Amazon Web Services to Launch CDN Services

Akamai, Limelight, Level 3 and more than a dozen other startups should be worried about Amazon’s move into the content deliver business. Amazon Web Services’ latest offering will cause price pressure in an already commoditized business. In an email to its customers today, Amazon said that the service will be available later this year and will utilize the company’s points of presence in North America, Europe and Asia. This is good news for online video startups that are looking for CDN services but are on a budget. The company will charge its customers on usage instead of the long-term contracts current players foist on their clients. In addition, the company will publish its prices on the web and, most importantly, it is going to be inexpensive. You can read our full news analysis on GigaOM.