CacheLogic Fires Up Its CDN

LONDON -- IPTV World Forum -- Content delivery network (CDN) newcomer CacheLogic has built and fired up the network it started building last year, claiming to have the third biggest CDN in the world and an "embarrassment" of business opportunities.

The company, formed originally to help service providers manage their P2P traffic, announced last summer it was shifting its focus towards building a CDN that used a combination of caching and P2P technology to deliver content around the world. (See CacheLogic Builds P2P Content Network.)

Talking in London today, the company's CEO, Pat Chapman-Pincher, says the company has been selling services on its 58-Gbit/s network, called VelociX, since January 1, and claims to have network capacity comparable to Savvis (Nasdaq: SVVS)'s CDN (which is soon to change hands) and inferior only to Akamai Technologies Inc. (Nasdaq: AKAM) and Limelight Networks Inc. (Nasdaq: LLNW). (See Level 3 Spends $135M on Savvis CDN.)

It has built 15 caching points of presence, located in the U.S., Europe, and Asia/Pacific, and has wholesaled network capacity from Level 3 Communications Inc. (NYSE: LVLT) and Singapore Telecommunications Ltd. (SingTel) (OTC: SGTJY). (See CacheLogic Uses Level 3.)

"We've built a proper, real CDN, not a rinky-dinky network with a few servers here and there," says Chapman-Pincher, adding that further POPs will be added as partnerships are brokered with local ISPs, whose networks will be used for the last-mile connections.

And the company has built its network at just the right time, it seems, as the CDN market is currently one of the hottest specialist service sectors, attracting a lot of interest from companies that need to shift large files, such as high-resolution movies, around the world. (See Level 3's CDN Story Rides on Fiber, Internap Charges Into CDNs, and P2P Camp Swarms Video.)

"We've been quite lucky with our timing," admits Chapman-Pincher, who says the public Internet just isn't up to the task of handling lots of high-capacity files. "The Internet breaks when you put high-definition video content on it," she says, and there's growing volumes of that kind of content in need of distribution.

And Chapman-Pincher is in a good position to comment, as, during her time as President of UUNet International and a senior VP at WorldCom, she helped build much of the public Internet's infrastructure.

So although CacheLogic's CDN has been open for business for only a few weeks, the fortuitous timing means there's already revenue-generating content running across the network, and a lot more to come, including Bollywood content from the Indian film industry, which is "a perfect niche for our kind of network. It's content that's in demand all over the world, wherever there is an Indian community."

There's also an opportunity in the gaming world, which the company targeted today with a news announcement. (See CacheLogic Intros P2P CDN.)

Chapman-Pincher says the interest from all sorts of content and applications companies has been overwhelming, almost "embarrassing," and that more sales and integration staff than the 17 the company currently has will need to be hired. "We'll need to keep investing to deal with the wave of demand," and that will mean more funding. The company raised $20 million last July. (See More Cash for CacheLogic .)

It also means CacheLogic will need to focus exclusively on its CDN opportunities, so the company's traditional business, selling caching technology to help ISPs manage P2P traffic, is being wound down. "We'll still be supporting our existing customer base, though," says Chapman-Pincher, "and some of those ISPs will become caching node partners over time."

The company will also be exploring licensing opportunities as the demand for content delivery and caching increases for companies like Google (Nasdaq: GOOG). "We own a lot of intellectual property around P2P and caching," says the CEO.

— Ray Le Maistre, International News Editor, Light Reading

streamingguy 12/5/2012 | 3:12:58 PM
re: CacheLogic Fires Up Its CDN Good to see more competition in the CDN space and in the near term I am sure the good ones will flourish as IP video distribution continues to boom. CDN's that can offer a combination of PtoP, peer assisted and tradition CDN will gain added traction as file size grows. But in the end it is largely a commodity service. Media companies will be beating them up against eachother to lower their cost. The lonterm value will be in adding value to the network - security, commerce, content management etc. These are the sticky services that will keep the customers at a premium over time.
Mark Sebastyn 12/5/2012 | 3:12:53 PM
re: CacheLogic Fires Up Its CDN "Hey, I've got a great idea!" All of those files people are trying to pirate? Let's cache them! It's not illegal if we don't use them right? Right guys?

Guess that business plan didn't work out.
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