Comments on: CDNs, They Are Hot http://gigaom.com/2006/09/29/cdns-they-are-hot/ The Business of Technology Sun, 23 Nov 2008 12:22:35 +0000 http://wordpress.org/?v=MU hourly 1 By: Akshay Dabholkar » CDN Research and Info http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-336926 Akshay Dabholkar » CDN Research and Info Wed, 11 Jul 2007 23:10:52 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-336926 <p>[...] http://gigaom.com/2006/09/29/cdns-they-are-hot/ [...]</p> [...] (link) [...]

]]> By: GigaOM » Mobile Media needs Mobile CDNs http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65916 GigaOM » Mobile Media needs Mobile CDNs Sat, 17 Mar 2007 18:42:17 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65916 <p>[...] content close to the narrowband last mile of modems and ISDN connections. As I’ve written about here before, even today in the broadband age CDNs are booming because digital media is pushing large pieces of [...]</p> [...] content close to the narrowband last mile of modems and ISDN connections. As I’ve written about here before, even today in the broadband age CDNs are booming because digital media is pushing large pieces of [...]

]]> By: Matty http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65915 Matty Thu, 12 Oct 2006 17:09:54 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65915 <p>"Hot" is the word… Internap getting into the CDN space today buying 'VitalStream'</p> <p>http://biz.yahoo.com/bw/061012/20061012005433.html?.v=1</p> “Hot” is the word…
Internap getting into the CDN space today buying ‘VitalStream’

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]]> By: Allan Leinwand http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65914 Allan Leinwand Fri, 06 Oct 2006 22:21:59 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65914 <p>Hi folks - sorry I was absent from this discussion for a few days as I was traveling…</p> <p>Tellit, my agenda was simple - to have a dialogue with the GigaOm community about a technology and market that is of interest to me and others. Looks like that was accomplished :) Please feel free to contact me privately if you'd like to continue the discussion.</p> <p>Matty, thanks very much for the kind words, they are appreciated.</p> Hi folks - sorry I was absent from this discussion for a few days as I was traveling…

Tellit, my agenda was simple - to have a dialogue with the GigaOm community about a technology and market that is of interest to me and others. Looks like that was accomplished :) Please feel free to contact me privately if you’d like to continue the discussion.

Matty, thanks very much for the kind words, they are appreciated.

]]> By: Matty http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65913 Matty Wed, 04 Oct 2006 16:50:41 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65913 <p>Tellit, I'm sure that all the fumes from the grill you are flipping burgers at (doing your 'job') are making it hard to see properly so I'll spell it out for you..very very sloowwwwwwwly…</p> <p>If you read the thread (again) you will see that the person who wrote the comment regarding your terrible spelling was called "Matty*" NOT Allan. *HE IS A DIFFERENT PERSON …ie (me).</p> <p>Allan is a good guy, I like him and he's smart as hell…you on the other hand should seriously consider an inveastment (sic) in a dictionary and possibly a new pair of glasses/reading lessons.</p> <p>We've established that you can't spell & you can't even read a simple sentence without getting confused…so maybe you should try telling us again why the numbers you'd provided should be given even an ounce of credibility…No, actually …better yet just "shut the hell up", get back to your 'job' and let the grown ups talk.</p> Tellit,
I’m sure that all the fumes from the grill you are flipping burgers at
(doing your ‘job’) are making it hard to see properly so I’ll spell it out for you..very very sloowwwwwwwly…

If you read the thread (again) you will see that the person who wrote the comment regarding your terrible spelling was called “Matty*” NOT Allan. *HE IS A DIFFERENT PERSON …ie (me).

Allan is a good guy, I like him and he’s smart as hell…you on the other hand should seriously consider an inveastment (sic) in a dictionary and possibly a new pair of glasses/reading lessons.

We’ve established that you can’t spell & you can’t even read a simple sentence without getting confused…so maybe you should try telling us again why the numbers you’d provided should be given even an ounce of credibility…No, actually …better yet just “shut the hell up”, get back to your ‘job’ and let the grown ups talk.

]]> By: Tellit http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65912 Tellit Wed, 04 Oct 2006 01:07:27 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65912 <p>Allan, is that all you can bring.? "Know it All".? Kind of thought that was your role, be it old school. Those of us that have jobs don't always have time to spell check. Why don't you do it for me.</p> Allan, is that all you can bring.? “Know it All”.? Kind of thought that was your role, be it old school. Those of us that have jobs don’t always have time to spell check. Why don’t you do it for me.

]]> By: Matty http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65911 Matty Tue, 03 Oct 2006 14:38:03 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65911 <p>Tellit, 2 words - "Spell Check". if you insist on being a "know it all" - at least learn how to spell so that we can take you a little more seriously.</p> <p>Allan, love ya man ;-)</p> Tellit,
2 words - “Spell Check”.
if you insist on being a “know it all” - at least learn how to spell so that we can take you a little more seriously.

