What Is a CDN, and How Does It Work?
ByVladana Donevski
June 15,2022
Every internet user wants to find their desired content easily and have it quickly load when browsing the web. We also wish to stay secure from spam and other malicious online attacks. Moreover, content owners and service providers strive to improve the user or customer experience and increase ad revenue and client retention.
CDNs help us find the page or video we are after and protect us from web-based attacks. But what is a CDN, and how does it do all that? Let’s find out.
CDN Definition
CDN is a group of geographically distributed and interconnected servers that provide efficient web content delivery. They transfer content from an origin server to the one nearest to the user that requested it. The internet service provider (ISP) delivers the requested content to the user the rest of the way.
Some common types of content that CDNs transfer are:
- Videos
- Images
- Stylesheets
- HTML pages
- JavaScript files
Besides bringing the desired content close to the user, CDNs also improve the user experience (UX) and overall web security.
Before moving forward, let's see how CDNs developed and what we can expect from them in the future.
History of CDNs: A Brief Overview
The history of CDNs kicked off during the late 1990s when the need to deliver vast amounts of data to internet users first started becoming a problem. Thus, the Content Delivery Network, which CDN stands for, came into existence. CDNs made over 20 years ago still handle between 15% and 30% of online traffic globally.
The first generation of CDNs managed both static and dynamic content, while the second generation focused on streaming audio and video material. The third generation is currently in development. We can expect it to be simple enough to be run by individuals with no tech experience. In other words - mostly self-configured and capable of autonomic content delivery in the future.
Here are some key historical events regarding the evolution of CDNs:
- The event that considerably accelerated the development of CDN technology was the 9/11 attack in 2001. Many people tried to access news websites at once on that day, which led to severe caching problems.
- Big internet service providers started creating their own CDN functionalities before 2002 started.
- In 2004, over 3,000 companies used CDNs.
- Amazon launched its own CDN in 2008.
- In 2011, a newly-introduced CDN reduced delays in page loading (latency) by enabling the content to flow across its 38 data centers worldwide.
How CDNs Work: Everything You Need To Know
Besides merely bringing desired content to end-users, CDNs have other equally important goals: providing that content quickly, affordably, and securely.
Content delivery networks manage that by placing linked servers strategically at the points where different networks exchange data. In other words, CDNs connect to Internet Exchange Points (IXPs), where various internet providers converge to provide traffic originating from their networks. That way, CDNs take over the content and deliver it as close as possible to the interested user.
When a user makes a request, the specialized CDN management software determines which server is the closest to the point where the request originated. Then, it delivers the desired content to such a server, which we call a CDN edge server.
This strategy allows CDNs to reduce latency – the annoying delay when the page is loading – thus preventing time-out and load errors. The wider a CDN distribution in the physical world is, the shorter loading times for the end-user will be, regardless of where they are in the world.
Since we keep mentioning servers, let's define what they are before moving forward.
What Is a CDN Server?
In short, servers are high-powered computers or programs capable of:
- Storing,
- Processing,
- Managing data we can find on a network.
CDN servers provide services to other computer programs and their users, offering scalability and efficiency at the same time. They also deliver cached content stored on a CDN when a user request appears.
Caching
Caching is a temporary file storage process that CDNs perform to let us access the requested content quickly. CDNs cache content at the edge of the network; thus, we can't speak of CDN hosting since CDNs can't replace traditional web hosting, only complement it.
CDNs can help websites struggling with performance issues since caching reduces hosting bandwidth. It can prevent service interruptions, making CDNs a desirable option for handling the inconveniences related to traditional web hosting.
What Is a CDN Provider?
A CDN provider is a business that owns data centers with servers located throughout the world. Their job is to store and load content on their servers upon user request.
There are countless time-saving CDN services these days, and they make fast browsing possible by saving website copies on thousands of proxy CDN servers worldwide. Thus, website owners that struggle with their website performance find CDN hosts very useful since visitors tend to leave the page if it doesn't load in a few seconds.
