& cplSiteName &

Akamai to Snap Up Dolce's Verivue

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
11/13/2012
50%
50%

Akamai Technologies Inc. (Nasdaq: AKAM) has offered an undisclosed amount of cash to acquire Verivue Inc. , a content delivery network (CDN) software startup run by Jim Dolce that counts Comcast Ventures and Arris Group Inc. (Nasdaq: ARRS) among its investors.

"From a balance sheet perspective, the transaction is immaterial," an Akamai spokesman said via email, noting that the deal is expected to close by year's end.

Akamai said it will use Verivue's software to complement and accelerate the deployment of Aura Network Solutions, a line of managed and licensed CDN products specifically designed to help network operators build their own CDN capabilities. Akamai is pitching Aura to both fixed line and mobile operators, placing the product in competition with Alcatel-Lucent (NYSE: ALU)'s Velocix platform, which has been deployed by Time Warner Cable Inc. (NYSE: TWC).

Verivue originally focused on high-capacity servers and switches for CDNs and video-on-demand systems, but became more software-oriented after its 2010 acquisition of CoBlitz, a maker of caching technology developed at Princeton University. Verivue used that to develop OneVantage, a content delivery platform that lets network operators utilize two or more CDNs. (See Verivue Buys CoBlitz to Help Telcos.)

On the cable front, Cox Communications Inc. uses Verivue's software to manage TV Connect, the MSO's multi-screen app for tablets and other connected devices. When Verivue was still focused on hardware, it signed Canadian cable operator Shaw Communications Inc. as an early customer. And in addition to an investment in Verivue, Arris cut a deal in 2009 to integrate Verivue's technology with its video platform for service providers, but that agreement didn't produce much new business for either side. (See Cox to Stream Live TV to Tablets , Arris Pumps Up Video With Dolce's Verivue , Verivue Tech Gets a Toehold at Shaw and Cracks Form in Verivue/Arris Partnership.)

Westford, Mass.-based Verivue has about 60 employees, but it's not yet clear how many of them, including CEO Jim Dolce, will be retained once the deal closes.

"It is premature to comment on the specifics at this time," the Akamai spokesman said with respect to the fate of Verivue's personnel. "We are still in the early stages of the integration planning and will be working on that more closely between now and closing. Having said that, Verivue has a strong team of engineers and sales relationships with the operators and that is a valuable talent pool. This acquisition is focused on the talent and the technology."

Verivue, founded in 2006, has raised more than $85 million.

Why this matters
Akamai is already a kingpin among CDN providers, but the Verivue deal gives it some key caching capabilities and some relationships with service providers that are developing their own CDNs for multi-screen video services and applications, or looking to interconnect with third-party CDNs.

The acquisition, though immaterial financially to Akamai, will also help the CDN specialist sharpen its competitive edge compared with other players in the CDN ecosystem, including Alcatel-Lucent, PeerApp Ltd. and Limelight Networks Inc. (Nasdaq: LLNW).

For more



— Jeff Baumgartner, Site Editor, Light Reading Cable

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
CommScope – Meeting the Demands of Tomorrow's Networks

3|24|17   |     |   (0) comments


Phil Sorksy, Vice President International at CommScope, discusses addressing the challenges faced by service providers today, and as future trends emerge.
LRTV Huawei Video Resource Center
AMS-IX & Huawei's OSN 902

3|24|17   |     |   (0) comments


Huawei shows how its OSN 902 platform helps the Amsterdam Internet exchange to connect the world using multiplexing.
LRTV Huawei Video Resource Center
Huawei's Smart Energy Innovation Center

3|24|17   |     |   (0) comments


In Nuremberg, Huawei showcases its latest capabilities in the digitalization of Internet resources, network infrastructure and intelligence at its Smart Energy Innovation Center.
Valley Wonk
OFC & Hyperscale: A Good Mix?

3|24|17   |   01:50   |   (0) comments


Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
LRTV Custom TV
Etisalat on NFV Journey

3|24|17   |   10:37   |   (0) comments


Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 3

3|22|17   |     |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
LRTV Documentaries
No Regrets: Cox's Finkelstein on Fiber & More

3|22|17   |     |   (0) comments


At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
LRTV Documentaries
Cable Next-Gen: The 'Mile High' View From Denver

3|22|17   |   11:56   |   (0) comments


Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 2

3|21|17   |   2:27   |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
LRTV Custom TV
Driving Better Mobile Customer Experience While Transforming the Mobile Network

3|21|17   |   7:47   |   (0) comments


The Citrix NetScaler mobile gateway is an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, NetScaler can be deployed on any hypervisor, on a ...
LRTV Custom TV
Mastercard: What's Next for Mobile Payments?

3|21|17   |   7:49   |   (0) comments


2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
LRTV Custom TV
Mastercard: 2 Billion Adults 'Trapped' in Cash Economy

3|21|17   |   03:51   |   (1) comment


Despite advances made in the last several years, two billion adults around the world are trapped in a cash economy and lack what we take for granted -- a safe way to receive, save and use money. Shamina Singh, executive vice president of sustainability and president of the Mastercard Center for Inclusive Growth, chats about how Mastercard is developing new ways to ...
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
High-Band 5G: Let's Address the Range Question, Shall We?
Dan Jones, Mobile Editor, 3/21/2017
Eurobites: A1, Nokia Turn It Up to 11
Paul Rainford, Assistant Editor, Europe, 3/22/2017
FTTH No Slam Dunk for Cable
Carol Wilson, Editor-at-large, 3/23/2017
Top Priorities for B/OSS Transformation
James Crawshaw, Senior Analyst – OSS/BSS Transformation, Heavy Reading, 3/20/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Neither Do We Click Here
Is that a prerequisite?
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.