Posted By Rich Miller On February 7, 2008 @ 5:23 pm In Akamai | Comments Disabled
I think you see that the market has recognized that our customers want value and they want to see their business accelerated and improved, and that’s what we are doing. We’re driving revenue in and cost out for them and they are willing to pay us for that.Separately, Dan Rayburn at the Business of Online Video shared early results of a survey of more than 500 CDN customers . Dan says 62 percent of participants said their pricing was flat year over year. Savvy customers are clearly finding deals – about 15 percent reported pricing at least 20 percent lower than their previous contract – but the broader picture was not one of collapsing margins.
The point is that not every customer is getting rock-bottom pricing and not every customer knows what price they should be asking for. If they did, we’d be seeing lower prices in the market more than we are, but in many cases, customers who already think they are getting a good price aren’t trying to get the CDNs to lower pricing even more, unless the customer is willing to commit to more traffic, more revenue, or more services.
Article printed from Data Center Knowledge: http://www.datacenterknowledge.com
URL to article: http://www.datacenterknowledge.com/archives/2008/02/07/akamai-gains-on-strong-earnings/
URLs in this post:
 Akamai: http://www.datacenterknowledge.com/archives/akamai-index.html
 revenues of $636 million: http://www.akamai.com/html/investor/quarterly_releases/2008/press_020608.html
 earnings call with analysts: http://seekingalpha.com/article/63488-akamai-technologies-q4-2007-earnings-call-transcript?source=side_bar_transcripts
 survey of more than 500 CDN customers: http://blog.streamingmedia.com/the_business_of_online_vi/2008/02/62-of-cdn-custo.html
 Rich Miller: http://www.datacenterknowledge.com/archives/author/richm/
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