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What are Asia’s emerging CDN opportunities?

With Asian consumers demanding ever greater volumes of online video, we speak to four companies that are highly active in the Asian CDN space about the new business opportunities they have identified as emanating from the Asian market.

Contributing to this discussion are:

  • Jacques Le Mancq, CEO of French firm Broadpeak
  • David Liu, Vice President of ChinaNetCenter
  • Laurent Perche, Director of Global Alliances at US firm EdgeCast
  • and Charlie Baker, Director of Product Management at US firm PeerApp

All four will be speaking at the CDN Asia 2013 event taking place in Singapore on 29-30 January. For more information and to register, please visit http://cdnworldsummitasia.com

“Market fragmentation is creating a huge opportunity”

Jacques Le Mancq, Broadpeak

Jacques Le Mancq, Broadpeak

Jacque Le Mancq, Broadpeak: “The CDN market in Asia is characterised by an important number of local players that perform better than big international CDN service providers in terms of quality of service.

As a consequence, content providers benefit from a highly competitive CDN market and in our opinion, the market fragmentation is creating a huge opportunity for telecom or cable companies who want to start an operator CDN business.”

“Competition has become fiercer between large e-businesses”

David Liu, ChinaNetCenter

David Liu, ChinaNetCenter

David Liu, ChinaNetCenter: “Firstly I see huge potential for development of the mobile internet field. ChinaNetCenter has transferred its business development from traditional internet enterprises to mobile field, and we will launch new products targeting the mobile internet market in 2013.

Secondly, e-commerce enterprises still have much demand for CDN services. Dynamic application acceleration technology can help e-commerce enterprises improve access speed, availability and order conversion rate. In China, the e-commerce industry has experienced a reshuffle that saw the closure of many group purchase websites, and competition has become fiercer between large e-businesses.”

Thirdly, I expect to see more demand from official company websites, which have become the first window for a company to show itself to the public. In addition to content module, access experiences including website availability and respond speed are the key factors for users to judge this company. Corporate websites bring the most profits for ChinaNetCenter now.

Fourthly, the video industry is increasing rapidly worldwide, and this brings the most revenue for CDN providers because of its large demands. Currently, video websites are still the largest group of customers for ChinaNetCenter

Finally, the finance industry is focusing on website availability and security. Availability, speed and security are the three main concerns for finance enterprises when it comes to websites. Many finance enterprises prefer using online services to meet customer needs and reduce costs.”

“Carriers are now placing a much greater focus on content delivery strategies”

Laurent Perche, EdgeCast

Laurent Perche, EdgeCast

Laurent Perche, EdgeCast: “Asia is a very large territory, with a diverse variety of CDN markets which make it quite unique. In India, we saw a tremendous growth in broadband connectivities with most requirements being for video and IPTV traffic – this need will only accelerate in 2013.

In Japan, we saw a more mature CDN market, similar to that of Europe and the US. South East Asia is very interesting since the current penetration of CDN services has been much lower than in the US or in Europe, but the Internet traffic and related ventures has increased greatly over the last 12-18 months.

As a result, carriers from the region are now placing a much greater focus on content delivery strategies and partnering with the right CDN vendor. The EdgeCast model has proven to be successful because it enables our partners to participate in the upside of content delivery, which generates new streams of revenue for that partner. It’s a win-win for everyone involved.”

“Conversations have changed from purely bandwidth savings to a business analysis”

Charlie Baker, PeerApp

Charlie Baker, PeerApp

Charlie Baker, PeerApp: “Asia is a very diverse set of markets, but common trends are emerging. The conversations have changed from that of purely bandwidth savings to a business analysis that includes savings, quality and revenue recovery.

Operators are now looking to a five year horizon for network growth and not just the next six to 12 months, and they are starting to understand how the integration of transparent caching and CDNs can create incremental revenue opportunities. As a result, our engagement has broadened to include multiple business units within the operator and create a strategy that addresses their long-term needs.”

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