For: Application CDNs Extend To Web Performance Development & Delivery Optimization And End-To-End Cloud Professionals Services by Mark Grannan and Philipp Karcher, July 31, 2014

Key Takeaways

CDN Services Are Evolving To Tackle Mobile And Dynamic Complexity CDN providers are no longer focused on bit pushing services as those services have become largely commoditized. Vendors in the CDN and digital acceleration market are increasingly focused on web performance optimization techniques to meet dynamic content and mobile needs.

Parallel Technology Buying Decisions Blur CDN Boundaries Buying CDN services is no longer simple. Web security, cloud storing and hosting adoption, enterprise app complexity, and web analytics needs all factor into CDN purchasing decisions due to the overlaps. Customers need to understand where the overlaps exist to make smart investments.

Match Your Performance Needs Against The CDN Landscape’s Four Segments The four market segments include: traditional CDNs that sell bit pushing as a service and aggregate broader capabilities; telco CDNs that add Internet connectivity to the traditional CDN package; cloud platforms that offer basic CDN features to complement storage and compute; and startups that offer caching (primarily) as a feature and focus on newer web performance techniques.

Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA Tel: +1 617.613.6000 | Fax: +1 617.613.5000 | www.forrester.com For Application Development & Delivery Professionals July 31, 2014

CDNs Extend To Web Performance Optimization And End-To- End Cloud Services Market Overview: CDN And Digital Acceleration Services By Mark Grannan and Philipp Karcher with John R. Rymer, Mike Gualtieri, Andre Kindness, Michael Facemire, Stephen Powers, Rick Holland, and Steven Kesler

Why Read This Report

Content delivery networks (CDNs) have been around for over 20 years, yet intensifying digital performance requirements are forcing CDN providers to evolve. CDN vendors are still focused on speeding content delivery, but are expanding their performance techniques to address the challenges of mobile and dynamic sites. Application development and delivery (AD&D) teams evaluating CDNs must now also consider their adjacent services — including security, storage, and analytics — that can improve digital performance. This report will help you understand which vendors offer the core and adjacent CDN services to meet your digital performance needs.

Table Of Contents Notes & Resources 2 CDNs Evolve To Meet AD&D’s Intensifying Forrester interviewed 12 vendor and Digital Performance Needs four user companies, including Akamai Technologies, Amazon, CDNetworks, Core CDN Services Extend Beyond Caching CloudFlare, EdgeCast Networks (Verizon), Objects To Web Performance Optimization Instart Logic, Level 3 Communications, Value-Add Services Have Become Key Limelight Networks, MetaCDN, Microsoft, Considerations For Certain Buyers and Yottaa.

6 CDN Providers Fall Into Four Categories Related Research Documents Traditional CDNs Branch Out To Address Other Areas Of Digital Delivery Complexity CDN And Digital Acceleration Vendor Landscape, Q3 2014 Operators And Telcos Combine CDN With IP July 31, 2014 Transit Services Quick Take: Akamai Acquires Prolexic, Startups Focus On New Approaches To Deliver Doubling Down On DDoS Mitigation Services Performance December 4, 2013 Cloud Platform Providers Add CDN To Their Fuse Business Acceleration Technologies To Toolkits Optimize User Experiences May 8, 2013 recommendations CDN Road Map: New Solutions Storm The 8 Treat Your CDN Investment As A Digital Performance Maturity Curve Market May 22, 2009 10 Supplemental Material

© 2014, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please email [email protected]. For additional information, go to www.forrester.com. For Application Development & Delivery Professionals CDNs Extend To Web Performance Optimization And End-To-End Cloud Services 2

CDNs Evolve To Meet AD&D’s Intensifying Digital Performance Needs Digital performance — as measured by page speed, site uptime, and other metrics — matters because it affects your bottom line. Forrester data shows that visitors who find it difficult to accomplish their goals on a website switch to a more expensive channel (most often the phone), take their business to a competitor, or give up entirely.1 AD&D teams need to mitigate the impact of geographic expansions on their site’s latency, sudden events that spur unprecedented peak traffic loads, and distributed denial of service (DDoS) attacks that threaten to take down their site entirely. But AD&D can’t afford to merely maintain acceptable levels; they must continuously optimize performance as:

