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stories filed under: "cdn"
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
cdn, monopolies, patents

Companies:
akamai, limelight



When The Competition Gets Tough, Akamai Sends Out The Patent Attorneys

from the what's-wrong-with-a-little-competition? dept

Last summer we noted that the Content Distribution Network (CDN) space was getting crowded with competitors, which was seriously cutting into the profits of Akamai, who is considered the leader in the space. So what's a company like Akamai to do? Well, they could spend money on continuing to innovate, offering a better product and providing reasons why customers would want to buy services from them... or they could just sue their competitors for patent infringement. It looks like Akamai is going with door number 2. Not surprisingly, since juries quite often side with patent holders, a jury has ruled in favor of Akamai in a patent infringement lawsuit over a patent that some are noting appears to be rather obvious in that it describes a process for hosting online content via distributed servers. While it's not clear how obvious this patent really may be, what does seem clear from multiple comments on Slashdot is that there appears to be a fair amount of prior art, including an earlier patent that appears to cover similar territory. Either way, it appears that many different companies and individuals have been trying to tackle this problem in similar ways, and that there's marketplace demand for products in the space. So why should one company be given a monopoly over the entire space?

8 Comments | Leave a Comment..

 
Overhype

Overhype

by Mike Masnick


Filed Under:
cdn, end to end, net neutrality

Companies:
akamai



Akamai Does Not Violate Network Neutrality

from the end-to-end-vs-end-to-middle dept

Many supporters of AT&T's plans to double dip in internet charges by ending neutrality claim that the internet has never been neutral, and point to systems like Akamai as an example of this. However, as we've explained in the past, this is simply untrue. It's purposely stretching the definition of network neutrality to make a point that isn't supported by the facts. Services like Akamai help make the internet faster for everyone. It doesn't discriminate. It holds to the "end-to-end" principle that a connection you buy to the internet entitles you to reach any content across that entire network. That's not what AT&T is looking to do. It's claiming that you really only have access to the cloud in the middle, and someone needs to pay for the second half of that connection from the middle out to the server you're accessing.

Tim Lee (who, like me, does not support net neutrality legislation) has ripped apart a paper that claims that Akamai is an example of why the internet is not neutral. Lee notes that the author of the paper doesn't even seem to understand how Akamai works, and provides a nice (more technology focused) explanation for why content caching systems have little to do with the network neutrality discussion: "A network is neutral if it faithfully transmits information from one end of the network to the other and doesn't discriminate among packets based on their contents. Neutrality is, in other words, about the behavior of the routers that move packets around the network. It has nothing to do with the behavior of servers at the edges of the network because they don't route anyone's packets."

15 Comments | Leave a Comment..

 
(Mis)Uses of Technology

(Mis)Uses of Technology

by Mike Masnick


Filed Under:
cdn

Companies:
akamai, bittorrent



BitTorrent Entering The CDN Space?

from the there's-money-in-boring-tech dept

BitTorrent has often received a bad reputation for being associated with "piracy," when it's simply a system for more efficiently distributing online content. If you blame BitTorrent for piracy, it's like blaming FTP or Usenet for piracy. They're certainly tools used by people sharing unauthorized content, but they're hardly limited just to that sector. That's why it's a little silly for the folks at Internet News to suddenly declare that "BitTorrent Goes Legit with Content Delivery Service." BitTorrent, itself, has always been "legit." What's really interesting here is that the folks behind BitTorrent are actually looking to expand the usefulness of the basic BitTorrent concept by using it to enter the content delivery space.

As we noted over the summer, there's growing competition in the Content Delivery Network (CDN) space, once dominated by Akamai. The idea is to help larger content providers handle large amounts of bandwidth efficiently, traditionally by placing copies of the content at various servers around the world. This does two things: offload the bandwidth from a single source and also bring the content physically closer to different areas, thus decreasing some of the latency issues. Of course, BitTorrent can do both of those things in potentially a much more efficient manner, by using the excess of bandwidth of all different people to simply handle small parts of the transfer. While BitTorrent tries to position its offering as something that can work with the CDN's of the world, if it really works well, it could effectively obliterate the need for a traditional CDN. If you thought that the traditional competition in the space was obliterating profits, having something like BitTorrent's Delivery Network Accelerator could completely upend the market. While the press may go for the sensationalistic "piracy" angle (which this has nothing to do with), if this works, it could change the basic economics for large publishers in distributing content online -- and that's quite a big deal.

15 Comments | Leave a Comment..

 
Surprises

Surprises

by Joseph Weisenthal


Filed Under:
cdn, infrastructure

Companies:
akamai, cdnetworks, limelight



Competition Decimates Profits In CDN Space

from the deliver-me dept

Last month we noted a new entrant, Korea-based CDNetworks, in the red hot CDN space, where it competes with the likes of Akamai and LimeLight Networks. Since then, shares of Akamai and LimeLight have taken an utter shellacking, as investors wake up to the realization that all of this competition won't be very good for profits. Indeed, it seems that a bitter price war has already broken out, as the core CDN product rapidly becomes a commodity. This trend wasn't particularly hard to see, but the speed at which it's engulfed the industry does come as a bit of a surprise.

2 Comments | Leave a Comment..

 
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