Limelight Networks hit a major milestone today, in that their stock price is $3+ per share. Four positive activities helped push LLNW stock up $1 per share over the last week: LLNW wins lawsuit against Akamai, LLNW SVP buys 100,000 shares in the open market, Stock Analyst DA Davidson increases their target price to $4.50 per share, and FBR Capital Markets now has a “market perform” on the stock. LLNW needs to use this momentum and reach another milestone, like buying a company, introducing a WAF, rolling out a DDoS scrubbing center, or rolling out anything for that matter. If LLNW acquires Alert Logic, sky’s the limit. We’re six months into the year, and LLNW hasn’t rolled out any ground breaking features.
The CDN Industry is fragmenting considerably. We are in the era of the CDN Specialist. The CDN market is a very mature market, where online businesses now have the option to pick and choose specific CDN functionality. In my opinion, the market can no longer sustain three large scale CDNs, only two, Akamai and Verizon EdgeCast. At the enterprise level, LLNW must compete with Akamai. At the other end of the spectrum, can LLNW compete with Incapsula on DDoS protection, Yottaa on User Engagement, Instart Logic on Web App Streaming, and Level 3 on large scale live streaming? No, these CDN Specialist are just too good, too focused, and too innovative to lose in their area of specialization.