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Packet inspection/traffic management

More Cash for CacheLogic

P2P traffic management vendor CacheLogic has raised $20 million in its third round of funding and plans to expand its product portfolio to help IP service providers deal with the anticipated ramp in networked video. (See CacheLogic Raises $20M.)

The new funding, to add to its new CEO, comes just a few months after another IP traffic management vendor, Sandvine Inc. , raised $37.3 million on the London Stock Exchange 's Alternative Investment Market (AIM). (See CacheLogic Appoints CEO, Sandvine Leaps on London Listing, and Sandvine Reports H1.)

The new round, led by Amadeus Capital Partners Ltd. , takes CacheLogic's total funding to nearly $28 million over three rounds. (See CacheLogic Closes $5.6M B Round.)

CacheLogic CTO Andrew Parker says some of the new funding will be used to "push into North America," as the company's current customer base, built via integration partners such as Damovo Group SA and Telindus Group NV (Euronext: Tel.BR), is concentrated in Europe, South-East Asia, and Latin America.

Parker won't say, though, how many ISPs and carriers are using the company's tech, though he claims many of those customers are Tier 1 or Tier 2 operators.

The new funding will also be used to take new products to market, though the company is keeping details of its new technology under wraps until an official launch on July 24. However, today's press release notes the company will "extend its product portfolio to provide support for the delivery of legitimate video content," something that it's already helping U.K. cable operator ntl group ltd. (Nasdaq: NTLI) check out. Parker says only that "video will be one of the uses." (See NTL Teams on P2P Trial.)

It also looks like the company will target content owners as well as ISP and carriers from now on. The footnotes to today's press release note that "CacheLogic is currently working with a number of digital rights holders and broadcasters on their strategies for the distribution of legitimate video content using P2P technologies."

CacheLogic is one of a number of deep packet inspection technology firms offering service providers and content owners ways to identify and manage the peer-to-peer (P2P) traffic that, if not dealt with in some way, could choke any network. (See Who Makes What: IP-Based Services Control.)

As its name suggests, CacheLogic provides a caching solution that stores P2P content in multiple locations, cutting out the need to repeatedly obtain content from its original source. It also provides a traffic classification system that enables service providers to identify the traffic running across their networks. (See CacheLogic Names P2P Leader.)

Other specialist players include Sandvine, Allot Ltd. (Nasdaq: ALLT), Ellacoya Networks Inc. , and Procera Networks .

Those companies have all been busy of late, announcing new products and partnerships, mostly at this year's Globalcomm show in Chicago. (See Deep-Packet Offerings Proliferate and Procera Intros P2P Blocker.)

Cisco Systems Inc. (Nasdaq: CSCO) snapped up one of the sector's leaders back in 2004 when it shelled out $200 million for P-Cube. (See Cisco Plucks P-Cube for $200M.)

Managing P2P traffic has been a hot topic for two or three years now as illegal and legitimate files take up increasing volumes of network capacity, and now service providers and media companies such as the British Broadcasting Corp. (BBC) want to use P2P technology to distribute their content. (See RBOCs Wait & See on P2P, AOL Goes P2P for Video, and P2P Gets Serious.)

Tom Donnelly, VP of marketing at Sandvine, says the funding news is positive for the sector as a whole. He adds that while the two companies don't compete directly very often -- CacheLogic has a very specific P2P focus and Sandvine has developed a different range of capabilities, such as security and service creation, for P2P and other protocols -- the new cash injection could change that.

"What CacheLogic does is interesting, and this new funding could take them into service creation" in terms of helping customers develop specific services based around their content.

— Ray Le Maistre, International News Editor, Light Reading

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