Akamai Acquires Transparent Caching/Licensed CDN Provider Verivue; What It Means

This morning Akamai announced they have reached an agreement to acquire privately held Verivue Networks, which providers a transparent caching and licensed CDN platform to service providers. Akamai expects the deal to close by the end of this year and said they will pay all cash for the company, but has not disclosed any other terms of the deal. Verivue doesn’t have a lot of paying customers and has a small number of customer deployments with 2012 revenue in the $20M-$25M range, so I don’t expect Akamai to be paying much for the company.

While many are calling this a licensed CDN acquisition by Akamai, it’s also a transparent caching play. Verivue has two technologies that will benefit Akamai, a licensed CDN platform, and transparent caching technology, which is where Verivue gets a lot of their revenue from. Over the past year, many vendors have been working to combine the two technologies into one platform for service providers. PeerApp, the leader in the market has teamed up with EdgeCast, Juniper teamed up with Tata and Cisco is also working with PeerApp. For a better understanding of how transparent caching fits into the CDN market, read my previous post entitled “An Overview Of Transparent Caching and Its Role In The CDN Market“.

For those not familiar with the term “transparent caching” the idea is simple. Transparent caching platforms make intelligent decisions about which content can and should be cached inside a carrier’s network. By deploying intelligent caches strategically throughout their networks, operators can cache and deliver popular content close to subscribers and reduce the amount of transit traffic across their networks. CDNs like Akamai are good at what they do, serving content to subscribers quickly, and in the process alleviating peering costs for service providers. But there’s an enormous amount of traffic that CDNs do not serve, and that’s where the value of intelligent caching comes in.

Deployed throughout a carrier network, transparent caching improves subscribers’ experience and reduces carriers’ peering costs, but only if it delivers the features and intelligence required to adapt to constantly changing user behavior and content patterns, and most importantly, scales economically to tens or hundreds of gigabits per second. Akamai’s plan is to take the best of both technologies, licensed CDN and transparent caching and combine them into one platform, sold to service providers.

When Akamai announced their licensed CDN product in February, the company didn’t mention anything in their release about it having any transparent caching functionality. But in a briefing I had with the company when they announced it, Akamai divulged that their licensed CDN product would have transparent caching functionality build in. That was an interesting piece of news because Akamai’s platform would then offer all three services to an operator, those being on-net services/software, off-net delivery and transparent caching. At the time, Akamai said that 100% of the technology for their managed and licensed CDN product had been developed in-house and that they did not plan to licensed any transparent caching technology from any third-party. Clearly the company has changed their mind and acquiring Verivue will help them get to the market faster.

Since Akamai’s announcement of their licensed CDN product nine months ago, the company has yet to mention a single customer by name that is using their platform. This morning they mentioned to me that they have “three customers in trial” for their licensed CDN platform, which is still in beta but that they have “some paying customers today” for their managed CDN product. While we don’t yet know how much money Akamai is paying for Verivue, clearly they aren’t making too big of a bet on the licensed CDN business, otherwise they would have acquired EdgeCast, the leader in the licensed CDN market. But with expected revenues of around $70M this year for EdgeCast, coming from both regular CDN services and their licensed CDN platform, realistically, Akamai would have had to spend a few hundred million for EdgeCast, something I doubt they are paying anything near for Verivue.

As a stand alone business, the transparent caching market is expected to be $142M this year and the licensed CDN market is even smaller. So there is not a lot of revenue here – yet. Also, the market is crowded with transparent caching vendors including PeerApp, Qwilt, Juniper, Huawei, Fortinet, Conversant, BTI Systems, Brocade, Blue Coat, VidScale and Allot Communications who just acquired Oversi. Add to that all of the licensed and manged CDN vendors in the market like EdgeCast, Limelight Networks, Jet-Stream, Cisco, Alcatel-Lucent, XDN and others and it’s a very crowded market. But many of the players in the space are small, some are having trouble growing revenue and it’s only a matter of time before the market consolidates even more. No one truly knows what the size of the licensed CDN market is today, or what it can grow to because it’s only just getting started and we need to see a lot more customer deployments before we have enough data in the market to see how service providers use these platforms. But there is a real opportunity with the right kind of licensed CDN platform and it’s a market that is going to grow nicely over time. Acquiring Verivue should allow Akama to help get deployments in the market much faster.

