Content delivery network investment is thoroughly important for content delivery network providers looking to expand their services and enter new markets. Through effective raising of investment, content delivery network providers can build new points of presence (PoPs) in strategic locations around the world. It is these PoPs that store the website data of their customers and that are the key ingredient of an effective CDN.
Content Delivery Network Investment Advantages
By storing multiple copies of a customer’s website on these PoPs, a content delivery network provider allows end users to be redirected to the PoP geographically closest to them when requesting data. This results in lower latency and higher bandwidth rates. However, expansion is expensive, due to the need to build comprehensive server facilities. This is why content delivery network investment is so vital, especially for smaller start up content delivery network providers.
The latest CDN provider to receive content delivery network investment is Peer5, a San Francisco and Tel Aviv based company. They have secured $2.5 million in seed funding, with their investors including FundersClub, Oriza Ventures, Tank Hill Ventures and Leorsa Group.
Peer5 aims to provide highly scalable and cost-effective video streaming services to rival broadcast TV and have taken advantage of peer-to-peer networks, WebRTC and HTML5 to achieve their goal. This new round of content delivery network investment will help them improve their services and attract new customers.
“We believe that this is the beginning of a massive technology shift in the TV industry,” said Hadar Weiss, co-founder and CEO of Peer5. “Broadcasters around the world want to stream more but the traditional server-centric architecture for delivering video streams simply can’t support TV-sized audiences. Because server capacity is fixed at any given moment, the more people that try to watch a stream, the fewer delivery resources there are for any single viewer, resulting in poor stream quality and buffering for the most popular content.”