“While I’ve heard that both AT&T and Microsoft have passed at acquiring Limelight, the bigger news I have confirmed is that Level 3 and Limelight have been in discussions for a few weeks now about joining forces and combining their CDN assets as a joint venture,” Dan writes. “If a deal between Limelight and Level 3 gets done, it’s going to have a lot of impact on the content delivery market overall. Such a combined offering would also give telcos and carriers a run for their money and might also convince a few of them not to spend money to try and build out their own CDN. While it’s too early to know all the ramifications of such a deal, it would drastically change the CDN landscape.”

Read Dan’s full account and analysis over at the Streaming Media blog.

Cotendo announces $17 million in funding. Cloud acceleration company Cotendo announced the completion of a $17 million private funding round that will fuel the company’s long-term growth strategy and continued technology development in the delivery of dynamic content for mobile and web applications. Strategic investors and new business partners Citrix Systems and Juniper Networks, through its Junos Innovation Fund, participated in this round of funding along with existing venture backers Sequoia, Benchmark and Tenaya Capital.  The complimentary Citrix products will address enterprise requirements to accelerate cloud-based and mobile applications, while the Juniper relationship will address the demand of service providers for technologies that will enable them to offer value added services and over-the-top services to content providers. Cotendo will also launch and commercialize its new Mobile Acceleration Suite, and announced today the new frontier of acceleration services. “The architectural fabrics of the original content delivery systems were not designed for the modern era and have been swamped by the growth of the mobile Internet,“ said Michael Moritz a partner at Sequoia Capital. “Cotendo’s approach is for today and tomorrow which is why customers all over the world have chosen to build on its new and impervious foundation.”

Power Analytics introduces Paladin DesignBase 4.0.  Power Analytics Corporation announced Paladin DesignBase 4.0, the fourth generation of its power systems modeling platform for mission-critical infrastructure design. The new version adds a number of powerful, unique features and functions, including enhanced capabilities for smart grid and alternative energy infrastructure projects involving solar, wind, nuclear and other non-fossil fuel sources. New features in version 4.0 include modeling tools for projects incorporating alternative energy components, the ability to create complex power network models of virtually unlimited size, and a number of user-suggested enhancements to the Paladin DesignBase Protective Device Coordination (PDC) and Harmonics programs. “Paladin DesignBase 4.0 extends the capabilities of what was already the most proven modeling platform for mission-critical facilities,” said Mark A. Ascolese, Chairman and CEO of Power Analytics. “More than $100 billion dollars of customer assets – and trillions of dollars of financial data center transactions annually – are entrusted to the Paladin family of products; it truly is the only software platform to ensure lifecycle-long power system reliability and energy efficiency for demanding customer environments.”

Cariden updates MATE software.  Cariden Technologies announced availability of Cariden MATE Software Release 4.4. The new version introduces customer-driven features for Layer 1 and virtual private networks, thus further strengthening MATE software’s position as the industry standard for IP/MPLS capacity planning and traffic engineering.  Utilizing a new Layer 1 integration feature to view physical layer topology version 4.4 gives network operators a more complete view of the network, enabling their planners to more effectively design the network to meet performance and protection requirements. Commenting on the new features, Alan Gous, Vice President of Product Management at Cariden, said, “Our mission is to build the most usable tools for managing the life cycle of networks from planning and design, through network engineering, to operations. These new features improve visibility into and control over the operation of both planned and existing networks. We believe they strengthen our position as the leader in traffic assurance for network operators.”

Limelight granted eleventh patent. Limelight Networks (LLNW) announced that the company has been granted its eleventh patent by the United States Patent and Trademark office (7,961,625 — Routing under heavy loading). In 2009, Limelight initiated a formal program to recognize developers’ first class innovations. This most recent patent is the ninth one issued since the start of the program.

