CDNetworks

Service Provider Basic Information

• Service Provider NameCDNetworks (also known as CDNW)

• English nameCDNetworks Co., Ltd.

• Date of Establishment: 2000

• Headquarters AreaHeadquartered in Seoul, South Korea, with subsidiaries in multiple locations worldwide.

• Official Website URL：https://www.cdnetworks.com

• Service TypeGlobal Content Delivery Network (CDN), Cloud Security (WAAP/DDoS), Edge Computing, Media Delivery (VOD/Live Streaming), Cloud Storage, Professional Services

• Reference Price：采用Innovative “CPU Cost” Billing Model(Combining CPU time and traffic), business consultation is required. Historical reference price is approximately 3.5 RMB per GB.

• Core Positioning：Leaders in the Asia-Pacific region (particularly South Korea and Japan)Focused on serviceGlobalization of East Asian Enterprises及Russia, Southeast Asia, Latin America, and other emerging marketsProfessional CDN and Edge Service Provider

• Typical ClientsSamsung, Hyundai Motor Company, The Economist, Dell, eBay, etc.

If Akamai defined the global standard for CDN 1.0, and Cloudflare pioneered the democratization and security integration of CDN 2.0, then CDNetworks tells a story about...Geopolitical Depth, Pragmatic Technology, and Pricing RevolutionA unique story.

It is a CDN provider with a profound understanding of the “uneven world”: while other giants fiercely compete in mature markets across Europe and America, it has already extended its network to digital frontiers stretching from Latin American rainforests to Middle Eastern deserts. It has become the most trusted “local guide” and “infrastructure bridge” for East Asian enterprises venturing globally.

I. Born in East Asia, Thriving Through Global M&A

CDNetworks' story began in South Korea in 2000. In an era when the dot-com bubble had yet to fully burst, it recognized the emerging demand for digital content distribution across the Asia-Pacific region.

However, what truly shaped its current landscape was the industry-shaking acquisition in 2017—China's CDN giant.NetSphere TechnologyAcquired a 97.831% stake in CDNetworks.

This acquisition is not merely a capital operation, but a perfect strategic complementarity and fusion of corporate DNA:

• What did NetEase gain?A mature, international operating license and network. CDNetworks had already deployed over 180 nodes globally, covering 49 countries, ranking first in the South Korean market and among the top three in Japan. Through this acquisition, NetEase instantly achieved a challenging leap into global expansion.

• What did CDNetworks gain?Capital and technological synergy from one of the world's largest internet markets, coupled with a unique perspective for deeper understanding and service of Chinese companies expanding overseas. This transforms it from a mere Korean company into aA hybrid entity combining East Asian technological expertise with global capital backing。

This unique background means it neither embodies the strong “Silicon Valley fundamentalism” of American giants nor is confined to regional markets like European service providers. Its identity is“Globalization's East Asian Proxy”We specialize in helping East Asian giants like Samsung and Hyundai, as well as countless Chinese internet companies seeking global expansion, deliver their products, content, and services reliably, swiftly, and compliantly to every corner of the world—especially emerging markets with complex network environments and intricate local relationships.

II. Betting on “the other half of the world,” becoming the digital backbone of emerging markets

While the node maps of mainstream CDN providers glow brightly across North America and Western Europe, another region stands out prominently on CDNetworks' strategic map:Emerging Markets。

1. Latin America: A Decade-Ahead StrategyBy partnering with nearly 40 local ISPs and operating over 50 access points, CDNetworks claims to achieve 100% network coverage across major countries including Brazil, Argentina, and Chile, capable of managing regional traffic at the Tbps level. For East Asian enterprises seeking to enter this region with deep economic ties to China, CDNetworks delivers not merely “access,” but “transparency.”

2. Southeast Asia and the Middle East: A Bridge for Culture and CommerceSoutheast Asia is key to its global expansion and has become part of the regional digital backbone network. In the Middle East, it helps East Asian companies deliver content like K-pop and J-pop while integrating into local digital transformation efforts. In these markets,Localization teams and long-term ISP partnershipsMore important than mere technical specifications, and this is precisely CDNetworks' invisible moat.

3. Russia and the CIS: Inheriting the Legacy of HistoryAs early as its acquisition in 2017, its related-party transactions included the purchase of Russia's leading CDN service provider, CDN-VIDEO LLC. This move granted it over 40% market share in third-party markets across Russia and the CIS region—an asset that proved particularly valuable amid geopolitical turbulence and remains an irreplicable competitive advantage to this day.

This strategy enabled it to avoid a head-on battle of attrition with industry giants in the red ocean market, instead establishing a solid foothold in a blue ocean market characterized by faster growth, higher barriers to entry, and a greater need for patience and local expertise.

Its network is not merely a conduit for content distribution, but a bridge connecting East Asian capital and technology with the demands of emerging global markets.High-bandwidth, low-latency bridge of trust。

III. Redefining CDN Pricing Fairness with “CPU Time”

If market strategy embodies CDNetworks“ ”geo-intelligence," then its 2022 launch of “CPU Cost” Billing ModelThis demonstrates its “technical courage” in daring to challenge industry conventions.

