Few days ago I met
Shmulik Bachar, VP of products and marketing,
PeerApp, in its R&D site.
PeerApp, according to
Frost and Sullivan recent research, leads the transparent cache market (see “
F&S: Transparent caching market to Reach $708M by 2015; PeerApp Leads” –
here). In 2011, the market had estimated revenues of $140M.
Some of the Q&A we had:
Q: Who do you see now in the caching market?
A: As direct competitors we mainly see
Blue Coat. Note that we are also selling through OEMs, which includes
Allot Communications and
BTI Systems.
Q: What about the cache offering from
Juniper,
Cisco and the video optimization vendors?
A: These companies do not compete with us directly. They use caching as internal mechanism in their solutions, but not as a solution for optimizing
Over the Top (OTT) traffic, as we do.
Q: We saw recently some announcements of integrated
Carrier CDN and transparent caching solutions. Are the two will finally become one?
A: In many cases, carriers like to see one solution. This is why we announced a joint solution with
Edgecast (
here), and
Verivue, who came from CDN solution side is now adding transparent caching
(
here). Transparent caching and CDN provide the carrier with similar benefits, although the technical solution for transparent caching and CDN is different.

Q: What is the business case for transparent caching? It is still about bandwidth savings?
A: It is no longer just savings, except for specific regions. The main goal now is to improve the subscriber’s quality of Experience (QoE) and monetize OTT services.
Q: Monetize? How?
A: One example, implemented by some of our customers, is the ability to sell higher tiers of service (usually volume-based) knowing that caching will enable better QoE.
Q: How about PeerApp? Where is it going?
A: We continue to focus on caching. It is the future of optimization, both for fixed and mobile operators. I believe that the different
Adaptive Bitrate technologies (from
Apple, Microsoft and
Adobe) will make the other real-time/network based video optimization technologies (see
here) redundant. Caching has real value, for bandwidth savings, QoE improvement and monetization.
PeerApp is doing very well, we closed a $8M investment last year (
here) and we are working on additional OEM opportunities to expand our reach to other elements of the core network.