In the Chinese capital market when the first round of the Internet boom, yet recognize the importance of CDN. In the past two years, this area has gradually been recognized everyone. The main factor is the local application requirements become larger to the CDN industry, a development opportunity.
Seven categories of potential applications in the
China CDN applications increased rapidly over a period of time, especially audio and video presentation "crazy" growth. Video sharing sites such as new content every day up to 5 600 G. The reason is the traditional portal home page is mainly graphics, occupied bandwidth is small, users are not sensitive to delay. However, the output of audio and video traffic requires a lot of bandwidth and latency requirements of video users a high, if the bandwidth is not enough, the second frame began finally in sight.
CDN Akamai's largest companies bottom out in the past two years, price-earnings ratio had reached 160 last year, the new Limelight CDN service providers are Goldman Sachs, private equity funds up to 130 million U.S. dollars, while South Korea's market has started. China will be delayed for two years relative to three years, but gradually also copy their model.
Our major customers are mainly seven main types. First, the portal graphic distribution; second, audio and video media sites, video broadcast / on-demand streaming media distribution site; third game entertainment website, providing a large number of game client downloads, new content updates; Fourth, online software updates. Such as Microsoft software updates, Windows patch repair, Rising customer to download virus update package; fifth of Web2.0 applications, rapid growth in the past year. Cool slide, excellent video to share two cool our customers, we offer video (FLASH) on-demand downloads, video uploads; six electronic trading site eBay offers acceleration services; 7 is already beginning the transition to enterprise applications, used to be self- carried out on the distribution of content is now available to share between.
Period of rapid development in China Communications, a lot of people to sell foreign products in China, but I found the lack of its products in China, in particular the services absolutely very vacant, there are many sub-dimension could be doing things. So I chose the CDN field. But just look at market potential, did not see walking difficult, in fact, there are many deep-seated problems behind.
The last round of financing was completed in 2005, when the market is not clear but cautious outlook; by 2006 it began to feel the user needs drove us forward, the construction speed, the speed of development, research and development speed can not keep up market applications demand. Actually on the "race" to run, but customers, customers do on their own. CDN technological change, market change, the service model is changing. Now we are facing some new problems: First, how rapid expansion; Second, the resources associated with the scale of integration; Third, to explore cost effective ways to improve efficiency.
CDN necessary to do the core competence
First, the network size is critical. Coverage, more extensive coverage, the greater the value, the better. CDN Network parasitic upon carrier's network, our biggest advantage is in the six cross-boundary of China's major carrier networks built on top of ChinaCache CDN node, and today more than more than 170. Second, the most important technological innovation. CDN entirely technology-driven industries, such as the United States akamai 3 / 4 is the technical staff. Unlike other services, has made it clear what to do and what not to do, the new application requires you to solve problems, to see how much you are able to do R & D in the end, so much space to expand. Again, experience and level of service. New applications such as e-commerce to accelerate the availability of experience is important. If the above three did not break, hard to impress customers.
Strong demand led to a lot of other people who want to enter this field. In the past year, many new entrants to come out, do more of the original IDC (Internet Data Center) services company based in IDC entered the CDN field. Present at the initial stage of the competition is not keen to see, but the next competition would be more severe. IDC had to do the server hosting and bandwidth resources, some advantage, relatively easy to enter, but they disadvantage is the high cost of resources. ChinaCache market share currently, a third party that is 75%. Another angle, if there is no competition, then, shows no value in this market.
How to develop carrier market?
Monopoly and interoperability is the CDN market, a common problem. But ChinaCache network has covered Telecom, Netcom, Mobile, China Unicom and other major carriers. In cooperation with operators What is a good experience?
Wang Song: Our approach is to highlight the differences in services, while allowing them to see us add to their services to bring added value. The added value, such as many web sites now require 200G bandwidth, if the sole operator of this traffic transport network, there may soon be paralyzed out. Such as service types, network resources they sell, and we are selling in their value-added network services. In addition to static web address, dynamic Web pages outside of streaming media, file downloads, FLV file playback speed content transfer services such natural exact site operators have the appetite.
