Amazon Goes Into the CDN Business

"Some customers use S3 for content delivery for long-tail content and the service works great, but for very popular content, customers said they were interested in edge delivery," says Adam Selipsky, vice president of product management for Amazon Web Services.

The announced service will follow the same no-commitment and pay-as-you-go pricing model of other Amazon Web Services, which could be attractive for some existing S3 users or for small and medium-sized businesses that want to sign up for CDN services, but don't want to go through the hassle of negotiating contracts.

But the service is missing a lot of features and functionalities that most CDN competitors consider table stakes, particularly when serving content for media sites.

Initially, Amazon plans to offer HTTP services only, which will allow customers to accelerate delivery of media files, progressively downloaded video, or popular static Web content. However, it won't support any forms of streaming or live video services that companies like Akamai Technologies Inc. (Nasdaq: AKAM), Limelight Networks Inc. (Nasdaq: LLNW), and others offer as a matter of course.

Read the rest of the story at Contentinople.

— Ryan Lawler, Contentinople
materialgirl 12/5/2012 | 3:31:41 PM
re: Amazon Goes Into the CDN Business Is this good or bad for AKAM? On one hand, it shows how AMZN sees demand for products it cannot deliver without an edge network that AKAM has and they (AMZN) are unlikely to develop any time soon.

On the other, it shows how they intend to chip away at the AKAM services they already buy.

Does this mean that AKAM adjusts to more closely leverage the edge advantage they have and others lack, or does this mean the overall market is about to grow?
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