As things branch out more and more there are things happening that we won't know about till later.
Enron
Enron's Content Distribution Model: Raw Power
By Max Smetannikov, Inter@ctive Week
Enron Broadband Services' aggressive push into the content distribution market exemplifies a markedly different execution from recognized market leaders like Akamai Technologies and Digital Island, proving once again that when it comes to new business models, there is more than one way to skin a cat.
The company's latest deal with multi-tenant building service provider Allied Riser Communication might serve an example of what kind of customers Enron is looking for in this market.
"We peered our networks together, so when Enron comes out with other services - like video-over-IP conferencing - we would be ready," said Dan Fee, senior product manager at Allied Riser. "It's more than just a content deal."
Indeed. A traditional Akamai contract calls for Akamai servers to be colocated at several Internet service provider's locations for free, in exchange for ISP customers getting better service on Akamaized Web sites. Since Akamai owns no network, no additional pipes are connected to the ISP location.
In Enron's case, however, content arrives via an Enron-provided pipe through an Enron-installed router. Content distribution, in this case, is a simple-to-understand process: instead of mathematical algorithms, fast content delivery is ensured by raw power of Enron pipes.
Potential Enron partners have a choice of signing shared revenue, pay-per-view or subscription-based contracts, or a combination of the above, depending on the kind of customers they serve and on the kind of content aimed at them.
Enron's long reaching goals include leveraging interconnects with ISPs like Allied Riser to offer those customers as targets for content companies of various stripes, including application service providers. If this complex business model works out the way Enron execs imagine, companies like Allied Riser would be able to interest more customers in their bandwidth because of Enron-provided content, and Enron would be able to offer a suite of services to content providers that deal in streaming media and applications.
Allied Riser sells its 10-Megabit-per-second service in 17 cities, and has between 300 and 600 corporate customers, which translates into 2,000-3,000 desktops, Fee said.
"I think this is an example of how we are kicking into gear," said Scott Yeager, Enron senior vice president of strategic development.
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