Content delivery networks (CDNs) have been around since the 1990s, and have undergone major changes to meet user expectations and the uptake of the internet in years since. The pace of change hasn’t slowed, and the CDN provider market today is characterized by innovation and competition.
To explore these changes, we sat down with Tucker Preston, Head of Edge Connectivity and Peering at Gcore, to discuss the latest trends shaping the CDN market. From security measures to pricing and edge computing, Tucker shares expert insights on how to navigate the present and future of CDNs.
Q: What significant trends are you seeing in the CDN market today?
A: Over the past 18 to 20 months, we’ve seen the CDN market experience significant shifts. One is the increasing pressure for profitability within the tech industry, driven by rising interest rates and the economic uncertainty we’re currently facing. This has led to a competitive environment within the CDN marketplace, driving the cost of services down and placing more prominence on additional services and benefits to deliver value. Relatedly, we’re also seeing a reduction in customer spending as businesses push for cost efficiency while trying to meet their end users’ high expectations, particularly in media and entertainment. However, I believe the market isn’t contracting; it’s adapting.
When we look at innovation, key trends include integrating security features with CDN services—such as DDoS protection and web application firewalls (WAF)—and the rise of edge computing to reduce latency and improve performance. As competition intensifies, the need for differentiated solutions and value-added services increases.
Q: Are there any recurring themes or pain points you’re seeing regarding CDN services?
A: A common theme I’ve observed among customers is their increasing reluctance to commit to long-term contracts with CDN providers. This hesitancy can stem from concerns about potential vendor lock-in, pricing fluctuations, or the desire for greater flexibility in their CDN solutions.
I’m also seeing a growing preference for single, global pricing models over traditional regional or continental pricing structures. Customers are drawn to the simplicity and efficiency of a single price, as it can streamline their operations and reduce administrative burdens when dealing with multiple vendors. This shift aligns with the broader trend of businesses seeking more flexible and scalable solutions to meet their evolving needs.
Q: How have CDN providers adjusted their strategy to the latest market shifts?
A: We’re seeing a general trend whereby CDN providers are treating their CDN as just one component of a broader product bundle. For some customers, bundling security or edge computing with CDN makes sense. But this trend can end up forcing customers to compromise on, say, security if they can no longer mix and match providers to each of their specific needs, resulting in vendor lock-in across multiple key technologies.
At Gcore, we’re not joining this trend. CDN has always been a core product, and we’re keeping it that way. CDN is our foundation for additional services, but it’s up to each customer to decide what they need from Gcore. I think this helps keep us innovative and competitive.
Q: What should companies consider when evaluating CDN providers, especially given the recent market turbulence?
A: While a provider’s overall stability is essential, it’s equally important to understand their specific intentions and priorities. Some providers have faced recent profitability challenges and have implemented restrictions on customer usage and limited business terms. This can lead to frustrations for customers who rely on peak traffic services like game downloads or live sporting events.
Companies should ask tough questions about the long-term commitment of their CDN providers, such as: Are they still invested in delivery as a core product? What’s their plan for growth?
At Gcore, we emphasize stability and reliability. We offer a “white glove” approach to onboarding and migration, always offering our customers hands-on support from our engineers. This personalized attention helps customers feel confident in switching to Gcore, especially those coming from providers undergoing reorganization or downsizing. We don’t just sell a product; we build partnerships designed to last.
Q: How do CDN providers address the challenges of security?
A: There’s a lot of change around how CDN providers address security at this moment, heading into 2025. I’ll talk about our approach at Gcore because I believe it’s the most customer-centric. At Gcore, we take a flexible approach to address our customers’ diverse needs. We offer security as an integrated part of our CDN services and offer advanced integrated solutions via Gcore Edge Security, but we don’t “force” customers into packages they don’t need.
We understand that some customers may have existing security infrastructure or prefer to work with specialized security providers, like an industry-specific security service. In these cases, we offer flexible integration options, allowing them to leverage their existing solutions while benefiting from the performance and reliability of our CDN. Our goal is to provide a comprehensive security solution without compromising customer flexibility.
Q: What role do CDN providers play in supporting multi-CDN deployments for their customers?
A: A multi-CDN approach is becoming increasingly common, especially among large media and entertainment companies looking for optimized performance globally. At Gcore, we embrace this approach. We understand that customers might work with multiple CDN providers to maximize coverage across different regions, mitigate outages, or minimize the risk of performance decline.
We work well with other CDN providers because we all share the same goal: delivering content efficiently and reliably. In fact, we often collaborate with competitors to meet our customers’ needs, particularly in large-scale deployments where a shared infrastructure is required. We focus on giving our customers the flexibility and tools they need, whether serving as their sole CDN or collaborating with others.
Q: Given the recent consolidation in the CDN market, what do you foresee for the future?
A: The most significant consolidation phase appears to have settled with one of our competitors’ recent restructuring. As we look toward 2025, I anticipate a positive outlook and increased stability in the CDN market as interest rates stabilize and consumer spending increases. In the next few years, we expect the CDN market to grow, driven by the ongoing demand for high-quality video streaming, cloud services, and mobile applications.
I predict that this will benefit customers by driving efficiency, reducing costs, and pushing for the development of more advanced and integrated solutions. As providers focus on delivering superior performance, reliability, and scalability, end users will ultimately benefit from faster load times, improved user experiences, and enhanced security.
Q: Finally, what’s next for Gcore in the CDN space?
A: We recently made significant strides in integrating edge computing with our CDN services, but at Gcore we’re always pushing for further innovation. We’re continually exploring new ways to leverage edge computing to enhance performance.
Beyond edge computing, we’re also committed to expanding our security products. As the threat landscape evolves, we’re investing in advanced security features to protect our customers.
Our approach has always been to stay customer-centric, and that’s not changing. As we continue to innovate, our primary focus will remain on delivering a reliable, scalable, and cost-effective CDN solution that supports our customers’ growth today and tomorrow.
Key Insights for Futureproof Content Delivery
From the rise of edge computing to the increasing importance of security, CDNs play a more critical role than ever before. As the market competition intensifies, providers must stay ahead of the game, offering flexible and integrated solutions to meet and exceed customers’ expectations. Companies looking for CDN providers should prioritize stability, long-term commitment, and a focus on customer needs. For a comprehensive overview of CDN technology and how to choose the right provider for your business, download our free CDN Buyer’s Guide.
Are you ready to experience the benefits of a futureproofed content delivery solution? Reach out to our team to learn more about our flexible CDN solutions and discover how we can help you deliver exceptional user experiences.
