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Summary:

Voxel, the managed hosting provider, has built its own cloud computing product called SilverLining that will compete with Amazon’s Elastic Compute Cloud and Rackspace’s CloudServers products. Thanks to its managed hosting business, Voxel plans to offer the same hybrid strategy that both Rackspace and ServePath offer, […]

voxelVoxel, the managed hosting provider, has built its own cloud computing product called SilverLining that will compete with Amazon’s Elastic Compute Cloud and Rackspace’s CloudServers products. Thanks to its managed hosting business, Voxel plans to offer the same hybrid strategy that both Rackspace and ServePath offer, which combines dedicated servers with cloud computing for spikes in traffic or one-off projects.

Voxel adds another piece to these offerings with its content delivery network, says Raj Dutt, CEO and founder of the 10-year-old Voxel. Unlike Rackspace, which outsources CDN services to Limelight, Voxel can provide everything in house — and generates about $1 million in sales a month doing so. It also doesn’t make a distinction between buying bandwidth for pages delivered from the server and buying bandwidth to deliver content hosted on the CDN — a terabyte is a terabyte says Dutt.

The strategy of delivering bandwidth as just another component of the cloud, rather than a higher-margin add-on service will help commoditize the CDN business further. It’s a service many cloud operators are trying to provide, either on their own or through partnerships. Late last year Amazon launched its own CDN called CloudFront with competitive — and transparent — pricing.

“Every single CDN competes on price, and there are too many providers,” Dutt says. “And they’re all going after the same business, so what used to be high margin is now marginally better than selling IP transit.”

Last month, two CDN companies merged in a fire sale for one of the companies, signaling further stress in the industry. The top company in this space, Akamai, has been branching out into services and advertising. As cloud providers move to package CDNs with commodity compute cycles, we’ll see more CDN companies consolidate or get snapped up by cloud vendors aiming to bring them in house.

  1. [...] GigaOm.com, the preeminent technology blog, has posted on Voxel’s step into the world of cloud computing with our Silverlining Technology Preview. Read the story over at GigaOm.com. [...]

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  2. [...] Voxel adds another piece to these offerings with its content delivery network, says Raj Dutt, CEO and founder of the 10-year-old Voxel. Unlike Rackspace, which outsources CDN services to Limelight, Voxel can provide everything in house — and generates about $1 million in sales a month doing so. It also doesn’t make a distinction between buying bandwidth for pages delivered from the server and buying bandwidth to deliver content hosted on the CDN — a terabyte is a terabyte says Dutt. Read Source Gigaom.com [...]

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  3. [...] Voxel Adds Cloud Computing With SilverLiningGigaOm, CAVoxel, the managed hosting provider, has built its own cloud computing product called SilverLining that will compete with Amazon’s Elastic Compute Cloud and Rackspace’s CloudServers products. Thanks to its managed hosting business, Voxel plans to offer …Rackspace challenges Amazon with cloud services ZDNet UKRackspace takes on Amazon with cloud server, storage services Australian TechworldRackspace set to take on Amazon NetworkWorld.comall 8 news articles [...]

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  4. [...] Voxel, a Managed Hosting Provider, Adds Cloud Computing With – Gigaom.comVoxel, the managed hosting provider, has built its own cloud computing product called SilverLining that will compete with Amazon s Elastic Compute Cloud and Rackspace s CloudServers products. Thanks to its managed hosting business, Voxel plans to [...]

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  5. The real secret isn’t that CDN prices are approaching transit prices, it’s that CDN prices should be priced BELOW transit prices and ultimately THEY WILL BE.

    From a network architecture and cost perspective, operating a CDN is cheaper than selling transit and at high volume, it’s significantly cheaper to sell than selling the equivalent amount of transit capacity. As more and more CDN customers realize this, they will continue to drive the prices down to below transit costs.

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  6. [...] deliver this data from inside the corporation to a cloud. Some providers, like Rackspace and Voxel, are banking on customers using their hosting and cloud products as a way to keep the data inside the same company (and maybe data center). Vogels says Amazon uses [...]

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