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Technology Stocks : Digital Island,Inc - (Nasdaq- ISLD) -- Ignore unavailable to you. Want to Upgrade?


To: tech buzz who wrote (19)7/1/1999 3:31:00 AM
From: Tourist  Read Replies (1) | Respond to of 1884
 
Buzz, just want to let you know that your DD is very much appreciated, especially by someone like me who just got into ISLD today. I had not known about this technology, and from what I could gather so far, the future looks pretty bright. I'm a little surprised not to find more postings here considering the volume. Could you post some info in regards to how many shares are out there, institutional coverage, revenue projects, etc? I'll of course do some DD myself. Thanks again!

Paul



To: tech buzz who wrote (19)7/1/1999 12:13:00 PM
From: djane  Respond to of 1884
 
Mr.buzz, you continue to intrigue. Akamai and Sandpiper are excellent comparisons. As a non-techie (more of an info junkie but I've got lots of Silicon Valley tech buddies who provide the technical explanations), I would love more details about how ISLD's strategy compares to Akamai, Sandpiper and (I would think) Inktomi. Here are a couple articles on them Akamai and Sandpiper.
________________________________________

The Journal of New England Technology

From Page 1 of the Jan. 18-24, 1999 issue of Mass High Tech

Akamai top brass says aloha to MIT

By Dyke Hendrickson associate editor DHendrickson@MassHighTech.com

A Cambridge company composed of some of MIT's top technology wizards recently launched
an enterprise that officials say will deploy the world's largest fault-tolerant network for
distributing Web content.

The company is Akamai Technologies Inc., and its network is designed to speed up the
delivery of richer Web pages. In doing so, it allows content producers with large audiences to
serve them reliably from servers located close to end-users.

In a Net world in which almost every product is touted as the next great thing, Akamai
nevertheless appears to be offering something with immense potential.

"This is the largest distributed network on the globe," said Paul Sagan, the company's new
chief operating officer. "And the secret (to why it will prosper) is in the sauce, meaning the
math.

"Some of the top math minds in the country have developed proprietary technology that will
change the way content is routed."

Akamai's proprietary network is based on patent-pending technology developed at MIT's
Laboratory for Computer Science. Frank Thomson Leighton, professor of applied
mathematics, developed many of the algorithms. Company spokesmen say he has left his
tenured post at MIT to serve as chief scientist at Akamai.

Other founders include vice presidents Jonathan Seelig and Randall Kaplan, and chief
technology officer Daniel Lewin. Seelig previously worked with Israel-based ECI Telecom.
Kaplan, who will head the company's Los Angeles office, until recently was managing director
at SunAmerica. Lewin was a graduate student under Leighton.

Other members of Leighton's technology team include Bruce Maggs, a network architecture
professor who teaches at Carnegie Mellon University, and David Karger, a professor of
electrical engineering and computer science at MIT.

The company, which employs 30, has received more than $8 million in funding from Battery
Ventures in Wellesley, and Polaris Venture Partners of Boston and Seattle. As a result,
Akamai's board of directors includes Todd Dagres, general partner at Battery Ventures and
George Conrades, a partner at Polaris and former president of GTE Internetworking and
former chairman of BBN.

Company officials say they are beta-testing the flagship product, FreeFlow, in partnerships
with several large (and undisclosed) websites. Its beta test began this month with a deployment
of hundreds of proprietary distribution servers.

Company officials are circumspect about describing the technology, as it is patent pending.
However, the creation of the network is designed to move content closer to the end user.

"Websites won't be doing the heavy lifting of distributing content," said Sagan, whose
experience includes a stint as president of new media for Time Inc. in New York. "The
network will do that.

"The result is that sites can offer richer content and more dynamic pages, without feeling the
stress."

Officials say clients will be anyone from a major portal like Yahoo to the smallest company on
the Fortune 1000. They would pay Akamai for the right to connect to the network. The price
structure has not been disclosed. The technology will be on the market by late spring.

After three years of researching and developing the product, Leighton feels it is ready to make
a major impact.

Leighton said in a statement, "Our technology is revolutionary in terms of its ability to
distribute and manage content over a large network, without disrupting the content provider's
direct relationship with the end user.