What Does a CDN Do?
CDNs bring all sorts of content to web users in every corner of the world. This content could be pretty much anything, including:
- Images,
- Audio streams,
- HD-quality videos,
- Software such as OS, games, and applications.
In short, content delivery networks deliver everything you can expect to find online. CDN providers make the content available by:
- Hosting it on their server,
- Hiring internet service providers or network operators to host CDN servers.
However, answering the question "What is a CDN about?" in more detail calls for a broader overview. So, let's dive in.
Improves Load Times
As we mentioned, one of the key goals for CDNs is quick loading of desired content. And they make it possible by placing servers and storing cached content as near as possible to people browsing the internet. That way, the request doesn't need to travel to the origin server and back, which could take a while.
Moreover, CDNs compress files or minimize codes and markups in script files and web pages to speed up their travel time. Furthermore, they perform software and hardware optimizations. Finally, CDNs give a performance and security boost to websites using TLS/SSL certificates that keep the internet connection secure.
Reduces Data Transfer (Bandwidth) Costs
CDN servers enable the origin server to provide a reduced amount of data through caching. This lowers the bandwidth costs, which is one of the most significant expenses for website owners.
Enhances Website Security
CDNs also help secure sensitive information against hackers and online attackers during web transactions. They do it by providing DDoS mitigation – a set of techniques and tools that block and absorb malicious spikes in traffic.
Increases Content Availability
Traffic spikes and hardware malfunctions are inevitable. They can cause various inconveniences, including disabling visitor access to the website or bringing the web server down. Yet, a well-balanced CDN system can minimize the damage thanks to the following features:
- Load balancing spreads online traffic across several servers, successfully handling traffic spikes. To illustrate, think of several routes from point A to point B in the real world. When the quickest way gets congested, commuters take alternative routes, allowing everyone to get from point A to point B more quickly.
- Even if a server malfunctions due to technical issues, users won't notice that anything's wrong with the data distribution. That's because the intelligent failover system redistributes traffic to other available servers nearby, maintaining the service uninterrupted.
- Another significant CDN benefit for end-users is undisturbed internet access, even in the unlikely event of the entire data center experiencing technical issues. If it comes to that, the system routes the online traffic to another available data center.
Who Uses CDNs (and Who Probably Shouldn’t)?
Almost everyone uses CDNs. When you, for instance, stream a TV show on Netflix, buy something on Amazon, or post on Facebook, you harness the power of the CDN.
However, it wasn't like that in the early days of the tech. At the turn of the 21st century, only large companies could afford to use CDNs due to their high costs. Thankfully, those times are long gone, and everyone can benefit from the content distribution network technology at affordable prices today. There are even some free options available, though they are not as good as their paid counterparts, obviously.
So, which types of websites could make use of CDN? Lots, actually, but the two most common types would be:
- eCommerce websites that sell goods nationally and internationally,
- News websites because they tend to experience traffic spikes in case of breaking news and generally have large volumes of traffic, especially in the morning.
On the other hand, companies that do business locally should refrain from using a CDN for two good reasons:
- It can worsen the website's performance by adding an unnecessary connection between the visitor and a nearby server.
- There is the possibility of getting extra visitors that are highly unlikely to buy anything and will just clog up the server bandwidth.
With CDN explained this way, we can conclude that content delivery networks may be the right choice for you to promote your business globally, especially if it falls into one of the following categories:
- Media
- Mobile
- Healthcare
- Advertising
- eCommerce
- Entertainment
- Online gaming
- Higher education
Summary
To sum things up, here’s everything you need to know about CDNs in six short bullet points:
- They can handle any file in a digital format, including videos, images, stylesheets, games, and many other types of software.
- CDNs provide efficient data transfer by compressing files and connecting internet users to a data center closer to them from an origin server.
- CDN service provides uninterrupted internet access if the nearby server or the entire data center experiences technical difficulties.
- They decrease loading times by caching (storing) files on servers located near the end-users.
- CDNs improve website security by keeping malicious attackers, spammers, and bots at bay.