■ Incremental performance correlates with conversions. The correlation of page load times with views, conversions, and customer satisfaction is well established. For example, in 2009, Amazon cited a 1% loss in sales per 100ms of latency. In 2012, Walmart.com demonstrated increased conversion rates of up to 2% for every second of performance improvement.2

■ Competitive pressures from digital pure-plays are rising. Digital disruptors are forcing firms to increasingly focus on digital channels: 41% of North American and European firms believe digital has already disrupted their industry and more than half believe they will see even more disruption this year.3 Start-ups and digital pure plays will eat traditional enterprises’ lunch if they don’t treat digital channels seriously.

■ Page load times are actually getting worse. Although broadband connection speeds continue to increase, so do page load times as the average website payload grows, dynamic sites use complex logic to display complex rendering that can’t be cached, and mobile devices further away from origin servers request content that hasn’t been optimized for them. Radware’s annual benchmark shows the median web page takes 9.3 seconds to load — a 21% slowdown in the past 12 months.4

Despite CDN services existing for more than 20 years, many web developers, architects, and engineers are new to buying and using content delivery network and digital acceleration services. A Forrester survey in 2012 on behalf of Akamai Technologies found that only 21% of respondents reported using a CDN to improve the performance of their applications. Only 20% of firms reported measuring the revenue impact of page load delays! As web development groups adapt their architectures and application designs to accommodate mobile devices, larger payloads, and more dynamic content, they must find techniques, technologies, and service providers to speed delivery of that content, and measure the impact of those efforts.

Core CDN Services Extend Beyond Caching Objects To Web Performance Optimization Content delivery networks already play a critical role in optimizing the performance and availability of web content: Cisco predicts that 55% of all Internet traffic will cross CDNs by 2018 globally, up from 36% in 2013 — due in large part to the explosion of online video.5 The core CDN service of pushing bits is commoditized enough that it’s standard practice for large media companies to leverage multiple CDNs for price arbitrage and redundancy.6 As a result, CDNs have expanded their performance optimization services more broadly to encompass:

© 2014, Forrester Research, Inc. Reproduction Prohibited July 31, 2014 For Application Development & Delivery Professionals CDNs Extend To Web Performance Optimization And End-To-End Cloud Services 3

■ Dynamic site acceleration (DSA) for non-cacheable content. DSA addresses network problems and issues of high latency. Much of your data-driven contextual, personalized, and customized content is impractical to cache. DSA augments the traditional CDN service by using CDN points of presence (PoPs) to deliver both static cached content as well as dynamic content coming from your origin servers. It accelerates dynamic content by optimizing routes, keeping connections open between PoPs, and applying tweaks at the network layer to maximize data transfer rates and efficiently recover from packet loss.

■ Front-end optimization (FEO) of the code and code delivery. Unlike DSA, which addresses a network problem, FEO manipulates code to optimize time-to-first-render and time-to-first- interaction by: 1) combining multiple CSS and JSS elements and images to make fewer roundtrip calls; 2) prioritizing elements, e.g., focusing on above the fold content first; and 3) compressing images. These techniques help particularly with sites not optimized for mobile. Adding FEO on top of a CDN with DSA has the strongest performance improvement. FEO is also where CDNs are delivering the most innovation today with several startups focused on this area.

■ End-to-end video services. Cisco’s Visual Networking Index projects IP video to be 79% of all traffic by 2018, up from 66% in 2013.7 Caching large objects like video and updates continues to be the primary business (both in terms of traffic delivered and revenue) of traditional CDNs. CDNs have been growing the video side of their businesses by targeting media companies and publishers with more end-to-end services like transcoding, ad insertion, and in the case of Limelight, also content management.

