Light Reading
Alcatel-Lucent pumps up its services and video capabilities with the acquisition of content delivery network specialist Velocix

AlcaLu Buys CDN Specialist Velocix

Ray Le Maistre
7/28/2009
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Alcatel-Lucent (NYSE: ALU) has acquired content delivery network (CDN) services and technology specialist Velocix for an undisclosed sum, a move that thrusts the telecom systems giant into the video distribution services market.

Velocix, a British firm that started life as deep packet inspection (DPI) platform vendor CacheLogic, built a dedicated global content distribution network, including multiple regional caching nodes, to be used by media owners, carriers, and enterprises for secure and guaranteed transport, specifically of video content. Currently, many of its main engagements revolve around relationships with ISPs that deploy its technology. (See Verizon & Velocix Team Up for CDN Services, Velocix Set to 'Cache In', Velocix Offers Free CDN, Velocix Wins Deals, and CacheLogic Rebrands.)

It has also developed a stand-alone metro node that can be deployed by ISPs that want to speed up the delivery of video over their networks and sell their own CDN services. (See Velocix Launches Metro Kit.)

Find out more by watching the following Contentinople video interview with the company's CMO, John Dillon:

AlcaLu's move comes as more and more major carriers move into the CDN space, either by building their own capabilities or by teaming up with CDN specialists. (See BT Unveils Its CDN Plans, AT&T Develops Its CDN Business, Global Crossing Announces CDN Partnerships, DT Gets Into the CDN Business, Verizon Targets CDN Partners, Virgin Media Weighs CDN Options, Level 3 P2Ps With Pando, and Level 3 CDN Enters Asia.)

AlcaLu's Carrier division president Philippe Keryer stated in the official news release that the move "demonstrates our company’s commitment to investing in the capabilities, know-how and technologies needed to effectively support the rapid evolution towards a video-centric world."

It also gives AlcaLu another string to its managed services bow. Managed services (along with integration, consultancy, and other "professional" services) is one of the vendor's few areas of real growth, and the Velocix operational model fits neatly into that sort of offering.

AlcaLu rivals, such as Ericsson AB (Nasdaq: ERIC) and Nokia Networks , are also finding professional services to be a key source of growth. (See Services Save Ericsson in Q2 and Services Now 45% of NSN Revenues.)

AlcaLu's Keryer also noted that, when combined with the vendor's "integration capabilities... [the acquisition] fits nicely into our Application Enablement strategy."

He's referring to AlcaLu's greater focus under new(ish) CEO Ben Verwaayen on new-generation service providers that need to exist, operate, and make money from new applications such as software-as-a-service, cloud computing, and over-the-top video, as well as traditional voice and data offerings. (See AT&T Makes Push Into Cloud Storage and AlcaLu's New Vision: More Convergence.)

That focus was also highlighted by today's appointment of a senior vice president of transformation, who, among many other things, is tasked with aligning "the company and its portfolio and R&D" around the vendor's "application enablement vision." (See AlcaLu Appoints Transformer.)

Find out more about other CDN specialists by checking out the CDN guide at Contentinople.

— Ray Le Maistre, International News Editor, Light Reading

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