CDN Upstart Cotendo Launches, Gets More Cash

Add yet another player to the packed content delivery network (CDN) market. But Silicon Valley-based Cotendo has a different plan.

The company opened for business today and announced a $7 million Series B financing round, led by Sequoia Capital and Benchmark Capital.

Unlike many recent entrants into the CDN market, Cotendo isn’t focusing on pushing video across the Internet or using peer-to-peer transfers to cut costs.

Instead, Cotendo is focusing on delivering entire dynamic Web sites on its network, something only CDN leader Akamai Technologies (AKAM) does well. Other big players, like no. 2 Limelight Networks (LLNW) and Level 3 (LVLT) focus on video and images — not as much on complex, dynamic Web applications.

Will it work? We’ll see. Big companies have traditionally stuck with big CDNs. So Cotendo is aiming first at mid-sized clients who spend a few hundred thousand dollars a year on CDN service.

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