Apple is apparently looking to develop a content delivery network (CDN) of its own that will distribute content to its iCloud and iTunes users directly.
Currently, Akamai Technologies - considered to be the numero uno provider of CDN to entertainment and media companies - and Level 3 Communications provide this service for Apple and host the content for the Cupertino-based company. However, per a WSJ report, Akamai could have a new rival in Apple as the latter is believed to be readying its own CDN.
"Apple Inc. is stitching together a network of Internet infrastructure capable of delivering large amounts of content to customers, giving the company more control over the distribution of its online offerings while laying the groundwork for more traffic if it decides to move deeper into television," reports the WSJ.
Additionally, per the WSJ, Apple is also "hiring experts with years of experience building so-called content delivery networks."
Dan Rayburn, an analyst with Frost & Sullivan, is also of the opinion that Apple is gearing up to expand its CDN capabilities and is in the process of building its CDN. However, at this juncture it is not known how the Apple system will function and what type of content it will deliver, as well as the regions it will provide service to.
However, Apple may want to take that control under its own roof as it focuses more on its iCloud service. That could result in better service for customers, as well as allow Apple to exert even more control over its products.
So the million dollar question is why does Apple suddenly want to have its own CDN and not continue as before?
"I'm hearing that part of Apple's reasoning for building their own CDN is because of performance issues with iCloud, with Apple wanting to have more control over the QoS of content going to their devices. Apple already controls the hardware, the OS (iOS/OS X) as well as the iTunes/App store platforms. Right now they control the entire customer experience, except for the way content is delivered to their devices. Since Apple does not own the last mile they won't be able to have complete control, but having their own CDN would give them more control and security than they have now. The next set of questions to ask is what type of technology Apple uses? Will they go the open source route and built it in a non-proprietary way, or keep it closed? Some will also wonder if Apple might make their CDN into a commercial offering, but that wouldn't make any sense for their business, unless they had some kind of content subscription service akin to Netflix," says Rayburn.
Having its own CDN will undoubtedly be beneficial for Apple, allowing it more control and ensuring that the data gets across to customers in a reliable manner without any issues. Several companies like Google, Netflix and Microsoft already have their own in-house platforms for data delivery. Moreover, having its own CDN will make more business sense for Apple.
Shares in Akamai were down 3.3 percent in midday trading on February 3, after reports that Apple was building its own CDN.
