T1R IIS CDN Market Overview Global 2012 Exec Overview

MAY 2012

451 RESEARCH: INTERNET INFRASTRUCTURE SERVICES© 2012 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.

GLOBAL CONTENT DELIVERY NETWORKS MARKET OVERVIEW 2012

IIS INTERNET INFRASTRUCTURE SERVICES

451 RESEARCH: INTERNET INFRASTRUCTURE SERVICES 1 © 2012 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.

REPORT SNAPSHOTTITLE Global Content Delivery Networks

Market Overview 2012

ANALYST Jim Davis, Senior Analyst, Networks & Media

RELEASE DATE May 2011

LENGTH 52 pages

ABOUT THIS REPORTThis research report, Global Content Delivery Networks Market Overview 2012, is part of

an ongoing series of reports on the evolving market for content delivery services.

This report provides market-share data on the top public and private players, as well as

figures for the overall CDN market, with a look back at the revenues for Q4 2011 and an

outlook for industry revenue through 2014.

The report is intended to provide a general overview of the market and includes profiles

of leading players. Additionally, we look at companies that are going to play a role in

the CDN market landscape as vendors continue to adapt to the cloud computing trend.

Projections for 2012 through 2014 include our assessment of market and competitive

positioning to determine revenue figures. Additionally, we use demand-side research

survey data from ChangeWave Research, a division of 451 Research, and forecasts from

451 Research’s Market Monitor service as a factor in our forecasts.

For the all revenue figures presented, the totals are inclusive of all services offered by

CDNs. The 2012 report includes estimates of various telecom firms that are offering CDN

services in to our total market projections. It does not include software or hardware

revenue from vendors such as Cisco for technology used to build CDNs.

2 GLOBAL CDN MARKET OVERVIEW 2012© 2012 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.

COMPANIES INCLUDED IN THIS REPORT

3Crowd Technologies

AcceloWeb

Akamai Technologies

Alcatel-Lucent

Alestra

Amazon

Apigee

Aryaka Networks

AT&T

Avail-TVN

BBC

Bell Canada

Bestel

Blaze Software

British Sky Broadcasting

CDN77.com

CDNetworks

ChinaCache

Cloudee.eu

CloudFlare

Cotendo

EdgeCast Networks

EyeWonder

Global Crossing

GoGrid

GS Neotek

Hewlett-Packard

Highwinds Network Group

HostPro UA

Incapsula

Internap Network Services

Jet-Stream

Juniper Networks

KDDI

KPN

Level 3 Communications

LIME

Limelight Networks

LOVEFiLM

Media Temple

MegaFon

Microsoft

Mirror Image Internet

Motorola Mobility

Netflix

NTT Japan

Octoshape

OnApp

Pacnet

PEER 1

Rackspace

Riverbed Technology

salesforce.com

ServerOrigin

Communications

StreamZilla

Tata Communications

(BitGravity)

Telefónica

Telstra

TELUS Communications

Torbit

Usergrid

Verizon

VidScale

Virtual Internet

Voxel dot Net

Webair Internet

Development

Yottaa

Your Internet Service

Provider (Yisp.nl)