Allan, love ya man ;-)

]]> By: Tellit http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65910 Tellit Mon, 02 Oct 2006 17:02:01 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65910 <p>Allan, what is your agenda.? Last time I checked Digital Island your former compamy got hammered by Akamai in district court for patent infringement much like what Lime Light is experiencing. DI merged with Sandpiper, got bought by Cable and Wireless and then bought out of BK. Looks like you could not differemnciate, or take adbvantage of the opportunity back then. To clarify on LimeLight, Goldman bought 53% of the company. The management team and investors at LL got 95 million in cash and retained 25% in stock. 35 million will be used for build out with a good portion used to fight Akam. Deal was 200 million pre-money. </p> <p>CDN's a fine space, but much more required in 2006 to take advantage of high margin $. You seemed to miss that, narrow thinking. This requires quite the inveastment</p> Allan, what is your agenda.? Last time I checked Digital Island your former compamy got hammered by Akamai in district court for patent infringement much like what Lime Light is experiencing. DI merged with Sandpiper, got bought by Cable and Wireless and then bought out of BK. Looks like you could not differemnciate, or take adbvantage of the opportunity back then. To clarify on LimeLight, Goldman bought 53% of the company. The management team and investors at LL got 95 million in cash and retained 25% in stock. 35 million will be used for build out with a good portion used to fight Akam. Deal was 200 million pre-money.

CDN’s a fine space, but much more required in 2006 to take advantage of high margin $. You seemed to miss that, narrow thinking. This requires quite the inveastment

]]> By: ANC http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65909 ANC Mon, 02 Oct 2006 07:36:07 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65909 <p>Actually, the interesting thing is that not everybody in the CDN space is making money. For instance, CDN service providers are in demand at the moment due to lot of video and media content, but, the equipment manufacturers (for caches and routing intelligence used by service providers) are consolidating.</p> <p>http://www.thetechjobber.com/2006/07/27/coming-back-of-the-cdns/</p> Actually, the interesting thing is that not everybody in the CDN space is making money. For instance, CDN service providers are in demand at the moment due to lot of video and media content, but, the equipment manufacturers (for caches and routing intelligence used by service providers) are consolidating.

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]]> By: The Wolf http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65908 The Wolf Sat, 30 Sep 2006 00:30:58 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65908 <p>JNG, you do know that you can have a multi homed BGP routed setup without paying out the a$$ via the CDN's right? </p> <p>For average customers this is all that's needed and it would keep them under $20 per mbs. with great reliability. When you are doing under 100mbs with a CDN you are getting raped in prices. There's no if ands or buts about it. </p> <p>Again, FOR MOST companies CDNs are a rip off. </p> <p>Although I'm sure at the Apple level Akamai's prices look similar to a bargain host's. Or at least they are cheap enough to keep a company from having to setup the infrastructure. </p> <p>I have been delivering content at over 1gbs for the past 4 years. I think I know a bit about media/content delivery. All of the problems you are talking about have caused me no significant issues. I maintain a backup setup in a remote location just in case. That's all. That's less for content delivery and more for data security but the delivery is there when I need it obviously. </p> <p>If I had gone with a CDN I'd be paying 200% more than I am now.</p> JNG, you do know that you can have a multi homed BGP routed setup without paying out the a$$ via the CDN’s right?

For average customers this is all that’s needed and it would keep them under $20 per mbs. with great reliability. When you are doing under 100mbs with a CDN you are getting raped in prices. There’s no if ands or buts about it.

Again, FOR MOST companies CDNs are a rip off.

Although I’m sure at the Apple level Akamai’s prices look similar to a bargain host’s. Or at least they are cheap enough to keep a company from having to setup the infrastructure.

I have been delivering content at over 1gbs for the past 4 years. I think I know a bit about media/content delivery. All of the problems you are talking about have caused me no significant issues. I maintain a backup setup in a remote location just in case. That’s all. That’s less for content delivery and more for data security but the delivery is there when I need it obviously.

If I had gone with a CDN I’d be paying 200% more than I am now.

]]> By: jng http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65907 jng Fri, 29 Sep 2006 18:44:20 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65907 <p>I completely disagree that CDN's in general are totally unnecessary these days. Sure, the need for a CDN to deliver small media files (.jpg, .gif, etc) may not be necessary, but that's not where this market is going anymore. Today we are talking about huge on demand content, streaming media with large bitrates, and enormous files. Companies rely on delivering this content on a daily basis to hundreds and thousands of users simultaneously, and for some it's 100% of their business.</p> <p>Like Phil said, there are other reasons CDN's are needed. Traffic spikes, outages, and redundancy are just a few. A single POP is not a wise idea if delivering media is at all important to your business. How can a single POP compete with multiple POP's delivering your content using BGP? Quite simply, it can't.</p> <p>Without CDN’s, CBS couldn’t have successfully streamed the NCAA March Madness tournament to over 200,000 people. Companies like YouTube and MySpace wouldn’t be what they are today. The on demand music and movie market wouldn't be as successful as it has become.</p> <p>With that said, there are now second generation CDN’s with networks built from the ground up to easily handle the direction media is taking us.</p> I completely disagree that CDN’s in general are totally unnecessary these days. Sure, the need for a CDN to deliver small media files (.jpg, .gif, etc) may not be necessary, but that’s not where this market is going anymore. Today we are talking about huge on demand content, streaming media with large bitrates, and enormous files. Companies rely on delivering this content on a daily basis to hundreds and thousands of users simultaneously, and for some it’s 100% of their business.

