International IP services provider glbc is enhancing its CDN portfolio by adding the latest version of Limelight Networks (NASDAQ:LLNW, news, filings)‘s SITE acceleration service, which includes added control over cache management, Secure Sockets Layer support, increased failover options, and integrated content security options. Global Crossing began reselling the CDN products of both EdgeCast and Limelight since back in early 2009, and they still seem comfortable in addressing the CDN market from that position. Actually, except at Level 3 Communications (NYSE:LVLT, news, filings) the whole carrier/CDN convergence theme has ebbed substantially and it’s nice to hear a bit more news from that angle.
The CDN sector itself has been rather calm this quarter. According to Dan Rayburn, pricing pressure has eased up substantially compared to 2010, with annualized per GB prices dropping by perhaps 20-25% – tame compared to 40-45% last year. Of course, prices per bit will always decline, it’s just a matter of how quickly relative to the increase in the number of bits. So far, traffic growth has kept pace pretty well, as has the cost per bit delivered.
The CDN market as a whole really hasn’t changed much lately. Akamai’s pricing action has maintained their share, Limelight and Level 3 continue to chase gamely, Edgecast and CDNetworks do their thing, and almost everyone else is still trying to get some attention. Haven’t heard much from Alcatel-Lucent and Velocix lately, I wonder when that will pop up again. It’s too quiet out there right now. No lawsuits, no more price wars, a pause in M&A except on the mobile side, few new entries…. the calm before the storm?
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Categories: Content Distribution · Internet Backbones
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