Akamai goes P2P, buys Red Swoosh

Om Malik, Thursday, April 12, 2007 at 12:13 PM PT Comments (19)

Updated: Akamai has just announced that it is buying Red Swoosh, a peer-to-peer based service for about $15 18.7 million in stock. That’s not that much for a start-up that counts some heavy weights as its customers.

The rumors of this deal had been floating around for about two months and Travis Kalanick of Red Swoosh has been avoiding us for a while now, ever since we asked him about the deal. Anyway the deal should make Akamai naysayers pause a little. Many had said that P2P caching could dislodge Akamai from its current dominant position. Fat chance - Akamai, it is clear, is more fierce in protecting its turf than say Microsoft. It just uses its hefty stock market capitalization to buy out possible competitors.

I would post a longer post later today once I get through the email-hell!

19 comments so far

April 12th, 2007
1:16 PM PT
Yaron said:

Congrats Travis and Team!!!

This is yet another validation that P2P and high quality downloads have become a must-have component of any commercial online video initiative.

April 12th, 2007
3:01 PM PT

[...] Akamai got one helluva deal on this one. I don’t think congrats are due Red Swoosh as much as Akamai and team. [...]

April 12th, 2007
6:13 PM PT
LL said:

Congrats Travis. These guys have been at it for a long time. Good work should always be rewarded.

April 12th, 2007
8:36 PM PT

Is That Where RedSwoosh’s $15 Million Valuation Came From?…

On June 27, 2001, CNet ran an article on Kontiki and Red Swoosh. Giga Information Group analyst Joel Yaffe panned the stealth-mode startups’ P2P plans: individual Internet-connected PCs are so unpredictable; they would put content publishers in a prec…

April 12th, 2007
9:19 PM PT

[...] has acquired Red Swoosh for $15 million in a stock for stock transaction. We covered Red Swoosh last year when they launched a free, ad [...]

April 13th, 2007
2:18 AM PT

This news tends to prove that even giants like Akamai with strong CDN networks cannot compete against p2p delivery networks. So if you cannot beat them, join (buy…) them !

To another extent, this news is very good and confirm the efforts from my company to evangelize P2P and provide P2P Content Delivery solutions: peer-to-peer is now seriously considered as the main architecture when companies develop their online video distribution portal, while client-servers architecture are deprecated.

And of course it is not limited to video contents: you can use p2p content delivery networks for music, pictures, work documents, zip archives, programs …

Sebastien
http://www.1-click.com

April 13th, 2007
8:06 AM PT

Newswatch 4.13.07: CEO of Yahoo target committed securities fraud…

What do you think of this news feature? Useful? Superfluous? Let us know in the comments. Want to see more headlines? Fewer? Should we include a blurb? This morning’s news: Rivals.com CEO committed securities fraud: Yahoo deal killer? (TechCrunch) Net…

April 15th, 2007
11:45 PM PT

[...] Over the years, P2P has found many legitimate uses and has found a way into everyday life. Why… even Akamai, which had scoffed at P2P, decided to acquire Red Swoosh. [...]

April 18th, 2007
10:00 AM PT
Ashwin said:

The deal defintely is strategic and signifies two things

1) P2P will play a significant role in CDNs to lower the costs for delivery high quality videos and streaming live events.

2) The $15 Million price tag also says that P2P CDNs will not be mainstream anytime sooner, and hence low revenues for the next 2-3 years.

May 20th, 2007
11:49 PM PT

[...] has acquired Red Swoosh for $15 million in a stock for stock transaction. We covered Red Swoosh last year when they launched a free, ad [...]

May 21st, 2007
7:20 AM PT
Sanny said:

What features will make p2p content delivery, especially streaming media such as video, main stream?

Some thoughts that I have pondered over. In my oppinion for a p2p system to become widely accepted and used it has to show some specific characteristics. Below are some end-user centric thoughts.

-End-users have to get used to and comfortable with the idea of sharing bandwidth.

-They have be certain that the p2p software do not compromise their security nor integrity. Doing like some solutions which installs a software and automatically configures it to run 24/7 on the client computer sharing media is simply not the way to get trust. I belive that by default users should not have to share more that the material they download and at the instance when they download it.

-Simple installation! This is a key feature, if the installation process is complicated people will not use it. It’s as simple as that. 3-4 clicks should be the maximum.

-OS agnostic. The p2p system should work on all major platforms and on all major media players. Wether the end-user uses Linux, Mac or Windows it should work seamless.

-Browser agnostic. The plugins for the p2p system should work for all major browsers; IE, firefox, safari, opera, it should make any difference.

-The p2p system should work with all major media players such as; windows media player, quicktime, flash and real player.

-It should be based on open standards, no walled gardens making it impossible for users (not end-users) to change system.

-…

What do you guys think?

August 6th, 2007
10:29 PM PT

[...] video. The good news is that Akamai’s management knows that, and bought Nine Systems and Red Swoosh to address those opportunities. The bad news is that some of its basic CDN customers, for example, Move [...]

December 28th, 2007
3:00 AM PT

[...] P2P Is More than Cheap Bandwidth 2007 has been the year of the P2P CDNs. Akamai bought Red Swoosh, BitTorrent started to showcase their DNA streaming solution, and Pando inked a deal with NBC to [...]

December 28th, 2007
3:01 AM PT

[...] December 28, 2007 at 3:01 AM PT Comments (0) 2007 has been the year of the P2P CDNs. Akamai bought Red Swoosh, BitTorrent started to showcase their DNA streaming solution, and Pando inked a deal with NBC to [...]

January 2nd, 2008
1:09 PM PT

[...] technology for the management and distribution of media files. Press Release | TechCrunch | GigaOm | DMW [...]

January 6th, 2008
3:32 PM PT

[...] P2P sítí pro byznys svědčí uplynulý rok, který NewTeeVee označila za rok P2P CDN. Akamai koupilo Red Swoosh, BitTorrent předvedl své DNA streaming řešení, Pando získalo smouvu s NBC pro distribuci show [...]

January 15th, 2008
7:54 PM PT

[...] и дистрибьюции медийных файлов. Пресс-релиз | TechCrunch | GigaOm | DMW [...]

February 19th, 2008
11:03 PM PT

[...] CacheLogic, it means more flexibility and cheaper pricing for content providers. Akamai last month bought its own P2P play, RedSwoosh. And how do BitTorrent and upstart Neokast fit into the [...]

May 3rd, 2008
12:00 AM PT

[...] Happened to Red Swoosh? Remember Red Swoosh, the P2P company that was bought by Akamai for $18.7 million in April 2007? Red Swoosh used to be a competitor to Akamai, albeit on a much smaller scale, offering P2P-powered [...]

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