"It promises to be a boon for a wide variety of Internet entertainment and information
providers as well as many e-commerce and on-line trading businesses."

The word "akamai" is Hawaiian for intelligent, clever and cool. These informal terms aren't
words that a math careerist like Leighton might regularly use, but for the moment they seem to
characterize the aura of promise that surrounds the product.

News or information from Mass High Tech may not be published, broadcast, or redistributed without the prior written
authorization of Mass High Tech. (c) Copyright MassTech Communications, Inc.. All Rights Reserved.

__________________________________________________________





April 26, 1999

Web-Page Distribution System Could
Unclog Internet Traffic Jams

By ANDREW POLLACK

OS ANGELES -- Tax time was crunch time for the World Wide
Web site of Intuit Inc., the supplier of personal finance software.
Traffic shot up to as much as 20 times its levels the rest of year, as
customers downloaded the latest revisions to Intuit's Turbotax tax
preparation program.

But unlike tax seasons past, this time Intuit had the help of Sandpiper
Networks Inc., a start-up company that has developed a way to speed
the delivery of information on the Web. "Customers got it faster than they
would have with us," said Rick Parkinson, director of the planning and
delivery group at Intuit.

Sandpiper and a rival start-up
company, Akamai Technologies
Inc., are pioneering a way to
distribute material over the
Internet that avoids much of the
congestion that can turn the
World Wide Web into the
World Wide Wait. And the
companies are starting to be
noticed.

This week, Sandpiper is
expected to announce that
America Online, the largest provider of Internet access, has made a small
investment in the company and will incorporate Sandpiper's technology
into its network.

Inktomi Corp., a supplier of Internet software is expected to invest in the
start-up company along with two Sandpiper customers -- the Times
Mirror Corporation and NBC.

Sandpiper is raising a total of $21.5 million in this, its second round of
raising venture capital, with each of the corporate partners believed to be
putting in $2 million to $3 million and the rest coming from venture
capitalists.

Akamai, meanwhile, recently scored a coup of its own, hiring as its
president and chief executive George H. Conrades, formerly president of
the GTE Corporation's BBN unit and before that a top executive at
I.B.M.

As more corporations turn to the Web for marketing and sales, long
waits on the Internet are becoming bad for business. And while the
companies can improve service somewhat by buying more powerful
computers for their Web sites, they have less control over the network
traffic jams that can develop between their sites and the users.

"Since nobody controls the Internet, how do you insure quality of
service?" said Scott Yara, vice president for marketing at Sandpiper,
which is based in Westlake Village, Calif., outside of Los Angeles.

The answer proposed by both Sandpiper and Akamai is to distribute the
contents of a Web site to server computers dispersed throughout the
Internet, so that information does not always have to wend its way
through the network from a single site.

"The whole name of the game here is to push content to the edge of the
Internet, very, very close to the end user," said David Goodtree, vice
president for marketing at Akamai, which is based in Cambridge, Mass.

One use of such a service would be to help with big Web events that
could bring the Internet to its knees. The Los Angeles Times, owned by
Times Mirror, used Sandpiper to help cope with the on-line demand for
the Starr Report last year and for the newspaper's coverage of the
Academy Awards in March.

But Sandpiper and Akamai contend, and some analysts agree, that
distribution of Web content will eventually be a full-time necessity, as
Internet traffic continues to grow.

"The demand is so high and straightforward," said Ted Julian, an analyst
with Forrester Research, a market research firm in Cambridge.

A somewhat similar technique, known as caching, is already in use. If, for
example, an Internet service provider in Los Angeles finds heavy demand
among its customers for a Web page based in New York, it will create a
local copy of the page in Los Angeles.

But the actual producer of the Web page in New York has no control
over this cache, and thus no way of preventing the information on it from
becoming outdated. Moreover, the producer of the Web page usually
does not know how many visits or "hits" the copy on the cache receives.

Both Sandpiper and Akamai sell their service directly to the Web content
providers, automatically distributing the content to servers, updating the
material as necessary and keeping track of the number of visitors.

