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.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: cdn, infrastructure
Companies: akamai, cdnetworks, limelight
Reader Comments
Subscribe: RSS
View by: Time | Thread
Competition and CDN profits
I think you would be shocked if you looked into it.
[ link to this | view in thread ]
[ link to this | view in thread ]