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BDC Assignment 8 - PGP39094

Akamai plays a significant role in the telecom value chain through its CDN services. It helps alleviate bottlenecks in the first, middle, and last miles of content delivery to end users. This improves performance, reduces costs for content providers, and enhances scalability, security, and reliability across the telecom infrastructure.

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6 views1 page

BDC Assignment 8 - PGP39094

Akamai plays a significant role in the telecom value chain through its CDN services. It helps alleviate bottlenecks in the first, middle, and last miles of content delivery to end users. This improves performance, reduces costs for content providers, and enhances scalability, security, and reliability across the telecom infrastructure.

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pgp39094
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BDC-Assignment

Akamai in the Telecom Value Chain


Akamai Technologies plays a very significant role in the telecom value chain through its CDN services,
optimizing and accelerating the delivery of web content and applications. The details that best
describe the role of Akamai in the telecom value chain are as shown below and have been supported
by data from the case exhibits:

First Mile Optimization: Akamai helps alleviate bottlenecks in the "first mile," which includes a
website's origin data centre and infrastructure owned by ISPs. Moving content closer to the user,
Akamai reduces the burden on origin servers, thereby reducing latency created by server and
switching capacity constraints. This is important because first-mile problems are responsible for 70%
of performance issues with websites today.

Middle Mile Enhancement: Akamai focuses on the "middle mile" bottlenecks, relating to backbone
networks and peering points. Akamai's architecture minimizes congestion and packet loss at the
NAPs and ISPs' POPs by ensuring data is optimally routed through less-congested paths using servers
strategically located at these points.

Last Mile Improvement: At the "last mile," connecting ISPs to end users, Akamai edge servers reduce
latency and improve data delivery speeds through local caching and delivery. This is especially
valuable for capacity-strained ISPs at POPs and local networks, improving the overall user experience.

Bandwidth Savings and Cost Reduction: Akamai's services reduce the burden of bandwidth on
content providers. For example, using Akamai's EdgeSuite, edges servers store HTML templates for
page assembly that minimize data transfer from the origin servers, resulting in a reduction of
bandwidth costs for content providers. Moreover, it can support more traffic and visitors - which
leads to a decrease in spending linearity on bandwidth. Exhibit 6 shows this example.

Scalability and Performance: Akamai's distributed server network provides a 'shock absorber' for
abrupt spikes in traffic load, which can frequently overwhelm a customer's origin site. This is one of
the major considerations taken by many telecom providers and large enterprises experiencing
variable traffic loads. The ability to stay performant during peak times is a critical advantage.

Security and Reliability: Akamai improves security and reliability of web services by mitigating
denial-of-service attacks, so in case attacks happen at your origin server, it keeps on working. This
reliability is key to service continuity within the telecom value chain, especially for those services
that require high availability and security.

Akamai thus optimizes the value chain of the telecom industry through alleviating performance
bottlenecks, bringing down bandwidth costs, enhancing scalability, improving security, and
enhancing reliability. These contributions make Akamai an integral player in the efficient delivery of
web content and applications across the infrastructure of the telecom industry.

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