Nemertes Impact Analysis

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Amazon Gets Into Content Delivery Business: 20 msec or it's free?

Amazon (NASDAQ:AMZN) is adding pay-as-you-go content delivery networking
(CDN) to Simple Storage Service (S3). Amazon's emphasis is more on the payment
model than on the actual delivery itself. Just as Domino's Pizza's (NYSE:DPZ)
success requires timely delivery, so does content delivery.

As discussed in Nemertes' Internet Singularity Delayed: Why Limits in
Internet Capacity Will Stifle Innovation on the Web, bandwidth restrictions
at the network edge are looming and without proper implementation and foresight,
Amazon's CDN may become the equivalent of cold pizza delivery!

Impacts:

Enterprises: Focus on Amazon's ability to guarantee response time; when and
where you need delivery.

Vendors: Third-parties should step in and bundle S3 CDN with SLA management
as a value-added service.

Investors: This may cause a blip for mainstream CDN providers Akamai
(NASDAQ:AKAM) and Limelight Networks (NASDAQ:LLNW); and a direct blow to
privately held EdgeCast, Mirror Image Internet, Upstream Networks, ValueCDN and
Velocix.

Ted Ritter, Research Analyst

http://www.nemertes.com/internet_singularity_delayed_why_limits_internet_capacity_will_stifle_innovation_web

http://www.eweek.com/c/a/Data-Storage/Amazon-to-Launch-Content-Delivery-Service/?kc=rss