Santa Clara, California November 1, 2010 (ConteXtream) —ConteXtream, offering network operators a radically new approach to monetizing and managing their broadband networks, debuted today, introducing its flagship product the ConteXtream Service Delivery Grid (SDG). The SDG is now in trials with multiple Tier-one operators, and deployments are expected in the first half of 2011.  The company also announced that it has secured $14 million in Series B financing bringing the company’s total financing to $29 million. Lead investor, Comcast Interactive Capital was joined by Verizon Investments Inc. (assisted by Verizon Ventures) as well as all existing investors Benhamou Global Ventures, Gemini Israel Funds, Norwest Venture Partners and Sofinnova Ventures.

The SDG—an industry first—transforms broadband networks from “pipes” into agile and dynamic “smart clouds.” It gives operators multiple paths to monetize their broadband networks:

  • “Cloud-enabling” operators own media and data applications. This drives increased productivity from servers and software, thereby delivering significant CAPEX savings in application resources and networking costs
  • Enriching subscribers’ connections to Internet sites and  applications, enabling operators, for the first time, to have a comprehensive approach to adding value to and partnering with Internet Application Service Providers (ASPs)
  • Orchestrating operators delivery of personalized bundles of services to every subscriber, affording increased ARPU, improved subscriber loyalty, cutting CAPEX and improving service velocity
  • Optimizing delivery of media and applications, reducing the load on operator networks and improving quality of experience for subscribers

“For too long, networking vendors have built products on the notion of broadband networks as merely faster version of traditional ‘pipes,’” said Eve Griliches, managing partner, ACG Research. “ConteXtream has re-thought broadband networks based on a cloud paradigm that promises to make operator networks rival OTTs in terms of agility and cost effectiveness, and offers operators much richer opportunities to monetize in concert with the OTTs.”

According to Louis Toth, senior managing director of Comcast Interactive Capital, “Comcast has grown by rolling out innovative products and services and giving consumers their entertainment wherever and whenever they want it.  We invested in ConteXtream because, by cloud enabling our network, its Service Delivery Grid can help us continue to deliver exciting new services to our customers in a cost-effective way.”

The Power of Service Delivery Grid Technology
The SDG virtualizes how operators connect subscribers to content and services, leveraging operators’ real-time awareness of subscribers, network and application context to optimize every subscriber-application flow. It consists of software running on high performance yet cost effective industry standard servers, distributed and meshed together across any transport network.

The power of the SDG lies in its re-application of Grid Computing technology to the problem of virtualizing Operator networks. The SDG harnesses multiple industry standard servers to work together as a single entity, virtualizing even the largest networks.

  • Powerful industry standard servers are highly flexible and cost effective. Each Grid Server is currently able to handle the virtualization and session processing for up to 7 million subscriber-application “sessions” and 40Gbps of traffic.
  • Grid Computing is a proven approach to building distributed systems which scale and offer carrier-class resiliency. Using these techniques, the SDG has been proven to scale to a hundred million sessions and over a Tbps of bandwidth.

“ConteXtream has found a way to apply the power and flexibility of industry compute resources to cloud-enable broadband networks,” said Michael Howard, co-founder and principal analyst, Infonetics Research. “Given the rapidly declining price/performance curves of standard servers, we believe that high function networking applications will move away from proprietary hardware, and gradually be mini data centers located close to networking gear in service provider central offices.”

“Operators are under significant pressure to cost effectively monetize bandwidth and yet improve the subscriber experience,” said Yaron Simler, CEO of ConteXtream. “With active trials underway at a number of tier one operators, as well as the endorsement and quality of our investment team, ConteXtream brings a complete solution to help operators, for the first time, address their business needs.  It is clear that our timing is right, and there is a strong need for our Service Delivery Grid solution to address the major issues operators are facing.”

Comcast Interactive Capital
Comcast Interactive Capital (CIC) is a $500M venture capital fund focused on broadband, consumer web, advanced advertising, and enterprise businesses. CIC is affiliated with Comcast Corporation, a diversified global leader in cable, broadband services, communications, media, and entertainment.  CIC’s primary goal is to generate superior financial returns from venture capital investments in early and growth-stage technology, consumer and services businesses. To achieve this goal, CIC works to enable the success of its portfolio companies by applying the unique resources, contacts, experience, and insight of both CIC and the Comcast family of companies.

About Verizon Ventures
Verizon Ventures seeks out promising entrepreneurial companies to support innovation in Verizon Communications Inc. (NYSE, NASDAQ: VZ) business units. Verizon Ventures focuses on new products, technologies, applications or services that complement Verizon networks, service platforms or distribution channels. For more information,

About ConteXtream
ConteXtream is a privately held software company delivering the industry’s first cloud-based network virtualization framework that enables network operators to leverage the power of proven virtualization and grid technologies to extract more value and profitability from their broadband networks.  The ConteXtream Service Delivery Grid delivers higher network performance at a lower cost per subscriber while enabling operators to customize applications on a per-session, per- subscriber basis for a unique, highly personalized subscriber experience. Headquartered in Santa Clara, Calif., ConteXtream is backed by leading Silicon Valley and global investors including Benhamou Global Ventures, Gemini Israel Funds, Norwest Venture Partners and Sofinnova Ventures as well as Comcast Interactive Capital and Verizon Investments.  For additional information, please

Media Contacts
Dale Legaspi
Engage PR for ConteXtream
+1.510.748.8200, ext. 208

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