Velocix purchase positions Alcatel-Lucent in CDN market

The growing interest of telcos in content delivery networks (CDNs) is the driver behind the acquisition of CDN specialist Velocix by Alcatel-Lucent. We’ve noted both here and in our Netwatcher newsletter that operators like CDNs because it gives them a paying role in over-the-top content distribution, as well as a means of providing their own video-on-demand content services.

Obviously what’s interesting to carriers is interesting to carrier-focused equipment vendors. Velocix has been popular with carriers; the company has deep packet inspection (DPI) and content node assets that Alcatel-Lucent can use in gaining traction in the emerging CDN deals, which in turn may be critical to the emerging content plans of the carriers.

From a strategic perspective, Alcatel-Lucent is also interested in projects like CDNs because they represent both equipment and service revenue opportunities, and they’re likely early examples of the growing trend toward operators letting integration/management contracts for new service-driven infrastructure projects.