And Akamai, the largest Content Delivery Network (CDN), discovered that they were in the business too.
Some of the services are HP Cloud Compute, HP Cloud Object Storage and HP Cloud CDN.
FORBES: HP's Earnings: Restructuring And Weak PC Market Will Be A Drag
He also noted that the news is likely to pressure shares of the publicly traded CDN stocks.
FORBES: Netflix Shifts Traffic To Its Own CDN; Akamai, Limelight Shrs Hit
This gives us a glimpse of pricing and business strategies that CDN providers might use to win business.
FORBES: Level 3 Netflix Deal Puts Akamai Pricing Erosion In the Limelight
And this number does not include the significant volumes of Facebook CDN traffic.
China's video sites were burning through their investment money without finding a business model, tapering off their CDN spending and shutting down.
Given this growing demand, Akamai is looking to license its CDN technology to telecom companies to stay in the game and not be marginalized.
More flexibility in managing data traffic could also prompt wireless service providers to incorporate their own CDN-like technologies, thereby providing new competition for Akamai.
But many organizations do not feel comfortable having a third party filter all their traffic and do not need the data distribution of a CDN.
Many nascent Internet companies (Facebook included) also start out leveraging third-party distribution infrastructure like LimeLight or Akamai (currently the dominant CDN used by Facebook).
Forbes own Alex Knapp, first introduced to ZenRobotics to us in April 2011 in his Robot Overlords column and today, they are still talking CDN waste.
In a research note this morning, Jefferies analyst Aaron Schwartz noted that Netflix is one of the few Internet content providers with enough traffic to make a private CDN worthwhile.
FORBES: Netflix Shifts Traffic To Its Own CDN; Akamai, Limelight Shrs Hit
Dwight is co-founder, chairman, and the original architect of Panther Express (now part of CDNetworks), a content distribution network (CDN) technology which serves hundreds of thousands of objects per second.
Long story short, Wolens claims that Facebook is on the verge of fixing up its content systems so that "deleted" photos are really, truly deleted from the CDN within 45 days.
With the new system users who connect through OpenDNS or Google Public DNS, or who go to a website that uses one of the participating CDNs, will get connected to the closest CDN server.
Despite signing a three-year deal with Limelight and Level 3 right around eighteen months ago, Netflix is clearly keeping an eye on the future with the introduction of the Open Connect content delivery network (CDN).
ENGADGET: Netflix introduces its own CDN, Open Connect Network, to give ISPs more control
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