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Netflix and Google Make Land Grab On Edge of Internet

An anonymous reader writes "In an end-run around slow Internet backbone providers, Netflix and Google (plus a dozen more large content giants) are in a bitter fight to deploy servers and dominate the consumer edge of the Internet. This Wired article provides some of the first graphics of this fight and how it is changing the underlying Internet infrastructure. The source of the article (DeepField blog post) also has some pretty interesting commentary."

23 of 85 comments (clear)

  1. basically vertical integration with CDNs by Trepidity · · Score: 5, Informative

    As the article notes, from an internet-topology standpoint this isn't that new, dating back to Akamai-type CDNs starting in the 1990s. The idea is that you mirror your content inside several of the major edge networks, so e.g. Comcast users get served from the Comcast-local mirror. You then update the mirror whenever there's new content, but every single user doesn't have to re-fetch that video over the public internet to Comcast's network.

    The main difference is that some of the large content providers are building out their own private CDNs, so Google is setting up its own edge-network mirrors instead of contracting out to Akamai. That's not a major technical change, but could have some important implications for competition.

    1. Re:basically vertical integration with CDNs by Anonymous Coward · · Score: 5, Insightful

      There could be some implications, but I don't think it's that bad. Akamai isn't going anywhere, they actually never delivered Netflix, and have had only limited business with Google, so it's not like they're "losing" anything. So if a competitor to any Google or Netflix comes along, they'll have the option of using Akamai until they're big enough for their own CDN, if that's actually the direction things are headed. On top of that, I would not be surprised if the day comes when Google starts offering its CDN as a service, which will actually add competition for Akamai.

    2. Re:basically vertical integration with CDNs by Trepidity · · Score: 4, Interesting

      Yeah, I agree with that. Google and Netflix are basically moving a commodity service in-house, which often makes sense once you're using enough of it. But others can continue to use the commodity service, as long as it continues to exist, which it looks like it will.

      If anything, the basic way bandwidth is billed and peering agreements are arranged is a bigger problem for small players than the edge caches this story is trying to get us worried about. The first problem someone is going to have if they try to compete with YouTube is not CDN access, but the fact that they would have to pay for bandwidth, whereas in many cases Google doesn't. For example, I work at a university, and our university network has a peering agreement with Google: that means that all YouTube watching by students is free to Google. A YouTube-competitor startup would have to pay for transit.

    3. Re:basically vertical integration with CDNs by symbolset · · Score: 5, Informative

      You can look up peering details at peeringdb. It's kind of neat.

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    4. Re:basically vertical integration with CDNs by seanzig · · Score: 2

      Agreed, not a major change. However, it might indeed affect competition. I'm glad AT&T has found a way to make money by helping large companies improve bandwidth rather than imposing a tiered system and effectively reducing service delivery for those who couldn't afford it. This attempt at a tiered internet sparked the net neutrality "movement" (if it qualifies as a movement, as such). The idea of private CDN's certainly is a more "positive" approach, but I do wonder if it introduces a precedent that allows companies to buy improved features to improve content delivery. I can imagine a tiered internet growing gradually and organically in such a way.

    5. Re:basically vertical integration with CDNs by thereitis · · Score: 3, Informative

      That's not a major technical change, but could have some important implications for competition.

      I think that's the biggest reason for this change: They need to stay competitive with companies that don't have to pay for bandwidth. See Netflix is a bandwidth hog. Who will pay? (Hint: You.)

    6. Re:basically vertical integration with CDNs by symbolset · · Score: 2

      As much as I also dislike Comcast, there is no sin in optimizing efficiency by moving frequently accessed data closer to the end user - improving the experience as well as cutting costs. It's the right thing to do.

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    7. Re:basically vertical integration with CDNs by SunTzuWarmaster · · Score: 3, Insightful

      Your use of the word 'free' is misplaced. This is vertical integration, plain and simple. In the early 1900s, Andrew Carnegie controlled the iron ore, steel manufacturing (made of iron), railroad tracks (made of steel), and railroad cars (to ship iron to manufacturing/selling, and steel for selling).

      You wouldn't say that the iron was 'free' to Carnegie Steel because they owned the mines, would you? Content provisioning won't be 'free' to Google, as they have to buy/maintain the servers.

    8. Re:basically vertical integration with CDNs by Bengie · · Score: 2

      Of course Netflix pays for it's bandwidth, he wasn't arguing that. Netflix pays for its connection to the internet and the customer pays for their connection. As long as everyone pays for their connection, there is no reason to say Netflix is "hogging" the bandwidth, which is what Comcast is trying to say.

  2. I miss Ma Bell by NoNonAlphaCharsHere · · Score: 4, Interesting

    If you look at the upper right corner of the building in TFA's picture, you can see the shadow of the old Bell System logo.

