Verizon Acquisition Impact

Verizon made a brilliant move in acquiring EdgeCast. It caught the industry off guard. I thought IBM, Google or even Akamai would purchase EdgeCast. Many are wondering, how this will impact the Content Delivery industry.

First, keeping the EdgeCast team and operations intact is a great decision. EdgeCast is an extremely fine tuned selling and innovation machine. It has risen from the bottom of the CDN stack to become a leader in the CDN space.

EdgeCast is the only CDN (with it’s service portfolio) that can challenge Akamai. They have developed and released numerous features throughout the years. Many of these features arose from the trials and tribulations associated with rapid growth. According to published reports EdgeCast egress capacity is now 4Tbps.

The acquisition will definitely impact the CDN industry. However, it will impact Akamai more than anyone else. The reason is simple. Akamai dominates the CDN industry owning the lion’s share of the market. I bet every Fortune 500 is using Akamai in one capacity or the other. Verizon is now able to walk EdgeCast into each of the Fortune 500.