Saturday, September 8, 2012

TeleGeography: CDN and Caching Reduce the Need for Long-haul Capacity

TeleGeography concludes in a new report that "international Internet capacity growth fell to the lowest pace in five years, decreasing from 68 percent in 2008 to 40 percent in 2012. While the pace of growth is slowing, international Internet bandwidth continues to grow rapidly, more than doubling between 2010 and 2012, to 77 Tbps".

"..International Internet traffic and capacity growth rates are declining due to a combination of factors, including slowing broadband subscriber growth in mature markets, and the expansion of content delivery networks (CDNs) and local caching technologies, which reduce the need for new long-haul capacity by storing popular content closer to the end-users. Nevertheless, the underlying drivers of bandwidth demand remain strong".

Source: TeleGeography

Source: TeleGeography
See "Global Internet Capacity Reaches 77 Tbps Despite Slowdown" - here.

1 comment:

  1. Proliferation of CDNs and caching mechanisms indeed reduces international traffic growth, yet that is a one time effect. Once deployed in the target country, the relative reduction of traffic is constant. Hence, traffic growth onward is purely organic.