Internap has announced a flurry of small CDN deals this month, is this a recovery? First there was Million Dollar Round Table after Labor Day, then Synacor last week , and today we have TV Worldwide’s FedEdTV.com. None of these deals are huge obviously, but Internap’s niche has always been the small to mid-sized sites that need lots of reliable bandwidth but lack the resources or desire to manage it themselves. In other words, small or not they’re Internap’s kind of customers.
Internap’s CDN has had a really bad time over the last 12 months of course. Last year in the second half is when the company began to mismanage the integration of the asset after the VitalStream acquisition, to the extent that they didn’t even know their customers were demanding credits and heading for the doors. From then on, it was downhill as the effects did damage to the company’s earnings and reputation. It got to the point that some expected them to write off the CDN business altogether.
Of course a few PRs don’t mean the sun has come out permanently, we won’t know that until we see their revenues start to grow again in their next few earnings reports. After all, PRs do come from the PR department. But it does say that Internap doesn’t seem ready to take its ball and go home, they’re going to try to claw their way back into the CDN game.
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