Value-Add Services Have Become Key Considerations For Certain Buyers CDN, DSA, and FEO are core performance optimization offerings — although the mileage of each tactic will vary depending on the makeup of your site and how it’s built, as well as the geographic distribution of your audience. Just as DSA and FEO used to be considered separate services, a number of other performance technologies adjacent to CDNs are also starting to blur the old product categories (see Figure 1). These aren’t core CDN capabilities, but are key considerations for certain buyers. The following recent trends are driving enterprise buyers to reevaluate CDN as a standalone concern:

■ Security is no longer a standalone or bolt-on consideration. In the past 12 months, HTTPS requests for the top 1,000 Alexa sites more than doubled from 4% to 9%.8 The use of this traffic encryption and user-server validation tactic is part a stronger emphasis on web security that also includes DDoS mitigation (network and application layer), domain name service (DNS) security, and web application security (e.g., web application firewalls protect web services against things like SQL injection and cross site scripting).9 In particular, retail and financial services buyers are weighing security alongside performance when looking at CDNs. One VP of technology at a large transportation services company told Forrester that security eclipsed performance criteria in their most recent CDN vendor selection because, in his words, “if the site is down, it doesn’t matter how fast it is.”

© 2014, Forrester Research, Inc. Reproduction Prohibited July 31, 2014 For Application Development & Delivery Professionals CDNs Extend To Web Performance Optimization And End-To-End Cloud Services 4

■ Content and systems are migrating from your data center to the cloud. Public cloud services are in a state of hypergrowth: Forrester projects the public cloud market will reach $191 billion by 2020, up from 2013’s total of $58 billion.10 As organizations host their applications in the cloud, they’re considering whether it makes sense to use a standalone CDN when they could be using their same provider for compute, development, and hosting — with simplified provisioning, a single financial commitment, and less latency between services. Cloud services providers Amazon and Microsoft have added CDN cloud services, offering simplicity and low cost, but at the expense of some premium acceleration techniques.

■ Credit card compliance is paramount for commerce experiences. The Payment Card Industry Data Security Standard (PCI DSS) is imposed by major credit card companies on all businesses that process, store, or transmit credit card information. It consists of a minimum set of baseline technical and operational requirements for data protection. CDN providers support tokenization — the service of converting credit card numbers into an anonymized list of letters and numbers that serves as a record of an online payment for merchants, but contains no sensitive customer financial information — at the edge of the network. PCI compliance demands CDN providers meet stringent certification requirements. Additionally, some CDN offerings (e.g., Akamai’s Edge Tokenization offering) are taking the value-added network provider approach and provide deeper integration with payment processing vendors. By delivering hosted payment acceptance and tokenization via cloud infrastructure, eRetailers achieve faster, more secure, and scalable transaction processing.

■ Enterprise applications must serve the global, distributed workforce. Application delivery controllers (ADCs) and wide-area network (WAN) optimization controllers (WOC) are critical to provide load balancing and speed up response times for applications hosted in your data center. However, some enterprises with globally dispersed employees are finding that this isn’t enough. CDNs can extend enterprise apps with global distribution, traffic offload, and compatibility with static content caching and delivery technologies. This technique to optimize hybrid WAN architectures will become increasingly important for enterprises that buy cloud and CDN services in order to retire aging infrastructure, but must maintain some services on- premises for compliance, IP protection, or cost reasons.

■ Analytics and monitoring capabilities are everywhere, but siloed. CDN services typically include analytics to help customers identify and tackle performance snags around the globe. At the same time, web analytics — tools to understand web user behavior patterns — are the hottest area of digital experience technology investment.11 In recent years, real user monitoring (RUM) solutions by third-party providers like Radware, New Relic, and others have bridged the CDN analytics and web analytics gap to inject the customer experience context into performance data. Given that CDN performance analytics are unlikely to be the sole source of truth, buyers today are focusing on CDN analytics’ data extensibility as a key feature to help deliver a 360 degree view of customer experiences for both break-fix and future optimization efforts.

