This report is focused on the motivations for purchasing streaming services, the specific components and pricing models used, and the net costs of outsourced streaming. Three related research projects contributed to the study including a Web-based survey that was administered via the StreamingMedia.com Web site, forty four half-hour telephone interviews with IT decision-makers who manage streaming media services for their companies and a survey of CDN vendors regarding list prices and service capabilities including
Akamai,
Limelight Networks,
Mirror Image,
SAVVIS, and
VitalStream.
This report tells you the two or three data points that you, as a buyer of CDN services, can give to your current or future vendor in order for them to be able to provide a baseline quote. It also explores the variables that impact the price, and the trade-offs available to you to increase or decrease your overall costs for media delivery services. It is intended to provide buyers of media delivery services with guidance on industry pricing, best practices, and engagement methodologies that can be used to balance CDN costs with required service levels.
Most importantly, this report will show you that, in the end, price is not the most important element. What you really need is flexibility. CDN prices have plummeted over the last three years and will continue to drop (although not as fast). With enough accurate information about the changing market, contract terms that reflect a still-evolving marketplace, and a healthy and productive buyer-vendor relationship, you can ensure that you can reach the price points at the service levels you need.
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