Comments on: Level3 and Akamai – The Investment Paradox http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/ More Signal. Less Noise. Thu, 02 Apr 2009 12:29:57 -0700 http://wordpress.org/?v=2.9.1 hourly 1 By: Abe http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-913 Abe Mon, 07 Jan 2008 08:03:17 +0000 http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-913 How does selling CDN that works within a single network, in L3's case their own, really work? Akamai's strength is having servers in many different networks, allowing both network and geographic closeness to end-users. How does selling CDN that works within a single network, in L3’s case their own, really work?

Akamai’s strength is having servers in many different networks, allowing both network and geographic closeness to end-users.

]]> By: Andy Kiefer http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-912 Andy Kiefer Fri, 21 Sep 2007 00:41:37 +0000 http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-912 Well, to put the L3 vs Akamai debate to rest, and I quote an earlier post here "Finally, it’s alot easier for a Level 3 to get into Akamai’s business than it is for Akamai to get into Level 3’s." And that's exactly whats happened. L3 is now selling their own CDN on their own network and is in direct competition with Akamai in the CDN space. So L3 doesn't care how you want to deliver, from the origin servers or cached on their network. And L3 is working on streaming CDN services and should have that available by end of the year. It's already in beta now... And I doubt that legitamizing p2p distribution will have much effect on either model, as the legit distribution of content is their bread & butter anyways, mlb.tv, espn, cnn, etc... Well, to put the L3 vs Akamai debate to rest, and I quote an earlier post here “Finally, it’s alot easier for a Level 3 to get into Akamai’s business than it is for Akamai to get into Level 3’s.”

And that’s exactly whats happened. L3 is now selling their own CDN on their own network and is in direct competition with Akamai in the CDN space. So L3 doesn’t care how you want to deliver, from the origin servers or cached on their network. And L3 is working on streaming CDN services and should have that available by end of the year. It’s already in beta now… And I doubt that legitamizing p2p distribution will have much effect on either model, as the legit distribution of content is their bread & butter anyways, mlb.tv, espn, cnn, etc…

]]> By: jc http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-911 jc Tue, 06 Feb 2007 13:56:28 +0000 http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-911 What impact will AKAM buy of Netli have? Just buying out another upsatrt competitor or do they offer something significant to AKAM offerings? Feb 5 (Reuters) - Akamai Technologies Inc. (AKAM.O: Quote, Profile , Research) said it agreed to acquire Netli for about 3.2 million shares to enhance its products that improve the performance of Web- and other Internet-based applications. The deal values Netli at about $178 million based Akamai's closing stock price on Friday. The company, which speeds up delivery of digital information via the Web, said the deal is expected to be neutral to its 2007 earnings. (Reporting by Amitha Rajan in Bangalore) What impact will AKAM buy of Netli have? Just buying out another upsatrt competitor or do they offer something significant to AKAM offerings?
Feb 5 (Reuters) – Akamai Technologies Inc. (AKAM.O: Quote, Profile , Research) said it agreed to acquire Netli for about 3.2 million shares to enhance its products that improve the performance of Web- and other Internet-based applications.

The deal values Netli at about $178 million based Akamai’s closing stock price on Friday.

The company, which speeds up delivery of digital information via the Web, said the deal is expected to be neutral to its 2007 earnings. (Reporting by Amitha Rajan in Bangalore)

]]> By: jc http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-910 jc Tue, 23 Jan 2007 21:33:44 +0000 http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-910 If/when there is a bandwidth shortage then LVLT obviously benefits but the value of AKAM's service becomes more valuable too. I remember one of AKAM's early problems was that because bandwidth had been so overbuilt the prices were much lower than expected and AKAM couldn't offer the savings advantage they anticipated. If/when there is a bandwidth shortage then LVLT obviously benefits but the value of AKAM’s service becomes more valuable too. I remember one of AKAM’s early problems was that because bandwidth had been so overbuilt the prices were much lower than expected and AKAM couldn’t offer the savings advantage they anticipated.

]]> By: Damian J http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-909 Damian J Thu, 11 Jan 2007 18:41:37 +0000 http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-909 One vote Dan and one vote for Jason. Symbiotic relationship between the two (Level3 and Akamai) with Akamai enabling and continuing to enable more growth for both concerns. There may be some customer-envy and tech envy (either way) but Akamai has provided content providers a way to NOT become a hostage to peering and peering limitations both technical and political/business... conceptually and practically, they have flattened/unified the Internet for their customers such that 'the cloud' works with one point of contact for their customers web apps. As an added benefit, 'the cloud' is more efficient and the networks are better off for someone having made sense of the clan wars and making the whole of the web more commercially practical. It's about 'core competencies,' sorry for the cliche but both companies have their own and a CDN I believe really needs to be network independent, something that a L3/Savvis combo would have a hard time pulling off?. I think. One vote Dan and one vote for Jason. Symbiotic relationship between the two (Level3 and Akamai) with Akamai enabling and continuing to enable more growth for both concerns. There may be some customer-envy and tech envy (either way) but Akamai has provided content providers a way to NOT become a hostage to peering and peering limitations both technical and political/business… conceptually and practically, they have flattened/unified the Internet for their customers such that ‘the cloud’ works with one point of contact for their customers web apps. As an added benefit, ‘the cloud’ is more efficient and the networks are better off for someone having made sense of the clan wars and making the whole of the web more commercially practical. It’s about ‘core competencies,’ sorry for the cliche but both companies have their own and a CDN I believe really needs to be network independent, something that a L3/Savvis combo would have a hard time pulling off?. I think.

