Aflexi Helps Regional ISPs Attack CDN Opportunity

A new company called Aflexi, out of Malaysia, next month will launch a new software platform and online marketplace to enable regional ISPs to enter and compete in the CDN space by connecting them with other providers to expand their perceived CDN footprints. The marketplace will also act as a storefront through which low-end businesses and consumers can purchase CDN services from one or more CDN providers.

For a $150 per month fee and as little as $0.008 per gigabyte, ISPs get access to the Aflexi software, which manages and optimizes Web site traffic across various ISPs and their POPs. The Aflexi support system analyzes traffic patterns and visitor profiles, and makes tweaks as needed to ensure high quality connectivity. For example, if a specific server or network becomes overloaded, the Aflexi system automatically reroutes incoming and outgoing traffic to the next available ISP, server or POP, or if there’s peak demand, the system can add additional servers and POPS to the network to handle the increased traffic. ISPs and other providers also get access to the Aflexi marketplace, which the company’s CEO Whei Meng Wong said will enable smaller ISPs to compete with big players in the CDN space.

Here’s an example of how it works: A U.S. service provider logs into the marketplace; that provider searches for other providers, in Asia and Europe, to buy into their POPs; the U.S. provider selects particular Chinese and British providers that best meet its cost, footprint and feature needs; the Aflexi system combines the networks to enable the U.S. provider to deliver the needed service in the required geographic footprint.

The initial Aflexi launch, which includes the opening of the marketplace, the integration of Aflexi software into contemporary billing systems and cPanel and Plesk integration, is slated for the first or second quarter of 2009. In the third quarter, advanced analytics, advanced traffic policy control, Windows support for edge servers and Flash and WMV Streaming are expected to be brought into the mix. Longer term, which means in the next two to three years, Whei Wong told xchange that Aflexi expects to release a back end API for widgets and third party integration; introduce dynamic caching capability; and offer vertical market integration.

If regional ISPs decide to join Aflexi to move into or expand their CDN opportunities, they’ll find they aren’t the only ones targeting low-end customers with content delivery network offers. Amazon this fall announced its entry into the CDN space with a pay-as-you-go CDN model targeting SMBs.

And while CDN margins are coming under increasing pressure as new entrants move into this space, it remains a business destined for continued growth. Driven by growing demand for online video and gaming, CDN revenue totaled more than $990 million last year alone, according to a Jan. 2008 report by Tier 1 Research. Frost & Sullivan predicts the CDN field will rake in $2.5 billion by 2013.

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