Akamai making strides in wholesale CDN

Paris Burstyn/Ovum
20 Nov 2013

Principally known for its content delivery network (CDN) and streaming services, Akamai also sells its platform and software on a wholesale basis to network operators. These technologies enable carriers to deliver CDN services to their customers.

Akamai’s wholesale solution offers three options: operators can deploy its equipment in their networks, purchase ongoing CDN and streaming services via Akamai’s network platform, or use a hybrid approach of network platform and network equipment. These options allow carriers to tailor the way they work with Akamai.

Since it introduced the wholesale Aura hardware and service product line in March 2012, Akamai has established relationships with 10 carriers around the world. We expect this growth to accelerate as retail demand for content explodes and operators need quick access to scalable, affordable solutions.

Fast growth requires faster CDN go-to-market execution

We expect the need for CDN services to expand rapidly with skyrocketing bandwidth demand from consumer and business users. Content consumers expect videos to run in realtime over mobile and fixed networks, and they expect instantaneous results from their web searches. These requirements will surely continue to strain existing network infrastructure and spark increasing capital investments.

In this environment, it’s most likely too late for any carrier to attempt developing and deploying its own CDN infrastructure. To build and grow revenue from content services, carriers will have to purchase and/or partner to acquire CDN technology and platforms. We see Akamai using its wholesale platform to become a credible partner for CDN solutions. Indeed, 10 major operators have opted to use Akamai’s solution for their CDN efforts: AT&T, BT, Equant, Korea Telecom, NTT, Orange, Swisscom, Telefonica, Turk Telecom, and Verizon.

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