Tuesday, November 30, 2010

What The Comcast/Level 3 Fracas Is Really About: Money

The headlines are pretty rough: Comcast hates Netflix! Net neutrality is dying! Communist forces from Russia and Cuba are attack a small town in Colorado and a ragtag band of high school students band together to fight them (although, arguably, this may have nothing to do with Comcast/Level 3)! But what's really going on here? First, let's understand how data gets from the cloud to you. This stuff costs a lot of money and carriers didn't do it out of the kindness of their hearts. They want to be paid for their data centers. That's where Level 3 comes in. Level 3 acts as both a backbone - meaning a massive, nationwide carrier of data - and a Content Delivery Network. Back in the old days, the backbone would be the only thing on the net. But once it became clear that hosting all your data on one server was a bad idea, CDNs grew up and allowed content providers to cache their data in different physical locations. You'd hit one CDN in California and I'd hit one in New York. Things worked faster that way.

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