It is estimated that CDN networks already deliver over 40% of the worlds Internet traffic, with this figure fast approaching 90% on some networks during peak times. Increasingly, major service providers are investing in CDN infrastructure to reduce traffic volumes and increase performance. This will have a huge impact on networks in terms of big data, keeping the Internet open for the creation of new revenue opportunities.
The old value chain in which operators buy and sell content packages is changing to see network operators build and sell distribution resources to content owners, allowing for greater reach and quality of service. Unless operators adapt to this changing market by becoming a CDN themselves and utilizing their infrastructure, they face the risk of being cut out of the distribution chain.
Chris Drake, Senior Research Analyst at Informa Telecoms & Media said: A growing number of CDN service providers are recognising the opportunities for big data delivery. From online retailers to government institutions and financial services firms, theres a need to ensure that premium and mission critical data is delivered effectively, securely and promptly. While the price of video delivery has fallen significantly in recent years, the enterprise customers of CDNs are still prepared to pay a premium to ensure their data is given priority treatment and delivered with guaranteed service levels.