  3. "changing the underlying Internet infrastructure" by asshole+felcher · · Score: 5, Interesting

    Seems a bit dramatic. Google and Netflix use enough bandwidth that they can set up their own CDN. End of Story. If a small competitor comes along, they won't have the money to set up their own CDN, but LLNW, Akamai, and Level3 won't turn them down.

  4. This metric saddens me by Anonymous Coward · · Score: 5, Insightful

    From the blog:

    Our most recent data finds that more than 70% of all Internet traffic (on average) comes from just 150 CDN, hosting, cloud and content companies.

    For many Internet users it is essentially now Television Mark 2.

  5. Net neutrality by Dan+East · · Score: 2

    Does this provide any leverage to help insure net neutrality by taking some power away from the core backbones, or is it moot since ISPs still reign supreme by providing that last mile connectivity?

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    1. Re:Net neutrality by Bengie · · Score: 2

      Core backbone has no problem. Prices are cheap and lots of competition, the issue is the last mile. Local caching is just an efficiency thing. With the HUGE growth of streaming, local caches will take some of the bite out of the growth pain. There are quite a few long-haul high speed 500Gb+ fiber techs around the corner, but they're not quite here yet. Your only options for high speed trunks is expensive equipment or lots of 10Gb fiber. CDNs are going to give us that breathing room while waiting for the new tech to become affordable.

  6. Re:Why don't they...? by ZombieBraintrust · · Score: 2

    I don't think BitTorrent delivers bits in a way that they can be streamed. I believe you get random chunks. Could be wrong it has been awhile sense I used BitTorrent.

  7. Edge? by rossdee · · Score: 2

    The Internet has an edge? How can that be, the world is a sphere. (And theres no real final frontier of the internet in space yet,.

    1. Re:Edge? by symbolset · · Score: 2

      Lighten up. It's a fractal edge, so it's everywhere and nowhere at the same time.

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    2. Re:Edge? by symbolset · · Score: 2

      Obviously, me too.

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  8. Bitter? by JamesRing · · Score: 4, Insightful

    I don't like it when healthy competition between two companies in a capitalist system is described as a "bitter fight" or "war", "battle", etc. It's sensationalist journalism and it completely mischaracterizes the nature of the healthy competition which is necessary for innovation to occur.

  9. Message from beyond our known civilization by paiute · · Score: 4, Insightful

    "...it could possibly bring down subscription rates for high speed internet, subsidized by the content providers."

    I would like to visit his planet. It sounds nice.

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  10. Re:Why don't they...? by icebraining · · Score: 3, Interesting

    The actual protocol is agnostic - the client can ask for whatever chunk he wants. Most clients follow a (seemingly) random pattern, but nowadays uTorrent has a button you can click to prioritize the first blocks, so that you can start watching the movie while it's still downloading.

  11. The case for net neutrality by girlintraining · · Score: 5, Insightful

    That's not a major technical change, but could have some important implications for competition.

    Yes, specifically that it'll fragment the entire network and potentially destroy interoperability across it. The internet would no longer be a unified global network. Network neutrality is the key to preventing this, but as we've seen, corporations don't want that: They want to turn the internet into a largely read-only media... just a better version of television.

    A classic example of how this is shaping up is with Comcast, the Great Evil of the USA internet: They recently instituted a 250GB transfer limit, and then exempted Hulu from it, which they bought out. Netflix, a competing service at a lower price is now sitting out in the cold. Let's run some numbers and see how much of a problem this is. The average person watches 2.7 hours of TV per day; and it remains the single largest leisure activity in the United States. The average Netflix stream (based on my experience), is about 350KB/s. So that comes out to about 3.24GB per person, per day -- or 98.82 per month (the average length of a month). Now the number of people per household is a bit shaky, since there aren't any current numbers, but it's around 2.6 people per. So the average household will consume 257 GB per month if they used Netflix.

    How strange that the bandwith cap is almost exactly the same number eh? Make no mistake -- this is a war between big business, and the only losers will be you and me. This is what happens when you let people into public positions who entertain the notion that capitalism runs best when it isn't regulated. Every infrastructure service in this country runs better with regulation, and the internet (telecommunications) is not an exception. Every time we let the private sector take over, we get crap like Standard Oil, AT&T (pre-breakup), Microsoft, etc. And now we have Montsano eating up our food supply (literally).

    If network neutrality isn't given the force of law in the next two years, then two things are going to happen: Either we start building tunneled networks so all traffic through the last mile ISPs is encrypted and cannot be shaped, modified, or tampered with except in terms of bandwidth and latency as a whole... or we abandon the internet and start a new network that has no last mile restrictions (read: wireless, read: pirate radio).

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  12. Re:Why don't they...? by icebraining · · Score: 2

    While here the service has actually improved over the years (which, as you say, is what you'd expect), I got a VPS in the Netherlands with 300GB/month and 1Gbps up/down (burst) for less than $3/month and now I do all my seeding from there (as well as using it for my email server, hosting some very low traffic websites, etc).