2014-02-12 04:13:02 - Global Content Delivery Network MarketÂ 2012-2016 - a new market research report on companiesandmarkets.com
The Global Content Delivery Network market is to grow at a CAGR of 15.73 percent over the period 2012-2016. One of the key factors contributing to this market growth is the uninterrupted availability of content facilitated by content delivery networks. The Global Content Delivery Network market has also been witnessing increasing development of cloud-based content delivery networks. However, high initial cost of content delivery network solutions could pose a challenge to the growth of this market.
One of the main trends being witnessed in the Global CDN market is the growing pricing pressure on vendors owing to the competition among them. The market was dominated by Akamai till 2009, but the company is now witnessing immense competitive pressure from peers such
as Level 3 Networks, Limelight, and CDNetworks. As a result, Akamai, which earlier used to adopt a premium pricing strategy for its CDN solutions, has reduced its prices. Hence, vendors such as Akamai are managing to attract more customers but are compromising with their margins.
The improved availability of services provided by the CDNs is driving the demand for CDNs across the globe is. CDN assets are distributed across diverse regions and have mechanisms that can automatically sense server availability and facilitate instant user redirection.
Further, the report states that despite the steady growth of the global CDN market, it is challenged by the high cost factor of the CDN. CDNs are usually provided by third-party vendors. The fees charged by third-party vendors for their services are generally high, and hence it is difficult, especially for SMEs, to bear these expenses. Most deployments of the larger CDN solutions also have hidden charges along with the setup fees.
The key vendors dominating this space include Akamai Technologies Inc., Level 3 Communications Inc., Limelight Networks Inc., and CDNetworks Co. Ltd. The other vendors mentioned in the report are Abacast Inc., Accelia Inc., Alcatel-Lucent, Amazon Web Services, AT&T Inc., Bharti Airtel,BitTorrent Inc., Broadmedia Corp., BT Group plc., CacheFly, ChinaCache Inc., Conviva Inc., Deutsche Telekom, EdgeCast Networks Inc., EdgeStream Inc., Highwinds Network Group Inc., Limelight Networks Inc., Peer1 Network Enterprise Inc., Internap Network Services Corp., Interroute Communications Ltd., Navisite Inc., NTT Communications Corp., Pacnet, Reliance Globalcom, Singtel Ltd., Tata Communications Ltd., TeliaSonera AB, Telecom Italia Sparkle SPA, Telecom New Zealand Ltd., and Telstra Corp. Ltd.
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