Posted by : Randy Cooper in (CDN)

Velocix CMO Says Verizon Deal Led to AlcaLu Buy

velocix_logoStriking a deal with Verizon Communications Inc. (NYSE: VZ) was the catalyst that ultimately led content delivery network (CDN) specialist Velocix into the arms of Alcatel-Lucent (NYSE: ALU), Velocix CMO John Dillon tells Light Reading.

And according to a well-placed industry source, AlcaLu paid a lot less than the $20 million price tag being suggested by at least one CDN sector pundit.

Providing the backstory to AlcaLu’s latest acquisition, Dillon explains that completing and serving CDN services contracts — the company has struck more than 200 deals with “companies of all shapes and sizes” for the transport of Website and video traffic — is a relatively simple and quick process, sometimes taking just days. It’s also relatively easy for customers to switch between CDN service providers, too.

Selling CDN infrastructure, such as Velocix’s Metro node, to carriers, though, is a different proposition, as Dillon and his colleagues found out when working with Verizon Communications Inc. (NYSE: VZ), the CDN company’s only announced Metro gear customer to date.

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