Apple Inc. (NASDAQ:AAPL) may be building a content delivery network (CDN) to deliver content its iTunes and iCloud users. The CDN would be delivered through the company’s data centers in North Carolina, Nevada, and Oregon. Apple currently uses Akamai and Level 3 for handling most of their distribution for iTunes, App Store, and iCloud content. By using their own data centers for content delivery, Apple would be able to retain data.
According to Frost & Sullivan, Apple is building their own CDN because of iCloud performance issues. Apple wants to have quality of service of content going to their devices. Many other large tech companies have brought their CDN technology in-house instead of outsourcing the tasks, including Google, Microsoft, and Netflix.
The Wall Street Journal is reporting that Apple is creating their own content delivery network to boost Internet infrastructure to support additional traffic in the future. Apple has also hired several networking experts and entered long-term deals to lock up bandwidth. Apple would also be able to lay the groundwork for additional traffic if they decide to build more products centered around televisions.