Limelight acquires Clickability. Limelight Networks (LLNW) announced the acquisition of Clickability, a software-as-a-service (SaaS) provider of web content management (WCM) tools. San Francisco-based Clickability helps enterprise marketers and online publishers create, manage and publish content globally; track visitor experiences; and implement branding, social media, and demand generation campaigns on a website. Clickability content and marketing tools complement the Limelight platform and deepens the relationships with publishers, enterprises, and agencies by providing them with streamlined workflows, differentiated performance, and global scale. “This acquisition expands Limelight’s total addressable market in cloud-based services by $1 billion, and the web content management segment is expected by Gartner to grow to $1.7 billion by 2014,” said Jeff Lunsford, chairman and chief executive officer, Limelight Networks. “Limelight has built a track record of successfully integrating other high-value, high-margin cloud-based services. We look forward to continuing that success with Clickability as they begin to leverage our technical and operational infrastructure.”  The transaction was completed with a combination of Limelight Networks common stock and cash and is valued at approximately $10 million.

MLB.com adds Level 3 to CDN mix.  Dan Rayburn reveals some CDN usage of Level 3 by MLB.com, instead of having Akamai as a sole provider. After seeing an increase in content trace routes Dan called MLB and they said that the reason for using Level 3 CDN was to provide the best performance for the end user and not due to price. Dan estimates 25 to 30 percent of MLB.com’s traffic is now going over Level 3′s CDN. Additionally, Twitter seems to be exclusively using the Level 3 CDN. With recent earnings reports from both Akamai and Level 3, it appears that Level 3 is growing while Akamai reported that growth had “moderated”.

Meru announces AP400. Meru Networks (MERU) announced the AP400 Mobile Edge access point platform, the industry’s first first three-stream 802.11n quad-radio AP platform. The new AP400 was designed specifically to manage a smooth and accelerated transformation of the enterprise edge network from a wired Ethernet switch architecture to the new Mobile Edge. The AP400 Mobile Edge platform also leverages Meru’s patent-pending Orthogonal Array Beam Forming technology and next generation sub-carrier level beam forming to deliver Adaptive Optimization. Zeus Kerravala from Yankee Group commented that “enterprises are becoming more mobile by the day. The workforce is no longer attached to their desks accessing applications via a wired connection. Optimizing mobile devices and providing a flexible and reliable network from anywhere will be the next challenge on the IT horizon, forcing enterprises to rethink the way the network edge is designed. Meru is offering enterprises a clear migration path to a new wireless edge with the introduction of the AP400 platform, while enabling much needed cost savings and a more efficient workforce.”

The Phoenix area is home to many large Web properties. By routing traffic through the new Arizona Internet Exchange (AZIX), providers will save on transit costs and can decrease latency by roughly 10 to 20 milliseconds, according to Limelight. Lower latency is important on bandwidth-intensive tasks, such as large software downloads and live streaming video.

“We’re excited to help drive connectivity in our own home town,” said Denver Maddux, Vice President of Network Architecture, Limelight Networks (LLNW). “Not only will the Exchange decrease costs for providers locally and improve content delivery speeds, it will also help in fostering a community of content and access providers in the Arizona market.”

i/o Phoenix is one of the world’s largest data centers and has access to more than a dozen telecommunications carriers including AboveNet, AT&T, Level3, Qwest, Verizon Business and Telia Sonera.

“i/o PHOENIX provides the ideal platform for the Arizona Internet Exchange,” says Kevin Malik, CIO for i/o. “With free cross-connects and over a dozen telecommunications carriers in our Meet-Me-Rooms, as well as some of the largest Web properties, i/o will be able to offer Arizona Internet Exchange customers unmatched connectivity.”

