Now that it’s clear that Apple Inc. (NASDAQ:AAPL) is building its own Content Distribution Network, one wonders if a company like Apple Inc. (NASDAQ:AAPL) which is always at the forefront of technology, late to the game? Other companies like Microsoft Corporation (NASDAQ:MSFT) and Yahoo! Inc. (NASDAQ:YHOO) started building their networks back in 2006-07, which makes Apple Inc. (NASDAQ:AAPL)’s entry to the market almost 7 years later.
Dan Rayburn, principal analyst at Frost and Sullivan discussed his views on Apple Inc. (NASDAQ:AAPL)’s entry into the CDN market and if it can turn out advantageous for the company on Bloomberg.
“Well, Apple Inc. (NASDAQ:AAPL) like a lot of large companies think Netflix, Microsoft, Google decided to build their own CDN, simply because they need to take more control of what they are distributing. For most content owners, distributors and the syndicators, it doesn’t make sense to get into the business of building a CDN because, from an economic standpoint, they are just not large enough, but as we know Apple Inc. (NASDAQ:AAPL) has a lot of devices out on the market and they also have a lot of different software, downloads and streaming as well,” Rayburn said.
According to Rayburn the CDN network being built up by Apple Inc. (NASDAQ:AAPL) is quite large as he found out while talking with some ISPs. He believes that Apple Inc. (NASDAQ:AAPL) is building its CDN for the future, such that it can handle 10 times the traffic that Apple Inc. (NASDAQ:AAPL)’s network has received as of today.
“Well, it’s not that difficult, what they are doing is deploying servers in many different locations, not too many, though, because they are primarily focusing on North America and Europe right now, but they have placed servers in third party data centers, as well as in their own data centers that they own. Apple Inc. (NASDAQ:AAPL) controls a couple of data centers as we know […],” Rayburn added.