Edgeware has had a global presence since it was founded and the company secured its first international customer in 2007 – a customer that still purchases its products and services today. Edgeware now has over 150 customers in more than 60 countries, including telecom and cable operators as well as broadcasters and content owners.
Edgeware operates in an industry undergoing significant structural shifts. From linear TV, where TV and video content was mass distributed via broadcast towers and satellites to viewers watching scheduled programming at a certain time, the world is now seeing a shift toward VOD (Video on Demand). Content is now largely distributed over the Internet via IP (Internet Protocol) networks, where each viewer has a unique stream. This allows viewers to choose for themselves what content they want to watch, where and when they want to watch it and on what device: TV, mobile, computer or tablet. Several other important shifts are also taking place. Rather than being broadcast in standard quality, TV and video content is now increasingly shown in HD or even Ultra HD. TV viewing is also changing from a passive experience to an interactive, social experience, with viewers interacting with other viewers or programme presenters.
As a result of these trends, the volume of content to be distributed over IP networks is expected to increase significantly over the coming years. Cisco estimates that the volume of global video streaming will increase by an average annual rate of 31 per cent between 2015 and 2020, from 28.8 petabytes of distributed video data traffic per month in 2015 to 110 petabytes per month in 2020. These structural shifts, which have been enabled by the development of streaming technology for Internet distribution, are also expected to create enormous storage and distribution problems, since the infrastructure of the Internet was never developed and is inadequate in size to cope with the rapidly growing volume of data traffic. Smart, new solutions are required to solve these storage and distribution problems – solutions that Edgeware can provide.
The market analysis company Frost & Sullivan has estimated the size of Edgeware’s market and the market’s forecasted growth over the coming years. The market analysis company has defined Edgeware’s addressable market exclusively as the total global sales of streaming and management software systems. Frost & Sullivan chose to exclude all types of hardware – and thus the hardware element of Edgeware’s self-built TV servers – from its market definition. Standard servers have also been excluded since there are so many possible applications for standard servers and no reliable way of calculating the proportion used for storing and distributing TV and video content. As a result, Edgeware’s market according to Frost & Sullivan’s definition is smaller and growing at a faster rate than according to Edgeware’s own definition.
Edgeware’s addressable market, as defined by Frost & Sullivan, amounted to MUSD 564 in 2015 and grew approximately 14 percent per year between 2013 and 2015. In 2020, the market will amount to about MUSD 1,600 annually, corresponding to a compound annual
growth rate (CAGR) of approximately 23 percent between 2015 and 2020.
Edgeware predicts that its market – including TV servers and standard servers – will be larger and grow at a slower rate as a result of the declining price development for standard servers.