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Velocix Gear Helps ISPs Launch Their Own CDN Services

Written by Ryan Lawler
Wednesday, December 10. 2008 at 05:00 AM EST 4 comments
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Velocix has announced the general availability of its new Velocix Metro product, which the company says can help Internet service providers (ISPs) to improve the speed and quality of video delivery, all while giving them the ability to sell private content delivery network (CDN) services.

Velocix Metro equipment is designed to be deployed in ISP networks and works by caching popular video and rich media content that is requested by broadband subscribers. By caching video in the ISP network, users benefit from faster load times, as the content comes from local distribution points. The ISP also benefits from reduced congestion on its network.

Velocix Metro works with the dominant video player technologies, including support for Adobe Systems Inc. (Nasdaq: ADBE) and Microsoft Corp. (Nasdaq: MSFT) streaming technologies. Sun Microsystems Inc. is also a technology partner, providing the servers on which Velocix deploys its software.

With the ability to create a better quality video experience, Velocix is positioning its Metro equipment as a way for ISPs to offer "private CDN services" -- essentially charging a premium to content owners or media companies that want to guarantee the video quality delivered to end users.

That may seem like a challenge to the idea of net neutrality, but Velocix chief marketing officer John Dillon notes that traditional CDNs have been charging a premium for improved content delivery for over a decade. Perhaps more importantly, Dillon points out that they have been doing so without actually being able to guarantee the speed of the entire transaction, since the broadband access connection is owned by the local ISP.

"ISPs have a choice: They can either sit back and wait for problems to occur, or they can invest in solutions that allow them to manage their traffic, and by doing so extend the life and the capacity of their infrastructure," Dillon says. 

According to Dillon, Velocix is in various stages of engagement with at least ten ISPs worldwide. That includes Verizon Communications Inc. (NYSE: VZ), which last month announced it would begin offering CDN services based on Velocix technology.

Velocix has also been linked to deployments in the U.K., where its equipment is being used by some ISPs to ease the burden of the British Broadcasting Corporation's iPlayer catchup service on broadband networks. In a panel at Streaming Media Europe earlier this year, representatives from The Carphone Warehouse Group plc and Virgin Media (Nasdaq: VMED) said that they were trialing Velocix caching equipment in edge locations to facilitate the delivery of BBC content to their customers.

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Comments
Net Neutrality
Yossarian

Rank: Pasha

Wednesday December 10, 2008 7:01:00 AM

It seems that Velocix is moving in a direction that could steal big deals from its competitors by taking away the uncertainty of ISP restrictions from CDN delivery.

It's probably not going to be of any benefit to the smaller content owner but they can always go to Amazon for cheap, small scale delivery. This is going to make Velocix very attractive to the large content owners who typically don't look any further than Akamai, particulally in the US.

It seems to me, and I may be wrong (it has been known), that net neutrality issues wont apply here because ISPs will only deliver premium content over their CDN network. This effects net neutrality no more than asking users to pay to watch live sporting events.

I like to keep an eye on CDN news (after a brief spell at another CDN) and at the moment Velocix is the only company that appears to be producing innovative solutions (P2P delivery, free CDN and now metro) for content owners.

Re: Net Neutrality
Ryan Lawler

Staff

Wednesday December 10, 2008 8:37:09 AM

"It seems to me, and I may be wrong (it has been known), that net neutrality issues wont apply here because ISPs will only deliver premium content over their CDN network. This effects net neutrality no more than asking users to pay to watch live sporting events."

Perhaps, except that Verizon won't be asking subscribers to pay more for better quality -- it'll be asking the content owners to pony up for the privilege. If publisher A pays the ISP for a better connection to the broadband subscriber and publisher B doesn't pay, that's not exactly a 'neutral Internet' if the latter has a less favorable connection, is it?

Re: Net Neutrality
Yossarian

Rank: Pasha

Wednesday December 10, 2008 10:06:06 AM

"If publisher A pays the ISP for a better connection to the broadband subscriber and publisher B doesn't pay, that's not exactly a 'neutral Internet' if the latter has a less favorable connection, is it?"

At the moment publisher A can pay for a better connection by employing a CDN for delivery and not breach net neutrality rules, why should this be any different? As long as the ISP delivers it's CDN content without preference and it's Broadband traffic without preference then it's simply an extension of the current model.

Re: Net Neutrality
Peopleunit

Rank: Pasha

Thursday December 18, 2008 9:32:03 AM
no ratings

"As long as the ISP delivers it's CDN content without preference"

Precisely - in this scenario, the content provider who pays the "ransom" gets their content cached locally, providing better (therefore biased) response to the user. True, there is some benefit to the content provider in that they only have to transmit the files once (or less frequently), but the ISP also benefits just as well. Localized proxy cache servers are nothing new - implementing mechanisms that allow ISP's to charge content providers for that service is (new), and entails an additional cost that wasn't there before, and probably the main objection being addressed in the call for net neutrality.

A bum rap by any other name is still a bum rap. If they want to charge for premium service, they should charge the end user, not the content provider, and see how well that goes. I suspect not very well.

Metered internet access as it concerns the content source would be a major slam against small low budget content providers unable or unwilling to pay this ransom. And you can rest assured, any such cost increases will inevitably be passed on to the the end user as more and more content switches to (increases in) paid subscriptions and higher PPV costs, and highly detrimental to all the content that is currently free. Almost every facet of communications technology is getting faster and less expensive, we don't need this, and its really not justified.

In the dial-up world, these "turbo" service upgrades are offered for free, or for a nominal charge to the end user of like $1 per month. And that's exactly what they are, caching sysems that bring the data closer to the end user, without a surcharge to the content provider.

At the same time, localized caching of data just makes sense for everyone concerned and it should be a standard practice. Just don't expect to turn it into a new revenue source, one that puts brings about additional costs. Your competitors that provide proper caching and "don't" impose such ransoms - they will eat your lunch. ;-)

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