In my previous post, I discussed Limelight Networks’ (LLNW) OVP/CMS offering. Today, I just read that LLNW has sold off its web content management business to Upland Software. This is an excellent move. LLNW can now focus on re-inventing itself.
At this stage in life, LLNW needs to pivot and follow in the footsteps of Jack Dorsey from Twitter. LLNW must take drastic measures to transform itself completely, and in doing so, take the fight to Akamai’s doorstep. There was once a time, when LLNW was a selling machine, extremely focused on CDN and streaming. They had some of the best sales reps in the industry.
New Business Model
Here is an idea. LLNW must go back to its roots as a CDN and focus on four key areas; 1) High performance caching/streaming 2) Next generation dynamic content acceleration 3) Mobile content acceleration and 4) Cloud Security. That’s it. Keep it simple. Underneath each specialty, there may be a boatload of add-on features. The new LLNW will be a hybrid of Fastly, Instart Logic and Whitehat Security.
LLNW currently has a big hole in their security offering. There is one company, and only one, in the market today, that is a perfect fit for LLNW. They are small, have a veteran team of security professionals from top firms, and can be acquired inexpensively at this point in time. The name of this company is Incapsula. Incapsula, brings to LLNW a whole new dimension of security experience and knowledge.
Incapsula, a spinoff from Imperva, is a cloud security provider trying to get into the CDN business. However, they are still learning the ropes on the CDN side. Together, Incapsula and Limelight can be potent. All LLNW needs to do is spruce up its value proposition and brand, then take the fight to the competition. At the same time, LLNW can go up-market, after the Fortune 1000.
The overall security market is a few times bigger than the CDN market. Plus, the valuations are much higher for security firms than CDN companies. There are many security companies with billion dollar valuations; some of them only generate $100M in annual revenue.
There is room for one more player. Here are a few successful security firms that have recently IPO’d: Palo Alto, Fortinet, FireEye, Imperva, SourceFire, and Barracuda Networks. Security is where it’s at.
LLNW should mimic their offering, and take it to the cloud. LLNW already has the global infrastructure in place.