© 2014, Forrester Research, Inc. Reproduction Prohibited July 31, 2014 For Application Development & Delivery Professionals CDNs Extend To Web Performance Optimization And End-To-End Cloud Services 5

While we don’t consider these to be core CDN capabilities in 2014, significant market activity from traditional CDNs and vendors providing best-of-breed solutions will lead to further upheaval and consolidation, expanding the definition of CDN. Need proof? We can look at last year’s Akamai acquisition of Prolexic Technologies for its DDoS security capabilities and Radware, a traditional ADC vendor, acquiring Strangeloop Networks (a web app acceleration vendor) as examples of vendors making strong moves to bolster their offerings.

Figure 1 Core And Adjacent CDN Capabilities

Category CapabilityDe nition/sub-traits Core Web object/ Deliver locally cached web objects and downloadable objects Content software delivery (tactics include proxy URLs based on geographic proximity) caching/ Deliver locally cached live and/or on-demand video streaming delivery* Video streaming (tactics include adaptive bit rate streaming, QoS monitoring) Front-End Optimize front-end code delivery based on device/screensize/ Optimization bandwidth constraints (tactics may include: code Web (FEO) compression, image compression, asset prioritization) Accelerate delivery of dynamic content from the origin to the acceleration Dynamic Site edge (tactics include: TCP optimization, route optimization, Acceleration connection management, on-the- y compression, SSL (DSA) of oading, and prefetching technologies) TranscodingConvert media les for playback on various devices Transparent Caching at the edge of the provider network but maintaining caching origin authentication/controls Encryption Handle secure SSL trafc at speed and at scale (SSL/HTTPS Support) Offer DDoS mitigation and web application rewall (WAF) Security services Adjacent PCI compliance Deliver PCI compliant CDN services (e.g., edge tokenization) categories DRMProtect content, limiting access to authorized audiences (commonly embedded Asset Connect the elements within the media distribution ecosystem or paired monetization to monetize media delivery with core ComputeRent virtual computers on which to run applications categories) Internet Provide Internet connectivity services connectivity StorageProvide online le storage HostingMake websites accessible online Managed DNSOptimize DNS performance, scalability, and high availability Load balancingDistribute web application requests over multiple servers Peripheral Colocation Rent out datacenter facilities

*(Enterprise services commonly embed additional capabilities: monitoring, analytics, device detection, mobile content conditioning, etc.) 116163 Source: Forrester Research, Inc.

© 2014, Forrester Research, Inc. Reproduction Prohibited July 31, 2014 For Application Development & Delivery Professionals CDNs Extend To Web Performance Optimization And End-To-End Cloud Services 6

CDN Providers Fall Into Four Categories Optimizing performance is growing as an imperative for any business with a major web presence — not just media companies. CDNs are more relevant today to companies in all verticals and of all sizes. However, CDN vendors seek distinction from now-commoditized content distribution services with DSA and FEO and adjacent monetizable cloud and video services. This race to differentiate has also opened the door to startups and major Internet companies alike that are throwing their hats into the ring. Forrester currently segments the market into four categories of CDN providers: traditional CDNs, operator/telco CDNs, startups, and cloud platform CDNs.

Traditional CDNs Branch Out To Address Other Areas Of Digital Delivery Complexity Traditional players like Akamai, Limelight, and CDNetworks dominate CDN market share. Their customers tend to be larger enterprises and their primary business is streaming static cached web, video, and large objects like software downloads; iOS, Android, PS4, Xbox One, and other app updates; and video game content.12 Besides competing on the price of pushing bits, traditional CDN vendors:

■ Compete on performance, particularly in emerging geographies. Performance is still a major criterion for comparison. Conviva’s 2014 Viewer Experience Report revealed that more than two in five views were of “grossly inferior” video quality and that video start failures increased to one in 20 times. Performance varies the most outside of North America and Europe. ChinaCache has a significant mainland China CDN presence, CDNetworks has China and Russia specific offerings, and other US or European-based vendors are actively filling gaps in emerging markets with direct investment or partnerships.

