Akamai ponies up cash to acquire IP platform supplier Verivue

Network operators looking at ways to use on-net CDNs to improve performance

Coming off a strong third quarter performance, Akamai (Nasdaq: AKAM) has agreed to pony up an undisclosed amount of cash to acquire IP platform supplier Verivue.

Akamai plans to add Verivue to its Aura Network Solutions unit, which provides licensed content delivery network (CDN) products for network operators.

A CDN is a distributed system of servers deployed in multiple data centers to provide content to end users with high availability and performance.

"We believe that Verivue's technology will complement our roadmap for creating a comprehensive Operator CDN solution. Akamai has relationships with hundreds of network operators, and we offer them instant federation with our global Intelligent Platform. We believe joining forces with Verivue will allow us to help operators maximize content revenues and network efficiencies as the flood of media and video traffic increases," commented Mick Scully, vice president and general manager of Akamai's Carrier Products Division.

Network operators are looking at ways to use on-net CDNs to improve performance of their digital cable and IPTV premium services and expand their managed multiscreen offerings, according to a recent report by IDC.

Operators can use their on-net CDNs to optimize on-ramps that content publishers, OTT content aggregators, application developers and set-top box vendors can use to reach potential viewers and provide a better experience for end users, the IDC report, Exploring the Effect of Explosive Video Growth on Carrier Infrastructure and Business Models, observed.

CDNs are expanding their networks and peering locations to every corner of the globe, saving customers millions of dollars every year while increasing quality of service, according to an OECD report covered by Telecompaper.com.

Akamai, which has been making profitable investment choices recently, is bullish on the CDN market. Its acquisition of Verivue is the latest example.

For more:
- see the Akamai release
- read Telecompaper.com's article

Related articles:
Akamai acquiring Verivue
Akamai leverages cloud to simplify online video distribution