BUILDING YOUR OWN CDN FOR VIDEO DELIVERY: WHY,WHEN, AND HOW

Improve Quality of Service (QoS) while Maintaining Control and Reducing Costs

Published: 14 Feb 2017

INTRODUCTION

We are in the age of digital businesses.The global society is increasingly communicating, transacting, buying, learning, and relaxing via the Internet. TV services are in the midst of immense disruption enabled by online services. OTT- capable consumer device sales will grow from 2.9 billion units in 2016 to 3.5 billion units by 2021. Cisco System’s Visual Networking Index forecasts that global data transfers will grow at a whopping 22% CAGR from 2015 to 2022, reaching 194EB/mo in that timeframe1. Per capita online video consumption is growing steadily worldwide by every metric. Video is expected to account for more than 80% of that traffic. Adobe’s Q1 2016 Digital Video Benchmark Report, for example, showed a 107% year-over-year increase in authenticated video viewing.

Content Delivery Networks (CDNs) are specialized network solutions to ensure high-quality, low-latency delivery of digital data to end consumers. Global CDN revenues for video alone will cross $4B in 2017, with regions like Latin America growing at a CAGR of over 25% over the next five years2 CDN customers saw their traffic grow by 85% in 2016 alone.There is a rich ecosystem of CDN vendors serving the needs of businesses to reach consumers in domestic and worldwide markets. However, a growing number of content providers—managed Pay TV service operators such as telcos and MSOs—are finding that building their own CDNs better serve their business interests. Content companies—video service operators, broadcasters and OTT service providers—are seeing both subscriber counts and video traffic grow at rapid rates. With content libraries becoming increasingly uniform across providers, differentiation relies heavily on quality of service and profitability relies increasingly on operational efficiency.

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