The new Internet pattern pushes forward CDN service providers steadily

The development of specialized CDN services in China has been in existence for 16 years. With the development of the Internet in China, CDN service becomes more and more important as a courier of Internet content. In addition to the CDN technology revolution, the CDN market landscape has also undergone a huge change. From the initial professional CDN service providers to the current telecom operators and Internet companies, they have all begun to enter the CDN industry. CDN has become a new favorite of the Internet era and a new territory for competition in the capital market. I cannot help but wonder, does this mean that professional CDN service providers are getting "fat? What are the capabilities and differences between the three services? Next, I will analyze the future development space of the CDN industry and the CDN market in China.
It can be said that professional CDN service providers have witnessed the rapid development of the Internet in China, and also witnessed the rapid growth of the Internet. It provides a lot of help to ensure a smooth network environment. From reducing network congestion, improving the user's network access experience and service quality, to more effective and reasonable resource allocation ....... I have to say that in terms of network acceleration, professional CDN service providers play a decisive role. Their core technologies, such as cache technology and content replication technology, play a very good role in promoting the development of Internet applications.
In particular, in response to the current domestic Internet development needs, user experience, speed, and reliability have become the most basic elements for websites to attract users to access. As a result, more and more enterprises and users are paying attention to the network acceleration service provided by professional CDN service providers. In recent years, mobile Internet applications and content demand have increased significantly, driving massive dynamic and rich mobile content consumption. Among them, e-commerce, online games, and online videos are the main driving force for market growth, in particular, the popularization of high-definition streaming media will greatly stimulate the demand for accelerated transmission of network content. CDN service providers will improve the response speed and stability in the mobile network environment through more and more technical innovations, at the same time, we also fully benefit from this. The rapid development of mobile Internet undoubtedly provides a huge market space for professional CDN service providers.
Looking at the world, it is estimated that the global CDN service will reach 2017 US dollars in 4.6 billion, three times the total revenue of the current industry. The CDN market in North America is relatively mature and saturated, And the CDN coverage rate in the Internet market is 50%. In the future, the development of CDN in Asia will be very fast, especially in China. CDN coverage in China is about 10%. It is not hard to see that there is a long way to go in the CDN industry in China. There is a huge space for development in terms of industry penetration, market coverage, and market scale.
Next we will look at the market structure. The CDN market has low technical barriers, but its high requirements for dynamic network acceleration technology and large-scale server configuration determine a high entry threshold for the CDN market.
Internet enterprises need to effectively manage and operate Internet resources and provide end consumers with quick response services. The complete architecture, efficient operation capability, and flexibility of professional CDN service providers can quickly respond to Internet enterprises' needs and provide customized services through the most reasonable resource allocation, so as to deliver the services into products for value. Especially for the rapidly developing vertical fields, including enterprise services, games, e-commerce, and online videos. CDN service providers provide innovative technologies, diversified and comprehensive solutions to different use needs in various fields.
Compared with professional CDN service providers, telecom operators have the resource advantages of Full-network coverage and are closely related to many Internet companies. They have the ability to build a large-scale and optimal-performance CDN network and market their services. However, the CDN service provided by Alibaba Cloud is relatively simple and lacks complex CDN technical support and weak experience. In particular, the network coverage of a single operator is limited, and the obstacles to cross-network services are hard to provide independent CDN services for enterprises. This is a barrier that cannot be broken through when operators develop their CDN services. It is understood that China Telecom began to invest in CDN services as early as 10 years ago and has not yet achieved significant market benefits.
How can operators break through a single network? Looking at international trends, we will find that KDDI, Japan's second-largest operator, acquired 85% of cdnetworks, a South Korean CDN company. In, at&t abandoned its self-built CDN network, in full cooperation with Akamai, the largest CDN company in the United States, Verizon acquired edgecast, the top three CDN companies in China by the end of 2013. It can be seen that the cooperation between telecom operators and professional CDN service providers has become a trend, and professional CDN service providers are still dominated by the CDN market. The customer base is mainly real enterprises and large and small Internet companies.
Finally, I would like to talk about Internet enterprises. Due to the large initial investment in CDN networks, Internet enterprises often choose to purchase third-party CDN services during their initial operation. As a result, large Internet companies began to build their own CDN networks. The advantage is that the controllability is improved. The disadvantage is that the huge CDN construction investment, technical R & D, and maintenance of technical labor costs bring a lot of pressure to enterprise operations.
Looking at the domestic CDN industry market, there is a huge space for development. Following the trend and innovating services, the combination of these capabilities will further promote the goal of accelerating CDN penetration, and will also promote CDN services to a broader field.