4 ms·

Verizon Is Acquiring Content Delivery Network EdgeCast For More Than $350M

46 points by luckychild305 13y ago

leeoniya 13y ago
let the cross-domain surveillance continue! [EDIT] since i'm getting downvoted, maybe someone can tell me how a CDN is not a perfect tool for cross-domain tracking. and also how it's not convenient that Verizon can track the browsing habits of users coming from their competitors' IP address blocks
- jrockway 13y ago
  What incentive does Verizon have to spend money to track users across domains? Ultimately, Verizon exists to make money for their shareholders. ISPs do have to do things HN readers don't like to make the government happy (like comply with secret warrants), but they are not legally required to buy CDNs to make some sort of user tracking easier. The NSA can wiretap a CDN as easily as they can wiretap Verizon. Perhaps Verizon thinks the business is underpriced for the value it offers, or they want to deliver a better user experience to their customers? Nahh... it must be some conspiracy!!!11!
  - leeoniya 13y ago
    i'm not implying that's the reason they bought them - of course it isn't - just pointing out what they can do with their new superpowers.
    - nl 13y ago
      Given Verizon's high penetration of the ISP market in the US, they have much better sources of traffic patterns anyway, and can link that with direct billing information.
- yeukhon 13y ago
  ISP cache stuff and can sell traffic, cross-domain tracking is nothing. I think we worry too much. We should focus on making our cryoto stronger, not about some cross-domain tracking. If third-party cookie is already a mess, cross-domain tracking is always a mess. Let's focus on something more practical and more important. Half of the websites nowadays probably add Google analytic and Google knows a lot about users for you (even if Google only stores the statistics).
brianbreslin 13y ago
This makes me think we will see cloud flare get acquired in the next 12 months.
- chatmasta 13y ago
  The CloudFlare board is young, ambitious, and well-credentialed. I'm sure a few of its members are looking toward the next big goal.
jdorfman 13y ago
Did not see that coming. Congrats to my friends at EC.
MBCook 13y ago
Could this have anything to do with the fact they partnered with Redbox to provide a streaming service? Seems like it would be a very useful thing if they wanted to make a bigger push. http://thenextweb.com/media/2012/02/06/verizon-and-redbox-enter-joint-venture-to-create-new-netflix-rival/ http://thenextweb.com/media/2012/02/06/verizon-and-redbox-en...
- dbarlett 13y ago
  I see it more as a way to stop relying on Akamai [1] for Terremark [2] Application Acceleration Services. [1] http://www.terremark.com/services/infrastructure-cloud-services/application-services/application-acceleration.aspx http://www.terremark.com/services/infrastructure-cloud-servi... [2] acquired in 2011 http://www.terremark.com/about/news-events/news/2011/01272011.aspx http://www.terremark.com/about/news-events/news/2011/0127201...
contingencies 13y ago
I would have thought CDNs are a dead model today... being fundamentally more useful for static content, and with software service architecture moving fundamentally but steadily toward arbitrary infrastructure/cloud friendliness, they'd be a poor long term investment.
- untog 13y ago
  No way. CDNs do a lot more than mirror static content (which is valuable anyway), Edge locations for streaming video are incredibly valuable for one.
  - contingencies 13y ago
    Heh, funny you mention that. Video has this wow factor that's undeserved: it's really nothing special, just some higher processing, storage and bandwidth requirements. Funnily enough, three years ago I actually visited Edgecast's main office in LA on behalf of a former employer, a well known global video solutions provider. We discussed global partnership for them offering our streaming solutions but didn't wind up partnering with them as there was little commercial justification in handing them our technology, effectively commodifying our admittedly few but still important USPs. As for Edgecast, I seem to recall that their delivery speed to Asia was particularly weak. US companies should think twice before trusting other US companies to deliver their content to the rest of the world. It's a strangely routed internet out there...
- nl 13y ago
  CDNs are an incredibly interesting field. Sure, traditional static content CDNs are rapidly becoming commodified, but video CDNs are a big deal, and CDNs that can push API-related functionality closer to clients are becoming more useful.
marknadal 13y ago
I know some awesome guys at EdgeCast. Great job, congrats.

