The service builds upon an EdgeCast e-commerce offering (called Transact) launched before the Verizon deal. Its feature set includes value-added content protection, replication, and analytics services.
To date, Verizon/EdgeCast has had a relatively small e-commerce customer base compared with Akamai. The CDN leader has aggressively targeted online retailers, who tend to pay a premium for CDN services guaranteeing high security and low latency, as part of its efforts to cut its dependence on low-margin media delivery services.
The SC's ruling overturns a guilty verdict against Limelight from a federal's appeals court. The case was closely watched by tech companies who feared an Akamai victory would open the door to a large number of frivolous lawsuits from litigants claiming induced infringement.
Google, Oracle, Cisco, and other tech giants backed Limelight in the dispute, as did the White House.
Akamai (AKAM +2.9%) and Level 3 (LVLT +0.4%), pressured lately by reports Apple and Comcast are planning to launch CDNs, are higher today, though Level 3 has given back some of its early gains. Limelight (LLNW +1.4%) is also up.
Dan Rayburn has reported Apple, a major Akamai customer, is busy building out a large CDN infrastructure to deliver its content, and is also negotiating direct peering/interconnection deals with top ISPs. He originally wrote about Apple's CDN ambitions in February.
Rayburn also reports Comcast has joined the ranks of carriers building its own last-mile CDN. He thinks some content owners who use Comcast's service might "pay 20%-40% less than what they pay now," given Comcast already owns the network on which the CDN is being built.
Akamai, which still claims the world's biggest CDN and proprietary routing algorithms, has tried to counter the carrier CDN threat by striking partnerships - its client list includes AT&T, Telefonica, and Orange. It has also been trying to lower its dependence on a commodity media delivery business (includes sales to Apple) that's seeing intense price pressure.
Telefonica (TEF -1.2%), which has 323M subscribers worldwide (254M mobile), will offer Akamai's (AKAM -4.5%) CDN services to its enterprise clients. The companies will also partner to develop products/services in areas such as media optimization, mobile, and emerging markets solutions.
The partnership will initially focus on Spain and Latin America - Telefonica has a large presence in each region - with plans to expand elsewhere in time.
Akamai has already formed alliances with AT&T and Orange, aiming to expand its reseller base and prevent carriers looking to offer CDN services from turning into rivals. Those efforts took a hit last fall when Verizon (an Akamai partner) bought CDN owner EdgeCast.