|[11:30 AM] Akamai Offers New Service Derived From Existing Data Base
by Wes George
Akamai Technologies (AKAM) announced Monday that it plans to leverage its growing database of web routes to create another revenue stream for their expanding business. The company, famous for its proprietary global system of content streaming servers was one of the darlings of the nascent broadband infrastructure revolution until the April tech stock sell-off crushed the company's stock price by more than 75% at one point.
Akamai's new service called EdgeScape was developed from Akamai's global Internet traffic monitoring database to allow "content providers to determine in real-time the geographic location of the network and type of network from which users are accessing their Web site." This data can then be used by service providers to tailor content to appropriate bandwidth according to the type of web access the end user has, thus avoiding annoying download times and Web traffic jams.
According to Larry Barrett of zdii.com, "The best part about this service is that it taps into information the company already has. They don't have to spend millions to acquire this information. It's essentially bonus cash derived from what Akamai already does best."
Akamai, which is growing at an almost exponential rate, believes its new service will be in high demand because, "The competition among e-businesses to attract and retain customers has fueled a growing demand for customized Web content," said George Kurian, vice president and general manager of content delivery services.
Expanding its relationship with Akamai, Loudcloud, Inc., a leading provider of infrastructure services for e-businesses, intends to become a reseller of the EdgeScape service.
Apple Computer Inc. is a major shareholder and customer of Akamai, utilizing their content speeding services to enhance delivery of QuickTime content world wide.
The Mac Observer Virtual Stock Portfolio also maintains a small position in Akamai's stock, (AKAM).
Typical of Wall Street's view of Akamai is the "strong buy" recommendation from Nils Hargil of Kaufman Brothers with a 12-month price target of $185. While Akamai is still in the money losing startup phase of establishing their business, and will not be profitable till 2002, sales revenues are expected to more than double from $7.2 million last quarter to $15.8 million this quarter.