The market for mobile video caching and optimization is heating up as managing video traffic becomes a critical issue for large carriers. Companies like Mobixell, Saguna, Vantrix and many others are vying for attention, but the latest big deal goes to Opera’s Skyfire unit. It has gained a major contract with Telenor Group, thanks to a close relationship with Alcatel-Lucent which will go a long way to justify the potential $155m Opera will pay for its acquisition, announced in February.
ALU’s professional services team has designed a solution, based on Skyfire technology, which can be adapted for each of the Norway-based operator’s 11 markets. The vendor says it combines video optimization, transparent caching and network intelligence, combined to optimize the efficiency and capacity of each cell site.
Telenor and ALU have signed a three-year global frame agreement for mobile internet optimization across 2G, 3G and 4G networks in Europe and Asia. The structure of the deal reflects the way that equipment OEMs will increasingly work, concentrating on providing overall architecture, planning and end-to-end integration, but sourcing the products from a range of partners.
Key to ALU’s solution is Opera’s Skyfire Rocket Controller and Optimizer, virtualized software to optimize video streams and web in real time on a per-device, per-user and per-session basis. However, it also incorporates ConteXtream’s Session Control tool to manage end-to-end sessions and direct video traffic automatically to Skyfire based on policies decided by the cellco; and ALU’s own Velocix 7810 Transparent Caching and 9900 Wireless Network Guardian products. The former stores often-used content close to the user while the latter monitors network quality.
Witold Sitek, SVP of technology at Telenor, said in a statement: ‘As customers’ passion for video from sites like YouTube grows, we want to make sure we keep our network capacity and intelligence one step ahead of demand.’
Opera and Telenor have worked together before, unsurprisingly given that both are based in Norway. They signed a global framework agreement for client-based optimization in 2010, and have also deployed the Opera Mini co-branded browser, and the Web Pass solution for easy purchase of data packages.
The Skyfire acquisition is one of many ways in which Opera has defended itself against rising competition to its core browser products, from the handset makers’ own offerings such as Google Chrome/Android and Apple Safari. It still has a growing browser business, increasingly focused on co-branding deals with emerging market carriers which want to influence the user experience for their new mobile web bases. Like Nokia Xpress, Opera Mini can work efficiently on low end handsets and connections because it carries out much of the processing in the cloud.
Opera has gradually surrounded its main product with valued added services including content, m-commerce and advertising platforms, aimed to help operator partners launch full mobile web services with minimal effort. And Skyfire, originally a mobile browser rival, brought tools which could complement Opera Mini just as easily ‘ notably the Rocket Optimizer for multimedia, and the Horizon personalization toolbar. The initial cash and stock price was $50m but the price could total $155m after three years if performance targets are met. Skyfire, launched in 2007, had raised $28m in venture capital funding before its takeover, and numbered Verizon as a backer.
Lars Boilesen, CEO of Opera, said at the time that the combination was a ‘natural fit”, adding that ‘both companies have evolved far beyond their browser roots. SkyFire adds capabilities to our portfolio around video, app optimisation, smartphones and tablets, and strength in North America.’