Cloud // Software as a Service
News
12/10/2013
11:20 AM
Connect Directly
Twitter
RSS
E-Mail
50%
50%

Verizon To Buy EdgeCast Content Delivery Network

Verizon Digital Media is adding a major content delivery network to its rich media capabilities.

Verizon is acquiring EdgeCast, one of the top three content delivery networks, to add to its portfolio of cloud and web services. The telecom company announced Monday that EdgeCast will move into Verizon's Digital Media Services unit when the deal is completed sometime in 2014. Terms were not disclosed.

EdgeCast provides content delivery expertise and a network of Internet content servers to Verizon Digital Media, which is interested in improving and extending video delivery. EdgeCast operates thousands of content servers in 30 Internet hubs around the world. Akamai, LimeLight, and Level 3 all offer competing CDN services.

EdgeCast has 6,000 content delivery accounts and serves a number of leading brands for global media delivery, including LinkedIn, JetBlue, EMI Music Publishing, and Kellogg's. EdgeCast ranked number one as the fastest growing Internet company in 2012 on the DeloitteTechnology Fast 500 list.

Content delivery networks, such as Akamai, place content servers at widely distributed locations, then distribute their customers' content to those servers so that they may respond to queries from end users faster than if all were routed to a single, central site. They have not yet achieved a must-have status with many business users of the cloud, but they may well one day. Content delivery networks speed the delivery of complex, multimedia-type messages, and content to online shoppers and consumers.

[Want to learn more about Verizon's second generation cloud service? Read Verizon Pushes Into Google, Amazon, Microsoft IaaS Territory.]

Not all cloud service providers offer CDN service but Amazon's CloudFront, Google's PageSpeed Service, and Microsoft's Azure CDN are content delivery networks offered alongside those firms' IaaS and PaaS offerings.

Last May 22, EdgeCast launched its Transact content distribution network aimed at speeding up transactions for online retailers. In April 2012, it entered into an alliance with Dell to allow Dell to build a CDN based on EdgeCast's routing software.

Verizon Digital Media Services President Bob Toohey referred to the value of EdgeCast's network when he said his firm had acquired the company for its "strategically placed assets," which can be combined with Digital Media's video encoding and transmission systems. Together, they "improve our ability to deliver rich, reliable and quality digital media services," he said in the announcement.

Verizon Digital Media unit focuses on site acceleration and content delivery for film studios, broadcasters, retailers, and enterprises seeking to minimize customer wait times.

By becoming part of Verizon, EdgeCast will elevate itself again and continue its rapid growth, claimed Alex Kaerzani, chairman and CEO. The boards of both EdgeCast and Verizon have approved the deal. Verizon became a cloud vendor thorugh its Verizon Terremark Enterprise Cloud unit, and more recently, added Verizon Cloud based on a second generation cloud architecture.

You can use distributed databases without putting your company's crown jewels at risk. Here's how. Also in the Data Scatter issue of InformationWeek: A wild-card team member with a different skill set can help provide an outside perspective that might turn big data into business innovation. (Free registration required.)

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
blueprintm
50%
50%
blueprintm,
User Rank: Apprentice
4/13/2014 | 5:40:41 PM
Re: Telcos Wake Up
I agree 100% there buying the best.
Marilyn Cohodas
50%
50%
Marilyn Cohodas,
User Rank: Author
12/12/2013 | 7:49:19 AM
Re: Telcos Wake Up >the Verizon Channel
You are not the only one wondering about Verizon's future business model, Li. VentureBeat's Devindra Hardawar speculated that while the deal will ultimately make Verizon's Digital Media Services a stronger CDN option, "it sounds like Verizon is focusing specifically on video content delivery in its release" and that the Edgecast acquisition will allow the telco to offer more advanced video delivery solutions as well as "best in class TV everywhere."

I guess if Netlix and Amazon can get in to the television show production business, we shouldn't be surprised when a telco aspires to be a TV network.
Li Tan
50%
50%
Li Tan,
User Rank: Ninja
12/11/2013 | 11:54:19 PM
Re: Telcos Wake Up
Marilyn, thanks for echoing my post. My major concern is at business side - can telco operator get the profie they want from CDN or it will become a pure CDN operator? How it will charge the content provider? Can it charge the content provider by using divident/profit share method? I am interested to know their future business model.
Marilyn Cohodas
50%
50%
Marilyn Cohodas,
User Rank: Author
12/11/2013 | 2:09:22 PM
Re: Telcos Wake Up
Hi Li! What are your doubts with respect to telcos running content delivery networks. Is it technical skill or something else?
Gary_EL
100%
0%
Gary_EL,
User Rank: Ninja
12/10/2013 | 11:24:39 PM
Re: Telcos Wake Up
This isn't Verizon's very first move into the cloud, as Verizon bought Terremark in 2011. But now that is seems likely that the telcos will be jumping in with both feet, and that Google and Amazon are already in, this may no longer be a business for startups.
Li Tan
50%
50%
Li Tan,
User Rank: Ninja
12/10/2013 | 10:53:33 PM
Re: Telcos Wake Up
For teleco operators, CDN is a good starting point to jump into cloud world. From technical perspective, CDN is not something extremly complex but adding a cache layer between client and server over the internet by placing cache servers, adding some tricks into DNS. Telco operators can also leverage their existing network infrastructures more easily. However, I still have doubts about if telco operators can run such kind of new business well - let's see...
Laurianne
50%
50%
Laurianne,
User Rank: Author
12/10/2013 | 2:50:21 PM
Re: Telcos Wake Up
Some companies in the telco part of the world have longed to rule the data center since the days when VMware really started to take off. I wonder in Verizon's case how their brand reputation plays.
cbabcock
50%
50%
cbabcock,
User Rank: Strategist
12/10/2013 | 1:32:58 PM
Telcos as cloud suppliers: Verizon moves fast
You're right, Doug. Telcos had billing by the minute or hour down flat as the infrastructure companies struggled to create the software to do it. CenturyLink, NTT and others have since moved into cloud ocmputing. Verizon strikes me as taking more risks to accomplish things quickly. It's got a second generation cloud architecture going in seven data centers that relies on energy-sipping servers from AMD's SeaMicro. That might yield a key operational efficiency, if it works as planned.
D. Henschen
50%
50%
D. Henschen,
User Rank: Author
12/10/2013 | 11:36:25 AM
Telcos Wake Up
I'm surprised telcos have been so late to the cloud game (as compared to, say, Amazon). Many have been offering hosting services for a long time, and all of them have been sitting on top of high-scale data-center and network capacity. I sat in on a presentation on Verizon cloud capacity in September, and it seems like they're getting their act together quickly. As this acquisition demonstrates, getting in on the game requires more than just adding "cloud" to the name of the service offerings. 
8 Steps to Modern Service Management
8 Steps to Modern Service Management
ITSM as we know it is dead. SaaS helped kill it, and CIOs should be thankful. Hereís what comes next.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - August 27, 2014
Who wins in cloud price wars? Short answer: not IT. Enterprises don't want bare-bones IaaS. Providers must focus on support, not undercutting rivals.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Howard Marks talks about steps to take in choosing the right cloud storage solutions for your IT problems
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.