California based BitGravity acquired by Tata Communications

Tata Communications has acquired content delivery network provider BitGravity. Being unable to generate revenues BitGravity needed to make a move and Tata Communications was presented with a good business opportunity.

In 2008, Tata Communications made an $11.5 Million strategic investment in California based Content Deliver Network (CDN) BitGravity. This enabled Tata to step into the space and provide solutions to Indian based companies like Quick Heal Technologies, Nimbus Communications, NDTV etc.

It has now been confirmed that Tata Communications has acquired BitGravity for an undisclosed amount. According to industry expert, Dan Rayburn, BitGravity wasn’t able to generate revenue and grow their customer base due to two reasons:

  • Focused on being low cost solution provider
  • Lack of marketing

BitGravity was one of the first to bring HD live video streaming over the Internet. The company also provides on-demand video and interactive applications. Talking about the acquisition, Bitgrvity co-founder Perry Wu said, “Tata Communications bet on BitGravity’s vision and people to provide innovative video services. As a combined entity, we can propel our position in the market, and the opportunity to accelerate our vision on a significantly larger scale was one we couldn’t pass up.”

Tata Communications is expected to benefit from the deal given it is at the right price and BitGravity was running out of options. Tata Communications, senior VP said, “Two years ago, we made an investment in BitGravity to provide content delivery services for Tata Communications. With the success we have seen in the marketplace and our ownership of BitGravity, we can now fully invest in the potential that exists around the globe and accelerate the delivery of new features and services to our customers.”