Caching Market Becomes Big Business

The demand for Internet caching will continue to soar over the next five years, as total investments since the market’s inception near $675 million, according to a report by the Internet Research Group.

According to “The 1999 Internet Caching Report,” the total size of the caching market for 1999 is projected to be $287 million, rising to nearly $2.2 billion in 2003. The report also found the roster of caching vendors has more than doubled in the past year, rising from 13 to 27.

“1999 is the year that Internet caching grew into a full-sized market,” said Peter Christy, VP of Internet Research Group. “Rising demand for HTML content, the growth of broadband DSL and cable access, and a doubling of user traffic every 100 days all make caching an obvious solution for bandwidth reduction and cost savings, and the market is catching on. In the past year, we’ve seen new competitors, new products, new caching applications, and surging demand both here and abroad.”

While users were just testing the caching waters last year with basic caching implementations (proxy, reverse proxy, and transparent cache configurations), the report says the market now features more than a dozen applications and services, including ISP data center caching, enterprise campus caching, streaming media caching, content distribution, and content transformation.

“The explosion in applications and services is a strong indication that if Internet backbone performance isn’t going to get any better, then solutions like caching must fill the gap between network capacity and user demand,” said Christy. “We’re just beginning to see solutions for a whole new range of performance-intensive Internet applications such as streaming media, hosted applications, and video on demand, and caching remains one of the enabling technologies that will make these applications possible.”

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