Canaccord Adams 28th Annual Global Growth Conference - Internap

Internap had its presentation at the Canaccord Conference on August 14th.

Nothing new, really, just a few slides worth posting with a few comments.

This slide is interesting:

>IP Services and Data Center services markets represent North America only. CDN service provider market is global.

Not really an apple to apple comparation, but we know how difficult it is to estimate the market size of CDN right now. Let's take it for granted.

Going backwords (here the importance is given to the potential size of each business unit in 2010, while I would like to make an analysis on 2007 numbers...):

IP Services - 7.3 Billion market
Data Center - 3.2 Billion market
CDN - 1.2 Billion market

If we try to calculate how much Internap represented in each market, we should come up with these numbers, roughly:

IP Services - 1,7%
Data Center - 2,6%

CDN, as usual, is a more difficult business unity to work with. 2007 numbers wouldn't represent a 12 month period, so I guess applying twice as much this year's revenue should be fair to Internap.

CDN - 1,7%

Using this approach, Internap presence in the Colocation sector is, percentage wise, larger than in the other business units. Interesting...

Bundling is increasing, although colo represents certainly a great part of it (97% of customers take another service, mostly IP Services).

I found DeBlasio's example on colo and bundled offering a bit funny: he said that, for example, when a colo customer whose contract at say $ 20 sq.ft. comes for renewal (and the market rate is now around $ 60), Internap's opportunity of offering several services is interesting and comes handy for the negotiation - you may renew at $ 55 and introduce CDN as an additional service. Which sounds a bit like a free gift on Mc Donald's Kids' menu... :-)