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Carriers Catch CDN Fever

March 12th, 2012

It’s always satisfying to have industry experts confirm your observations.  Which is why it was particularly fulfilling to stumble upon this video interview with Heavy Reading analyst, Adi Kishore in which he explains how and why a growing legion of carriers are deploying their own CDNs.

His observations mirror what we’re seeing in the marketplace.

Telcos currently find themselves in a vicious cycle from which they need to free themselves… quickly. At the same time that their traditional revenue streams like landline service wane, operators are obligated to invest ever larger sums to fund capital expenditures necessary to meet the enormous OTT video demand on their networks.  They are getting it coming and going.

To extricate themselves from this bind, telcos are increasingly choosing to launch and operate their own CDNs rather than utilize established pure-play CDN providers like Akamai and Limelight Networks.  By deploying their own content delivery networks, operators can leverage their inherent strengths — ownership of the network infrastructure and direct relationships with end users and content owners — to reduce video transit costs and greatly improve online video QoS.  Read: How Telcos & ISPs Can Learn to Love OTT

According to Informa Research, more than 41 carriers are reported to be in some phase of CDN deployment.  That sounds about right.  Now that some of the world’s largest telcos (many of them Skytide customers) have deployed their own CDNs and are realizing the benefits, the rate at which other telcos follow suit is likely to accelerate.

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