Citrix invests in Cotendo, the 3rd Incarnation of Application Delivery Networking
Citrix invests in Cotendo
Posted by Lydia Leong on June 15, 2011
On the heels of the announcement of an Akamai/Riverbed partnership, Citrix has taken an investment in Cotendo, and announced the development of an integrated ADC/CDN solution.
This is a different sort of deal than Akamai/Riverbed. Whereas that deal addresses a particular use case — enterprises who want to accelerate a SaaS solution but the SaaS provider isn’t cooperating — the Citrix/Cotendo deal is intended to enhance dynamic acceleration by integrating with an on-premise ADC (in this case, a Citrix NetScaler, of course).
Back during the Netli days, Netli actually coupled their service, in most cases, with a lightweight on-premises ADC to ensure first-mile acceleration as well. This was phased out when Netli was acquired by Akamai, which did not want to have to deal with CPE (customer premises equipment). While there had been talks of partnerships with ADC vendors, the Akamai acquisition essentially killed them, and in the four years that have passed, this excellent, even vital, idea has essentially lain fallow.
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This is really exciting news. I'm one of those weird guys who has CDN and virtualization experience, and have worked with every company mentioned above in one way or another - here's my take on the deal.
When I ran acceleration product management for NetScaler (before Citrix bought them), I pushed for an Akamai/NetScaler relationship so that local load balancers could easily route requests to CDNs. It seemed intuitively obvious from a tech perspective. I pushed for the same deal at Zeus when I was VP there, but it always required just enough engineering work that it didn't make the short list. Kudos to Citrix for making the investment that will help customers.
Before I went to Zeus, I went through an extensive interviewing process as a candidate for Netli's CTO position and got some behind-the-scenes knowledge of their architecture. What Lydia says above is very accurate.
I was surprised that Akamai decided to kill the Netli CPE equipment after the Netli acquisition, because Akamai is one of the best companies in the world at handling CPE deployments, albeit with a different model. For its CDN offering, Akamai doesn't let small customers hosting an Akamai node muck with those "CPE" boxes. They're sealed and self-managing when they're not able to reach Akamai's NOC. That makes them as easy to manage as cable boxes.
It seems like my friends at Citrix would benefit greatly by taking a step from Akamai's playbook by hosting NetScaler configuration information on citrix.com. Talk about cutting support and QA costs...it would almost be an ambient cloud at that point.
But back to Cotendo. I did some consulting work for Cotendo when they first came to the US, after I left Blue Coat, and before I was a cloud VC. It's a compelling offering for long tail content that doesn't work well for CDNs.
The Third Incarnation of ADN
Cotendo calls themselves an Application Delivery Network, which makes that the third incarnation of that term. The first one was in 1999 at Exodus Communications, as the CDN players of the day (mostly overinvested and now consolidated) all started calling themselves ADNs for about a year. Then Netli came onto the scene with what I would call the first real ADN, and Akamai kept that term - in fact one of my Speedera colleagues ran marketing for that group at Akamai. Then, at Blue Coat, I founded the Application Delivery Alliance as a way to work security and WAN optimization into the ADN so we would have some word to describe what happens when you mix security proxies with WAN optimization. Good luck with that...there is no word for that particular mix. The ADA lived for about 3 months after I left Blue Coat.
I'd say that Cotendo's offering is innovative enough and interesting enough to be worthy of being the third incarnation of ADA - they really do accelerate web apps in a new way.
But Will 3Crowd Spoil Cotendo's Party?
Then again, if 3Crowd lives up to its promise, it may drop CDN pricing so low that the Cotendo ADN long-tail market gets smaller as it becomes cheap and easy to put long tail content on CDNs.
I honestly thought the CDN business would be dead in about 2005, with Akamai the dominant player having won the consolidation wars with their army of beetle-shelled attorneys, then themselves being swallowed by AT&T, who has been rumored to have made multiple offers to Akamai over the years. Boy was I wrong!
CDN is getting interesting again.



