Blog Post

Alcatel-Lucent Buys Content Delivery Network Velocix

Alcatel-Lucent has purchased digital content network Velocix. Velocix’s services provide a way for media companies and ISPs to accelerate the delivery of rich content, like videos and video games, over the internet. In a recent interview with ctp tv, Velocix CMO John Dillon said that in order to compete with mainstream content delivery networks, such as Akamai (NSDQ: AKAM) and Limelight (NSDQ: LLNW), his company had targeted two markets: Major broadcasters and ISPs looking to set up “new generation, regional delivery platform and services” and startups that wanted to get into the digital video space. Indeed, Velocix launched a free option geared for startups last April.

Alcatel-Lucent said it would now be able to bring a content delivery network solution to internet service providers. “It … demonstrates our company’s commitment to investing in the capabilities, know-how and technologies needed to effectively support the rapid evolution towards a video-centric world — with maximum reliability and optimal quality of experience,” said Philippe Keryer, president of Alcatel-Lucent’s Carrier product group, in a statement. Light Reading Europe notes that the acquisition comes as many big carriers are building their own content delivery networks. Over at Streamingmedia.com, Dan Rayburn also has more details.

Financial terms of the deal were not disclosed, although Velocix, which was previously known as CacheLogic, had raised nearly $50 million in venture funding. Release.