■ Differentiate in end-to-end video and cloud services. Akamai and Limelight have transcoding for automatic format conversion, advertising server integration, and analytics tools for live video. Limelight has a video platform to manage and publish content. All CDNs in this category have enhanced their value-add services in security, storage, and analytics, which can be worth considering depending on your existing solutions. Forrester spoke with two customers for whom security was their primary consideration in choosing Akamai.

■ Have expanded dynamic acceleration and front end optimization offerings. The most significant growing business for traditional CDNs has been site acceleration. For example, site acceleration now accounts for 41% of Akamai’s revenues. Traditional CDNs are still the most proven providers of both large object delivery and site acceleration services.

Operators And Telcos Combine CDN With IP Transit Services Many ISPs and telcos resell traditional CDNs like Akamai or EdgeCast (prior to Verizon’s acquisition). Two exceptions are Level 3 and Verizon, through its acquisition of EdgeCast (and repositioning as a unique business unit Verizon Digital Media Services, which includes their upLynk acquisition for additional video capabilities), which compete directly with traditional CDNs.13 These vendors:

© 2014, Forrester Research, Inc. Reproduction Prohibited July 31, 2014 For Application Development & Delivery Professionals CDNs Extend To Web Performance Optimization And End-To-End Cloud Services 7

■ Look a lot like traditional CDNs. From a buyer perspective Level 3 and Verizon/EdgeCast are similar to traditional CDNs in that their businesses are primarily media and large object delivery, followed by site acceleration. Both Level 3 and Verizon/EdgeCast have strong end- to-end video ecosystem offerings including services targeted at broadcasters to acquire and distribute live feeds.

■ Act as a single provider for CDN, hosting, and Internet connectivity. Unlike a traditional CDN, Level 3 can be the same provider and a single financial commitment to a customer for CDN, hosting, and Internet connectivity, offering customers a direct connection to its network and features to optimize network flows and bandwidth.

■ May differentiate in the future on mobile delivery. Verizon Digital Media Services’ longer- term play may leverage Verizon Wireless’ cellular last mile to optimize delivery to mobile devices. However, this is an early conversation today and won’t be a buying consideration for CDN buyers anytime in the next 12 to 18 months as Verizon focuses on the low-hanging integration fruit first.

Startups Focus On New Approaches To Deliver Performance Considering that the business of pushing static content is commoditized, startups are focusing on the side of the market that is less understood, more difficult to implement, and where there is more room to innovate. Unlike the other segments, startups:

■ Focus on whole site performance and relegate caching as a tactic. Instart Logic and Yottaa offer site acceleration and optimization as their primary service rather than an option. Static content caching — the traditional CDN service — is built into their offering, but is not the headline. This diverts attention from their smaller global infrastructure footprint and helps sell to non-technical buyers by focusing the conversation on front-end optimization. Additionally, most startups have little consideration for video. CloudFlare, Instart Logic, and Yottaa refer customers that need a streaming video service to competitors.

■ Appeal to broader markets. With its flat rate and ability to sign up a customer in minutes, CloudFlare’s business model wins against traditional CDNs at the lower end of the market. Instart Logic and Yottaa both target primarily eCommerce companies. Federated CDNs like MetaCDN allow customers to leverage the geographic footprint of multiple providers from a single portal, but sometimes at the expense of dropping premium acceleration techniques to a common denominator across CDNs.

■ Provide simplified access to advanced techniques. Instart Logic and Yottaa use techniques to optimize rendering that don’t require making changes to your applications. Instart Logic’s unique feature is a JavaScript client it pushes to the browser that allows it to stream apps in smaller fragments. Yottaa’s rules-based engine monitors, streams, and transforms content and

© 2014, Forrester Research, Inc. Reproduction Prohibited July 31, 2014 For Application Development & Delivery Professionals CDNs Extend To Web Performance Optimization And End-To-End Cloud Services 8

page elements in real-time. Customers have warned Forrester, however, that these advanced techniques are not turnkey and require fine-tuning (e.g., trial and error in a sandboxed environment) before being fully deployed.

