Cisco: Federated CDN is the Future of Content Delivery
NEW YORK—To kick off the Content Delivery Summit, Cisco senior director Chris Osika laid out the case for the future of online video. If there was any doubt about the massive growth of online video consumption, Osika erased it by highlighting the expansion of audience age range, devices, and cloud delivery.
After reiterating the need for traditional CDN services he offered up where Cisco sees the market growing.
"The future of CDN models is a federated structure," shared Osika. Bilateral agreements, bilateral hierarchical, and CDN exchange are the 3 examples of probable business models. "Cisco believes that the industry will be a hybrid of all these service models," said Osilka.
With its current trajectory, the CDN market is projected to reach $6 billion by 2015.
Cisco forecasts that using the federated business models CDN market growth could reach $12 billion by 2015. While there are concerns about massive video growth and possible regulatory, anti-trust issues, the bottom line for CDN's is simple.
In order to survive and thrive, you need to play well with others and explore new revenue models.
Watch the full keynote video below.
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While video traffic continues to grow, prices will keep on dropping, keeping the annual compound growth rate for the video CDN market to between 40-45% for the next two years.
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