Internap - Akam reseller agreement

Just for fun, going through some old files...

>>Internap Network Services Corporation and VitalStream Holdings, Inc Conference

Jim DeBlasio - Internap - President, CEO

We at Internap are very familiar with VitalStream's CDN technology and business
offering as we are the second largest reseller of Akamai product, and Akamai
offers a strong set of complementary products in this area.

Eric Vancoff - Morgan Joseph - Analyst

Good afternoon and congratulations on both sides. A couple of quick questions. First of all, mechanics of the transaction. Are there any collars in place to sort of ensure the outcome and the value on the VitalStream side? Number two is kind of a multiple-part question in terms of -- what percentage of Internap's revenues today are generated from reselling Akamai, and how much of that can potentially be migrated over to, say, the VitalStream platform?

Jim DeBlasio - Internap - President, CEO

I will answer that second first, Eric, and then I will turn over to Jack and to Dave Buckel to respond
as well to the first part about the collars and the mathematics of the deal.
But with regard to the Akamai revenue that we currently have in the Internet
business, it's relatively small, and less than 5% of our revenue stream. We are,
in fact, the second-largest reseller of Akamai equipment and have a very good
relationship with Akamai. We resell for them, they resell for us, and it works
very well. And, I do believe that that relationship can, and I expect it to
continue to work very well because of the relationship we have and what we offer
each other. I also think that the VitalStream acquisition offers a set of
products that are complementary to the Akamai suite of products, and it does
nothing but builds out our solution that we can offer customers, and -- which is
another one of the exciting things about this acquisition and where it positions
us, Eric, in the future. Jack, I'd like to turn it over to you, if you can add
something to that.

Jennifer Adams - Cowen & Company - Analyst
This is Jennifer Adams on behalf of Tom Watts. Congratulations on the deal. You
touched on this earlier, Jim, but if you could give us a little bit more flavor
what your relationship with Akamai will be like going forward. And specifically,
now that you are potentially competing with them directly, do you see any threat
of them withdrawing business from Internap? And if so, what kind of an impact
could that have on you in the short term?
Jim DeBlasio - Internap - President, CEO

As I mentioned before, the Akamai revenue in the Internap business model is relatively small. Aside from that, we are enjoying a very good relationship with Akamai. As I mentioned before, we resell their products, we are the second-largest reseller of their CDM products. They resell our product. They give us leads with their customers, we provide the same to that, and the relationship is working very well. And they have a very good product and a very strong product that is complementary to many of the products that we have acquired through the VitalStream acquisition.

Rod Ratliff - Stanford Group - Analyst

Okay. Jack, how big is the VitalStream physical footprint, in terms of the number of servers?

Jack Waterman - VitalStream Holdings Inc. - Chairman, CEO

We don't actually quote that number publicly. Clearly, Akamai is the largest in the world and they don't quote their number publicly.

Rod Ratliff - Stanford Group - Analyst
Actually, they do.