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Here’s How You Can Improve Your Chances Of Speaking At Our Streaming Media Shows

For each Streaming Media East and West show we produce, I get a lot of calls and emails from vendors asking why they weren’t selected to speak or how they can improve their chances of being selected. While I appreciate so many companies wanting to speak and taking an interest in our show, I simply can’t fit everyone into the program. With that in mind, here is how I select which vendors speak, how the selection process works and what you can do to increase your chances of speaking. I know it’s a long post, but it explains the process in detail.

[If you want to submit a request to speak at the 2017 Streaming Media East show in NYC, the call for speakers is now open.]

I have over 100 speaking/presentation spots at each show and typically get more than 500 speaking requests. About 75% of all the speaking spots go to content owners, agencies, advertisers, and brands that deploy online video services. Since there are so few spots for vendors, I pick vendors who help bring their customers to speak at the show. They invite customers, introduce me to them and try to bring them to speak on a particular topic or subject.

If you are a vendor or submitting a speaking request on behalf of a vendor, you have to submit your speaking request with a customer. For now, all you have to do is fill out the speaking submission form and list a few potential customer (company) names. I don’t need individual speaker names, unless you have them, and you don’t have to confirm that any of the companies are available yet, just offer some suggestions. Make an effort to send me something customized, to our show. Make it focused, skip all the marketing language. Get right down to the mear of the topic. And if you still aren’t sure what to submit, call me up and run ideas past me.

Once I have that I will cross check it against companies who have already asked to speak or are confirmed speakers and will look to see what sessions these companies may fit into. Once I figure that out, we’ll try to confirm one of them and it they agree to speak, then your company gets a speaking spot as well, usually on a different session than the customer is on.

I open up the call for speakers about 6 months before a show and I leave it open for about 7 weeks. If you don’t get your speaking request in during that time, how do you expect me to know that you want to speak? I am often told by some that they are the leading company in the market for a particular service and as a result, I should automatically be reaching out to them to ask them to speak. There are over 1,000 vendors in the space, I can’t possibly reach out to all of them, so if you want to speak, you have to let me know. I am always willing to talk about what you want to do at the show, hear your ideas and find out how you can get involved. But I can’t do that if you don’t send in a submission at all, let alone on time.

Some companies tell me that they put in a request to speak with our sales or editorial departments, but they aren’t involved in the speaking selection process, so that’s not a speaking request. Also, many vendors use third-party companies to manage their speaking engagements and while I work very closely with many of those firms, some don’t follow through and the vendor finds out after the deadline that no submission was sent in. So if you use an outside firm, please stay on top of them and make sure they sent in a speaking request on time. Some of those firms do a really good job, and I work very closely with them, year after year. But many more of them never follow up after an initial email to me. I never hear from them again.

I often get asked if a company can pay to secure a speaking spot. We don’t sell speaking spots with the East and West shows and companies can’t buy their way in via sponsorship. I know that’s not how other shows do it, but it’s also one of the reasons the StreamingMedia.com shows have been around for 19 years. Think of all of the other online video related shows that have come and gone over the past ten years because they gave all the speaking spots to the sponsors and never focused on creating value to attendees.

Now some are going to ask, why do I do it this way? Why not allow vendors to pay to be able to speak and don’t we risk vendors not doing business with us because we don’t let them speak when they are exhibiting or sponsoring? We do it this way because this is what the attendees want, it’s what makes for a good show and for the vendors who get it, it’s more valuable for them to have a customer speaking instead of themselves. Could we make more money by allowing vendors to pay to speak? Probably. But that does us no good and our attendees no good. You don’t build a quality conference by choosing your speakers based on who pays you. Like you, I have been to many industry shows where they allow this and you all know how bad many of those speakers are and the lack of value it provides to attendees. No one wants a sales pitch as a presentation.

