Competition Decimates Profits In CDN Space

from the deliver-me dept

Last month we noted a new entrant, Korea-based CDNetworks, in the red hot CDN space, where it competes with the likes of Akamai and LimeLight Networks. Since then, shares of Akamai and LimeLight have taken an utter shellacking, as investors wake up to the realization that all of this competition won't be very good for profits. Indeed, it seems that a bitter price war has already broken out, as the core CDN product rapidly becomes a commodity. This trend wasn't particularly hard to see, but the speed at which it's engulfed the industry does come as a bit of a surprise.

Reader Comments (rss)

(Flattened / Threaded)

  1. identicon
    CDN Guy, Aug 7th, 2007 @ 9:23pm

    Competition and CDN profits

    Do you even have any idea what the costs of moving data is for Akamai, Limelight, and CDNetworks?

    I think you would be shocked if you looked into it.

    reply to this | link to this | view in thread ]

  2. identicon
    Matt Bennett, Aug 9th, 2007 @ 1:01pm

    Ugh, I work in the tech sector and even I don't know off the bat what "CDN" means! Some acronyms require explanation!

    reply to this | link to this | view in thread ]

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