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Net heavyweights seen setting up content service
SAN FRANCISCO, Dec 7 (Reuters) - Three Internet heavyweights, Sun Microsystems Inc. , Inktomi Corp and Digital Island Inc. are expected to announce a plan Wednesday to partner in delivering content over the Internet. Content delivery has become one of the hottest areas of the Internet because many corporations are shifting their businesses online. Content services help create reliable connections for transactions or multimedia transmissions that require more reliable and quick routing than normal Internet traffic.
"The way they are handling this announcement suggests something significant, but they've been very tight-lipped about what they are up to," said Greg Howard of HTRC Group, an Internet consulting service.
A number of analysts said they were advised that they would be briefed ahead of time, but the companies cancelled the meetings. The companies said only that they would have "a major announcement" and would disclose no more. Digital Island operates data centers around the world that ferry Internet content to and from heavily trafficked sites, while Inktomi has technology for caching, or storing, Internet pages to maximize the use of scarce network capacity. Sun is the world's largest seller of computers that serve Web pages.
Peter Christy, of Internet Research Group, said that "what's driving everyone in this sector is Akamai's $21 billion valuation." Akamai, which was founded a year ago and went public over the summer in one of the year's hottest offerings, is another content delivery service that operates about 1,500 servers to route traffic for e-commerce businesses.
Akamai has set up its vast network without the help of Sun's market-leading servers, but uses, instead, Intel Corp processors within proprietary architecture. The partnership deal being announced is almost certain to boost the use of Sun servers in the fast-growing business, employing software and technology developed by Inktomi and Digital Island, analysts said. |
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