There are many vendors who follow the rules, get their submissions in on time and work with me closely to ensure that the attendees are getting quality information. That is all I care about, producing a show that has value not only to the industry but to the attendees who are paying their money to come. To the vendors and third-party speaking firms that work with me, thank you. I appreciate your help and your professionalism and I hope that all vendors will follow your lead.

The biggest thing to take away from this post is that unlike a lot of other conference organizers who only do email, I am available 24 hours a day, 7 days a week, at 917-523-4562. I answer and return all calls, usually the same day. So if you have any questions about your submission, the selection process, or want to run an idea by me before you submit, I am reachable and I prefer talking to people about their ideas as opposed to trying to do everything via email. My job, as I see it, is to build relationships with people and companies, and that gets done much better on the phone than in email. So if you have a question, please, pick up the phone and call me, I’ll be glad to speak to you.

Call For Speakers Now Open For The 2013 Streaming Media East Show In NYC

Because I get so many speaking proposals, I’m opening up the call for speakers for the 2013 Streaming Media East show earlier than usual. Now in its 16th year, the East Coast show will take place at the Hilton hotel in NYC from May 21-22 and will also include the special Streaming Device Pavilion. The Content Delivery Summit will once again be co-located with the East show and will take place on May 20. The Streaming Media East agenda will consist of 4 pre-conference workshops, 2 keynotes and 35 sessions.

Of the 35 sessions, at least 15 of them will be stand alone, how-to presentations. The deadline to submit your proposal is January 14th, but do not wait until the last-minute to send it in. If you are submitting a speaking request on behalf of a vendor, you are REQUIRED to submit with a customer. Those new to the speaking submission process or submitting for a vendor are encouraged to read this blog post which details how the speaker selection process works.

There are two kinds of speaking opportunities:

– How To Presentation: Technical experts who are willing to share their practical tips, tools, or strategies for deploying online video, please consider volunteering to speak at Streaming Media East. We need presenters who can show people how to do things step by step as a stand alone presenter in a 45-60 minute session. We are NOT looking for product pitches or product demos. Previous how-to presentations have included topics such as: “how to encode video for idevices”; “how to build an html5 video player”; “how to setup a live webcast”; “how to create closed captioning for video”.

– Round Table Panels: These sessions consist of four speakers and a moderator discussing topics pertaining to business models, monetization strategies and industry trends in a 45-60 minute session where no presentations are required. The sessions talk about different business, technology and content topics across the broadcast, media, entertainment, advertising, enterprise and education industries.

While many other conferences ask you to pick from an agenda when you submit a speaking request, I don’t. I create the agenda based on your submissions and what topics you want to speak on. After I look through all the submissions, I will publish an advance program the first week of February that will contain all of the how-to and round table topics. Then I will start placing speakers and filling in the agenda. But do NOT wait until I publish the advance program to let me know you want to speak.

If you want to moderate or organize a session, you need to reach out to me ASAP so we can start talking about it now. At this time, due to the large number of speakers, we are not able to pay any travel or lodging related expenses, but I do have a budget for those who want to step in and help moderate and create sessions. Please don’t wait till the last-minute to pitch me an idea. I get so many great speaking proposals after it’s too late and the agenda has already closed, so it’s important you get them in on time. If you have questions or want to discuss your idea before you submit, call me at 917-523-4562. It’s much easier to discuss on the phone and I am always available.

Learn About Virtual Coffee Tables and TV App Graveyards At #smwest

In the past year, we’ve cluttered iPads and Smartphones with dozens of TV related apps. Some are still kicking, some barely have a pulse, and some are the former “hot new things” gone cold and dead. What is there to learn from this all? Is there a one-size-fits all answer or approach to TV apps?

