“With Apple having already announced their plans to build its new $1 billion data center in Maiden, North Carolina, folks I have spoken to inside Apple told me that once the new data center is completed, Apple plans to have a more active role in doing their own content delivery,” Dan Rayburn blogs for The Business Of Online Video.
“While this won’t be happening anytime soon, since the data center won’t even be completed this year, it does indicate that over time, third party content delivery networks (CDNs) like Akamai and Limelight could very well lose a large portion of Apple’s business,” Rayburn reports.
“While this might scare some investors into thinking that a new trend is taking place, whereby content owners start building their own CDNs for delivery, that’s not the case. There are very few companies the size of Apple, Microsoft and Google who can spend hundreds of millions of dollars to build out a CDN with the scale and performance that they need, especially when it comes to video,” Rayburn reports. “It is however something to keep a close eye on as we know that Apple has been a long time customer of Akamai and recently, started using Limelight as well.”
Full article here.