Global Crossing Reselling CDN Services From Limelight And EdgeCast

GlobalCrossing
Folks have been speculating today that Global Crossing might soon enter the CDN space by reselling one of the current CDNs in the market. I can confirm that Global Crossing has already been working with Limelight Networks and started reselling their CDN offering over the past few weeks and plans to focus primarily on the European market. Folks inside the industry have been talking about this for awhile now, but the companies involved have been pretty quiet and not commented on the story.

Unique to the deal is that Global Crossing is also providing first level support for customers and is hooked into Limelight's network so that Global Crossing can do self-provisioning and real-time monitoring of the network. For Global Crossing, they get more than just a reseller type agreement and can take full control and responsibility for the customer. For Limelight, it allows them to try and penetrate the enterprise market which is Global Crossing's strength and a vertical that Limelight has been targeting in the hopes of diversifying their revenue across more than just media and entertainment customers.

In addition to Limelight, Global Crossing is also already selling EdgeCast's CDN services as well but I don't know the specifics around the support and provisioning on the EdgeCast network. Although based on what I know of EdgeCast's software, which is fully designed for resllers to completely manage customers on their own, I expect the deal to be similar to Limelight's, although the company would not comment.

While I expect we'll hear more details about this from Global Crossing at some time, what I'd really like to know is what metrics they plan to use to decide when to sell one CDN over another? Why would they tell one company to use EdgeCast over Limelight or vice versa? Is it simply based on price? Location of servers? I'd also like to know if Global Crossing has any sort of internal system setup where they can pass traffic from one CDN to the other without the customer knowing and basically load balance between the two.

David Vorhaus from Yankee Group Research put out a report this morning on the EdgeCast and Global Crossing deal but the report is not public for me to link to.

  • shaun

    interesting Dan, thanks alot for this update, and i appreciate your more frequent posting lately, i check your blog everday because of that.
    woudl be interesting to know some of the details on how this will work for LLNW too.

  • Adam

    I’m more interested in Limelight. I hear that Edgecast won’t make it financially past this year.

  • Yawn…Adam shouldn’t you be out trying to sell some new CDN customers instead of surfing the web and bad mouthing competitors? EdgeCast is very well funded and growing fast.
    James Segil
    President – EdgeCast Networks

  • SixSeven

    Thanks for this update Dan. I had not heard about this before. Interesting to see how all the telcos are approaching the CDN market differently.

  • Highwinds took a serious look at this telco resell model last year. The higher margin opportunities are clearly in the enterprise space and there they are tightly linked with website acceleration, typically competing with Akamai. Highwinds has steered clear of the website acceleration business due to potential intellectual property pitfalls.
    The model does not work well for video delivery because intense competition has driven out much of the margin there. How do two companies share margin, where in most cases one can barely make it work? Add to that partner enablement costs that could be high six figures. If that training and support investment is not made, the partnership will not succeed. Also, GC will undoubtedly go into deals where L3 has already been. L3 because they own both the CDN and the network should have a pricing advantage.
    It will be interesting to follow this partnership and see how it plays out.

  • Mike Peters

    Yawn…Edgecast Owners Don’t Care about their Clients. It’s in front of everyone’s faces. Look them all up. I have looked into the Edgecast’s owners history, James Segil, Phil Goldsmith, and Alex Kazerani. The other owners on the list on their webpage don’t have anything except for Lior Elizary. Well, the main owners always sell their companies after 3 or more years in business. They make their millions and leave. They are planning to do the same with Edgecast. If you look at the history of the companies they’ve sold, there is a major history of unhappy customers and a terrible service. You are right, Edgecast customers should leave.

  • @Mike – or whatever your real name is. I’m sick and tired of you posting the exact same comment in every one of my posts that mentions EdgeCast. I consider that to be spam.
    Clearly you have a problem with someone at EdgeCast, yet you are trying to use my blog to whine about it. Each one of your posts complains that all the founders of EdgCast want to do is build the company and sell it. Why is anyone suppose to have a problem with that? That’s what companies do. So your mad that the founders of EdgeCast want to spend years trying to build a profitable business so that they can then sell it. That’s your complaint against them? Get over it, move on.
    From here on out, any duplicate posts by you will be removed from my blog. Once I will let it stay, but you’ve now posted the exact same thing half a dozen times.