Akamai Technologies Inc and AT&T Inc Forge Global Strategic Alliance
This could be contributing to the weakness in ALLT and PKT today and for several days to come....
Akamai Technologies Inc and AT&T Inc announced a strategic alliance to deliver a global suite of content delivery network (CDN) solutions to companies. Under the terms of the agreement, Akamai will deploy CDN servers at the edge of AT&T's IP network and in AT&T facilities throughout the United States . With the deployment of Akamai's CDN infrastructure within AT&T's network infrastructure, end customers are expected to benefit from more efficient content routing and better delivery of digital content, video and Web applications, resulting in a better end-user experience. AT&T will transfer its existing CDN operations, customers and service to the Akamai platform in 2013. The companies have also agreed to dedicate shared resources including technical support, customer care, marketing and professional services support.
I think what you're saying may be one of the wrong-headed rationalizations for why PKT is down, but for me, it's exactly the opposite. First off, DPI is not a business that ATT would ever be interested in, and it is not the same as AKAM, which I have been a long time holder of, btw. To some extent, content acceleration probably has some of the attributes, but PKT is THE specialist in DPI, NOT, content acceleration. All routers are not the same, which is why CSCO and Juniper have such huge business. Sure, at some point, all of these services may merge but not in the near term. I may be wrong, and will admit it, if someone can help me sort out the differences.
Lets look at this logically.
- Nothing ic changing as far as CDN is concerned. Today's announcement only says that AT&T wanted to do CDn themselves. But have realized it does not make sense. let the experts do it. And hence the deal and transfering current AT&T CDN ops to Akamai.
- So CDN always existed for QOS.
- Though there has not been any announcements naming AT&T, I believe PKT did win that deal in the last 3 months. One of the Mega US deal is AT&T. AT&T signed up PKT as DPI/IPE vendor while they were doing CDN. CDN from Akamai is not a substitute for this PKT deal with AT&T.
- If Anything Akamai might enter the DPI space through acquisition and PKT has the right set of leading edge technologies.