The CDN market may implode but expect Akamai to benefit
Dan Rayburn is an astute watcher of the content delivery business and, most days, seems to be as bullish on Akamai as I am. His recent blog post on BitGravity's funding doesn't refer to the investing thesis for Akamai directly but this is nonetheless a striking statement:
"The CDN market is going to be in for a world of hurt in 18-24 months, and most of these CDNs are not going to get acquired or bought out at all, let alone at the kind of revenue multiple investors are dreaming of."
What's unsaid -- but important for us investors -- is that Akamai is going to get its pick of cheap R&D when it buys small yet innovative CDNs that are caught too far behind the leaders.Sell all you want, bears, I'm keeping my shares.