The Evolution of the Content Delivery Network Business

Oct 03 2018

NGD Systems

An image of a globe surrounded by personal computers representing the evolution of Content Delivery Network Business.

More likely than not, you have interacted with several content delivery networks (CDNs) today. Whether browsing popular websites, downloading new applications, or watching web-based video streaming services, CDNs are the virtual backbone of today’s internet. CDNs allow companies large and small to get physical closer to their customers, and to scale their delivery needs dynamically to support seasonal peaks in business, as well as long-term business growth. CDNs provide proxy services for nearly all websites in the world today by serving the content of their customers (the people creating the websites and their content) to the customers’ users.

Initially, CDNs primarily served time-sensitive information like streaming audio and video content. As users began to expect highly responsive web experiences, CDNs utilized their widespread network of Points of Presence (PoPs) to serve website traffic as well. The importance of this increased as e-retail began to emerge as a significant revenue source for a variety of companies. This was also closely followed by software delivery services, especially in the gaming sector where users would “slam” the internet when new games were released. Similar models followed for popular software releases in non-gaming markets, especially as the release of frequent updates became the norm to patch security and other concerns in applications.

Today, CDNs form the virtual infrastructure of the World Wide Web. CDN worldwide revenue is expected to grow from $7.47B in 2017 to $30.89B (US) by 2022, according to Markets and Markets, with the largest segment being media delivery. With this kind of growth, one can expect new entrants to the market and the introduction of game-changing technology which will radically reshape the competitive landscape of this market. If you want to find out more, please follow our five-part blog series, which will be available on LinkedIn and on the NGD Systems website.

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