Chinese CDN market share problems and experiences
One CDN market penetration is very low. Web site only 5% penetration rate, while the U.S. rate is more than 90% of the CDN. China is a large portal sites, e-commerce sites in use. General usage is still very low for small and medium sites, only one ten thousandth, they did not consider the use of CDN problem. Business and e-commerce sites which are mostly multinational companies use very few local users. However, the special is almost all video sharing sites are using the CDN service. Compared with foreign countries, there is ample room for this piece. Good local example, the application of innovation. Popular application of the United States, local potential applications, particularly the use of P2P CDN technology to reduce costs and improve value-added and others are included ChinaCache other CDN companies should consider.
Second, professional service to be improved. After the popularity of the United States, the main task is to increase the types of services and sub services. China is currently in the penetration stage, the scale and technical issues are impeding the emergence of specialized companies. Why do so many companies do not do is not strong? Because it does not concentrate on their core business, to the professional and in-depth direction. They do not spend a lot of time to do good, they can help others do good things. For example, some sites do their own CDN, waste a lot of resources to be done well. Concentrate on the content of the proposed fine to do so deep, CDN professional company to do so.
Third, many people mistakenly think that eighty seven per cent applied to the storage requirements are not very high. In fact, the Internet is an important bottleneck is the storage capacity, taking into account bandwidth and storage. CDN service is to all content stored in one place, the lowest storage costs, but the huge cost of bandwidth; If all the content distribution to the edge of the lower bandwidth costs, storage cost and great. CDN services need to find a balance between these two. Now all of this mathematical model, how best to balance. Of course, in addition to pay attention to technology accumulation.
Fourth, the technology gap with foreign countries accumulated large. Such as technology, basic research, new technologies and new applications of prospective study, the owners of patents differ greatly with the international. CDN is a technology-driven industries, technology is our major reason to attract venture. In the past eight years, including their R & D, government support for R & D and other technical inputs to do great; the same time co-mergers and acquisitions, such as cooperation with Huazhong University of Science Laboratory Building, 2006 M & Tsinghua University, a technology company. In addition, advanced technology companies with extensive international cooperation, involving technology companies, such as different levels of service operators. Such as the United States Akamai, Limelight, Japan NTT are partners; also invited during the first-rate scholars around the expert advisory team.
Fifth, several major carriers and interoperability between the monopoly problem. Abroad with technology can, but at home the cost of interoperability problems caused a significant increase.
Such as Limelight structure appears more suitable for new applications, Akamai's edge is the node network fabric very well have advantages. So the next step in China's development CDN, we can argue from various perspectives.
Explore the international market experience CDN
U.S. CDN market, the current penetration rate is already high, began to eBay from Yahoo and other famous sites in the United States almost no CDN's. Professional CDN service providers such as Akamai, Limelight, etc. have five listed, they monopolized the market and the Internet outside China CDN market. In South Korea, ahead of the development of broadband applications, rapid development makes the CDN, it is now also a listing of the CDN services company. South Korea's audio and video is a huge market, like every new game release new movie release distribution system as needed, and has become routine.
U.S. market is characterized by a high degree of market segmentation and frequent mergers and acquisitions between companies. Akamai, as the largest one had extensive involvement in a variety of applications, then do a variety of applications class professional service providers to accelerate, such as database acceleration, application acceleration and other games also go hand in hand. Market segmentation along with frequent mergers and acquisitions industry, such as Akamai streaming media acquisition, application acceleration and other professional segments of the company, a large number of P2P CDN companies to enter the field of class, BT companies have switched to download class CDN services to do business.
South Korea is characterized by high prices, good returns. As streaming media, games, a wide class of applications, while meticulous service, higher added value.