Comments on: Level 3 Throws A Wrench In The CDN Business http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/ The Business of Technology Sun, 23 Nov 2008 21:03:39 +0000 http://wordpress.org/?v=MU hourly 1 By: Level 3 Shares Cheaper Than a Cup of Coffee - GigaOM http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-907134 Level 3 Shares Cheaper Than a Cup of Coffee - GigaOM Thu, 23 Oct 2008 20:15:36 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-907134 [...] flip side, the big companies seem to like Level3’s CDN model vs. those of its competitors. Since it owns its network infrastructure, it can play the low-price game better than its rivals. At the same time, the company has seen [...] [...] flip side, the big companies seem to like Level3’s CDN model vs. those of its competitors. Since it owns its network infrastructure, it can play the low-price game better than its rivals. At the same time, the company has seen [...]

]]> By: Amazon Launches Content Delivery Network. Rivals Watch Out! - GigaOM http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-900153 Amazon Launches Content Delivery Network. Rivals Watch Out! - GigaOM Thu, 18 Sep 2008 12:48:35 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-900153 [...] final take on this news: Akamai is less likely to be impacted in the near term, but it further commoditizes the CDN business and forces a big shakeout in the industry, taking down the small and the weak. Akamai has been [...] [...] final take on this news: Akamai is less likely to be impacted in the near term, but it further commoditizes the CDN business and forces a big shakeout in the industry, taking down the small and the weak. Akamai has been [...]

]]> By: GigaOm.com Writes as Voxel Takes Aim at CDNs, Amazon S3 Service | Voxel Blog http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-888344 GigaOm.com Writes as Voxel Takes Aim at CDNs, Amazon S3 Service | Voxel Blog Mon, 14 Jul 2008 01:26:39 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-888344 [...] Voxel, a New York-based startup, wants to upend the content delivery network business by offering an ultra low-cost service that rides on the back of Amazon’s S3 offering. It’s a move that is sure to further exacerbate the woes of the CDN business, which has already been wracked by price wars. [...] [...] Voxel, a New York-based startup, wants to upend the content delivery network business by offering an ultra low-cost service that rides on the back of Amazon’s S3 offering. It’s a move that is sure to further exacerbate the woes of the CDN business, which has already been wracked by price wars. [...]

]]> By: Velocix Takes Drug Dealer Approach « NewTeeVee http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-876028 Velocix Takes Drug Dealer Approach « NewTeeVee Tue, 29 Apr 2008 07:01:33 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-876028 [...] move isn’t surprising as CDNs are engaged in a bit of a price war right now. Om wrote yesterday about new startup Voxel, which is offering an ultra-low-cost service [...] [...] move isn’t surprising as CDNs are engaged in a bit of a price war right now. Om wrote yesterday about new startup Voxel, which is offering an ultra-low-cost service [...]

]]> By: Voxel Takes Aim at CDNs, Amazon S3 Service - GigaOM http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-875921 Voxel Takes Aim at CDNs, Amazon S3 Service - GigaOM Mon, 28 Apr 2008 21:17:03 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-875921 <p>[...] Om Malik, Monday, April 28, 2008 at 2:16 PM PT Comments (0) Voxel, a New York-based startup, wants to upend the content delivery network business by offering an ultra low-cost service that rides on the back of Amazon’s S3 offering. It’s a move that is sure to further exacerbate the woes of the CDN business, which has already been wracked by price wars. [...]</p> [...] Om Malik, Monday, April 28, 2008 at 2:16 PM PT Comments (0) Voxel, a New York-based startup, wants to upend the content delivery network business by offering an ultra low-cost service that rides on the back of Amazon’s S3 offering. It’s a move that is sure to further exacerbate the woes of the CDN business, which has already been wracked by price wars. [...]