At the Streaming Media West show next week, (#smwest) speakers will discuss if there an uber-TV app coming, or are we destined to have a dedicated app for each TV show we like, each network we watch, each movie we see, etc. Lead by smart TV guru Jeremy Toeman, confirmed speakers include:

  • Moderator: Jeremy Toeman, CEO, Dijit
  • Ole Lutjens, Founding Partner, MX
  • Geoff Katz, VP, Business Development, WatchWith
  • Colin Decker, VP, Audience Development, Revision3

It’s not too late to get a pass to the show and readers of my blog can register using my own personal discount code of DRF1, which gets you a two-day ticket to the show for only $595. That’s $300 off the regular ticket price and it gets you access to both keynotes, 35 sessions and how-to presentations, 100+ speakers and all the networking events, including the special MPEG-DASH event.

#smwest Session: Content Discovery for Movies

TV Everywhere has changed the model for studios to drive consumers to their content. Join cable, studio and digital distribution executives at the Streaming Media West show next week, (#smwest) as they discuss how Facebook and mobile discovery apps are playing a role in helping movie viewers find what they want, and share what they like; and how satellite and cable providers are driving people to rent and buy movies digitally. Panelists showcase real-life examples and case studies, as well as provide expert guidance in terms of both planning for and implementing successful strategies and tactics to boost exposure and discoverability.

  • Moderator: Aaron Henry, Principal, Found Public Relations
  • Steve Polsky, GM, Flixster.com
  • John Zelenka, EVP, Revenue, Digitalsmiths
  • Brian Walsh, Manager, Digital/On-Demand Team, Lionsgate
  • Bruce David Eisen, VP, Online Content Development & Strategy, DISH Network

It’s not too late to get a pass to the show and readers of my blog can register using my own personal discount code of DRF1, which gets you a two-day ticket to the show for only $595. That’s $300 off the regular ticket price and it gets you access to both keynotes, 35 sessions and how-to presentations, 100+ speakers and all the networking events, including the special MPEG-DASH event.

Smart TV or Dumb TV: Will Fragmentation Kill The Industry?

The TV industry operates on perpetually shrinking margins, and each year seek out the “hot new thing” that will increase revenue, decrease buying cycles, and otherwise help contribute to the bottom line. In the era of Smart TVs, however, consumers have a challenging value proposition today, with limited features and built-in fear of future obsolescence.

At the Streaming Media West show next week, (#smwest) our group of consumer electronics pros will have a hearty discussion to get to the bottom of what should be done with Smart TVs. Do people want them, or do they just want “feature” TVs? Will fragmentation kill the industry before it even really gets off the ground? Is Smart the new 3D or the new HD? Lead by smart TV guru Jeremy Toeman, confirmed speakers include:

  • Moderator: Jeremy Toeman, CEO, Dijit
  • Chuck Seiber, VP, Marketing, Roku
  • David Schlacht, SR Director, Multimedia, DirecTV
  • Kurt Hoppe, Director, Smart TV Innovation, LG
  • Zach Weiner, President, Connected TV Marketing Association

It’s not too late to get a pass to the show and readers of my blog can register using my own personal discount code of DRF1, which gets you a two-day ticket to the show for only $595. That’s $300 off the regular ticket price and it gets you access to both keynotes, 35 sessions and how-to presentations, 100+ speakers and all the networking events, including the special MPEG-DASH event.

#smwest Workshop: Encoding for Flash, Mobile, and HTML5

At the Streaming Media West show next week, (#smwest) we have a full day of pre-conference workshops, with 4 three hour sessions. One of the sessions, being taught by streaming media guru Jan Ozer, will teach you the technological fundamentals behind encoding for both H.264 and WebM formats.

You’ll learn how to encode H.264 for HTML5 distribution and streaming to iOS and other mobile devices, as well as how to encode it for Flash, including live, on-demand, and RTMP, as well as HTTP-based adaptive streaming. For WebM, you’ll learn the basics of on-demand streaming, plus get a look at live WebM encoders. Finally, you’ll get an update on how to stream adaptively to all these targets. Use the discount code below and you can attend both a morning and afternoon workshop for only $265.

It’s not too late to get a pass to the show and readers of my blog can register using my own personal discount code of DRF1, which gets you a two-day ticket to the show for only $595. That’s $300 off the regular ticket price and it gets you access to both keynotes, 35 sessions and how-to presentations, 100+ speakers and all the networking events, including the special MPEG-DASH event.