Thursday, August 27, 2009

Exclusive: Internap CEO on what’s next for CDN has an interview with Internap's CEO, where he discusses strategy for the future. Next will be Internap’s $50-million data-center expansion - this time it's about CDN:

>>CEO Eric Cooney talks about Internap's $50M expansion and the strategy for reinventing its CDN

In January, Eric Cooney, the former chief executive officer of Tandberg TV (which was acquired by Ericsson in 2007) was named CEO of Internap (NASDAQ: INAP), a colocation and IP transit services provider. It was a turbulent time for Internap. Although the data center business was booming, the company had struggled to integrate the assets of VitalStream, the content delivery network (CDN) provider it had acquired in 2007, to the point at which, last fall, Internap took a $100-million goodwill write-down on the assets it acquired for $217 million. And this month, it wrote down another $57 million, essentially emptying its books of the acquisition. With that slate now clean, some analysts say Cooney can reboot Internap’s CDN business and reinvigorate its IP services business, whose sales were down 7% in the second quarter. In a report this summer on the CDN sector, Yankee Group senior analyst David Vorhaus said that for Internap, “The challenge now is not one of technology or vision…but rather one of overcoming the preconceived notions that longtime CDN customers have of Internap.” Cooney hopes to change those notions in part by launching a new CDN platform this year. And the company is embarking on a $50-million expansion, building and acquiring its own data centers, thus reducing its reliance on partner sites. Cooney spoke with Telephony’s Ed Gubbins this week about that expansion and about the strategy for reinventing Internap’s CDN.


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