But enterprise market still regards content delivery spend as a waste of resources, say analysts
30 May 2001, 1 pm GMT
As companies around the world face an Internet traffic bottleneck, creative hardware and software solutions that guarantee reliable delivery of content will become imperative, bolstering demand and strengthening the future of this promising industry, according to new analysis by Frost & Sullivan, that reveals this industry generated $905 million in 2000 and is expected to reach $12.1 billion by 2007.
"Despite the opportunity, participants must educate their customers to realize the market's potential," says Frost & Sullivan IT Analyst Jarad Carleton. "Profitability is back in fashion and failing to show the cost savings of a solution along with its performance enhancements could be fatal."
Currently, the enterprise market regards content delivery as a waste of resources. Most enterprises are reluctant to spend capital for infrastructure improvements.
"Content delivery sellers must quantify their advantages and express them in terms that buyers understand," says Carleton. "If your company cannot provide basic data regarding potential cost savings as a result of implementing your solution, you will not succeed in this market."
To eliminate confusion amid these markets, many companies are looking to offer one-stop shopping for customers. Companies will need to collect a wide range of technological know-how, from local and global load balancing to bandwidth shaping and Web switches.
"Most participants in the content delivery market do not offer a complete solution and will find it necessary to either acquire the missing parts of the puzzle from other companies or to forge strategic alliances with them" says Carleton.
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