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Big Changes Are in Store for Content Delivery Networks, Heavy Reading Finds - abc27 WHTM

Big Changes Are in Store for Content Delivery Networks, Heavy Reading Finds

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SOURCE Heavy Reading

Verizon has recently acquired EdgeCast, a CDN provider, which is just one aspect that will cause changes in the CDN market, says Heavy Reading Insider

NEW YORK, May 8, 2014 /PRNewswire/ -- Verizon's acquisition of content delivery network (CDN) provider EdgeCast is just one of several developments that will shake up the CDN sector, which has long been dominated by Akamai Technologies, according to the latest report from Heavy Reading Insider (www.heavyreading.com/insider), a subscription research service from Heavy Reading (www.heavyreading.com).

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CDN Operators Get Set for Some Major Changes examines the state of the CDN market in light of new developments that will reshape it. It reviews the market's structure, including the role of video service providers and over-the-top (OTT) content providers, market shares of significant CDN operators as well as current market trends and issues, including the evolution of VAS, do-it-yourself (DIY) CDNs, the software sale model, dual CDN strategies, standardization and federations. Finally, the report profiles 13 market players with significant impact on this segment.

For a complete list of companies covered in this report, please click the following link: http://twimgs.com/audiencedevelopment/LRHR/PDFS/hri0514_companies.pdf

"In December 2013, Verizon acquired the fast-growing CDN provider EdgeCast," says Steve Koppman, research analyst with Heavy Reading Insider and author of the report. "This acquisition has positioned Verizon to mount the strongest competitive challenge dominant Akamai Technologies has faced since it launched the CDN market in the 1990s."

With its acquisition of EdgeCast, Verizon will likely challenge Akamai more effectively than any other CDN challenger has until now, Koppman says. "There will likely be increasing consolidation across the sector, which will not preclude the emergence of new specialized players," he continues. "The acquisition may also support eventual Verizon efforts to go to OTT delivery itself outside its region; however, despite its efforts, it is by no means clear yet that Verizon can seriously challenge Akamai's long-dominant market position."

Key findings of CDN Operators Get Set for Some Major Changes include the following:

  • Verizon's EdgeCast acquisition offers the best chance yet of a true competitive challenge to Akamai's CDN dominance.
  • CDNs and the site speeds they are designed to promote will become an intensifying concern of the "C-suite" of top executives.
  • More CDN consolidation appears inevitable, although opportunities for smaller players will remain.
  • Value-added services beyond bit delivery of static content – e.g., security and acceleration/optimization of increasingly dynamic Web content – are an ever-growing share of this market.
  • Akamai's own extreme revenue growth goals of 18 percent annually require it to accelerate its path of diversifying acquisitions.

CDN Operators Get Set for Some Major Changes is available as part of an annual single-user subscription (12 issues) to Heavy Reading Insider, priced at $1,995. Individual reports are available for $900 (single-user license).

To subscribe, or for more information, please visit: www.heavyreading.com/insider. For more information about other Heavy Reading Insider research services, please visit: www.heavyreading.com/research.

To request a free executive summary of the report, or for details on multi-user licensing options, please contact:

David Williams
Global Director of Sales, Research
Heavy Reading
858-829-8612
dwilliams@lightreading.com

Press/analyst contact:
Dennis Mendyk
Vice President of Research, Heavy Reading
201-587-2154
mendyk@heavyreading.com

About Heavy Reading
Heavy Reading (www.heavyreading.com), the research division of Light Reading, offers deep analysis of emerging telecom trends to network operators, technology suppliers, and investors. Its product portfolio includes in-depth reports that address critical next-generation technology and service issues, market trackers that focus on the telecom industry's most critical technology sectors, exclusive worldwide surveys of network operator decision-makers that identify future purchasing and deployment plans, and a rich array of custom and consulting services that give clients the market intelligence needed to compete successfully in the global telecom industry.

About Light Reading?
Light Reading (www.lightreading.com) combines its research-led online communities and targeted events portfolio to help those in the global communications industry make informed decisions. Lightreading.com is the ultimate source for telecom analysis for more than 350,000 subscribers each month, leading the media sector in terms of traffic, content, and reputation. Light Reading produces targeted communications events and focused one-day conferences each year for cable, mobile, and wireline executives across five continents.

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