Where it's based: Edison, N.J.
When it was founded: 2011
Why it's Fierce: It's no secret that data from video is beginning to weigh heavily on wireless networks, both in the United States and abroad. According to Cisco's latest Visual Networking Index (VNI) forecast, IP video will account for 80 percent of all IP traffic by 2019 (up from 67 percent in 2014) and cellular networks will be carrying fully 14 percent of all of the world's IP traffic by 2019.
What does that mean for wireless network operators? Look no further than the FCC's recent AWS-3 spectrum auction, which raised a record total of $41.329 billion in net winning bids. That figure is double even the highest predictions made before the auction started. AWS-3 winners generally plan to use their new spectrum licenses to add capacity and speed to their wireless networks.
But spectrum isn't the only maneuver wireless carriers can use in their efforts to get ahead of the expected data crunch. They're also looking at ways to make their networks smarter, particularly when it comes to video.
That's where A2Zlogix comes in. Launched from technology initially developed in Sarnoff Labs in Princeton, N.J., A2Zlogix's 40 employees offer two main services to the world's wireless network operators: Video Bandwidth Reduction (VBR) technology and Image Bandwidth Reduction (IBR) technology. And, according to the company, those technologies can result in some major cost-savings--A2Zlogix said wireless carrier customers can use its technology to increase their total overall downlink and uplink capacity by 11 percent within their existing infrastructure. "This would equal a $36B business value (i.e., 11 percent of $330 billion)," the company states, based on its internal estimates of network buildout costs and the performance of its technologies.
A2Zlogix's technologies "solve big issues in the marketplace right now," said Sandra Bullock, the company's director of marketing and training. "We're solving the major pain points felt by service providers, content providers and distributors by reducing bandwidth requirements for streaming videos and transmitting images in real time."
Backed by 40 patents and a $25 million round of private funding earlier this year, A2Zlogix already claims some serious clout: Verizon Digital Media Services last year launched A2Zlogix's video bandwidth reduction technology, a move that Verizon said "significantly reduces the size of video files without the color banding and degradation that occurs with other noise-suppression technologies. It also extends efficiencies for delivery of linear, live and video-on-demand broadcasts."
Verizon's move is that much more interesting in light of the carrier's plan to launch an OTT video service over its mobile network this year, as well as its recent acquisition of AOL for video-ad technology and streaming video content.
What's next: Robert Allin, A2Zlogix's marketing strategist, said the company is working to update its technologies to make them better align with carriers' network strategies and business models, as well as newer standards for video and image compression. He added that A2Zlogix also plans to pursue additional telecom customers throughout North American and Western Europe.