Today, Instart Logic issued press releases detailing the rollout of their value-added business model as well as their new partnerships and business capital acquired this past fiscal year (FY17). The value-added business model will offer CDN as commodity, charging only for value-added services that assist apps in generating revenue streams.
The value-added business model trend is one that’s already taking off in compute and storage, where AWS, Google Cloud, and MS Azure’s race to the bottom has left compute and storage prices at close to zero. As Manav Mital, CEO and founder of Instart Logic, stated, “The value these offerings deliver is an elastic consumption model and additional value-added services are delivered and charged for. Instart Logic is accelerating the arrival of that exact same business model in the content and application delivery market.”
In this market, data transfer prices are poised to sink, forcing CDNs to compete for customers via premier feature sets. This is an area in which Instart Logic has focused over the past year. Machine learning was added to their platform to accelerate image optimization and decrease load times for streaming videos. In addition, their security component, AppShield, has introduced bot protections and Ad Integrity, which protects ad impressions by circumventing ad blockers and has recovered a total of $30M in ad revenue for Instart Logic clients in the nine months since it was introduced. Instart Logic’s recent press releases credits these platform additions with the company’s success in FY17, where they tripled their bookings for the third consecutive year and gained new strategic partnerships including Oracle Cloud, IBM Ready for Commerce, Demandware, and Blue Triangle Technologies, as well as over sixty new enterprise clients including Walgreens, Edmunds, and AirAsia.
Speaking on the company’s business momentum, Mital noted that, “We are now in a position where we regularly beat Akamai in competitive sales situations. In FY17 we closed 5X more enterprise deals over the prior year.” As legacy CDNs continue to give way to cloud-based companies and more innovative platforms, Instart Logic’s value-added business model will likely continue to shake things up.