Verivue, which got its start making switching and storage for next-generation video distribution, is announcing today that it has acquired CoBlitz, a CDN technology firm. The acquisition will help Verivue expand its product portfolio beyond managed networks and video-on-demand to provide products that help service providers more efficiently deliver IP-based video in their networks.
Verivue — which was founded in 2006 but came out of stealth mode early last year with a new, carrier-grade switching and storage solution — has scored some early wins for its MDX 9000 family of video distribution switches, powering VOD distribution for Canadian service provider Shaw Communications (s sjr). But it recognizes IP video as the future, according to CEO Jim Dolce, and as a result, is investing in acquiring technology to enable its carrier customers to build their own CDN solutions.
That’s where CoBlitz comes in. The startup, which is the brainchild of two Princeton professors, supplies software and hardware that telcos and cable companies can use to build their own content delivery networks. These CDNs aren’t necessarily meant to compete with Akamai (s AKAM) or Limelight (s LLNW) to deploy bits across the wider Internet; instead, they are used to manage traffic running through their own networks.
Dole said in a phone interview that there’s an “assault of over-the-top traffic coming from Netflix (s NFLX) and Hulu that’s completely inundating” carrier networks. According to Dolce, many service providers have determined that one way to avoid a total upgrade of their networks is to deploy a CDN — not to create revenue-generating services, but so they can save money on network infrastructure.
Verivue was working on its own IP video products, but saw an acquisition of CoBlitz as a way to accelerate its ability to address the market. For now, Verivue will sell CoBlitz products separately from its own network infrastructure offerings, but with the expectation that it will consolidate the product portfolios in the future. With the acquisition, Dolce sees Verivue competing primarily with Cisco’s (s CSCO) CDS and Alcatel-Lucent’s (s ALU) Velocix carrier CDN product offerings.
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