believes it has the solution for this problem.
Giraffic was founded in 2008 by CEO Yoel Zanger. According to Zanger, the company offers a technology for distribution and delivery of content over the internet, which affords high quality viewing of video and other rich media, and solving the problem of delays in loading the files (buffering).
While the volume of videos watched online continues to grow, the costs involved, due primarily to bandwidth, are still high. “Even YouTube proves that despite its vast popularity, the delivery costs of its content make it difficult for them to be profitable” says Zanger. He adds that everyone is talking about the potential of generating revenue from online video content, but in order to be profitable, costs must drop; it is not enough only to increase in-video advertizing.
“Our technology enables reducing delivery costs substantially, both in popular video content and in “long-tail” content, utilizing Peer-to-Peer (P2P) technology," says Zanger. “If P2P technology was successful in replacing multi-billion dollar infrastructures in the international phone calling sector with Skype an example of that, our technology aims to do the same for online video delivery."
Zanger claims that Giraffic’s technology is not dependant on the level of popularity of content or the geographical location of the end users. Delays in loading the content - buffering problems - are often a result of content having to be fetched from server locations which are physically distant from the location of the end user (primarily for “long-tail” content), but delivery of content using our technology is done simultaneously from multiple sources, which can constantly backup each other in order to provide a seamless and fluent stream."
A public beta version of Giraffic’s product will be launched next month, after being successfully trialed in a closed alpha for several months. According to Zanger, the company is in discussions with customers in the US, in order to test the technology. “Companies invest millions of dollars in bandwidth, but we can save about 70% of these costs, while providing end-users a better experience at the same time," he claims.
The company has raised about $1 million so far, from Startup Factory, as well as private investors, including Reuven Agassi, Menashe Rothschild and Nati Perry. It is currently in the midst of an additional fund raising round.
Published by Globes [online], Israel business news - www.globes-online.com - on December 23, 2009
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