Dan Rayburn: Akamai should "acquire a transparent caching provider, ideally PeerApp"

 

Dan Rayburn (pictured) analyzes in a recent StreamingMedia  blog post, the challenges faced by Akamai, the leader of the CDN business.

One issue is about the "changes in the market also mean that Akamai's position inside the last mile is also facing trouble. As more telcos, carriers, ISPs and MSOs start to build and deploy their own CDNs [see - "Why Should Telcos Build their Own CDN?" - here], Akamai's value inside many of these networks is diminishing. While Akamai won't come out and say there is a problem, the whole reason Akamai is now trying to create a licensed CDN (LCDN) [here] product is to try and stay inside the last mile and provide more value to the carriers" .

Dan mentions the recent Edgecast/PeepApp CDN/cache joint offering [here] and says "Why Akamai is trying to build everything in-house I don't know, but if I was them, I would acquire EdgeCast and then acquire a transparent caching provider, ideally PeerApp, which would then give Akamai an instant carrier grade CDN and transparent caching solution for telcos .. Such a platform would solve all three of the delivery needs for telcos, carriers and ISPs. It would be a true carrier grade CDN and transparent caching solution, all in one platform"

See "Pressure On Akamai Growing, Company Needs To Make Some Acquisitions To Jumpstart Their Business" - here.

IPI: "the odds for an F5 takeout of Procera have certainly increased"

 

Inflection Point Investing published a very positive review on Procera Networks - ".. it should be noted that during the years of the Great Recession, network-technology company, Procera Networks Inc. was able to increase its revenue from $1.91M in 2006 up to $20.12M in 2009. Though sales subsequently flattened in 2010, with the rise of smartphone use and consumers’ insatiable demand for robust mobile networks, 2011 is now shaping up to be another record year for the company".

"After issuing a steady stream of news releases over the past two months [here], it is clear Procera has secured at least $15M in orders in Q3, almost 60% above the bookings of the first two quarters combined .. Over the next two years, Procera will be able to bite into a market that is poised to double from $518M to $1.14B .. "

"F5 was previously rumored to be considering Allot Communications [here and here], but after forming a partnership with Procera earlier this year [here], we think the odds for an F5 takeout of Procera have certainly increased. After all, wouldn’t it make sense for F5 to take a “look under the hood” before any takeover would occur? We think so"

Note that Procera has a more meaningful OEM agreement with Genband (here), although with modest revenues so far (here).

See "Procera Networks Inc. Is Riding The Smartphone Revolution" - here. Note the author's discloser statement at the bottom.

See also:

• Public DPI Vendors (ALLT, PKT, SVC) - Q2 2011 Results Comparison - here
• Infonetics Sees Strong DPI Market (though US hesitates); Sandvine Leads - here