Minnetonka Co. Makes Custom Server Equipment for Netflix

The custom equipment that Intequus made for Netflix’s new content delivery network is designed to help Netflix’s video content stream more efficiently.

Local tech firm Intequus, LLC, said Tuesday that Netflix, Inc., selected it to create hardware for Netflix’s new content delivery network.

Minnetonka-based Intequus provides custom server equipment and computing solutions for software vendors, equipment manufacturers, data centers, and other customers.

The company said Tuesday that it was selected as the “systems integrator” for Netflix’s recently announced Open Connect initiative. Netflix has traditionally contracted third-party networks for delivering video content to its more than 23 million subscribers. Open Connect is Netflix’s own content delivery network, and although only about 5 percent of its data is currently being served through Open Connect, the company aims to shift the majority of its content to its own network in coming years.

Netflix charged Intequus with developing high-density hardware that is capable of fast speeds, requires limited maintenance, and can be installed at Internet service provider data centers. Intequus developed hardware products that each feature more than 100 terabytes of storage and 10 gigabytes of network throughput, which refers to the volume of data that can flow through the network. The hardware can also be tailored to fit various server rack sizes in data centers, and it can be pre-loaded with Netflix software and video content before it is installed in a data center.

Financial terms of the partnership were not disclosed, and an Intequus spokesman declined to comment on the number of units that the company expects to sell to Netflix. He pointed out that Sandvine, a third-party research firm, estimated that roughly one-third of all peak U.S. Internet traffic comes from broadband users streaming Netflix content, “and this solution that we are working on with Netflix will represent the majority of the content within the next several years.”

The company said that the custom solutions it developed will ultimately enable Netflix to provide better service to customers by streaming content more efficiently.

“Customers like Netflix know exactly what they want, and it’s our job to get our hands dirty and apply our hardware design and integration skills to consistently deliver on those requirements,” Dave Guzzi, Intequus’ general manager, said in a statement.