Quite a bit of news lately coming out of Broomfield, as Level 3 Communications (NYSE:LVLT, news, filings) have announced another substantial gaming contract, this time with California-based GaiKai. GaiKai operates some very interesting cloud-based games. Interesting because they are the full version of games like The Sims without having the code installed on users computers, working seamlessly via only a web browser. All the heavy lifting is done in the cloud, and all that is left on the client end is to display the bits and send back the users responses.
The interactive nature of such games means CDN services don't help, as caching is incompatible with real time interaction and there are no patches to download. So it's colo and especially low latency IP transit that Level 3 is supplying to GaiKai to power their service. GaiKai reaches over 10 million users, and hopes to reach 100 million within the next year as it expands into the US and Europe in force.
With their CDN win at Wargaming.net and the new bandwidth optimizer product they announced on Monday, it seems Level 3 is moving aggressively to take an out-sized share of the gaming sector.
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