Panther, CDN Networks Merge. More CDN Consolidation Ahead?

9 thoughts on “Panther, CDN Networks Merge. More CDN Consolidation Ahead?”

  1. 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

  2. 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.

  3. @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. 🙂

  4. 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 : )

    1. @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.

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