Cloud Platform Providers Add CDN To Their Toolkits For cloud platform providers, adding a CDN to their list of adjacent services makes a lot of sense. Reflecting the diverse customer base for their infrastructure and development services, Amazon CloudFront and Microsoft Azure CDN are used by a wider range of company sizes for video and non-video use cases. These offerings:

■ Work well with their other cloud services. Amazon and Microsoft’s CDNs are designed to be easily provisionable for customers of their other cloud compute and development services. Although the majority of customers use multiple services from the same provider, Amazon also has pure CDN customers. Note that many customers for both Amazon and Microsoft’s web services also use third-party CDNs — Microsoft partnered with Akamai for global scale when it live streamed the Sochi Olympics.

■ Price simply and are lower cost and easier to provision. Amazon is unique in the market with simplified pricing that doesn’t separate out static versus dynamic content and even has a stated goal to regularly bring down its CDN pricing. Amazon and Microsoft’s offers are designed to let customers get a CDN in front of their websites quickly without working through a rep.

■ Are less feature rich in DSA and FEO, but have more video capabilities than startups. Amazon and Microsoft don’t have all the premium dynamic site acceleration features of a traditional CDN. However, video is an important priority for both. Independent of its CDN Microsoft provides a comprehensive video platform through Azure Media Services targeted at media companies; Amazon is targeting both media and non-media companies and has been adding video features such as recent support for Microsoft Smooth Streaming to complement its other media server options.

Recommendations Treat Your CDN Investment As A Digital Performance Maturity Curve Forrester advocates the following steps to match your organization’s needs to the market’s offerings:

■ Non-CDN customers, take another look at whether they can help your site. CDNs continue to be a priority for websites with geographically distributed audiences, spikes in traffic and heavy in rich media, particularly large images and video. However, startups and cloud services providers have driven down the cost of CDN services and made them easier to put in front of your site. As price/performance ratios continue to improve, AD&D pros

© 2014, Forrester Research, Inc. Reproduction Prohibited July 31, 2014 For Application Development & Delivery Professionals CDNs Extend To Web Performance Optimization And End-To-End Cloud Services 9

should reevaluate whether CDNs make sense for their sites. If you do decide to invest, focus on the low-hanging fruit by using traditional website caching, which by itself can have a dramatic impact on site performance. Once you’ve established a performance improvement baseline and understand the impact of faster page load times on business metrics like conversions, you can begin to investigate whether investment in newer technologies is worth the improvement to your digital performance.

■ Scrutinize the price/performance of getting value-add services from a CDN. Is there an advantage to getting everything — storage, compute, hosting, CDN, etc. — from the same provider? Traditional CDNs offer hosting, but often only to be used with their CDN services and typically at a steeper cost than pure cloud storage providers. Buyers should also weigh security offerings alongside what they may already be getting from a Neustar, Symantec Verisign, their carrier, or their application delivery controller.

■ Be prepared for fine tuning mobile and dynamic sites as WPO is not (yet) foolproof. Upon going beyond basic caching into DSA and FEO, it becomes harder for web teams to fully understand the impact of optimization techniques on performance. As one CTO of a North American retailer told Forrester, “In any modern development scenario where you have AJAX calls interconnected with JavaScript, it’s scary that you don’t have control over what the CDN provider is doing to the code, and we can’t know for sure that the site won’t break.” The safe path this CTO took was simple: isolate a few sites with limited value to serve as guinea pigs. By slowly turning on features across a growing subset of sites, the team avoided the risk of breaking everything at once — and left some sites unoptimized as they encountered problems.