- A content delivery network can help promote your business beyond your local city and state. But it would be best to take this opportunity cautiously because some businesses are best suited to local operations, and a CDN could make things worse.
FAQ
What is a CDN, and how does it work?
CDN is a group of servers (powerful computers) working together to deliver the requested data to users in a particular geographical area. Servers temporarily store the content they receive. Thus, future end-users get the content quickly since their request doesn't have to travel to the origin server – which could be thousands of miles away – and back.
What is an example of a CDN?
We’ve talked about CDN and its meaning for the online industries already, but here's an example so we can define CDN better:
Let’s say you have a commerce website shipping goods anywhere in the world. You’ve hosted the site in New York and stored your files on the servers there. Now, a prospective customer from France wants to familiarize himself with your products.
The customer's request goes to the server in NY that sends data back, which can take a while. If If a CDN was used instead, it would deliver the files to a server closer to the client first. That server would then temporarily store them so that this prospective buyer would get access to them quicker.
What does a CDN stand for?
CDN stands for Content Delivery Network. It's a system consisting of interconnected servers located in a particular geographic area. Its mission is to deliver the content a user requests to the nearest server to them as soon as possible.
What is a CDN error?
A CDN error occurs when its edge server (the CDN server nearest to you) can't access your origin server. It's a common issue when a firewall is up on your server. If so, you need to disable the firewall to fix this error and use a CDN.
What is a CDN for dummies?
The CDN helps load internet pages, videos, and other forms of digital content as quickly as possible. Content delivery networks bring us fast page loading times, keep websites safe from online attacks, and reduce data transfer costs.
More From Our Blog
What is an operating budget? This is a question that many business owners ask themselves, so this blog post will discuss the operating budget definition, the importance of this document, and how to create one for your company.
Defining an Operating Budget
An operating budget is a plan outlining your expected expenses, revenue, and profits for a specific period. It can be helpful to think of your operating budget as your financial roadmap. Similar to a business plan, it’s meant to keep your business fund management on track.
When you create and follow an adequate operating budget, you are more likely to achieve your financial goals.
The Importance of Following an Operating Expense Budget
There are many reasons you should have one, but the crucial incentive for developing a budget is avoiding financial difficulties. When you clearly understand your expected income and expenses, you are less likely to overspend or get into debt.
How To Create an Effective Operating Budget for Your Business
There is no "right" way to create an operating budget. However, there are some key elements every sensible operating budget should include. Most operating budgets include how much revenue companies expect, variable and fixed costs, non-cash and non-operating expenses, and sometimes capital costs.
Variable Costs
The variable costs section included in the operating budget consists of:
Direct labor budget
Direct selling costs
Sales budget: Sales volume and sales needs
Payment processing fees
Raw materials fees
Some aspects of marketing
Other market variables
Fixed Costs
Some of the fixed expenses you might include in your annual operating budget are:
Rent for office
Insurance
Telecommunication
Salaries
Utilities
Your total operating budget should also include non-operating expenses, such as taxes, interest, gains, and losses.
Non-Cash Expenses
Make sure to write up non-cash expenses, like the amortization and depreciation of your assets. While these expenses won't affect your cash flow immediately, they will leave a mark on your company's income statement at the end of the reporting period.
The Elements of an Operating Budget
First, you will need to gather your company's financial data. The data used in your business budget, for example, can come from financial statements, tax returns, and bank records.
Then, you will need to analyze them to identify your business's strengths and weaknesses, as well as its expected operating cash flow for the year, to create a budget that reflects your findings.
Finally, once you have created your budget, it is essential to review it regularly. This will help you make adjustments as needed and ensure you remain on track toward your financial goals. It might seem like a hassle, but you should define your operating budget before making big financial decisions.