360Networks expands with Juniper. Juniper Networks (JNPR) announced that 360networks has selected Juniper Networks Junos Space, Ethernet routers and switches to expand its capabilities in supporting its customers’ growing capacity needs and introduce new wholesale IP services.  360networks has deployed Juniper MX480 3D Universal Edge Routers and will use EX4200 Ethernet Switches with virtual chassis fabric technology for low-speed aggregation to the MX480 routers.  “Juniper gives us the flexibility and capacity we need to scale and introduce new value added services for our customers,” said Brady Adams, CTO, 360networks. “As we evolve our network, the core and the edge tend to blend. With Juniper, we have the capacity to scale our core while adding the flexibility to provide granular services to our customers with high reliability.”  Juniper also recently announced the general availability of the SRX1400, a consolidated security services gateway as the newest member of its leading SRX product line.

Force 10 selected by Terenine Technology Solutions. Force 10 Networks announced that Terenine Technology Solutions, a technology services provider based in Chattanooga, Tennessee, has deployed switch/router solutions from Force 10 Networks to provide core-to-edge switch/routing functionality as a part of their continuous improvements to their data centers.  Terenine will use the Force 10 ExaScale E1200 and E600 switch/routers as well as the resilient C-Series C300 switch and top-of-rack S-Series S25 and S50 edge routers.  “We heavily rely upon a reliable, agile and world-class performing network infrastructure that is purpose-built to serve our customers and enable us to effectively compete in the marketplace,” says Lynn Engel, vice president sales and marketing at Terenine.

Limelight selected by Groupon.  Limelight Networks (LLNW) announced that Groupon is deploying Limelight’s website acceleration services to maximize site performance and improve the online experience.  “Site speed is critical to our customer experience and online conversions,” says Shinji Kuwayama, Director of Engineering, Groupon. “After evaluating several options, we found Limelight to have reliable, flexible services to meet our business needs. Since employing their solution, our performance has increased, and we look for more ways to use the service.”  As a deal-of-the-day site for geographically-specific deals Groupon wants to boot site speed on the deal page.  Limelight will cache content on their geographically distributed local servers.  All Things Digital reported Monday that Google was rumored to be acquiring Groupon for upwards of $6 billion.

CDN market leader Akamai (AKAM)  saw its shares decline about 5 percent, sliding $3.58 to $51.56. “It’s no secret that Netflix has a multiple vendor strategy,” Akamai told Rayburn in an email. “We continue to have an ongoing relationship with Netflix but we don’t comment on the specifics of customers, contracts or other providers.”

In early 2010 Akamai reportedly gained at least 51 percent of Netflix traffic by becoming their primary CDN.  Level 3 recently announced that it added 1.65 Tbps of capacity to its CDN in the third quarter and added five new network locations, including two in Canada. In the third quarter earnings call for Limelight, the company announced that Netflix had extended its contract for another three years. Limelight does not have CapEx plans for expanding its CDN, while Level 3 will spend $14 million in CapEx in just the fourth quarter.

See Rayburn’s story at the Business of Online Video for more details.

Akamai streamlines iPhone, iPad video delivery. Akamai Technologies (AKAM) announced new capabilities for its HD for iPhone solution designed to simplify delivery of standards-based, on-demand video to iPhone, iPad and iPod touch. Referred to as “in the network” packaging, it automatically packages content to the format required on the Apple devices by leveraging existing H.264 and MPEG4 video workflows. ”Reaching growing audiences on iPhone, iPad, and iPod touch is now business-critical for our customers,” said Rich Kennelly, Vice President Media at Akamai. “Our focus is to ensure each viewer gets the highest quality experience possible leveraging the Akamai HD Network, while making it easier for customers to reach these growing platforms.”

Level 3 and CNN expand relationship. Level 3 Communications (LVLT) announced it has expanded its relationship with CNN to include Managed Video Network Services (MVNS), a fully managed video delivery, IP and networking solution.  The MVNS platform has been installed into CNN’s global headquarters in Atlanta as well as augmented fiber capacity into New York city studios. “With the speed at which information travels today, news cycles for broadcasters like CNN have accelerated,” said Andrew Crouch, president of Sales at Level 3. “As a result, their connectivity needs have grown and their video and data must move faster and more efficiently. We developed our MVNS platform to meet the needs of the most demanding broadcast customers, to improve business efficiencies and digital workflows, and to support future innovation in the way content is delivered.”  This latest expansion builds on the more than 20 year relationship between Level 3 and CNN.

Limelight expands web acceleration services. Limelight Networks (LLNW) announced the extension of the company’s web site acceleration services with the introduction of Commerce Accelerator and Portal Accelerator. ”Today’s demanding end users expect their favorite online storefronts, self-service portals, and even their web business applications to be rich with personalized, dynamic content and interactive elements,” said David Hatfield, senior vice president, Limelight Networks, Inc. “Our newest web acceleration offerings provide publishers, retailers, advertisers, and corporate IT departments with cloud-based solutions to help meet those consumer expectations.” Commerce Accelerator is a service that maximizes dynamic content delivery such as shopping carts, transactions and other highly interactive content. Portal Accelerator extends the reach of customer-owned infrastructure by using the Limelight global infrastructure to increase application availability, response times and security.  Limelight also introduced an update to Site Accelerator, formerly Limelight SITE.

Equinix opens third Atlanta IBX.  Equinix (EQIX) announced the opening of the first phase of its third International Business Exchange (IBX) data center in Atlanta. The $61 million facility will house 400 cabinet equivalents in phase one, and an additional 1,050 in phase two when complete in the first quarter of 2011.  “Opening our newest IBX data center in Atlanta will enable us to meet existing demand from some of the largest enterprise and telecommunications companies in the world – many of which are existing Equinix customers looking to increase their capacity as they continue to build strategic business ecosystems in this important market,” said Pete Ferris, president, Equinix North America.  Last week Equinix announced the opening of the sixth data center on the company’s Ashburn Virginia campus.

Limelight Acquires Delve Networks.  Limelight Networks (LLNW) announced the  acquisition of Delve Networks, a privately held provider of cloud-based video publishing and analytics services.  The Delve Software as a Service platform is highly customizable and is designed to operate at Internet scale, offering tools for publishing videos online, including hosting, encoding, channel and playlist management, video search, metrics and advertising. “As the creation and consumption of online video grows, so does the need for online video publishing platforms to have the scale to capitalize on that trend,” said Alexander Castro, founder and chief executive officer at Delve Networks. “By joining forces with Limelight Networks, Delve’s cloud software platform, already designed for the high demands of Internet audiences, gains important Internet-scale infrastructure resources that can enhance the performance of our service.”

The Planet and Terrapin partner.  The Planet announced that Terrapin Solutions, a Cloud Services Master Agency, is the company’s newest Charter Referral Partner, and joins its select portfolio of top-tier referral agents within the Partner Plus program. Terrapin Solutions designs cloud solutions for businesses, focusing on hosted voice–over–IP (VoIP), SIP trunking, cloud computing, cloud infrastructure, call center operations and outsourced IT helpdesks.  “Our Charter Referral Partner program is reserved for the select few partners who have demonstrated an ability to sell complex cloud infrastructure solutions and are committed to building a significant revenue base with The Planet,” said Thomas S. Blair, vice president of Global Sales with The Planet.

Level 3 reports 1st quarter results. Level 3 Communications (LVLT) reported consolidated revenue of $910 million for the first quarter of 2010, with a net loss of $238 million, or $0.14 per share.  Communications revenue accounted for $900 million of the overall $910 million revenue. “Our Core Network Services sales orders were up by more than 15 percent in the first quarter compared to the fourth quarter. We believe that churn will continue to show improvement for the rest of the year.” said Sunit Patel, executive vice president and CFO of Level 3. See Telecom Ramblings for additional analysis.

Internap Sees Progress in Colo Shift: Internap (INAP) reported its first quarter results yesterday. Revenue of $63.4 million was reported with data center services growing 6 percent year-over-year and 2 percent sequentially to $33.7 million. “In data center services, we continued to make progress shifting our investment and operational focus to higher margin company-controlled facilities which simplifies our business and increases value to our stockholders,”said Eric Cooney, President and CEO of Internap. “And while it’s still early, our initiatives to revitalize Internap’s core IP services also appear to be yielding results.” Highlights of the quarter included the launch of XIP, a new service-based Internet traffic accelerator and the data center expansions in Seattle, Houston and Silicon Valley. Seeking Alpha has a transcript of the Internap earnings call.

Limelight Reports Results, Patent Suit Win. Limelight Networks (LLNW) reported first quarter 2010 financial results. Reported revenue was $36 million and $149 million in cash and short term marketable securities.  Highlighting the recently closed acquisition of EyeWonder, chairman and CEO of Limelight Jeff Lunsford said Now together with EyeWonder, Limelight Networks is well-positioned to grow as content consumption, marketing dollars and e-commerce activity continue to shift online and onto mobile devices, and as more enterprises look to outsource computing and storage resources to innovative service providers.”  With two months of contribution from EyeWonder Limelight is forecasting the second quarter of 2010 revenue to be in the range of $41 million to $43 million.  On Wednesday The U.S. Court of Appeals for the Federal Circuit affirmed a lower court decision finding that Limelight does not infringe Level 3 patents.

AboveNet reports 1st quarter results.  AboveNet (ABVT) reported first quarter 2010 financial results.  Revenue for the first quarter was $97.2 million, a 13.8 percent increase from the first quarter of 2009.  Operating income for the first quarter was $25 million and net income was $13.6 million.  “Improving economic conditions have allowed customers with pent-up bandwidth demand to resume buying activity. As customer demand for high-bandwidth connectivity continues to recover, AboveNet is well positioned to benefit with its world-class, high-speed, low-latency, scalable network solutions,” said CEO Bill LaPerch.

• Limelight Acquires EyeWonder Inc. Limelight Networks (LLNW) announced an agreement to acquire Eyewonder, a privately-held Atlanta company offering interactive digital advertising products and services. “Today, two best-in-class companies are combining to capitalize on the clear opportunity created by a macro shift of content consumption and advertising spend away from legacy channels and towards the growing world of Internet-connected devices,” said Jeff Lunsford, chairman and CEO of Limelight.  Eyewonder’s ad serving platform is projected to service over $500 million in media spend globally in 2009.  Limelight and Eyewonder have been partners for years and the combined company will have over 900 last-mile access networks, relationships with over 2,500 online businesses, and have over 20 ecosystem partners. EyeWonder shareholders will be paid approximately $110 million and key employees will also enter into employment arrangements  with Limelight that will involve additional equity compensation.
• Emerson Announces Liebert Data Center Audit. Emerson Network Power (EMR) announced availability of the Liebert data center audit, an affordable on-site IT infrastructure assessment designed to help small and medium-sized companies identify, evaluate and resolve cooling and power vulnerabilities.  Aimed at companies doing strategic projects such as virtualization, consolidations and capacity upgrades, Emerson hopes the audit will protect against unplanned downtime or IT equipment experiencing degradation due to excessive heat. “The on-site Liebert Data Center audit integrates a methodical evaluation of infrastructure technologies and practices with the expertise of Emerson Network Power’s power and cooling specialists,” said Mark Melvin, chief technology officer at ePlus, a Liebert partner.
• Energ-IT Study Detailed by Neptuny. Italy-based Neptuny, discussed initial findings of the Energ-IT project that focused on Green IT.  Several companies collaborated on the Energ-IT project to build a test data centre comparing traditional IT infrastructure to virtualized  in order to determine benchmarks on green savings and action items that can be applied to the data center.  Initial findings of the project were discussed at a workshop last week, but overall goals are to identify a set of green re-engineering actions to be applied to legacy systems, empirically assess related energy savings and compare savings with top market solutions by means of a test data center.