page | 107
Page | 108
5.2
Region
2014
2015
2016
2017
2018
2019
5-Yeat
CAGR (%)
- 2014 2019
Africa
6.8
13
13.8
14.3
39%
Asia Pacific
992
1,389
1,834
2,383
2,622
2.834
38%
Eastern Europe
30
40
53
71
75
80
32%
54
72
100
146
172
179
35%
Middle East
11
16
20
28
35%
North America
1,469
1,835
2,115
2,368
2,123
2,770
25%
Western Europe
672
946
1,280
1,681
1,925
2,423
36%
5.3
Region
2014
2015
2016
2017
2018
2019
5-Yeat
CAGR (%)
- 2014 2019
Africa
1.1
1.3
1.7
1.8
80%
Asia Pacific
838
1,203
1,608
2,094
2,491
2,718
41%
Eastern Europe
11
18
27
39
42
43
47%
16
26
44
76
77
77.2
56%
Middle East
4.3
52%
North America
1,229
1,565
1,820
2,042
2,143
2,514
28%
Western Europe
466
706
1,000
1,343
1,421
1,742
45%
Page | 109
5.4
Region
2014
2015
2016
2017
2018
2019
5-Yeat
CAGR (%)
- 2014 2019
Africa
12
13.9
14.93
37%
Asia Pacific
154
186
226
289
390
428
23%
Eastern Europe
18
22
26
32
39
46
21%
38
46
56
70
76
82
23%
Middle East
12
13
16
32%
North America
239
270
295
326
392
427
14%
Western Europe
206
240
279
338
473
501
18%
5.5
Category
2014
2015
2016
2017
2018
2019
5-Yeat
CAGR (%)
- 2014 2019
Video
2,563
3,520
4,502
5,599
6,325
6,920
36%
Non-Video
665
777
900
1,080
1,113
1,848
18%
Page | 110
5.6
We see a strong
possibility that these companies will at some point in the near future
establish a second instance of their infrastructure for purposes of offering
Content as a Service to (CaaS) to compete with the likes of Akamai and
others.
They
will
leverage
certain
advantages
such
as
their
Page | 111
Market Research
Competitive Analysis
Technical Assessment
Page | 112