Tips For Staying On Track With Your Operating Budget
Even if you have the best intentions, it can be challenging to stick to your budget if you don’t consult it frequently. While unexpected expenses are to be, well, expected, and they might be significant, it still helps to document the things you can predict. Here are a few tips to make as much of that as possible:
Make your budget realistic. If it’s too restrictive, you will likely give up on it altogether. An operating budget with room for unexpected expenses is beneficial, especially since sales and overhead figures vary greatly.
Create a system for tracking your expenses. Include this in your operating budget expenditure section. This can be as simple as keeping a notebook in your purse or wallet, or using a budgeting app on your phone.
Review your budget regularly. This will help you identify areas in need of adjustments.
Don't be too hard on yourself. If you occasionally make a purchase that’s not in your budget, don’t waste time on regrets. Return the item if it’s not necessary, or make it pay for itself. Both are good ways to get back on track.
By Vladana Donevski ·
June 15,2022
If you're like most people, you probably don't understand what APR stands for, let alone how it applies to your finances. However, you probably know that it affects how much you pay each month for your credit card bill, and if you’re running a business, understanding APR thoroughly is crucial.
So, what is APR on a credit card, and why is it important? For starters, every dollar matters when you are trying to get a new business off the ground. Even established companies with steady profits can have their cash flow messed up with poorly chosen APR; after all, credit cards should be all about saving on unnecessary expenses so that you can fund the important ones.
So, without further ado, this article will explain what APR is and how it works. We'll also discuss the different types of APR and how to avoid paying high interest rates.
What Does APR Stand for?
The acronym "APR” stands for “Annual Percentage Rate” and refers to the total share of your principal you will be charged within a year on your credit cards, personal loans, auto loans, or other lines of credit. This figure represents the actual yearly cost of borrowing funds, including any fees or additional charges that may apply, which is why it’s a more informative number than just the interest rate.
APR on a credit card can be fixed or variable, which will define how your APR is calculated. Fixed-rate APR means your credit card interest rate will remain the same for the life of your loan. Variable APR means that your rate can change over time, usually in response to changes in the market.
Both have their up-and downsides: Fixed APR allows you to make long-term plans, but it might be costlier than necessary in the long run, if the market becomes favorable. Variable APR enables you to capitalize on a favorable market rate, but can also hike your interest up much higher than initially planned.
How Does APR Work on a Credit Card?
You should be familiar with the factors influencing your APR when choosing a credit card for your small business to ensure it won’t eat into your profits too much.
Your credit card interest rate will be based on your credit score, i.e., your credit history, amount of debt, and other factors. For example, if you have a good credit score, your card's APR will likely be low.
Other factors affecting the credit card's interest rate include the card type and prime rate (if you have a card with a variable APR).
The prime APR for credit cards is the rate banks charge their most creditworthy customers. The prime APR can change from time to time, depending on the federal funds rate and overall economic conditions. The prime APR tends to be higher when the economy is strong, and vice versa.
The prime APR is an important benchmark for other rates, including the rates that credit card issuers charge. Credit card issuers often use the prime APR as a starting point when they set their own rates.
What Is The Difference Between APR and Interest Rate?
The annual percentage rate (APR) and interest rate both describe the cost of borrowing money. However, the two concepts are actually quite different.
Credit card interest rates are simply the percentage of the loan amount the borrower will pay in interest charges over a year. APR, on the other hand, is a more comprehensive measure that takes into account not only the interest, but also additional associated costs, such as points, fees, and closing costs.
As a result, APR is generally higher than the interest and is a better indicator of the true cost of borrowing money for your business, especially if your company has a bad credit score.
How is Credit Card APR Calculated?
APR is the annual interest, but if you want to know how much you’ll be paying in interest per day, simply divide your APR by 365, and you’ll get your daily periodic rate. For example, if your APR is 15%, your daily periodic rate would be 0.041%.
To calculate the monthly credit card interest charge with an average daily balance of $1,000, you would multiply the daily periodic rate by 30, giving you an interest charge of $12.33.
