Cisco Building CDN To Compete With Akamai, Limelight?


Content delivery network (“CDN”) analyst Dan Rayburn says he’s heard that Cisco (CSCO) is acquiring space in datacenters for a CDN offering.

Cisco talks about how important video is to its future all the time, and it’s trying to get media companies to host their content on its new Web platform, so it makes some sense that Cisco might invest in this area.

Rayburn: If Cisco is in fact building their own CDN, you have to wonder why they don’t acquire one of the major CDN players already in the market. Cisco has the cash and has not been shy lately in saying that they want to do more acquisitions in the market. While Akamai may be too expensive for them, companies like Limelight and EdgeCast could be taken out of the market for what would be pocket change to Cisco. I also have to wonder how other CDNs in the market who buy Cisco gear for their networks would react if that vendor was then competing with them for the same delivery services they are selling.

As Rayburn notes, a new Cisco CDN wouldn’t be a threat to Akamai or Limelight overnight. But it could be someday.