& cplSiteName &

Verivue Buys CoBlitz to Help Telcos

Phil Harvey
LR Cable News Analysis
Phil Harvey
10/19/2010
50%
50%

Verivue Inc. : It's not just for cable networks anymore.

The young maker of media distribution switches announced today it has bought CoBlitz, purveyor of high-speed content caching technology developed at Princeton University. The deal was described as a stock swap between two private companies, involving a small amount of cash, according to Verivue CEO Jim Dolce. No deal terms were announced.

CoBlitz has built a content delivery technology that works to help telcos address what Verivue's media switches tackle for cable networks. In both cases, content is cached at the edge of the network and user requests for content are redirected to content routers that then are fulfilled by the nearest edge server. This saves service providers from having every single request for content -- and the content streams themselves -- go all the way across their network's backbone.

For telcos, optimizing video traffic, especially video served over broadband networks by Netflix Inc. (Nasdaq: NFLX), Hulu LLC , and other so-called over-the-top providers, is critical, Dolce says. "They've got all the costs associated with having to expand their networks, but there's no incremental revenue," he says. "It's uncompensated traffic growth." Put another way, Dolce says one service provider called over-the-top video "unbillable revenue."

CoBlitz will add this telco-centric technology to Verivue's managed network solution for cable operators, the merits of which are described in Jeff Baumgartner's post Leading Lights Finalists: Cable Products .

In the past year, Dolce says he has seen "half a dozen" RFPs (requests for proposals) from Tier 1 service providers asking for content delivery network (CDN) technology. The main case for building CDNs is network cost savings, Dolce says. With a video CDN built to handle on-demand and over-the-top video requests, service providers "don't have to build as much core router infrastructure," he says.

CDN market moves
The timing of Verivue's buy is interesting given that smaller competitors are still attracting investments from venture capitalists and analysts are talking about new business models for CDNs in the service provider network. (See Oversi Raises $4.9M.)

Steven Hawley, in his upcoming report for Pyramid Research , titled "TV Anywhere: How the Internet and Mobile Technologies Will Change the Pay-TV Industry," noted another content delivery network model that is appealing to service providers -- that of using CDNs and network-based storage to deliver hosted services, features, and content to consumers within their managed networks. Hawley writes:

The current thinking is that operators can realize cost savings by using a common delivery infrastructure to serve multiple devices over device-appropriate access. In addition, the technical performance of operators with captive, in-network, managed CDNs is likely to be better than competing CDN providers that use a distributed approach via the open Internet, which are, in many cases, limited to locating their resources in major markets rather than co-locating them in an operator’s facilities."


Verivue, in the cable market, competes most closely with Cisco Systems Inc. (Nasdaq: CSCO) and Motorola Inc. (NYSE: MOT). In the telco market, with its newly acquired technology, the company will take on Cisco (still) and Alcatel-Lucent (NYSE: ALU), among others.

For a quick history of Verivue, have a look at these stories:

— Phil Harvey, Editor-in-Chief, Light Reading

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 4:21:04 PM
re: Verivue Buys CoBlitz to Help Telcos


Comcast's SVP of strategic planning called. He wants his name back. JB


 

ycurrent
50%
50%
ycurrent,
User Rank: Light Beer
12/5/2012 | 4:21:03 PM
re: Verivue Buys CoBlitz to Help Telcos


Is this technical solution to the IP video bandwidth challenge ahead of a business solution to allow content to be cached across HTTP networks?

DCITDave
50%
50%
DCITDave,
User Rank: Light Beer
12/5/2012 | 4:21:02 PM
re: Verivue Buys CoBlitz to Help Telcos


I don't know, really. But it does seem that the whole CDN to solve OTT issues could be avoided if carriers would price broadband sensibly based on how much consumers use.

ycurrent
50%
50%
ycurrent,
User Rank: Light Beer
12/5/2012 | 4:21:01 PM
re: Verivue Buys CoBlitz to Help Telcos


Sadly, with sensible pricing I think you end up back as a utility provider.  Need a way to price for value, but that does not cover the infrastructure costs when volume > value.

Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
November 30, 2017, The Westin Times Square
December 5-7, 2017, The Intercontinental Prague
March 20-22, 2018, Denver Marriott Tech Center
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
SmartNICs aren't just about achieving scale. They also have a major impact in reducing CAPEX and OPEX requirements.
Hot Topics
When Will 6G Arrive? Hopefully Never, Says BT's McRae
Iain Morris, News Editor, 11/21/2017
Let's Talk About 5G Efficiency, Not Wacky Services
Iain Morris, News Editor, 11/21/2017
Wireless Could Arrive Soon in NYC Subway Tunnels
Dan Jones, Mobile Editor, 11/20/2017
Juniper's New Contrail VP Hails From Google
Craig Matsumoto, Editor-in-Chief, Light Reading, 11/15/2017
AT&T's Lurie Leaps to Synchronoss as New CEO
Dan Jones, Mobile Editor, 11/17/2017
Animals with Phones
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
The Mobile Broadband Road Ahead
By Kevin Taylor, for Huawei
All Partner Perspectives