Other Types of APR - Introductory, Cash Advance, and Penalty
While we are most familiar with the annual percentage rate (APR) for purchases, there are three more kinds of APR relevant for credit cards:
Introductory APR
This is the low- or no-interest period credit card companies often offer as a way to gain new customers. If your business is eligible for that, such a business credit card could be a good solution for covering the costs of inventory or equipment, especially in the initial phases.
An integral part of intro APR’s meaning is that it doesn’t last forever: Afterwards, it will revert to the standard rate for your card. Unfortunately, cards with introductory rates often have a regular purchase APR after a significantly higher grace period. If you can pull off paying your debt in full before the grace period ends, that would be the ideal arrangement.
Cash Advance APR
You'll pay this interest rate on cash advances from your credit cards. These interest charges are typically much higher than the standard APR, so it's best to avoid borrowing more money than you already have.
Penalty APR
This is the high annual percentage rate for a credit card you'll be charged if you make a late payment on your credit card bill.
How To Avoid Paying High Interest Rates
There are a few things you can do to avoid paying high interest on your card balance. First, try to pay off your balance in full each month to avoid paying any interest at all. Second, if you can't pay it, at least make your payments on time, as late payments mean higher credit card interest rates. Finally, you can transfer your balance to a card with a lower APR. If the special APR for that isn’t too high, it can save you money in the long run.
All in All
The takeaway is that different APRs can significantly impact your finances and business cash flow, so it's essential to be aware of them.
Now that you’ve had credit card APR explained, here are the key points: Avoid paying high interest by paying off your balance in full by the end of your monthly billing cycle, never miss a payment entirely, or transfer your balance to a card with a lower APR.
By Vladana Donevski ·
June 14,2022
As an online business owner, you know that your website is the key to your success. It's where customers go to learn more about your brand and make purchases. If your eCommerce site is inadequate, it can erode sales and bring your growth screeching to a halt.
In the age of social media, word-of-mouth travels fast, and a single customer who is unhappy with your website can undermine your reputation. Check out the 5 ways your eCommerce site is ruining your brand’s image and learn how to avoid these pitfalls.
1. Poor Website Design and Navigation
Many eCommerce businesses have poorly designed websites. These can be hard to navigate, confusing for customers, and just plain ugly. It also makes your business look unprofessional and gives the impression that you simply don’t care about your online presence, or even worse, that your business is a scam.
An eCommerce website builder is one of the tools that can help you avoid this mistake. You should have your customers in mind when creating your website. Navigation should be easy, and the overall design should be visually appealing to create a positive brand image.
Think about the websites that you frequent when doing your shopping. What are they doing right? Use those positive aspects as inspiration to help you enhance your site.
A good rule of thumb is to make it exceptionally easy for customers to find what they're looking for on your site, learn more about your brand, and make purchases. It will also give your business a professional appearance; your customers will feel appreciated and help you stand out from the competition.
Having a well-designed website is important for any brand, but it's especially crucial for eCommerce businesses.
If you're not sure where to start, there are plenty of resources and professionals who can help you create a stunning website that will improve your company’s brand image. Hiring a good UX design agency is an avenue worth exploring.
2. Outdated Descriptions, Images, or Out-of-Stock Items
Another common mistake eCommerce businesses make is not keeping their product descriptions, images, and stock levels up to date. This can be a big turn-off for customers, as it makes your store appear unreliable or abandoned.
Keep in mind that your customers are at your store to purchase something, and you need to help them overcome all the online shopping challenges. Since they can't simply walk into your store and physically inspect the products, you need to provide the necessary amount of information in the product description sections.
You need high-quality images, and the descriptions should be as accurate and as detailed as possible. Think about everything that your customers will want to know about the product you are selling and place it in the product description.
Failing to provide the necessary details can result in consumers associating you with negative branding. If your customers are unhappy with what they got, they likely won't return to your store or recommend it to others.
Out of Stock Items
Out-of-stock items are another reason why your customer might not return. If they like what you have but can't find it in stock or the product is constantly out of stock, this will lead to frustration. Nobody wants to keep checking back only to find that the item they're looking for is still not available. This can lead to them giving up and looking elsewhere for what they want.