]]> By: Ike Elliott http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-794285 Ike Elliott Sat, 22 Dec 2007 23:39:46 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-794285 <p>Level 3 is keeping the pressure on Limelight, this time by filing a patent infringement lawsuit against them. More on my blog at http://ikeelliott.typepad.com/telecosm/2007/12/level-3-files-a.html</p> Level 3 is keeping the pressure on Limelight, this time by filing a patent infringement lawsuit against them. More on my blog at (link)

]]> By: CDN Consultant http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-793716 CDN Consultant Sat, 22 Dec 2007 17:43:23 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-793716 <p>With close to four months closing in since this post was published, I would state its safe to say that Level 3 has NOT "knocked content delivery networks Limelight (LLNW) and Akamai (AKAM) off their game".</p> <p>Instead Level 3 has struggled with their ability to pull the CDN product together and to position their services as a viable offering in the marketplace. At a high level and from a strategic prospective it does make sense for large network carriers such as Level 3 to layer CDN service into their offering, however it does not seem to be working for Level 3. They continue to operate at a significant loss, they face internal challenges in terms of productizing their legacy CDN infrastructure and frankly they are eroding the marketplace which is hurting everyone. I find myself wondering how long will they be around or who is looking to buy them?</p> <p>In agreement with Ryan's comment, I find that many of our customers have requirements for a multi-homed network infrastructure or at the least a diverse, direct peered network. Quite frankly I have seen limited traction with Level 3 and in retrospect I would personally change the title of this posting to "Level 3 Throws A Wrench In The CDN Industry".</p> With close to four months closing in since this post was published, I would state its safe to say that Level 3 has NOT “knocked content delivery networks Limelight (LLNW) and Akamai (AKAM) off their game”.

Instead Level 3 has struggled with their ability to pull the CDN product together and to position their services as a viable offering in the marketplace. At a high level and from a strategic prospective it does make sense for large network carriers such as Level 3 to layer CDN service into their offering, however it does not seem to be working for Level 3. They continue to operate at a significant loss, they face internal challenges in terms of productizing their legacy CDN infrastructure and frankly they are eroding the marketplace which is hurting everyone. I find myself wondering how long will they be around or who is looking to buy them?

In agreement with Ryan’s comment, I find that many of our customers have requirements for a multi-homed network infrastructure or at the least a diverse, direct peered network. Quite frankly I have seen limited traction with Level 3 and in retrospect I would personally change the title of this posting to “Level 3 Throws A Wrench In The CDN Industry”.

]]> By: Vid-Biz: MTVN, Level 3, Truveo « NewTeeVee http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-768865 Vid-Biz: MTVN, Level 3, Truveo « NewTeeVee Wed, 12 Dec 2007 19:08:10 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-768865 <p>[...] Level 3; CDN to support the entertainment site’s video delivery. (Are the CDN’s recent price cuts paying off?) [...]</p> [...] Level 3; CDN to support the entertainment site’s video delivery. (Are the CDN’s recent price cuts paying off?) [...]

]]> By: Level 3 Streams and Other News from SMW « NewTeeVee http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-654647 Level 3 Streams and Other News from SMW « NewTeeVee Tue, 06 Nov 2007 17:51:36 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-654647 <p>[...] streaming, to its content delivery network services. The company’s pricing will match its disruptive CDN discounts, though it will charge a premium for [...]</p> [...] streaming, to its content delivery network services. The company’s pricing will match its disruptive CDN discounts, though it will charge a premium for [...]

]]> By: CDN Price Wars Dim Limelight « NewTeeVee http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-652461 CDN Price Wars Dim Limelight « NewTeeVee Tue, 06 Nov 2007 05:30:36 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-652461 <p>[...] are raging in the content delivery network business, driven largely by the entry of newer players including Level 3 (LVLT) and a gaggle of startups that are hell-bent on taking market share from incumbents such as [...]</p> [...] are raging in the content delivery network business, driven largely by the entry of newer players including Level 3 (LVLT) and a gaggle of startups that are hell-bent on taking market share from incumbents such as [...]

]]> By: Pando Blog » Blog Archive » CDNs and P2P http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-605970 Pando Blog » Blog Archive » CDNs and P2P Wed, 10 Oct 2007 20:16:09 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-605970 <p>[...] servers across the globe to ensure optimal content availability and performance. However, as CDN pricing wars rage, CDNs are increasingly looking for ways to protect their shrinking margins. Enter Hybrid P2P; a [...]</p> [...] servers across the globe to ensure optimal content availability and performance. However, as CDN pricing wars rage, CDNs are increasingly looking for ways to protect their shrinking margins. Enter Hybrid P2P; a [...]

