Light Reading
Verivue snaps up a media distribution switch to help telcos optimize over-the-top traffic on their broadband networks

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
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.

Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Huawei Video Resource Center
Interview With Rick Talbot, Principal Analyst, Current Analysis

10|31|14   |   2:12   |   (0) comments


At the NFV Open Cloud Forum 2014, Rick Talbot shared his positive feedback about the holistic and open approach that Huawei adopts for SDN and NFV. He also found the open sharing at the event valuable as it features different perspectives from Huawei experts, telecom operators, industry analysts as well as security experts.
LRTV Huawei Video Resource Center
Interview With David Snow, Principal Analyst, Current Analysis

10|31|14   |   2:24   |   (0) comments


David Snow talked about his understanding of Huawei and its SoftCOM strategy at the NFV Open Cloud Forum 2014, saying that Huawei's wide approach combining IT and CT expertise, introducing big data and analytics into solutions and contributing to the OpenStack community particularly resonate with him and make the company stand out in the industry.
LRTV Huawei Video Resource Center
Interview With Roz Roseboro, Senior Analyst, Heavy Reading

10|31|14   |   3:13   |   (0) comments


Roz Roseboro commented on Huawei's data center capabilities and NFV solutions at the NFV Open Cloud Forum 2014, saying that in addition to covering all three key domains of compute, storage and networking, the company also emphasizes the importance of management capabilities and professional services, which are essential in making NFV a reality.
LRTV Huawei Video Resource Center
Interview With Michael Howard, Co-founder & Principal Analyst, Infonetics Research

10|31|14   |   5:25   |   (0) comments


Michael Howard talked about SDN, NFV, and OpenStack adoption at Huawei's NFV Open Cloud Forum 2014. Particularly, he pointed out that Virtual Enterprise CPE is the top NFV use case that operators plan to invest in over 2014 and 2015 to deliver new enterprise services through virtualized functions.
LRTV Huawei Video Resource Center
Interview With Jerry Caron, Senior Vice President, Current Analysis

10|31|14   |   3:11   |   (0) comments


At Huawei's NFV Open Cloud Forum 2014, Jerry Caron from Current Analysis said that orchestration and management are key to realizing SDN and NFV for global carriers, and the approach that Huawei is taking, with its FusionSphere Cloud OS at the core, is in the right direction to address the challenges.
LRTV Documentaries
Broadband Battles

10|31|14   |   01:39   |   (0) comments


This year's Broadband World Forum featured a number of show floor battles focused on access gear, components and coffee.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed