A key feature here is that Pacnet’s CDN will be part of EdgeCast’s federation, allowing it to exchange CDN traffic not only with EdgeCast’s flagship CDN, but also with other EdgeCast partners who have licensed the same software.
That means that Pacnet doesn’t have to build a worldwide CDN in order to make progress. All it needs to do is build nodes within its footprint, taking full advantage of its network and datacenter infrastructure.
Likewise, EdgeCast can focus on its global footprint while depending on Pacnet’s deeper coverage in Asia for depth where it doesn’t make sense for them to build out.
Such federations are a growing topic of the CDN industry, however setting up a content peering system between disparate technological platforms is still at an early stage of development.
EdgeCast’s wholesale approach seeks to build its own federated CDN ecosystem via this type of licensing, letting it share some of the benefits of owning the underlying network infrastructure through its partners. Pacnet’s assets seem perfect in this role, with nodes around the Pacific rim and relationships across the region that take a long time to duplicate.
There have been rumors now and then over the past few years that Pacnet’s private equity owners are looking to sell the company, but nothing has come of them yet.
Rob Powell is founder & editor of Telecom Ramblings, which was set up in 2008. The website is dedicated to discussing trends and developments in the telecom industry.