Whenever someone browses your website, their browser has to connect to the location of the server where your website is hosted to download all the files needed to fully load your website. The longer the distance between the location of the visitor and your server, the longer the visitor has to wait until this connection is made. On the other hand, the shorter the distance, the faster your content will be delivered. This is where a Content Delivery Network can come in handy. A CDN service provides a network of servers across different locations all over the world where where your content can be downloaded from. Whenever the browser of one of your visitors requests your content, the CDN service will automatically choose the server with the fastest response time. This way you can deliver your content in a very fast way to anyone all over the world. You are no longer dependent on the location of one server.
Certainly not. Many businesses only use a CDN for a big website with a million+ images but none for smaller sites. A CDN is mainly meant for larger websites with a lot of content (and usually traffic). If you have a small website with a few pages and photos you most likely do not benefit that much from using a CDN.
Choosing the right CDN service depends on the type of content you want to host. Different CDN services are specialized in different types of content and sites.
Another one worth mentioning is CloudCache which provides a network with 500 peers.
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