The document summarizes a presentation about the future of content delivery networks (CDNs) over the next 10 years. The presentation makes several predictions, including that traffic will grow exponentially as more content like video moves online, connected devices will drive complexity through spikes in demand, CDN architectures will evolve to move content closer to the edge, and cooperation between CDNs and telcos will be necessary to succeed in the future market. Overall, the CDN market is expected to have healthy growth over the next 10 years as services become more cost effective and enable business innovation.

1. Monthly Products Webcast
Future of CDN – Next 10 Years
DigiWorld Summit 2013
Ahmet Ozalp, VP Products and Strategy, International Markets
Montpellier, Nov 20th, 2013
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2. Brief History of CDN
Traditional
webhosting,
Storage
Traditional
Server
Hosting
1990s
Static &
Dynamic
Content
Analytics, AB
R, Mobile
Mass Adoption,
Multiple
Devices
1st Gen
2nd Gen
3rd Gen
4th Gen
1999
2005
2008
2014
Edge Delivery
Intelligent
Routing,
Replication
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VoD, Live
Streaming,
Global
Cloud, P2P,
Origin
Storage
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Transcoding,
multi
format, explo
sion in
devices
Quality, Sc
ale, VAS
©2012 Akamai

3. THE INTERNET HAS
COME A LONG WAY…
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
…BUT WE’RE REALLY
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4. EVERYONE
AND EVERYTHING IS
GETTING CONNECTED
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
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5. Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
Akamai Confidential
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6. Video as the killer App and
driver for traffic
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
Source: Cisco
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©2012 Akamai

7. Prediction #1
Traffic will grow exponentially!
CDNs will carry more and
more of it!
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
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8. Consumer Internet Traffic
% of Video
Traffic CDN
enabled = 65%
300
% of Video
Traffic CDN
enabled = 53%
tbps (ave)
250
51%
200
150
100
34%
50
0
2012
2017
All Consumer Internet
CDN Enabled
Source: Cisco
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©2012 Akamai

9. 2022…
1600
80%+
1400
tbps (ave)
1200
1000
800
600
400
51%
34%
200
0
2012
2017
All Consumer Internet
2022
CDN Enabled
Source: Cisco, Akamai Analysis
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10. Let’s do the math…
100MB Primetime Viewers
Avoid data theft and downtime by extending the
security perimeter outside the data-center and
protect from increasing frequency, scale and
sophistication of web attacks.
x 10 Mbps
~1,000 Tbps
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11. Prediction #2
Connected devices will drive
complexity
Mobile apps, OS and gaming
downloads will cause“spikes”
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web experiences and manage complexity from peak
demand, mobile devices and data collection.
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12. Connected Device Landscape
Frequently “on”
or available
Smart Router & DVR
400M
30-60M
1.5 - 2B
Smart TVs
Frequently “off”
or not available
Resource Availability
2.2B
Media
Boxes
3.1B
Home
Consoles
Tablet & PC
Smart Phones
Least functionality
(Processing, Memory
, Storage)
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400-600M
Device Functionality
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Most functionality
(Processing, Memory
, Storage)
©2012 Akamai

13. Major events stress the
Network
9/18/13
6/10/13
8/19/12
10/12/11
6/23/10
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14. Complexity
Short to Mid-term
 Diverse standards and practices for video
encoding and packaging, DRM
Long-term
 Standardization around MPEG-DASH, one
or two DRM and encoding models
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15. Prediction #3
CDN Architectures will
evolve!
Content will move closer to
the Edge!
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web experiences and manage complexity from peak
demand, mobile devices and data collection.
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16. Internet is Complex
12,000 networks
connected by
peering points
(Cloud)
Datacenters
End-Users
X
X
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17. Closer to the Edge…
(Cloud)
Datacenters
End-Users
X
CDN
Server
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X
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18. Prediction #4
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demand, mobile devices and data collection.
Innovation and scale will drive
success!
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19. Technology Innovation
Optimized
TCP
HTTP/UDP
Acceleration
Multicast
Delivery
Intelligent
PrePositioning
Peer
Assisted
Delivery
Cache
Server Side
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Client Side
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20. Prediction #5
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
CDNs will be trusted partners
for value added services
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21. Value Added Services
 Video Workflow
Acquire
Prepare/
Protect
Publish
Deliver
Consume
Analyze
 Advanced Web Acceleration
 Security
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22. Prediction #6
CDNs and Telcos will
cooperate closely!
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web experiences and manage complexity from peak
demand, mobile devices and data collection.
Solo players will lose!
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23. Prediction #7
Content deliver echo system
will grow to include new
categories!
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web experiences and manage complexity from peak
demand, mobile devices and data collection.
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24. CDN echo system will grow
Fast Time
to Market
Application Developer
Carrier/MSO
Device Manufacturer
OS Developer
Chip
Manufacturer
Broad
Impacts
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25. Prediction #8
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
OTT video quality will meet
and exceed broadcast level!
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26. CDN Video Quality
 High capacity, multi-protocol CDNs
 Sophisticated encoding and
transcoding technologies
 3D, 4K, 8K, multi-camera
angles, second screen, social
media, companion content
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27. Prediction #9
Pricing will get more
sophisticated!
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web experiences and manage complexity from peak
demand, mobile devices and data collection.
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28. CDN Pricing
 Content and use case specific pricing
 Geo-based pricing
 Tiered Pricing (QoS)
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29. Prediction #10
CDN services will become
more and more cost effective!
CDN will be an enabler of
business innovation!
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
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©2012 Akamai

30. CDN Cost as % of Revenue
25%
20%
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
15%
10%
5%
< 1%
0%
% of revenue
2008
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2013
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2017
©2012 Akamai

31. Prediction #11
CDN Market will have a
healthy growth!
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
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32. Market Summary
Drivers
Short
Term
Mid
Term
Long
Term
Short
Term
Increased Consumption
Mid Long
Term Term
Ever-growing
Traffic
More Content Online
Higher Bitrates
Broadband
Penetration
Online Video Growth
Larger File Sizes
Short
Term
Mid
Term
Long
Term
Broadcast IPTV
Pricing Pressure
Opportunity
Connected Device
Growth
Workflow/VAS
DIY and Internal CDNs
Evolution of Video
Formats Online
New Entrants
Restraints
HIGH MEDIUM LOW
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33. All segmetns of CDN echo
system will win!
The biggest winners will be
the customers and
consumers!
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
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©2012 Akamai

34. Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
Thank you!
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