Verizon is latest tier 1 to launch CDN

Verizon will be launching its own CDN for its FiOS network and other network properties, building it based on equipment from Velocix. The move is the latest in a round of CDN and cloud computing announcements by Tier One carriers, and we believe that most Tier Ones will be launching both these services in 2009 or 2010. One reason is that the operators are likely to be major consumers of both types of services as their own offerings to customers evolve, and another is the fact that the massive data center deployments and storage farms associated with video provide significant economies of scale in IT that can be leveraged by both CDNs and cloud computing. Clearly this does not bode well for current players in the space.