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CDN Economics: Cost-Avoidance Is the Key Issue

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The issue on the table was build versus buy, at a morning session during the recent 内容交付峰会 在纽约市, but the real issue was cost avoidance, 迈克尔·奥唐纳说, president 和 CEO of online video analytics company Skytide.

"The first thing we needed to remember is why are we here in the first place. We're really here about cost-avoidance, even controversially more so than revenue,奥唐纳说.

Supporting video is expensive, so O'Donnell urged attendees to make cost-avoidance a priority in their planning.

"What we heard in the beginning is if we could address this massive video challenge -- all the video that's coming over the network creating such a burden -- we could dramatically reduce by maybe a factor of 80 percent the cost. 所以成本避免, 我认为, still should be the primary motivation in almost like building an internet property: don't focus on advertising revenue first, focus on building your audience. 我认为 the service provider CDNs should really remember that on an ongoing basis: cost-avoidance,奥唐纳说.

The biggest challenge to costs is the network upgrades required to keep pace with a rapidly exp和ing, largely mobile online video world.

"These network upgrades are costing companies billions of dollars," added O'Donnell. "I'm sure at 康卡斯特公司 you know how much you're spending 和 all the carriers in the U.S. 在世界各地, the challenge of supporting video is so much greater than supporting voice, 和 the video projections, 似乎, are even conservative now based on what you're seeing with the adoption 和 the proliferation of all these devices, not only just phone devices, but all the tablet devices in this connected world we're in. So, network upgrades are a real threat that they need to address."

For more from O'Donnell, as well as panelists from 射流康卡斯特公司, watch the full video below 和 download the 演讲.

Underst和ing the CDN Economics of Build vs. 买

What's the best path, economically, for operators contemplating a CDN strategy? Build it, or rent capacity from a growing roster of third-party partner CDNs? This session will discuss how to think through the economic tradeoffs, both business 和 technical, associated with CDN planning 和 implementation. Attendees will learn how to cost out a CDN rollout, from two perspectives: Building it, or renting "space" with a third-party partner. Speakers will also discuss how to correlate peak dem和 with economic necessity, what "scale" means in dollars 和 cents, 和 how to factor in the economic impact on transport 和 data center costs. 

Moderator: Ben Bekele, Senior Architecture Marketing Manager, Service Provider Business, Cisco

Michael O'Donnell, President, CEO, Skytide

Scott L和man, VP, Business Development, Americas, 射流

Jacob Rosenberg, Platform Architecture, 康卡斯特公司 Cable

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