Steps to competitiveness
Dan Rayburn reported in his blog, AT & T joins with Cotendo to push on value added services such as the acceleration of the application and the acceleration of the dynamics of the site.Company has already signed up to approximately 200 customers who use their services acceleration Cotendo is a network of distribution of content that was launched in 2009 and has developed acceleration .According technology blog.
The AT & T-Cotendo partnership may be serious competition in the long term for Akamai. below we discuss the potential impacts of the new partnership AT & T and Akamai.
AT & T provides value added more
Value-added services beyond traditional content delivery are a growing part of business Akamai.Le partnership Contendo-AT & T provides AT & T capacity to sell more value added services such as the acceleration of the application and acceleration of dynamic site customers existing business by taking advantage of Contendo technology.
AT & T indicated that approximately 40-60% of all new customers in its sales pipeline have existing DNS capability or will a [].This implies that the company has significant sales opportunities already in the pipeline when it comes to value added services.
In addition, value added services may permit AT & T do share in the broader market can AT & T more to appeal to customers looking for such services.AT & T stated that it the price of its products at a discount of 50% for what is Akamai and maintain comfortable margins [] were more WINS for AT & T can contribute to society slow its declining revenues of the company.
Pressure on Akamai
Competitive prices in the value-added services will put pressure on Akamai lowering its prices or to limit increases in prix.En line shopping (e-commerce) segment accounts of Akamai during most of the use of the value added services.Concurrence higher value added services may affect the number of online stores customers Akamai as well as revenues from the Akamai customers shopping online.
Despite growing competition, we kept Trefis price estimation for stock of Akamai unchanged as we have already taken into account in the higher price competition in the future .Cependant, you change forecasts above to see engines main Akamai stock sensitivity as its customers purchase online and the amount of revenue that akamai generates on average each customer shopping online.
You can see Trefis $28 full price estimate stock the Akamai here.
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