Singapore-based Software-as-a-Service (SaaS (News - Alert)) startup Gridblaze, offering a content storage network (CSN) platform for superfast content storage and retrieval, has been acquired by a popular consumer Internet service provider. Although, the company was not named and the financial details were not disclosed, a report suggests that it was acquitted by a Silicon Valley company under a technology transfer deal.
The report indicates that this 7-figure deal involves a proximity storage technology and patent. Gridblaze founder Mikhail Choo told E27 that the company has signed a transfer agreement with a “100+ person venture backed startup” which runs a “popular” Internet service. The Next Web reported that 1,200 Gridblaze users were notified that the service would shut down two weeks ago, and it will cease serving them from February 22.
The Singapore based startup will immediately stop the creation of new accounts and will advise customers to move their data to alternative storage providers before the 22nd of February 2013.
According to The Next Web report, the deal will see the U.S. Internet company gain the exclusive use of storage network, which launched last July in beta form. As per the report, it uses a network of globally-deployed servers to enable applications and services to run faster by using a server that is local to each user.
For example, wrote The Next Web reporter Jon Russell, “a user in Asia will enjoy a quicker experience because a service is routed through a local node in Asia, rather the traditional route that typically sees it run from Asia, to the US, and back to Asia.”
Gridblaze’s three-man development team will join the US-based buyer for a six month transfer period, after which the technology will be fully integrated into the host company.
Choo told The Next Web reporter that the deal is “bitter sweet” since, in the hands of a major Web company, the Gridblaze technology has the potential to help many more people than if it were to remain with Grindblaze. “Getting big companies to use a service [from a small startup] is not easy,” he added.
Though the technology and patent deal is exclusive with the U.S. company, the report indicates that Gridblaze’s Choo retains the rights to use them in the future to develop “consumer Internet-focused” companies based on the technology.