This is one of the most common challenges of online shopping. So, here are a few things you can do to avoid it:
- First, try to keep better track of your inventory levels. This way, you'll know when items are running low and can order more before they run out entirely.
- Second, if an item is constantly out of stock, consider removing it from your site until you can get more. It's better to have a smaller selection of items in stock than a larger selection with many things that are frequently out of stock.
- Third, make sure to update your site regularly so customers know what is and isn't available. If an item is out of stock, say so on the product page to avoid additional brand damage. If you plan to purchase more (and you should since the product is doing well), make sure to let customers know when this will happen. This way, customers won't waste their time trying to purchase something that isn't available.
3. Poor Customer Service
When speaking of frustration, poor customer service is often the main culprit. According to customer service statistics, 95% of consumers think that customer service is an important factor in their brand choice. That’s a significant number of customers who will likely never come back if they have a bad experience on your site. To preserve your company's brand image, you need to make sure that your customer service is top-notch.
First up, make sure customers can contact you through multiple channels, including email, phone, and live chat. You should also have a Frequently Asked Question section that is easy to find.
Another thing you need to take into account is response times. If a customer contacts you with a question or complaint, they will likely expect a quick response. The longer you take to get back to them, the more frustrated they will become.
Ideally, you should aim to answer all questions within 24 hours as this will help you improve the image of your brand. If this isn't possible, make sure to let the customer know when they can expect a response.
4. Bad Reviews
Bad online reviews can travel fast and do a lot of damage to your brand. A good review is your eCommerce store’s best salesman, while a set of negative ones will send your customers to your competition. If you don't have a system to deal with both of them, it can quickly get out of hand and negatively impact your brand.
To avoid being ranked among companies with bad publicity, keep an eye on all platforms where customers can leave reviews. This way, you can catch any negative reviews as soon as they are posted and address them quickly.
Another thing you need to do is respond to all negative reviews, regardless of where they are posted. This shows that you care about your customers and their experience with your brand. It also gives you a chance to defend your brand if the criticism is unwarranted.
There are reputation management services you can hire to improve your brand image if you have been ignoring these for too long. But this is a short-term solution; you need to be consistent and actively communicate with unhappy customers.
Ultimately, a bad review is a blessing in disguise. It allows you to talk to your unhappy customers and remedy the situation. Depending on your business processes, you can offer free products, waive shipping fees, or offer other options to turn a bad experience into a positive one. If your customers leave the conversation happy, you did your brand a big favor.
Finally, make sure to take any constructive criticism from the reviews to heart. Use this feedback to make changes to your site or business processes so that future customers will have a better experience and consequently improve the brand’s public image.
5. Not Enough Promotions
If you want customers to keep coming back to your site, you need to give them a reason. One way to do this is by running promotions and discounts on a regular basis. Furthermore, this could be a great way to gain new customers, as 62% of consumers tell their friends about online deals.
However, there are a few things you need to keep in mind when offering these promotions. First, make sure that the promotion is relevant to your target audience. There's no point in offering a sale on items that your target market wouldn't be interested in.
Second, make sure the promotion is for a significant enough discount. While calculating your margin and pricing properly is one of the biggest challenges of eCommerce for store owners, you should still work to find room for large discounts. A small percentage off isn't going to entice customers to come back to your site.
Finally, make sure the promotion is easy to find on your site. If customers have to search for it, they likely won't bother. Also, make sure to include it in any advertising you do.
Failing to do this properly can negatively affect your website. Promoting the wrong things at the wrong time with the wrong price can ruin your image.
All in All
These are the 5 ways your eCommerce site is ruining your brand’s image and tips on how to solve them. By improving your customer service, addressing bad reviews, and running promotions effectively, you can maintain a positive image for your brand.
Take the time to assess your website and find things you can improve while keeping your customers' interests in mind. A little effort goes a long way in maintaining a good image for your brand. And a good brand image can improve sales and help you grow your revenue.
By Vladana Donevski ·
June 13,2022
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