Is it possible that Aryaka Networks is barking up the wrong tree? Riverbed is a competitor, but so are Dropbox, Sharefile, and XO. Aryaka is definitely an intriguing startup. I’m trying to figure them out, and where they fit in the industry. Here is what I have come up with so far.
B2B Private CDN Running over VPN
Aryaka Networks is a type of CDN. They have the infrastructure of a CDN, including POPs, routers, servers, Tier 1 connectivity, etc. However, they are a private B2B CDN. Their customers connect to a platform through a VPN connection. As such, they may claim they offer a private network to customers. If they choose to do so, Aryaka can get into the B2C CDN game, but it is not in their interest to do so, or else they compete with the likes of Akamai, EdgeCast, Limelight, Fastly, and MaxCDN.
A Hybrid Telecom Company
Aryaka Networks is also like a Telco, with a one-service offering. Their service is an IP-VPN solution that doesn’t run over MPLS, but an Internet connection like DSL. Even though Aryaka states it has a private network, it’s not really private in the sense of an MPLS IP-VPN solution from XO or Level 3. These carriers offer a true private MPLS IP-VPN network, where they control the first mile, middle mile, and last mile.
The carriers have an MPLS infrastructure, with thousands of routers located at carrier gateways/central-offices/hotels throughout the country. Their MPLS IP-VPN is separated from the Internet backbone. Thus, traffic stays on the carrier networks 100% of the time. Aryaka, as such, only controls the middle mile, since they don’t have a fiber backbone.
What happens if Aryaka decides to connect their locations to an MPLS network? If this happens, it will get really confusing, because they will offer an IP-VPN solution over carrier MPLS. Then, they will be able to say to their customers that they are a true private network that offers MPLS IP-VPN. However, Aryaka would need to change its marketing message from “MPLS is Dead” to “The Next Generation MPLS.”
Aspera & Signiant
Lastly, Aryaka is similar to Aspera and Riverbed. Aspera, because they work with high-performance file transfer; and Riverbed, because it provides application acceleration over a WAN. To sum it up, Aryaka Networks is a B2B Private CDN Telco, that offers managed IP-VPN over an Internet connection, and high-speed file transfer and application acceleration over a WAN. That was a mouthful.
Maybe, the biggest threat to Aryaka is not Riverbed, but the actual carriers that offer MPLS IP-VPN. MPLS is the bread and butter of all Telcos. This market is much larger than the ADN market. Riverbed might have thousands of customers, but the Telcos have tens of thousands of MPLS customers globally.