YouTube


TABLE OF CONTENTS

INTRODUCTION 1

METHODOLOGY 1

CDN MARKET REVENUE ESTIMATES 2

SUMMARY OF KEY FINDINGS . . . . . . . . . . . . . . . . . . . . 2

FIGURE 1: CDN Market Revenue and Growth Rates, 2010-2014 2

FIGURE 2: Total CDN Market Revenue, by Year 4

FIGURE 3: CDN Market Revenue from Resellers, by Year 5

FIGURE 4: CDN Market Revenue from Resellers 5

FIGURE 5: CDN Market Revenue by Region, Q4 2011 6

FIGURE 5a: CDN Market Revenue by Region, Q4 2011 6

FIGURE 6: CDN Market Growth Rates, by Region, 2011 7

FIGURE 7: CDN Market Growth Rates by Region, 2010-2014 7

FIGURE 8: CDN Market Revenue by Region, 2009-2014 8

VENDOR REVENUE COMPARISONS . . . . . . . . . . . . . . . . . . 9

FIGURE 9: Top 10 CDNs by Revenue, Q4 2011 9

INDUSTRY ISSUES AND TRENDS 10

TELCOS AND CABLE: PROJECTS UNDERWAY . . . . . . . . . . . . . . 10

FIGURE 10: Weekly BBC iPlayer Statistics, Users in Millions

(July-December 2011) 11

DON’T FORGET THE CABLE GUYS . . . . . . . . . . . . . . . . . . 12

FIGURE 11: Alternative TV Survey Results: Leading Content Providers

for Cord Cutters 13

HOSTING COMPANIES MOVE AHEAD WITH CDN . . . . . . . . . . . . . 15

FIGURE 12: List of CDN Technologies Used by Service Providers 16

CDN AS CLOUD DELIVERY NETWORK . . . . . . . . . . . . . . . . . 17

FIGURE 13: Total IaaS Market Forecast 18

FIGURE 14: Infrastructure as a Service: Cloud Storage Revenue Estimates 18

FIGURE 15: Total PaaS Market Revenues 20

FIGURE 16: PaaS Market Revenue Breakdown 20

FIGURE 17: Total SaaS Market Revenue 21


KEY FINDINGS FOR CDN VENDORS . . . . . . . . . . . . . . . . . . 23

KEY FINDINGS FOR CLOUD AND HOSTING VENDORS . . . . . . . . . . . 24

SERVICE PROVIDER PROFILES 25

AKAMAI . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Akamai Revenue Q4 2011-Q4 2012 25

Deployments and Trends 25

AT&T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

AT&T Revenue Q4 2011-Q4 2012 27


TATA COMMUNICATIONS (BITGRAVITY) . . . . . . . . . . . . . . . . 29

Tata/BitGravity Revenue Q4 2011-Q4 2012 29


CDNETWORKS . . . . . . . . . . . . . . . . . . . . . . . . . . 31

CDNetworks Revenue Q4 2011-Q4 2012 31


CHINACACHE . . . . . . . . . . . . . . . . . . . . . . . . . . 33

ChinaCache Revenue Q4 2011-Q4 2012 33


EDGECAST . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

EdgeCast Revenue Q4 2011-Q4 2012 35


HIGHWINDS. . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Highwinds Revenue Q4 2011-Q4 2012 37


INTERNAP . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Internap Revenue Q4 2011-Q4 2012 39


LEVEL 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Level 3 Revenue Q4 2011-Q4 2012 41



LIMELIGHT . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Limelight Revenue Q4 2011-Q4 2012 43


MIRROR IMAGE . . . . . . . . . . . . . . . . . . . . . . . . . 45

Mirror Image Revenue Q4 2011-Q4 2012 45


EMERGING SERVICE PROVIDER PROFILES 47

AMAZON . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

ARYAKA NETWORKS . . . . . . . . . . . . . . . . . . . . . . . 48

CLOUDFLARE . . . . . . . . . . . . . . . . . . . . . . . . . . 49

INCAPSULA . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

TORBIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

YOTTAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

SERVICE OFFERING CHECKLIST 52


ABOUT 451 RESEARCH 451 Research, a division of The 451 Group, is a leading global analyst and data company focused on the business of enterprise IT innovation. Clients of the company — at end-user, service-provider, vendor and investor organizations — rely on 451 Research’s insight through a range of syndicated research and advisory services to support both strategic and tactical decision-making.

© 2012 451 Research, LLC and/or its Affiliates. All Rights Reserved. Reproduction and distribution

of this publication, in whole or in part, in any form without prior written permission is forbidden.

The terms of use regarding distribution, both internally and externally, shall be governed by the

terms laid out in your Service Agreement with 451 Research and/or its Affiliates. The information

contained herein has been obtained from sources believed to be reliable. 451 Research disclaims

all warranties as to the accuracy, completeness or adequacy of such information. Although 451

Research may discuss legal issues related to the information technology business, 451 Research

does not provide legal advice or services and their research should not be construed or used as

such. 451 Research shall have no liability for errors, omissions or inadequacies in the informa-

tion contained herein or for interpretations thereof. The reader assumes sole responsibility for

the selection of these materials to achieve its intended results. The opinions expressed herein are

subject to change without notice.

Documents

T1R IIS CDN Market Overview Global 2012 Exec Overview