SkyparkCDN, one of the leading pure-play CDNs in Russia and the CIS region is growing fast, in one of the fastest growing regions in the world. In 2015, the Russian CDN market doubled, and continues to grow at breakneck speed, as next generation broadband adoption increases among the population. Currently, there are 228M people in the CIS region, with more than 50% being in Russia. We were curious about the CDN Russian market, therefore, we asked our friends over at SkyparkCDN to share some insight on the trends taking place there. A big thanks to SkyparkCDN Team for participating in the Q&A.
What percentage of online companies in the Russian / CIS market are using a CDN? Hard to estimate, because the market is constantly growing. More and more companies are choosing a CDN as a means to accelerate and improve website performance. In 2015, the market has grown approximately 100%, doubling in one year alone.
The CDN market in Russia is established. Most companies understand what CDN is all about, and are aware of the benefits they provide in the online world. Three years ago, in our ecosystem, we began educating the Russian marketplace on the benefits of website acceleration and cloud security. Today, most online companies understand the value of a CDN, including the competitive advantage they bring to companies using a CDN.
The Russian market includes the pure-play (e.g. SkyparkCDN) and non pure-play CDN’s (e.g. Megafon), international CDN’s (e.g. Akamai, Limelight Networks and CDNetworks) and local providers (e.g. SkyparkCDN, Ngenix and CDNvideo).
Some of the trends we noticed in 2015
- More and more companies choose local CDN instead of European providers
- 2-3 years ago, companies that tried to build their own CDN infrastructure now prefer to use pure-play CDN’s
- The market continued to grow in 2015, regardless of the economic situation. We forecast it will grow 50% – 100% annually for the next 4-5 years
Concerning the CIS region, the situation is different. There are no local CDN’s catering to that region. There are international CDNs and a couple of Russian providers competing there, but as far as we know these CDNs don’t consider CIS a target market. However we do 🙂 That is why we’re in the process of expanding our presence into the CIS region, especially in Kazakhstan and Azerbaidjan. One our key differentiators; we understand the CIS market better than anyone, including Akamai.
Are companies based outside of Russia, which sell products and services into the Russian/CIS market using a Russian CDN? Yes, they are. It’s a natural choice for an international company operating outside of Russia/CIS to use a Russian based CDN for the delivery of their content. After all, we have a large CDN infrastructure within Russia, and have invested large sums with Service Providers in different cities, to enhance the delivery performance for video, eCommerce, and gaming in the last mile.
To date, we have many types of international companies as customers, where we deliver content to Russian and CIS end users. One big part of our success is that we invest heavily in our staff, providing continuous education in technology trends and customer service. All of our Account Managers and Customer Service staff are trained to do business in English.
Does SkyPark CDN have plans to expand outside of the Russian / CIS market? Yes, we are constantly forming new partnerships with Service Providers and Infrastructure companies, in building out our platform; we are expanding our services to international markets such as Europe. So Europe is the next market, then we’ll expand into South America, and finally North America. However, we are taking our time, and building out our plans one step at a time.