As the strategic value of online content assets continues to grow, chaos and confusion are rampant within the content delivery network (CDN) market. Challenging dynamics coupled with increased demand for content delivery solutions means that a diverse array of companies are keeping a close watch on the space and the relevant players within it.
Yankee Group has developed an Anywhere Scorecard for the CDN market that assesses the relative strengths and weaknesses of the key global providers. The scorecard takes an objective look at how a provider’s Vision and Ability to Transform in the market influence the strength of its offering, and how these dynamics inform customer buying decisions.
In this webinar, Yankee Group analyst David Vorhaus explored the transformative trends affecting the CDN market and ranked 10 of its most significant players.
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Exemplary Vision and Ability to Transform. Often the strongest reputation among customer base and established track record for product or service excellence. Recommended.
Good Vision and Ability to Transform. Often have overwhelming strength in one category but slight deficiencies in the other. Primed to move up to Front-runner status. Recommended.
Limited, but still noteworthy Vision and Ability to Transform. Not recommended across the board, however may be recommended in very specific circumstances.
Vision and Ability to Transform are lacking. Unlikely to be recommended.
Scorecard graphic provides a visual ranking of vendor results.
• Upcoming scorecards, to be updated annually:• Virtual desktop and application virtualization• Carrier Ethernet transport• Service delivery platforms• Mobile operating systems
• More information• See our Anywhere Scorecard Guide for more detail on methodology
www.yankeegroup.com/research/anywhere_scorecard.pdf• Recommend a scorecard topic at [email protected]
• Dedicated network of servers distributed strategically
• Localize delivery to ensure speed, quality and reliability of distribution
• Who buys CDN services from third parties• Enterprises for internal distribution• Consumer content providers for
widespread distribution
• The role of CDNs in the network is expanding• More high-volume, high-value content distributed to broader range of end-users• Content owners looking to assure quality/drive revenue can’t rely on public
• Large number of undifferentiated players• 30+ CDN players with relatively similar core offerings• Competitive landscape overinflated, significant consolidation in next 12 to 18
months
• Downward pricing pressure for core services• HTTP object delivery is low-margin game • Pricing will asymptote to commodity levels within 24 months
• CDNs broadening out to incorporate ancillary services• Key services: content management, reporting/analytics, security, metadata
extraction, ad insertion, encoding/transcoding• Larger CDNs looking at whole site acceleration and application acceleration
• Encroachment by external players• AT&T, Level 3, Global Crossing, Deutsche Telekom, KPN, Tata, Verizon,
Alcatel-Lucent, Cisco, etc.• Driven by cost savings and revenue generation
• The basis of the CDN scorecard is primary research with vendors (scorecard participants) and existing/potential customers.
• Ten vendors are selected, based on those that develop their own CDN services and are most relevant in the market today.
• Scoring is done in two broad categories: Vision and Ability to Transform.
• Vision: Strategy in CDN space, available services and functionality• Ability to Transform: Core business metrics that will help dictate attractiveness
• Scorecard is done from the customer’s point of view.
• Yankee Group Research Reports:• Yankee Group Anywhere Scorecard: Content Delivery Networks, 2009
by David Vorhaus• The Fate of the CDNs by David Vorhaus• Carrier Encroachment Into the CDN Marketplace by David VorhausDownload the reports at http://www.yankeegroup.com
• Yankee Group blog:• Guiding Content Delivery Decisions by David Vorhaus• The Carriers Are Coming! by David VorhausRead more at http://blogs.yankeegroup.com/
• Yankee Group Scorecards Learn more at http://www.yankeegroup.com/linkResearch.do