Level 3 Communications (NYSE:LVLT, news, filings) chalked up two more wins over the past several days in the content delivery segment. The company continues to prove out its return to revenue growth, which is at least giving their PR team a sustained workout. Hopefully it will show up in their Q3 numbers when the time comes.
Today it was yet another victory in the gaming space with Nexon America. But it wasn’t just for CDN services, but rather for a package that included IP transit in the form of a 10GigE port, wavelengths between the company’s datacenters in North America, and of course caching, download and origin storage in support of the company’s MMOG’s – that’s Massively Multiplayer Online Games of course. Nexon America’s portfolio of such games currently includes Combat Arms, MapleStory, Dungeon Fighter Online, Mabinogi and PopTag!, none of which I’m particularly familiar with. Globally, Nexon derives most of its revenues in Asia, particularly Korea, but has been working to increase its US presence – part of which has been to improve its network throughput and latency. Level 3 has shown staying power in the online gaming segment, especially where it can bundle other IP and transport products and this one typical such deal.
And late last week, Level 3 also announced it had been selected by Zalando GmbH for CDN caching services. Zalando is an online retailer that sells, amongst other things, stuff like shoes, jeans, and beauty products. With Level 3’s caching services they will be speeding up their website and reducing the IP traffic to their origin servers. I’m sure it’s not a huge revenue boost, but this sort of pure CDN contract is not usually Level 3’s bread and butter – except perhaps in Europe where they seem to have more feet on the ground.
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