Our friends at Arcus Advisors have released an interesting report on the state, and evolution, of the Content Delivery marketplace. The study breaks the market into three time/technology periods with an exploration of the success factors and challenges related to each.
Of particular interest is the opinion that the currently emerging 3rd phase content delivery offerings are being heavily influenced by mobile and enterprise content delivery needs, with new technologies emerging as both embedded elements of the network and as abstracted components of SDN offerings.
Executive Summary :
The current content delivery marketplace is a difficult operating environment with considerable headwinds to growth. It is political, has piracy problems, and extreme price sensitivity from consumers.
Opportunities in the enterprise space benefit from many of the same trends as the consumer market, but do not have the same piracy and political problems. Enterprises also have a history of paying for quality and security.
There are no CDNs in the mobile network right now. There is only delivery to mobile devices. The lack of infrastructure is an opportunity; but the technology, economics, real estate, and politics of wireless are considerable headwinds for any company operating in the space.
The first phase of CDNs were pure-play network operators such as Akamai. The second phase, which is concluding now, is defined as ISPs trying to copy what CDNs were already doing and encountering great headwinds. Growth in the next phase of content delivery will come from operators who combine storage, computing power, and delivery or have a unique focus. There are several companies already operating in this new space. CDN functionality will become more deeply integrated with existing network equipment and commodity hardware, with an SDN/app approach to adding new services.
The growth of the Internet is causing changes in the content delivery marketplace. Current leaders are under pressure to adapt and new providers are emerging to address new markets and opportunities.
For information about the complete study, please contact: slandman(at)arcusadvisors.com