Comments on: Panther, CDN Networks Merge. More CDN Consolidation Ahead?

By: Voxel Adds Cloud Computing With SilverLining « Ads Sanrego

Voxel Adds Cloud Computing With SilverLining « Ads Sanrego — Tue, 17 Mar 2009 14:32:56 +0000

[...] month, two CDN companies merged in a fire sale for one of the companies, signaling further stress in the industry. The top company [...]

By: Voxel Adds Cloud Computing With SilverLining

Voxel Adds Cloud Computing With SilverLining — Mon, 16 Mar 2009 14:04:05 +0000

[...] month, two CDN companies merged in a fire sale for one of the companies, signaling further stress in the industry. The top company [...]

By: GNC-2009-02-27 #455 On my way to Japan « Technical Support Geek

GNC-2009-02-27 #455 On my way to Japan « Technical Support Geek — Tue, 03 Mar 2009 16:51:57 +0000

[...] 17 inch Macbook Pro Review Pirate Bay Day 9 Lenses Informational Why the Labels are Crying Wolf Panther and CDN Networks Merge Powerbook Battery Explodes RIP Rocky Mountain News Say Hello to Google Twitter Facebook Photos a [...]

By: Om Malik

Om Malik — Fri, 27 Feb 2009 02:06:20 +0000

@Jim Davis

Good comparison with GM, but then that’s less money than some of my competitors are making. I think the foreign revenues do tell the whole story here – $7 million: that isn’t that much even if you assume all of it came form US. Secondly, how much profit on that revenue of $7 million. As I said, they are a relatively marginal player.

By: Jim Davis

Jim Davis — Fri, 27 Feb 2009 02:02:25 +0000

CDNetworks has generated $34.3m in first 9mo of 08 (const. currency exchange) and $1.9m in profit. Foreign ops generated around $7m in revenue. That’s not a whole ton of money, but that’s more profit than GM’s making : )

By: Om Malik

Om Malik — Thu, 26 Feb 2009 17:02:19 +0000

@Travis

You know I would never argue with you on the business, but just because CD Networks raised $96.5 million doesn’t make it a winner. Yes they have some cash they can use to buy market share but can they make money? That is essentially a problem with this CDN business. :-)

By: Panther Express and CDNetworks Merger « SiliconAngle

Panther Express and CDNetworks Merger « SiliconAngle — Thu, 26 Feb 2009 15:15:09 +0000

[...] head start in the CDN business, as the name player of the CDN world, you will most undoubtedly see more CDN mergers in [...]

By: Alan Wilensky

Alan Wilensky — Thu, 26 Feb 2009 14:47:02 +0000

CDN provides a service that compensates for the deficiencies in the standard Internet architecture. As more applications and content become hosted in mega cloud data centers, and these hubs slowly build out better exchange routing between peers (not that capex intensive, compared to the outlays for the facility), the very last mile will be the block to low latency and high speeds. At that point, even Akamai can’t help you.

It will be a dying business.

By: Travis Kalanick

Travis Kalanick — Thu, 26 Feb 2009 09:51:03 +0000

Om, you are right on the money. I would expect serious consolidation in this market over the next 12-18 months.

I’m not sure however, that I would consider CDnetworks an “also-ran.” CDNetworks raised $96.5mm just a bit over a year ago. That’s a lot of coin, and puts them in the #3 slot in terms of independent CDNs (behind Akamai and Limelight).

Travis