Contentinople’s Ryan Lawler posted an article this morning concerning Global Crossing’s decision to resell CDN services from multiple providers. While margins are low on this type of business for CDN providers, this seems to echo the harbinger of the next gen of CDN and the telcos are leading the charge.
Recently Deutsche Telekom, Verizon and others have come into the CDN party with all different types of strategies whether that’s building the own CDN or partnering with an existing one. Six, half dozen or the other – the telcos are invading. They come with deep pockets, relentless perseverence and I don’t think we’ll see anything other than a bloody, bloody war down the road. Allies for now – enemies in the future.
CDN is the holy grail when it comes monetizing traffic on the net. CDN providers need to concentrate on providing innovative technology solutions, highly responsive customer service and aggressive pricing to fend off a dual flank attack of Amazon Cloudfront (and other low-priced competitors) and the telco hordes who’s resources most CDNs cannot match.
As usual, this war will be won one customer at a time – one relationship built and cherished. CDN providers will have to rely on expert knowledge of the industry and their products, excellent customer service and response times and services that are bleeding edge and have high reliability.