]]> By: Jason Evans http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-908 Jason Evans Wed, 03 Jan 2007 13:09:14 +0000 http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-908 Sorry, but thats not correct. Akamai would love to offload 99% of its transit via peering, but it doesn't. They pay Level3 - and all other Tier 1 ISP's - for transit. Sorry, but thats not correct. Akamai would love to offload 99% of its transit via peering, but it doesn’t. They pay Level3 – and all other Tier 1 ISP’s – for transit.

]]> By: Andrew Schmitt http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-907 Andrew Schmitt Fri, 29 Dec 2006 19:35:07 +0000 http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-907 Yes, but 99% of the traffic generated by a CDN is probably peered with the ISP delivering the content. L3 doesn't benefit unless the ISP needs to lease dark fiber. Yes, but 99% of the traffic generated by a CDN is probably peered with the ISP delivering the content. L3 doesn’t benefit unless the ISP needs to lease dark fiber.

]]> By: Jason Evans http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-906 Jason Evans Fri, 29 Dec 2006 13:36:36 +0000 http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-906 Tech Garble!? I was trying to speak as tech-laymen as possible. :) Obviously, with the Savvis CDN acquisition by L3, this entire post with comments has been altered, but my initial point hasn't, so I'll stress this point once more: Akamai doesn't own a network backbone. Therefore, they MUST buy transit from ISP's such as Level3. A CDN is just another avenue for an ISP to make $$ on transit revenue. CDN's give an ISP higher global network utilization, not less. Tech Garble!? I was trying to speak as tech-laymen as possible. :)

Obviously, with the Savvis CDN acquisition by L3, this entire post with comments has been altered, but my initial point hasn’t, so I’ll stress this point once more:

Akamai doesn’t own a network backbone. Therefore, they MUST buy transit from ISP’s such as Level3.

A CDN is just another avenue for an ISP to make $$ on transit revenue. CDN’s give an ISP higher global network utilization, not less.

]]> By: Andrew Schmitt http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-905 Andrew Schmitt Wed, 27 Dec 2006 04:44:44 +0000 http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-905 and gee whiz we all know Cramer is a Tech genius. I'm not saying L3 and AKAM compete (though a recent announcement may change that). What I am saying is increased demand for CDN services reduces what the network utilization would have been without them. The media and casual investors mistakenly believe both transport bandwidth and CDN's will benefit from Video. What I am saying is that the <b>profit</B> to be made will be highly asymmetrical. and gee whiz we all know Cramer is a Tech genius.

I’m not saying L3 and AKAM compete (though a recent announcement may change that). What I am saying is increased demand for CDN services reduces what the network utilization would have been without them.

The media and casual investors mistakenly believe both transport bandwidth and CDN’s will benefit from Video. What I am saying is that the profit to be made will be highly asymmetrical.

]]> By: Herb Luria http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-904 Herb Luria Tue, 26 Dec 2006 20:23:09 +0000 http://www.nyquistcapital.com/2006/12/21/level3-and-akamai-the-investment-paradox/#comment-904 There is a lot of tech lingo here that most people do not understand, including myself and probably the author of the thesis that Akamai and Level 3 are "mutually exclusive"-- James Cramer disagrees because he loves BOTH stocks, and I trust his analysis, but more I trust Bill Miller of Legg Mason who has owned LVLT for a while BECAUSE HE KNOWS THAT THERE WILL BE A BANDWIDTH SHORTAGE (as Cramer says) and that LVLT WILL BE IN THE DRIVER'S SEAT THEN. There is a lot of tech lingo here that most people do not understand, including myself and probably the author of the thesis that Akamai and Level 3 are “mutually exclusive”– James Cramer disagrees because he loves BOTH stocks, and I trust his analysis, but more I trust Bill Miller of Legg Mason who has owned LVLT for a while BECAUSE HE KNOWS THAT THERE WILL BE A BANDWIDTH SHORTAGE (as Cramer says) and that LVLT WILL BE IN THE DRIVER’S SEAT THEN.

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