VANCOUVER, BC, Aug. 31, 2021 /PRNewswire/ -- Demand for cloud-based DNS has been increasing substantially in the recent past and is driving-up revenue share of major players in the global Domain Name System (DNS) provider market. A few global players have risen substantially above the rest and the major player currently, Akamai, accounts for a substantially larger revenue shares and has close to double the number of websites as its closest competitor. The providers in the latter part of the list are far from the leader in the market and it does not seem that the leader will be dethroned anytime soon.
A major change in the DNS industry currently is a transition to cloud-based systems and this trend is gaining robust traction in the market. As the cloud-computing eco-system expands exponentially across the Internet, clients will get more options for controlling DNS performance and improving customer experience on a global scale. Majority of businesses are shifting to cloud-based DNS or adopting hybrid DNS-Cloud setup by separating their traffic respectively as per standard DNS and cloud infrastructure.
Another factor supporting steady increase in revenue share the various players in the market is increasing adoption of Domain Name System Security Extensions (DNSSEC). DNSSEC is a new trend in the DNS Industry. DNSSEC protects DNS from cyberattacks by employing digital signatures to DNS data, verifying sources of data, and ensuring accurate data flow over the Internet.
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However, increasing incidents of DNS server outages is a key factor expected to result in reduced revenue share of DNS providers. Websites are rapidly being hosted by businesses in order to engage customers, clients, and partner organizations, and DNS plays an important role in enterprise profits. DNS services are chosen by a company to ensure better website performance and better user experience. It is important for DNS service providers to operate their DNS servers efficiently to achieve these objectives. No response from web pages owing to DNS outages can have a substantial impact on an enterprise's earnings. Companies cannot afford DNS outages, especially during seasonal sales. DNS outages also have a major negative influence on user experience and application accessibility for users.
DNS Market Share of Fortune 500 - August 2021
As of 2021, Akamai [AKAM:NASDAQ] has 82 websites and accounted for a majority revenue share of 16.4% in the global DNS market, CSC DNS has 44 websites and 8.8% revenue share, Neustar UltraDNS [NYSE:NSR] has 42 websites and 8.4% revenue share, and Amazon Route 53 [AMZN:NASDAQ] has 27 websites and accounts for revenue share of 5.4%. Cloudflare [NET:NASDAQ]has 25 websites and revenue share of 5.0%, GoDaddy [GDDY:NASDAQ] has 19 websites and 3.8% revenue share, Azure DNS [AZRE:NASDAQ]has 15 websites and 3.0% revenue share, and DNS Made Easy has 11 websites and accounts for revenue share of 2.2%.
With the introduction of Edge DNS, Akamai Technologies has managed to gain a substantially larger market share than other players in the global market. Edge DNS is an authoritative DNS service that sends DNS resolution from business premises or data centers to the Akamai Intelligent Edge. CSC DNS and Neustar UltraDNS follow Akamai closest in terms of market revenue share. In addition, Neustar UltraDNS offers cost-effective cloud-based recursive DNS service with sophisticated threat intelligence that enables speedy and secure online application access, which places it in a lucrative position in the market.
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Some Key Findings:
- Primary DNS server segment is expected to account for larger market share since this type of server is a key part of DNS network that manages data related to domain zones and domain names, and also has an important role in performance of web services. Data is collected directly from local files by primary servers, while only a primary server can initiate changes to a zone's DNS records, which can then be updated by secondary servers. Secondary servers have read-only copies of the zone file and receive the data from primary server through a zone transfer. Because of these benefits, the primary server is most widely used than other types.
- Secondary DNS server segment is expected to account for a significantly large revenue share due to rising usage of secondary DNS server as it provides various benefits over other types. A single point of failure is created when companies depend only on one DNS server. Prospective visitors will be unable to reach the desired domain if the primary server fails or has been attacked or compromised. Using backup servers results in redundancy and reduces the risk of service interruptions for users. Secondary DNS servers can balance load of incoming domain queries, preventing the primary server from becoming overloaded and causing a denial-of-service. Round-robin DNS, which is a load-balancing method that sends nearly equal amounts of traffic to every other servers, is used to achieve this, which is encouraging companies to use a secondary DNS server.
- In November 2020, Neustar, Inc. announced that it has reached a definitive deal with VeriSign, Inc. to acquire Verisign's recursive Public DNS service. The address space for Verisign Public DNS, such as the widely used 64.6.64.6, will be transferred to Neustar and included in its robust recursive UltraDNS Public service under the agreements of the acquisition. Verisign's Public DNS users will continue to receive service and support from Neustar, and Verisign users will be transferred to Neustar's infrastructure. This deal builds on Neustar's previous acquisition of Verisign's DDoS and DNS customers in 2018.
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About Emergen Research
Emergen Research is a market research and consulting company that provides syndicated research reports, customized research reports, and consulting services. Our solutions purely focus on your purpose to locate, target, and analyze consumer behavior shifts across demographics, across industries, and help clients make smarter business decisions. We offer market intelligence studies ensuring relevant and fact-based research across multiple industries, including Healthcare, Touch Points, Chemicals, Types, and Energy. We consistently update our research offerings to ensure our clients are aware of the latest trends existent in the market. Emergen Research has a strong base of experienced analysts from varied areas of expertise. Our industry experience and ability to develop a concrete solution to any research problems provides our clients with the ability to secure an edge over their respective competitors.
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