Traditional CDN billing models—whether based on traffic volume or bandwidth—originated in an “ancient era” dominated by the distribution of large static files. Back then, server costs were linearly correlated with bandwidth consumption. Today's CDN edge nodes, however, have evolved into miniature computing centers requiring complex logic execution—such as edge functions, AI inference, real-time transcoding, and security filtering.

CDNetworks sharply highlights an industry pain point: a request for distributing high-definition movies (highly cacheable large files) may consume vastly different amounts of server CPU resources compared to a request handling dynamic APIs and performing real-time encryption verification.hundreds of timesIf both are charged at the same rate per GB of data, the former would be making exorbitant profits while the latter might be operating at a loss—an extremely unfair situation.

Its solution is revolutionary: on its self-developed CDN Pro platform, it employs a deeply modified NGINX toNanosecond-level precisionMeasure the CPU time consumed by each request. Customers will ultimatelyFor the actual computational resources consumed (CPU time) and data trafficShared payment.

The significance of this model extends far beyond pricing itself:

• For customersAchieving ultimate fairness. Enterprises relying primarily on dynamic APIs no longer need to bear the cost model associated with static resource distribution.

• For the industryFor the first time, CDN has transitioned from a “bandwidth pipeline” accounting model to an “edge computing platform” resource accounting model, paving the way for the commercialization of edge computing.

• towards oneselfThis is not merely a pricing strategy, but a powerful technological statement. It demonstrates to the market that CDNetworks possesses system-level capabilities spanning foundational metering, global scheduling, and complex billing—its technical depth is undeniable.

IV. From Acceleration to Escort: Full-Stack Capability Integration

Based on its network and billing model, CDNetworks' product line offers comprehensive coverage with a strong focus on specific scenarios:

• Performance CoreTraditional CDN acceleration, dynamic website acceleration (DSA), and specialized media delivery services (low-latency live streaming, video-on-demand) address the core requirements for global content distribution.

• Safety ShieldCloud security is its forte, featuring cloud WAF (Web Application Firewall), API Shield, and DDoS protection. In 2023, its WAF solution earned Frost & Sullivan's Leadership Award for outstanding customer value, ranking fifth in market share across the Asia-Pacific region. The seamless integration of security and acceleration delivers a “one-stop” solution for high-risk overseas operations in gaming, finance, e-commerce, and other sectors.

• Edge and CloudProvides edge computing and managed services, integrating with cloud services such as object storage to form a complete edge application deployment environment.

V. The Third Way Between China and the United States

Looking ahead, CDNetworks stands at a historic crossroads:

1. Geopolitical “Safe Havens” and “Connectors”Against the backdrop of ongoing Sino-American technological competition, CDNetworks from South Korea—with its neutral stance and network spanning East and West—may emerge as the preferred choice for global enterprises (especially those in East Asia) when building “de-risked” digital supply chains. It understands Eastern business logic while adhering to Western technical standards.

2. The Key Driver Behind AI MarginalizationIts “CPU billing” model is inherently suited for handling edge AI inference tasks. In the future, it can effortlessly convert the computational power consumed by AI model inference into clear, reasonable invoices, becoming the “electric utility” for the global deployment of AI applications.

3. From “Service Provider” to “Ecosystem Enabler”It could go a step further by packaging its localized compliance expertise, network interconnection resources, and even relationships with local operators—all accumulated in emerging markets—into a “global landing-as-a-service” offering. This would empower other cloud providers and SaaS companies, serving as their “white-glove” partner and infrastructure layer ally for entering complex markets.

The challenge is equally evident.How to maintain cost and flexibility advantages in emerging markets against the relentless expansion of AWS and Google Cloud? How to balance strategic synergy with major Chinese shareholders while preserving brand independence as an independent publicly traded company?

Conclusion:

CDNetworks may never vie with Akamai for naming rights to global headquarters buildings in New York or London's financial districts. Its battlegrounds lie in server rooms in Jakarta, data centers in São Paulo, and internet exchange points in Dubai.

It demonstrates that in the global digital competition, besides striving to become an all-encompassing “jack-of-all-trades,” there is another path to success: becomingIrreplaceable “Specialized Champion”。

It does not seek to define global standards, but rather excels at solving the most challenging non-standard issues for specific regions and specific client groups (East Asian enterprises expanding overseas).

In its approach, you can see a profound pragmatism: crossing borders through mergers and acquisitions, pursuing fairness through CPU metering, and conquering markets with localized teams. In an era where tech narratives often lean toward the flashy, CDNetworks offers a story aboutConnectivity, Computing, and the Essence of BusinessA solid and powerful narrative.

For all enterprises aspiring to true globalization—not merely targeting Western markets—its very existence represents a valuable strategic option.