This morning, Google announced via their Google code blog that the company plans to offer a new product called Page Speed Service, which will help customers load and deliver their web pages faster. Google's Page Speed Service fetches content from the customer's server, rewrites their pages by applying web performance best practices, and serves them to end users via Google's servers across the globe. Google says while its Page Speed Service is currently being offered to a "limited set of webmasters free of charge", the company plans to charge for the service and says "pricing will be competitive". There are no details on when the service will launch, but I'm hearing it will be sometime in the fourth quarter.
How this will impact traditional CDNs in the market is too early to know without more details from Google on what exactly the service will support, but Akamai, Limelight, Level 3 and Cotendo in particular can't be too happy to see this. Google's service might not support content that's generated dynamically and we don't know what features and functionality will be missing, but clearly when Google plans to offer a service like this, they have the ability to disrupt the market.
I will update this post with more details when I get them.