Dan Rayburn speaks for all of us in the digital video delivery business with a good piece lamenting the standard misconceptions too often and easily perpetuated by media journalists.
The author says that, “Multimedia communication — particularly video — has caused a strain on public networks, degrading the quality, so privatized networks have become more attractive over the last few years.” Where’s proof that the public networks are under any “strain”? And what CDNs have “privatized” networks? CDNs do not have “private” networks. They have private cross-connects and things like private peering, but the networks themselves are not “private”. They are all delivering content over the Internet, which is public. Yes, some CDNs own the pipes, but the content to the end user is not being delivered from a “private” network.
Berge Avayzian, an analyst with the Yankee Group is quoted in the article as saying, “Video is a huge game changer but its big and bulky, so sending video files over traditional Internet pipes is flawed.” What are “traditional internet pipes”? Are there any internet pipes that are un-traditional? And what does Berge classify as being the flaw? The CDN space for video this year alone is north of $400 million, so the “flaw” does not seem to be stopping the market from growing or vendors from growing revenue.