■ Combine third-party performance data with PoCs when selecting vendor(s). CDN performance around the globe is constantly shifting as providers build and launch new capabilities, add new PoPs, and extend their latest capabilities across those PoPs. Buyers should cut through as much of the marketing speak as possible by using objective third- party RUM data from providers such as Cedexis and Conviva (for video) that sell their services to the CDN vendors, but offer free information to consumers. Some CDN providers are even going so far as to fix the poor service-level agreement (SLA) tracking among their customer base by turning to providers like Cedexis to act as the provider of record for SLA monitoring. Buyers should leverage this data in combination with their targeted PoC efforts to evaluate which providers and specific services offered best meet their needs.

© 2014, Forrester Research, Inc. Reproduction Prohibited July 31, 2014 For Application Development & Delivery Professionals CDNs Extend To Web Performance Optimization And End-To-End Cloud Services 10

Supplemental Material

Companies Interviewed For This Report Akamai Technologies Level 3 Technologies Amazon Limelight Networks CDNetworks MetaCDN CloudFlare Microsoft Edgecast Networks (Verizon) Yottaa Instart Logic

Endnotes 1 Forrester asked US consumers what they did the last time they were unable to complete a goal on a website. Seventy-five percent of consumers seeking customer service online turned to another channel when a firm’s website let them down and 17% of US consumers who failed to complete their goal took their business to a competitor. Meanwhile, 17% of frustrated consumers walked away from their web purchases, and 11% gave up on shopping when they couldn’t complete their online research. See the August 21, 2012, “Websites That Don’t Support Customers Waste Millions” report.

2 Cliff Crocker, former senior engineering manager for Walmart Labs presented at a February, 2012 SF Web Performance Meetup group meeting details of Walmart’s performance/conversion investigation. Slides can be found here: Minus (http://minus.com/msM8y8nyh#1e).

3 Forrester asked 1,254 executives of firms with more than 250 employees, “To what extent do you feel your business has already been disrupted by digital technology to date?” and 41% of firms believe that digital has already disrupted their industry, and just over half believe that they will see more disruption this year. See the May 7, 2014, “The State Of Digital Business 2014” report.

Source: Forrester/Russell Reynolds 2014 Digital Business Online Survey.

4 Source: Tammy Everts, “Report: State of the Union for Ecommerce Page Speed & Web Performance (Winter 2013-14),” Radware, February 12, 2014 (http://blog.radware.com/applicationdelivery/ applicationaccelerationoptimization/2014/02/report-sotu-for-ecommerce-page-speed-web-performance- winter-2013-14/).

5 Source: “Cisco Visual Networking Index: Forecast and Methodology, 2013–2018,” Cisco Systems, June 10, 2014 (http://www.cisco.com/c/en/us/solutions/collateral/service-provider/ip-ngn-ip-next-generation- network/white_paper_c11-481360.).

6 CDNs have been challenged by declining pricing for their services year after year. Source: Dan Rayburn, “The State Of The CDN Market: Video Pricing, Contract, Volume and Market Sizing Trends,” StreamingMedia.com, May 12, 2014 (http://www.streamingmedia.com/dansblog/2014CDNSummit- Rayburn.pdf).

© 2014, Forrester Research, Inc. Reproduction Prohibited July 31, 2014 For Application Development & Delivery Professionals CDNs Extend To Web Performance Optimization And End-To-End Cloud Services 11

7 Globally, consumer Internet video traffic will be 69% of all consumer Internet traffic in 2017, up from 57% in 2012. This percentage does not include video exchanged through peer-to-peer (P2P) file sharing. The sum of all forms of video (TV, video on demand [VoD], Internet, and P2P) will be in the range of 80% to 90% of global consumer traffic by 2017. Source: “Cisco Visual Networking Index: Forecast and Methodology, 2012–2018,” Cisco Systems, June 10, 2014 (http://www.cisco.com/c/en/us/solutions/ collateral/service-provider/ip-ngn-ip-next-generation-network/white_paper_c11-481360.html).

