I recently took a trip back to my hometown, Cleveland, Ohio to enjoy the summer on the lake. I’d argue that in the summer, Cleveland is one of the most wonderful places on earth. It’s just the winter that could use some work. Okay, a lot of work.
While there, we decided to get the whole family together for a cookout – and what better place to get supplies than the Cleveland West Side Market? If you haven’t been, the West Side Market is incredible. Imagine an old world feel – a building from the mid 1800s, with more than 100 unique vendors offering an array of meats, cheeses, breads and more.
Since you’re buying directly from butchers, fromager or bakers, you’re able to barter with each of the vendors. It’s a competitive marketplace, and when you come ready to feed a full family, you have the equivalent of negotiation super powers.
Ok, so… private CDN agreements?
Bear with me – here comes the somewhat awkward segue. I want to talk about how the OnApp CDN Federation, just like the West Side Market, enables buyers to barter with suppliers for special pricing. I hope by now you have heard of the Federation: it’s a global network of cloud and CDN providers, in which each member can buy and sell capacity on demand through a single marketplace.
The OnApp CDN federation has more than 170 PoPs, in 113 cities, supplied by over 50 different suppliers. By buying capacity from whatever mix of suppliers your customers need, you can build a global CDN service without having to deploy your own edge servers in each location.
Buyers, on joining the federation, are given full transparency into the supplier’s information. Transparency is something we strongly believe in, with our CEO arguing SLAs are nothing more than a comfort blanket – historical meta data is really what you want. Each buyer is able to see not only the supplier’s contact information, but also the PoP IP address, uptime, throughput, and cache hit rate, resulting in an overall PoP star rating.
With that information, buyers enjoy being able to make an informed decision when choosing which CDN PoPs to subscribe to. Buyers can subscribe and unsubscribe as needed, with no long term lock in. As a result we have a public rate on the marketplace, typically ranging from $.01 – $.025 per GB in the western hemisphere.
However, buyers who have long term requirements – or a requirement for a significant volume of traffic – are encouraged to contact suppliers for a private rate.
In an example, a client of ours was recently able to win a deal over the large scale CDN providers for a live streaming event with roughly 750,000 live viewers. Through the Federation they were able to quickly source the 60 Gbps of capacity required, and then negotiate a private rate required for them to win the deal.
Suppliers are encouraged to participate in private deals as well. It allows them to offer competitive rates, especially to those buyers purchasing larger volumes of traffic. Of course, with the marketplace managed by OnApp, setting private rates requires just a few clicks, and is entirely managed through our CDN federation dashboard.
If you’d like more information on the OnApp Federation, my colleague Jim Freeman recently wrote the blog post, “To boldly sell cloud where you’ve never sold before…” – it goes over a few ways providers can use the federation to grow their business.