Yottaa, the Boston-based CDN which launched in 2009 and raised $29M in VC, continues on the path of transformation. Recently, Vick Viren Vaishnavi joined the company as CEO, having previously worked at EMC and BMC Software. Vic has experience building companies and getting them acquired. His resume includes selling three companies to EMC, Bain Capital and BMC Software. Yottaa has come a long way in the last five years. Remembering back when they first started, Yottaa hit the ground running signing up dozens of new accounts in a short period of time. The founding team was new to CDN, but they learned quickly, and adapted to the dynamics of the CDN industry.
When they first started, many in the industry perceived them to be like a CloudFlare, mainly because their prices were advertised at the lower end of spectrum, at least compared to Akamai, EdgeCast and Limelight. But within a short period of time, they made some drastic changes to their business model, and decided to position Yottaa as a premium brand that charges premium dollar for their services. By the looks of it, they were successful. This a big learning lesson for other CDNs including CloudFlare that its possible to start with SMB pricing, then change the business model and charge Tier 1 CDN pricing later on. The Yottaa transformation has been so dramatic that it doesn’t even seem like they are a CDN by the looks of their website.
- Yottaa is moving from 5,000 sq ft office in Boston to a Waltham office between 12,000 to 15,000 sq ft
- Currently employes 70 employees including 25 in R&D (Beijing)
- Will double headcount by end of 2015
- Potential for Yottaa to go public in 5 years
- Yottaa has 200 customers
- Big clients included Clarks, PCM and Hubspot
- In 2015, focus is on closing enterprise deals with companies that generate $500M in annual revenue
- Annual revenue is “just shy” of being in the tens of millions of dollars