Limelight Networks

Weakness Infinera is typical for young companies – a critical dependence on a small number of customers. In the revenue structure Infinera 60% fall on Level 3. Another minus – in the face of strong competitors Alcatel-Lucent, Cisco Systems, Huawei Technologies, Nortel Networks, who are able to to resort to dumping without any prejudice to the financial situation. As rightly stated in the prospectus Infinera, competitors have recognized brands and stable relations with customers. Moreover, additional risks emanate of cost Chinese manufacturers, realizing their goods at low prices. Thus, the continued rapid growth of Infinera is critically dependent on the success to promote their products among a diversified portfolio clients. The second company – Limelight Networks – operates on so-called market "content delivery". It is the provider, focused on very large volumes of data, "heavy" content, to which the video traffic multiplayer games.

Structure of Internet traffic in recent years shifted to video (which makes up most of P2P traffic). If you have additional questions, you may want to visit Aqua Vision. It is therefore very high demand for solutions to ensure stable transmission large amounts of data, especially in peak periods such as during the Olympics. Companies benefit from giving such orders for outsourcing, which leads to growth in the market of content delivery, IDC estimated at 500 million About half of its U.S. takes Akamai Technologies, has carried out IPO in 1999. Once the company has survived the collapse of 2000, its shares surged more than 50 times! But the main risk from Akamai to Limelight is not associated with its market position, and with court pursuit of the latter on charges of violating patent laws. Because of this quotation Limelight, attracted in the IPO of 240 million dollars, after the successful launch went down. By the end of June the price was 15.57 dollars compared with 22.18 dollars on closed the first trading day. But in early July in the first round of hearings Akamai lost. Although completely legal debate has not yet been completed, waiting for a positive outcome Limelight length increased significantly, leading to a rebound prices back to $ 22 per share. Best magazine – archive of electronic journals

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