Like Phil said, there are other reasons CDN’s are needed. Traffic spikes, outages, and redundancy are just a few. A single POP is not a wise idea if delivering media is at all important to your business. How can a single POP compete with multiple POP’s delivering your content using BGP? Quite simply, it can’t.

Without CDN’s, CBS couldn’t have successfully streamed the NCAA March Madness tournament to over 200,000 people. Companies like YouTube and MySpace wouldn’t be what they are today. The on demand music and movie market wouldn’t be as successful as it has become.

With that said, there are now second generation CDN’s with networks built from the ground up to easily handle the direction media is taking us.

]]> By: Phil N. http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65906 Phil N. Fri, 29 Sep 2006 16:08:39 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65906 <p>Ted, delivery speed is not the only reason to use a CDN. The ability to handle traffic spikes or localized outages is equally (if not more) important for a site with any meaningful user base -- and you simply can't do either with a single point of presence.</p> <p>I do agree that Akamai is wildly overpriced. But there are smaller players out there with cost-effective infrastructures and interesting pricing alternatives (rollover, pay-as-you-go).</p> Ted, delivery speed is not the only reason to use a CDN. The ability to handle traffic spikes or localized outages is equally (if not more) important for a site with any meaningful user base — and you simply can’t do either with a single point of presence.

I do agree that Akamai is wildly overpriced. But there are smaller players out there with cost-effective infrastructures and interesting pricing alternatives (rollover, pay-as-you-go).

]]> By: Allan Leinwand http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65905 Allan Leinwand Fri, 29 Sep 2006 14:46:49 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65905 <p>Hi Andrew,</p> <p>Thanks for the correction on my P/E ratio. I think your numbers show why the CDN space is so hot for private equity right now. And the market cap of AKAM keeps on moving upwards…</p> <p>Allan</p> Hi Andrew,

Thanks for the correction on my P/E ratio. I think your numbers show why the CDN space is so hot for private equity right now. And the market cap of AKAM keeps on moving upwards…

Allan

]]> By: soxiam http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65904 soxiam Fri, 29 Sep 2006 13:28:35 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65904 <p>I Largely agree with Ted that the so called "last mile" problem is much less of an issue than it once was when Akamai and D.I. ruled the streaming media networks back in the 90's. One other thought: A lot of high tech investors got burned funding CDN's when the market crashed, I wonder if bad memory like that could make them think twice before investing in the same space again.</p> I Largely agree with Ted that the so called “last mile” problem is much less of an issue than it once was when Akamai and D.I. ruled the streaming media networks back in the 90’s. One other thought: A lot of high tech investors got burned funding CDN’s when the market crashed, I wonder if bad memory like that could make them think twice before investing in the same space again.

]]> By: Andrew Schmitt http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65903 Andrew Schmitt Fri, 29 Sep 2006 09:10:32 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65903 <p>Your P/E ratio is a simple pull from Yahoo Finance and while not wrong, heavily distorts reality.</p> <p>AKAM earned $11M last quarter and sells for roughly $7.5B dollars. There was a one time gain a year ago of $225M that distorts the P/E calculation.</p> <p>THeir P/E ratio is 170 if you annualize last quarter. And that is undiluted.</p> Your P/E ratio is a simple pull from Yahoo Finance and while not wrong, heavily distorts reality.

AKAM earned $11M last quarter and sells for roughly $7.5B dollars. There was a one time gain a year ago of $225M that distorts the P/E calculation.

THeir P/E ratio is 170 if you annualize last quarter. And that is undiluted.

]]> By: Ted Avery http://gigaom.com/2006/09/29/cdns-they-are-hot/#comment-65902 Ted Avery Fri, 29 Sep 2006 08:21:17 +0000 http://gigaom.wordpress.com/2006/09/29/cdns-they-are-hot/#comment-65902 <p>CDNs are totally unecessary now a days. Back when latency was a true problem they served a purpose. Now a standard $109 box at EV1 can serve a file to a user just as fast as Akamai can. Sometimes faster and also sometimes slower. </p> <p>What I'm saying is CDN's are over priced. Fortunately for them they are still riding high on 2001 perceptions that corporate IT guys still have. It's like buying a Maybach for them, kind of a status symbol… although a Maxima would get them to their destination just as fast on the 65mph freeway they are both on. </p> <p>Stop the madness people!</p> CDNs are totally unecessary now a days. Back when latency was a true problem they served a purpose. Now a standard $109 box at EV1 can serve a file to a user just as fast as Akamai can. Sometimes faster and also sometimes slower.

What I’m saying is CDN’s are over priced. Fortunately for them they are still riding high on 2001 perceptions that corporate IT guys still have. It’s like buying a Maybach for them, kind of a status symbol… although a Maxima would get them to their destination just as fast on the 65mph freeway they are both on.

Stop the madness people!

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