At Tier 1 Research's Hosting Transformation Summit back in September, Akamai, Limeline, Netli and Solid State each attested that they enjoy close working relationships with their hosting partners. Tier 1 analyst Dan Golding suggested ongoing cooperation is so important that CDN-web host M&A deals might not be such a bad idea.
So how come Savvis is (supposedly) looking to sell off its CDN business?
While Dan argued that web hosts who don't have a worldwide footprint need to help site owners reach far flung visitors through CDN partnerships, Om Malik says the two businesses are at odds: one makes money when people buy bandwidth, and the other reduces bandwidth usage. Which do you agree with?
By the way, Savvis' CDN business, which has 91 employees and 60 clusters in 29 countries, generates $40 million in sales, and is supposedly priced over $100 million.
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