46 points by luckychild305 13y ago

let the cross-domain surveillance continue! [EDIT] since i'm getting downvoted, maybe someone can tell me how a CDN is not a perfect tool for cross-domain tracking. and also how it's not convenient that Verizon can track the browsing habits of users coming from their competitors' IP address blocks

jrockway 13y ago
What incentive does Verizon have to spend money to track users across domains? Ultimately, Verizon exists to make money for their shareholders. ISPs do have to do things HN readers don't like to make the government happy (like comply with secret warrants), but they are not legally required to buy CDNs to make some sort of user tracking easier. The NSA can wiretap a CDN as easily as they can wiretap Verizon. Perhaps Verizon thinks the business is underpriced for the value it offers, or they want to deliver a better user experience to their customers? Nahh... it must be some conspiracy!!!11!
- leeoniya 13y ago
  i'm not implying that's the reason they bought them - of course it isn't - just pointing out what they can do with their new superpowers.
  - nl 13y ago
    Given Verizon's high penetration of the ISP market in the US, they have much better sources of traffic patterns anyway, and can link that with direct billing information.
yeukhon 13y ago
ISP cache stuff and can sell traffic, cross-domain tracking is nothing. I think we worry too much. We should focus on making our cryoto stronger, not about some cross-domain tracking. If third-party cookie is already a mess, cross-domain tracking is always a mess. Let's focus on something more practical and more important. Half of the websites nowadays probably add Google analytic and Google knows a lot about users for you (even if Google only stores the statistics).

brianbreslin 13y ago

This makes me think we will see cloud flare get acquired in the next 12 months.

chatmasta 13y ago
The CloudFlare board is young, ambitious, and well-credentialed. I'm sure a few of its members are looking toward the next big goal.

jdorfman 13y ago

Did not see that coming. Congrats to my friends at EC.

MBCook 13y ago

Could this have anything to do with the fact they partnered with Redbox to provide a streaming service? Seems like it would be a very useful thing if they wanted to make a bigger push. http://thenextweb.com/media/2012/02/06/verizon-and-redbox-enter-joint-venture-to-create-new-netflix-rival/ http://thenextweb.com/media/2012/02/06/verizon-and-redbox-en...

dbarlett 13y ago
I see it more as a way to stop relying on Akamai [1] for Terremark [2] Application Acceleration Services. [1] http://www.terremark.com/services/infrastructure-cloud-services/application-services/application-acceleration.aspx http://www.terremark.com/services/infrastructure-cloud-servi... [2] acquired in 2011 http://www.terremark.com/about/news-events/news/2011/01272011.aspx http://www.terremark.com/about/news-events/news/2011/0127201...

contingencies 13y ago

I would have thought CDNs are a dead model today... being fundamentally more useful for static content, and with software service architecture moving fundamentally but steadily toward arbitrary infrastructure/cloud friendliness, they'd be a poor long term investment.

untog 13y ago
No way. CDNs do a lot more than mirror static content (which is valuable anyway), Edge locations for streaming video are incredibly valuable for one.
- contingencies 13y ago
  Heh, funny you mention that. Video has this wow factor that's undeserved: it's really nothing special, just some higher processing, storage and bandwidth requirements. Funnily enough, three years ago I actually visited Edgecast's main office in LA on behalf of a former employer, a well known global video solutions provider. We discussed global partnership for them offering our streaming solutions but didn't wind up partnering with them as there was little commercial justification in handing them our technology, effectively commodifying our admittedly few but still important USPs. As for Edgecast, I seem to recall that their delivery speed to Asia was particularly weak. US companies should think twice before trusting other US companies to deliver their content to the rest of the world. It's a strangely routed internet out there...
nl 13y ago
CDNs are an incredibly interesting field. Sure, traditional static content CDNs are rapidly becoming commodified, but video CDNs are a big deal, and CDNs that can push API-related functionality closer to clients are becoming more useful.

marknadal 13y ago

I know some awesome guys at EdgeCast. Great job, congrats.