your own blog is sponsored by limelight. congrats on lining up such an influential sponsor!

In the CDN market in particular, there are way too many “rumors” that are based on no data and even though you may be guessing, many people could see it as fact and run with it. Look at the rumor about Apple leaving Akamai to go to Google for delivery? That started as a quote on one website, with no name attached to it, and quickly became “fact” within a day with many investors, even though it wasn’t.

Too much speculation in the market.

I guess I’m flattered you don’t underestimate the power of a single blog post, but don’t you think there’s a danger in overestimating it? The humbling truth is that LLNW rose after my post appeared.

I don’t think it’s controversial to say that costly patent lawsuits are huge turnoffs for investors and customers alike. Vonage is a good example. Limelight has been spending $2 million – $3 million a quarter on litigation costs, and it could run as high as $4 million this quarter, according to Limelight.

Really? That’s a very specific statement, yet made in a general term with no details. Likely based on what? Customers you spoke to? Something Limelight said? Something you can point to? That’s a very_bold statement to make considering how many people are watching that trial very closely and any “assumptions” readers may make of that being true could have a big impact on the shares.

And If anything, Limelight’s continued growth of net new customers each quarter says the opposite.

A quick Google search on “cdn price war” suggests there is plenty of talk about this elsewhere. If you have data to the contrary, feel free to post it here.

Akamai stressed their revenue growth is across the board. Paul Sagan remarked several times in the Q4 call on how quickly entertainment content was moving onto IP networks.

First of all, Akamai does many things beyond just CDN, whereas Limelight does only CDN. So it isn’t odd at all that Akamai’s earnings don’t move in concert with Limelights.

The second thing is this talk of a “brutal price war”, which is never backed up by data. Again, Dan Rayburn has collected a lot of data showing that this “price war” is a myth. The GigaOm article to which you link talks about how Level3 is pricing its CDN service at the same level it prices bandwidth, and somehow this is supposed to instigate a price war. But do you even know what Level3 charges for bandwidth? They are one of the most expensive!