Apple Launches 'Massive' CDN -- Report
Apple has gone live with its own CDN spanning the US and Europe, with interconnect deals in place with multiple ISPs, including Comcast, according to reports.
Apple Inc. (Nasdaq: AAPL) is using the CDN to deliver some of its own content directly to consumers, with direct access to ISP networks, according to Day Rayburn, EVP of StreamingMedia.com, who watches the CDN business closely.
"From ISPs I have spoken with, they tell me Apple has put a massive amount of capacity in place, with many saying that Apple has more than 10x the capacity they are using today, all ready to go," says Rayburn. Apple can put the capacity to work on a round of software releases coming between now and the fall, including new versions of its desktop Mac OSX and the mobile iOS.
Apple is continuing to use Akamai Technologies Inc. (Nasdaq: AKAM) for iTunes and Level 3 Communications Inc. (NYSE: LVLT) for Radio and app downloads, but plans to move much of that traffic to Apple's CDN, Rayburn says.
Rayburn says he calculates Apple has already put in multiple terabits per second capacity and will have invested more than $100 million in the CDN.
Apple is still working on plans to develop an all-in-one box for live and on-demand TV, according to The Information. Apple engineers have been told to assume a 2015 launch, as Apple struggles to cut deals with cable companies and faces uncertainty due to the pending merger between Comcast Corp. (Nasdaq: CMCSA, CMCSK) and Time Warner Cable Inc. (NYSE: TWC).
"Apple's vision has been to make any show available at any time--live broadcasts and old reruns alike--using remote storage," The Information says.
Apple has been rumored to be working on this next-generation Apple TV a long time. Cable companies see a deal with Apple as a way to potentially hang on to customers, but on the other hand they fear Apple taking over the customer relationship, The Information says.