Content Delivery Network Services – The Importance and Impact on an Online Business

A huge market potential in the domain of content delivery network CDN service business is drawing the attention of global emerging marketplaces in the entire world.  

CDN servicesNowadays, the Content Delivery Network CDN service is one of the brightest spots in the domain of modern IT businesses. If we look at the potential and the growth of this lucrative business, we will be strongly convinced about this reality. The current market value of the CDN business in 2015 stands at about $5.95 billion, which is projected to cross the $7.4 billion mark by 2017, and the $15.73 billion mark by 2020. The growth rate from 2015 to 2017 is projected at about CAGR 24.6%; and from 2017 to 2020, it will grow at about 26% CAGR. These facts and figures were obtained by the Markets&Markets researches.

The CDN services offer static content delivery for the websites through an integrated network of servers located across the globe. This increases the speed and performance of the web environments. This service includes numerous solutions, such as fast media delivery, data security, cloud storage, web performance optimization WPO, trans-coding, transparent catching and others. The CDN service is very critical for a sustainable growth for SMBs as well as large corporations in numerous domains of businesses, like eCommerce, entertainment, gaming, automotive, healthcare and many others.

The market share of all global regions like Asia Pacific, Europe, North America, Middle East, Africa and Latin America is increasing consistently; but till today, the North American market share has been bigger than other regions. In 2011, the market share of North America was about 64.3% of global CDN market with a total value of $1.3 billion, which is expected to increase to $4.6 billion by 2017.

Importance of CDN Services

ImportanceWith the advancements in the internet speed and other web technologies, the end-users are becoming more and more demanding for the large volumes of data and the fast delivery of content across the globe. This demand generates a fierce, but positive competition in the global business ecosystem. The prospective of the CDN service is increasing very fast with an exponential increase in the websites and web applications across the globe.

The current number of online websites is over 954 million with an addition of 4 websites with every passing second. Similarly, the number of internet users have crossed almost half of the global population and counting very fast. A huge portion of those websites relates to eCommerce that sell different products like entertainment, digital products, and physical items. The eCommerce websites are going to cross the 12 million mark by the end of 2015, according to the Lemon Stand research. Still the eCommerce business has a huge potential to increase, and subsequently the anticipated increase in the CDN services.

A large number of big corporations are investing heavily in this prospective domain of business to benefit from the inherent potential of the market. Some of the major companies that offer CDN services include AKAMAI, CloudFlare, Amazon CloudFront, IBM SoftLayer, MS Azure, ITWorksCDN, LimeLight Networks and many others. Many big IT giants are planning to invest in this domain to make it more competitive and productive for the end users.

Impact of CDN on Online Business

ImpactThe impact of the CDN services on online businesses is significant; many businesses like entertainment, digital products, and gaming are extremely dependent on CDN for better performance and high level of customer satisfaction. Many researches related to business intelligence BI suggest that more than 28% of the customers don’t return permanently, if they feel the website is not performing as per the desired criteria/standards. The cumulative impact of those losses is such a gigantic that many online businesses become bankrupt, and consequently shut down their operations for good.

One of the main reasons pertaining to the performance of a website is the network latency to access the content located at server area; this may take much longer time. If the website deals with the static images, videos and documents, then the situation gets even worse. If the slowness of the website converts into customer bad experience, then more than 80% of those visitors never return to that website, and more than 50% of those visitors do carry out a bad marketing for your website or online services. That is really disastrous!

The CDN services solve this issue very effectively by providing the requested content to the client immediately from the nearest possible location of their servers. In the CDN service, the static content is mirrored on multiple servers spread all over the world that provide immediate access to the clients.

The positive impact of using the CDN services includes, the geographically distributed data centers, redundant data security, faster speeds, effective catching of the web pages, state of the art infrastructure, version control support, video indexing, digital rights management, increased customer satisfaction, reduced cost of operation and many more.

The speed of the website increases tremendously by using the CDN services. It has been found through many researches that the revenue of a website increases by more than 1% with an improvement of just  100 micros seconds in the web page loading time. In the light of this research, it is very obvious that the CDN services are directly related to the business revenue across all sectors of businesses and industries. The security, reliability and cost saving are other major factors that are the outcome of CDN services that impact positively on the bottom line of online businesses globally.

To get the benefits of CDN services fully reflected in your online business, an enterprise level website monitoring service, web page load performance monitoring service, and user experience monitoring service are very critical. A unified web monitoring service tracks the performance of your website, web pages, user experience, and web applications from multiple geographical locations to provide you with the deeper perspective into the website performance, and the improvement areas of your web environment. To know more about such type of an enterprise level unified monitoring service, try SiteObservers FREE monitoring services now.