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As the global digital transformation continues to evolve, the adoption of edge computing and cloud technologies is playing an essential role for all sizes of businesses. The global content delivery network market reached US$ 19.6 Bn in 2022; it is expected to surpass US$84.1 Bn by 2030 at a CAGR of 20% between 2022 and 2030 (FMI, 2022). The global cloud security market is predicted to grow by $13500 Mn during 2023-2027, boosting at a CAGR of 30.72% (VentureBeat, 2022). As the market is expanding substantially, telecommunication services and solutions revolve around edge computing and cloud technologies, which support and fulfill the market needs.
As an industry-leading edge cloud service provider with innovation at its business core, EdgeNext strives to remain agile and empower businesses to expand more efficiently. Based on years of experience serving industries, we have summarized an industry trend prediction for the upcoming year; moreover, developed new strategies to stay on top of the trends and fulfill the market needs.
The increasing usage of smart devices and Internet penetration leads to a growing number of cloud and telecommunications businesses offering CDN solutions and services predicted to expand the content delivery network market in the next five years. The rising adoption of SMAC technologies (Social, Mobile, Analytics, Cloud) and increasing penetration of OTT services will power the global CDN market during the forecasted period.
The base station-positioned mobile-CDN architecture redirects the mobile users’ content requests to other base stations during storage misses. These request redirections escalate the latency of a mobile user through the unstable load distribution with base stations. Having the unbalanced load distribution and latency issues solved, are the top focuses for CDN providers to meet mobile users’ needs. On top of that, how to support mobile edge computing empowered by 5G to deliver on the promise of extended network capabilities is another high-priority focus.
CDN is inevitable in the entertainment and media verticals. Live streaming, along with digital content solutions, is providing the impetus. It’s interesting to discover that CDN contributed to around 27.5% of the overall network services market in 2022. The ongoing trend of users’ inclination toward using audio and video content online pushes the CDN market forward. The boost of video content available across multiple social media platforms aids the leading role of the Video CDN (Live streaming and VOD CDN) in the global CDN market. On top of that, not only social media platforms but also every industry or business is now adopting the way of virtual connections and communication; therefore, users are demanding high stream quality, fast loading speeds, and seamless viewing experiences with low buffering and latencies. The telecommunications industry should get prepared for the massive volume of data traffic created by 4k, multiverse, virtual reality (VR)/ augmented reality (AR)- mixed reality (MR) gadgets and systems.
An increase in Internet users, rising interest of customers in OTT platforms, and growing requests from the gaming industry are driving CDN market growth. Moreover, the e-learning vertical also requires continuous enhancement regarding content and security. SaaS CDN offerings will likely translate into higher demand for CDN solutions. The above factors will keep the hopes high for CDN growth in 2023.
According to the research, more than two-thirds of organizations will embrace at least two cloud delivery providers by the end of 2023 (VM Blog,2022). This strategy prevents organizations from being tied into a single ecosystem. Outages and latency are common threats and problems for organizations, especially the ones that rely on fast content delivery and stable global reach. Businesses can measure the cost and impact of an outage or latency on their businesses; for instance, negative brand association, service-level agreement refunds or compensations, related customer service costs, customer churn, and more.
As organizations are more aware of investments, more emphasis on utilization and prioritization of the “right cloud service provider for the need” will be seen. Therefore, in 2023, we will see an elevated focus on multi-cloud usage and elasticity.
As content gets richer, customized, interactive, more localized, and immersive, the amount of data being delivered increases exponentially. Thus, the tension is on CDN companies to deliver more content at a more competitive price. Additionally, small and medium global businesses are looking for bundled offerings to help move towards the adoption of edge applications, circumvent infrastructure challenges and allow the businesses to focus on their core offerings/services and expansion.
Cloud security solutions are expected to set the pace of expansion across the industry, backed by the rising number of cyber threats, increasing data on the Internet, and the proficiency of the CDN to assist with cyber threat mitigation.
Organizations will shift to the cloud but not be limited to the hosting of SaaS applications. Businesses will start offloading storage, infrastructure, computing, and resilience to the cloud in 2023. While our society is moving towards digital transformation in the cloud, it has resulted in increased cyberattacks and criminal activity targeting this environment. Therefore, the bloom of infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and function-as-a-service (FaaS) tech offerings continue to raise the need for security solutions that can effectively resolve issues within these service models. In addition, organizations will need to pay attention beyond developing solid cloud configurations to cloud security and greater visibility of the environment and its weaknesses. Strong security measures and solutions are required. Eventually, they will become as ubiquitous as anti-malware tools and firewalls are today.
The rising focus on enhancing the performance of websites and applications, minimizing latency, improving stability and scalability, and mitigating cyber-attacks further empowers demand for CDN services across the region. In 2023, the telecommunications industry must stay innovative and responsive to adopting new technologies and market demands.
This robust study and prediction are designed to help clients enhance their market position. It provides detailed information regarding how we think the telecommunications industry and market will develop. Reach out to EdgeNext’s edge cloud solution experts today to gear up for 2023.
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