Increasing Internet traffic heightens global demand for transparent caching solutions

MOUNTAIN VIEW, USA: Several telecom companies, multiple-system operators, and mobile operators worldwide are actively looking at transparent caching as a required element in their network to control over-the-top content consumption and provide the best end-to-end user experience.

Once considered a cost-saving initiative, transparent caching is now viewed as an investment with demonstrable returns as it allows service providers to better monetize their video services.

Over the next few years, product lines will integrate to offer transparent caching solutions and content delivery network offerings on the same platform, according to research from Frost & Sullivan's Analysis of the Global Transparent Caching Market. The research finds the market earned $138 million in 2012, which will grow at a CAGR of 30.2 percent to reach $516.3 million in 2017.

The rising number of telecom operators providing caching solutions increased investments in the global transparent caching market. Higher expenditure in network infrastructure expansion in emerging economies promoted accessibility to broadband and demand for video related content, adding to transparent caching installations.

"As more premium content services enter the market, subscribers are demanding high-quality video to rival their television experience, which further propels the need for caching solutions that can negate the additional bandwidth required for higher bitrates," said Frost & Sullivan Information and Communication Technologies principal analyst, Dan Rayburn. "Transparent caching also gained acceptance due to its ability to reduce infrastructure and bandwidth costs, and enhance performance by eliminating any potential delays associated with the Internet or content origin."

Market growth quickens in the medium term when transparent caching is natively built into broader solutions. This creates a bigger ecosystem, offering faster, larger-scale deployment and more traction for the technology, which will no longer be thought of as a stand-alone offering in the market.

For now, however, the size of transparent caching technology deployments remains low as operators are yet to fully embrace the technology, owing to a lack of awareness. To minimize risks and potential end-user impact, operators follow an extremely conservative approach: implementing transparent caching in a small part of the network, evaluating its performance, closely examining costs, and measuring quality of experience. This lengthy validation process delays full-fledged purchases and consequently curbs market revenues.

"Therefore, companies with products best suited to meet urgent market needs or whose products have outstanding differentiators that address the requirements of larger sections of the global market are most popular," remarked Frost & Sullivan Information and Communication Technologies Industry manager, Avni Rambhia.

All leading vendors in this market grew through strategic acquisitions. As the landscape remains fragmented and technical evolution continues at a rapid pace, mergers and acquisitions will be the key to market leadership.