Outdated CDN infrastructure (content delivery networks) was created for caching graphics and text, and not for large-scale video broadcasts, which have received special distribution on the Web over the past year and a half. Older CDNs are completely incapable of transmitting video, even at a minimal network load.
Numerous startups of the new generation are ready to start creating new CDNs. A small review of new content delivery networks is
published on TheDeal website (registration is required).
Among the new players in this market are
BitGravity ,
CacheFly 's CacheFly system, and a successful company with a five-year history of
Limelight Networks , which recently received additional venture capital funding of $ 130 million. They are all ready to replace the old Akamai system, which operates on the market with mid 90s. Although Akamai technology is based on the advanced for its time developments of the Massachusetts Institute of Technology, but now it is in great need of an upgrade and can not cope with the load.
Akamai network consists of more than 20 thousand servers in 71 countries that replicate content all over the Internet. This model is great for static sites of the last century, but not for Web 2.0 sites. For comparison, a smaller number of access points is created in the Limelight network, but the servers are grouped into powerful clusters and are ready to provide millions of video streams, serving users in the region.
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By the way, many Web 2.0 sites already use Limelight services, including
YouTube and
MySpace , although they are creating their own CDNs.
We note that simultaneously with the proliferation of Web 2.0 sites and the rapid growth of traffic, the
Akamai stock price (for the year it grew from $ 19.93 to $ 53.15) also began to grow rapidly, that is, the market as a whole favorably assesses the prospects for Akamai. The CDN market leader can upgrade its network and create the largest video delivery infrastructure on the Internet. You may have to buy one of the companies listed above. No problem: Akamai's capitalization is $ 8.3 billion, in which case it is possible to issue additional shares.
In addition, the new generation of CDN network operators may well receive legal claims from Akamai, which owns all key patents in this area. The Akamai trial against Limelight
began this summer . According to experts, after the Limelight’s estimated cost reduction caused by the lawsuit, Akamai may simply buy a competitor. Exactly the same scheme Akamai turned six months before with another competitor,
Speedera , buying one with a “judicial discount” for $ 130 million.
However, with the company Limelight will be more difficult: its market valuation is about $ 1 billion, and among potential buyers are called
Microsoft and
Google .