]]> By: Essay: The Myth of Infinite Bandwidth « NewTeeVee http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-604928 Essay: The Myth of Infinite Bandwidth « NewTeeVee Wed, 10 Oct 2007 07:00:52 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-604928 <p>[...] bandwidth was infinite — what would that change about the Internet itself? Level 3’s (LVLT) recent decision to slash prices on its content distribution network and rumors of new multi-terabit cables across [...]</p> [...] bandwidth was infinite — what would that change about the Internet itself? Level 3’s (LVLT) recent decision to slash prices on its content distribution network and rumors of new multi-terabit cables across [...]

]]> By: 5 Stories You May Have Missed This Week — And Shouldn’t Have « GigaOM http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-597457 5 Stories You May Have Missed This Week — And Shouldn’t Have « GigaOM Sat, 06 Oct 2007 09:00:17 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-597457 <p>[...] by Edit Staff Saturday, October 6, 2007 at 2:00 AM PT | No comments Level 3 slashes CDN prices, and ups the ante for its [...]</p> [...] by Edit Staff Saturday, October 6, 2007 at 2:00 AM PT | No comments Level 3 slashes CDN prices, and ups the ante for its [...]

]]> By: papa_rod http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-596756 papa_rod Fri, 05 Oct 2007 23:30:55 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-596756 <p>I rather doubt Akamai has any fear of Level 3 overtaking their business. CDN is a business unto itself and rightly so. Networking companies should be more concerned about maintaining and providing a solid network for it's customers, diversification to some extent is admirable but you need to be careful about what you diversify into. Akamai has been at the forefront of CDN for a long, long time and I don't see it being upended by anyone.</p> I rather doubt Akamai has any fear of Level 3 overtaking their business. CDN is a business unto itself and rightly so. Networking companies should be more concerned about maintaining and providing a solid network for it’s customers, diversification to some extent is admirable but you need to be careful about what you diversify into. Akamai has been at the forefront of CDN for a long, long time and I don’t see it being upended by anyone.

]]> By: Sramana Mitra http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-596419 Sramana Mitra Fri, 05 Oct 2007 18:52:39 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-596419 <p>Liz,</p> <p>I think you should make some calls to the Akamai folks as well, and understand what is involved in delivering a CDN service. Since Level 3 is one of the GigaOm sponsors, discerning readers may wonder if you are entirely objective in your rush of enthusiasm.</p> <p>I wrote a couple of pieces on Akamai this week, and also referred to one of my earlier technical conversations with Nick Rockwell, a customer of Akamai and the CTO of MTV. You can read them here. http://sramanamitra.com/2007/10/05/level-3s-impact-on-akamai/</p> <p>And for full disclosure, I am long on Akamai.</p> <p>Sramana</p> Liz,

I think you should make some calls to the Akamai folks as well, and understand what is involved in delivering a CDN service. Since Level 3 is one of the GigaOm sponsors, discerning readers may wonder if you are entirely objective in your rush of enthusiasm.

I wrote a couple of pieces on Akamai this week, and also referred to one of my earlier technical conversations with Nick Rockwell, a customer of Akamai and the CTO of MTV. You can read them here.
(link)

And for full disclosure, I am long on Akamai.

Sramana

]]> By: Vid-Biz: TiVo, H-P, Nielsen, SwarmCast « NewTeeVee http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-596327 Vid-Biz: TiVo, H-P, Nielsen, SwarmCast « NewTeeVee Fri, 05 Oct 2007 17:29:11 +0000 http://gigaom.com/2007/10/04/level-3-throws-a-wrench-in-the-cdn-business/#comment-596327 <p>[...] Level 3 Cuts CDN Pricing; people pushing around big video files will benefit. (GigaOM) [...]</p> [...] Level 3 Cuts CDN Pricing; people pushing around big video files will benefit. (GigaOM) [...]

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