8 The HTTP Archive tracks HTTPS requests over time. From June 1, 2013 to June 1, 2014 the percentage of secure requests rose from 4% to 9% for the top 1,000 sites. Source: HTTP Archive (http://httparchive.org/ trends.php?s=Top1000&minlabel=Jun+1+2013&maxlabel=Jun+1+2014).

9 To read more on each of these three areas of security, Forrester recommends the following articles: -- Matthew Prince, “The DDoS That Knocked Spamhaus Offline (And How We Mitigated It),” CloudFlare, March 20, 2013 (http://blog.cloudflare.com/the-ddos-that-knocked-spamhaus-offline-and-ho) -- Liam Tung, “Evernote struck down by DDoS attack for several hours,” ZDNet, June 11, 2014 (http://www. zdnet.com/evernote-struck-down-by-ddos-attack-for-several-hours-7000030417/); -- Jeff Goldman, “Two Thirds of U.S. Companies Were Breached by SQL Injection Attacks in 2013,” eSecurity Planet, April 17, 2014 (http://www.esecurityplanet.com/network-security/two-thirds-of-u.s.- companies-were-breached-by-sql-injection-attacks-in-2013.html).

10 Public cloud services continue to drive big changes in the markets for software, hardware, and IT outsourcing, while providing a foundation for age of the customer innovations. How much and when will cloud transform these markets? See the April 24, 2014, “The Public Cloud Market Is Now In Hypergrowth” report.

11 Forrester dove into the various analytics categories to show that digital experience decision makers prioritize web analytics (46% are investing in it in the coming year), while social, mobile, and predictive analytics garner significantly less attention than web analytics. See the April 1, 2014, “The State Of Digital Experience Delivery, 2014” report.

Source: Forrester’s Q1 2014 Digital Experience Delivery Survey.

12 For example, Akamai publicly reveals that 48% of their 2013 revenue comes from “media distribution solutions.” Source: “Annual Report On Form 10-K,” Akamai Technologies, 2013 (http://www.akamai.com/ dl/investors/akamai-annual-report-2013.pdf).

13 Cable companies and ISPs in the past two years have been building CDNs for internal purposes (e.g., Comcast’s CDN) to optimize video and other object distribution for customers (subscribers) within their own networks. Only a few — like SFR, a French telecommunications company — have commercialized their internal CDN.

© 2014, Forrester Research, Inc. Reproduction Prohibited July 31, 2014 About Forrester A global research and advisory firm, Forrester inspires leaders, informs better decisions, and helps the world’s top companies turn the complexity of change into business advantage. Our research- based insight and objective advice enable IT professionals to lead more successfully within IT and extend their impact beyond the traditional IT organization. Tailored to your individual role, our resources allow you to focus on important business issues — margin, speed, growth — first, technology second.

for more information To find out how Forrester Research can help you be successful every day, please contact the office nearest you, or visit us at www.forrester.com. For a complete list of worldwide locations, visit www.forrester.com/about.

Client support For information on hard-copy or electronic reprints, please contact Client Support at +1 866.367.7378, +1 617.613.5730, or [email protected]. We offer quantity discounts and special pricing for academic and nonprofit institutions.

Forrester Focuses On Application Development & Delivery Professionals Responsible for leading the development and delivery of applications that support your company’s business strategies, you also choose technology and architecture while managing people, skills, practices, and organization to maximize value. Forrester’s subject-matter expertise and deep understanding of your role will help you create forward-thinking strategies; weigh opportunity against risk; justify decisions; and optimize your individual, team, and corporate performance.

« Andrea Davies, client persona representing Application Development & Delivery Professionals

Forrester Research (Nasdaq: FORR) is a global research and advisory firm serving professionals in 13 key roles across three distinct client segments. Our clients face progressively complex business and technology decisions every day. To help them understand, strategize, and act upon opportunities brought by change, Forrester provides proprietary research, consumer and business data, custom consulting, events and online communities, and peer-to-peer executive programs. We guide leaders in business technology, marketing and strategy, and the technology industry through independent fact-based insight, ensuring their business success today and tomorrow. 116163