Software-defined networking startup ConteXtream announced Thursday that it's part of the "largest commercial" installment of SDN to date, one that covers 40 million users on a U.S. wireless carrier's network.

ConteXtream's technology is based on grid networking, but of course, the startup is tying its name to SDN and to network functions virtualization (NFV). Its Grid technology, now going under the name Service Provider SDN technology, creates a fabric for connections between network elements, allowing for virtualized overlay networks to be created and dismantled at will.

The technology was originally applied to connecting virtual machines inside a data center. ConteXtream is now talking about using the technology in carrier networks, tying to the NFV idea of putting more functions on to standard hardware rather than specialized appliances.

Specifically, the company says its stuff is being used for steering each traffic flow to the right set of functions -- things like spam filtering or ad insertion. It sounds just like the service chaining idea that many vendors are championing.

So, who's the carrier? There aren't many to choose from -- and the fact that ConteXtream has gotten funding from Comcast Corp. and Verizon Communications Inc. seems like a pretty strong hint.

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— Craig Matsumoto, Managing Editor, Light Reading