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Tata has launched its content delivery network services and BitGravity is its strategic partner.
Tata Communications, the telecom arm of the Tata Group, has invested $11.5 million in content delivery networks (CDNs) company BitGravity. Also Tata has announced the launch of its global CDN service using BitGravity's technology. Tata and California-based BitGravity had announced their partnership in March this year. Leveraging Tata's global network which has a presence in more than 200 countries across 300 PoPs, BitGravity's will apply its technology platform in internet television. BitGravity was formed by Perry Wu and Barrett Lyon in 2006.
The technology of BitGravity aims to deliver high-quality Internet videos that play instantly, without buffering time. BitGravity will provide technology and manage the content delivery operation and the service will be branded as Tata Communications' CDN Powered by BitGravity. Initially the CDN network would be available on 20 locations in the US, Asia and Europe. Reliance Globalcom, a division of Reliance Communications, has also entered into an agreement with Internap Network Services to launch CDN services in the country.
The investment from Tata would bring the total amount raised by BitGravity to $14 million. Earlier it had raised $2.5 million from Allen & Company and Blake Krikorian, the co-founder and chief executive of Sling Media. Tata has also invested US-based radio software maker Vanu Inc, which has a software solutions that allow operators to switch from one standard from GSM to CDMA.
BitGravity operates in a segment where its competitors have been heavily funded. CDNetworks had raised $96.5 million from Goldman Sachs, Oak Partners and Shihnan Investments. Highwinds has raised $55 million from General Catalysts and Alta Communications. Others like Velocix has raised $25 million from 3i Group, Amadeus Capital and Penetech Ventures.
I think this level of investment from the groups BitGravity has been working with is drastically different than the way other CDN's have been reaching for fundinding. BitGravity has been partnering with people and companies who have a stake in the market. If you look at the other companies and where they have gotten their funding it is mostly all VC, as opposed to companies that are actually going to use their technology. I think this is where BitGravity is playing it smart as is TATA.