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CacheLogic Scores Large Capital Investment
January 19, 2005
Thomas Mennecke
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CacheLogic, located in the United Kingdom, was considered "outside the P2P circle of trust" in the eyes of many file-traders. However, unlike companies that duly belong outside the circle, such as Bay TSP, CacheLogic is slowly becoming looked upon with less suspicion and more acceptance as the nature of this company appears benign. A short demonstration and understanding of this company should make this apparent.

This is CacheLogic in a nutshell. Say an individual has Verizon DSL as their ISP. With 2.5 Mbps down and 125 Kbps up, the individual has adequate upload bandwidth to contribute files to various P2P networks (for example, the upload hungry network BitTorrent.) According to CacheLogic's early 2004 research, it was discovered that BitTorrent litterally blew away the competition when it came to consuming bandwidth. This has proven to be problematic to many ISPs, considering a minority of individuals is consuming a majority of the bandwidth.

ISPs claim that such bandwidth consumption is even more problematic to other members, who reportedly experience slowdowns and other network headaches. ISPs also report that large bandwidth consumption may lead to higher prices, or tiered bandwidth (which Optimum Online may implement soon.)

However, ISPs are not unintelligent creatures and understand the P2P revolution has helped fuel broadband expansion. CacheLogic also understands this. Instead of banning P2P traffic as a solution, ISPs and CacheLogic are working to instead co-exist with P2P traffic and find viable solutions so all customers walk away happy. CacheLogic provides the software and hardware so ISPs can accomplish this.

CacheLogic offers a suite of hardware and software, which stores frequently queried files from P2P networks (a P2P "Cache".) Their software intelligently routes the requests to the Cache server, thereby avoiding the network being flooded with thousands of search requests. You can read more details on CacheLogic here.

This potentially resourceful tool is becoming a valuable asset to many ISPs desperately looking to cut down their operating costs, thereby saving their customers money. Exemplifying this potential, three large European venture capitalist firms have invested a total of $5.6 million in CacheLogic. The investment firms are 3i, The Cambridge Gateway Fund and Pentech Ventures.

With this large cash infusion (no pun intended), CacheLogic hopes to expand its global reach.

“We have demonstrated the strength of our technology and proposition to the market and are now moving into the next stage of our evolution by broadening our geographical coverage and developing a new family of innovative products” said Adam Twiss, founder and CEO of CacheLogic.

One may question the legality of storing file-sharing material, however ISPs are generally protected from potentially copyrighted material being stored on their servers. Caching P2P material is in many ways similar to allegedly copyrighted material being stored on an ISP Newsgroup server. How the MPAA and RIAA react to P2P caching of course will be a completely different story.

This story is filed in these Slyck News categories
Technology News :: Organizations/Initiatives

You can read the press release here.

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