Sandpiper was founded three years ago by David Farber and Andrew
D. Swart, software experts who had worked for Interactive Systems, a
Unix company. Leo S. Spiegel, whom they recruited to be president,
started a computer company while still in college. That company, LAN
Systems, was sold to the Intel Corporation and R. R. Donnelly & Sons.

Akamai, which says its name means "intelligent, clever and cool" in
Hawaiian, grew out of a math class at the Massachusetts Institute of
Technology.

Tim Berners-Lee, the M.I.T. researcher known as the father of the Web,
suggested to Tom Leighton, a professor of applied mathematics, that
"load balancing" on the Internet would be a good problem for his class to
tackle. The classwork led to algorithms that are used by Akamai, which
was founded by Professor Leighton and a graduate student, Danny
Lewin.

Akamai, which is only now beginning commercial service, says that
customers for its trial service included 5 of the 10 most popular Web
sites. But Goodtree would not identify any of them.

Akamai seems to have a more sophisticated approach, but Sandpiper
has the advantage of being first, said Peter Christy, principal at
Collaborative Research, a market research firm in Los Altos, Calif.
Akamai also has deployed 400 servers, compared with only 32 for
Sandpiper. "We could handle the load today of 15 Yahoos and the top
20 Web sites combined," Goodtree said.

But the deal with America Online and Inktomi could help change that.
Inktomi already provides more than 300 cache servers to America
Online, and Sandpiper will now be able to use those, as well as Inktomi
servers in other networks. "It really expands our footprint," Spiegel said
of Sandpiper (which calls its service Footprint).

The biggest challenge for the companies, though, might not be each other
but new entrants expected in the market.

Julian of Forrester said these could include big computer service
providers like I.B.M. and Electronic Data Systems as well as companies
like Exodus Communications that provide computer sites used to host
Web pages. Even Intel announced last week that it would enter the
business of providing servers to host Web pages. But some of these
companies might decide to ally themselves with Sandpiper or Akamai
rather than compete with them.

Another challenge could be persuading companies to entrust distribution
of Web pages to outsiders.

Parkinson of Intuit, for instance, said it made sense to use Sandpiper to
save Intuit from having to invest in enough capacity to handle the rare
peak demand. But at times of normal demand, Intuit prefers to run its
Web site by itself, to guard its competitive information. "You give up a
little bit of control every time you give something to someone else," he
said.

Lemont Southworth, technology manager for latimes.com, said another
problem was that Sandpiper's system cannot handle the individually
customized advertisements that many Web sites offer.

Another possible threat is that if technologies like high-speed cable
modems and optical fiber can sufficiently reduce congestion, there would
be less need to store Web pages close to users.

But both companies insist that cable modems, by increasing the flow of
information between users' computers and Internet sites, will only
increase the strain on Web site providers, much as widening freeway
on-ramps can worsen congestion on the freeway itself.

So content will still need to be dispersed.

"I really believe it's the next evolution of the Internet," Spiegel said.

Related Sites
These sites are not part of The New York Times on the Web, and The Times has
no control over their content or availability.

Intuit Inc.

Sandpiper Networks Inc.

Akamai Technologies Inc.

America Online

Inktomi Corp.

Copyright 1999 The New York Times Company




To: tech buzz who wrote (19)7/2/1999 1:36:00 AM
From: djane  Respond to of 1884
 
Nice article on ISLD from upcoming 7/99 RedHerring magazine

Digital Island aims to offer network services that will make e-commerce
truly global.

By Cate T. Corcoran
Red Herring magazine
From the July 1999 issue

When most people think of Hawaii, they picture
white-sand beaches and palm trees. But when Ron
Higgins looked at his home state, he saw one of the
greatest concentrations of fiber-optic cable in the
world.

Sunk to serve the military in the
mid '90s, the undersea cables lie
off the congested continental U.S.
Internet, yet only one hop
removed from Asia. Aware of
both the importance and the
limitations of the public Internet,
Mr. Higgins realized that Hawaii was the perfect place
to locate an Internet hosting company and founded
Digital Island (Nasdaq: ISLD) in 1995.

The company has grown up to become an important
though little-known player in bringing U.S. electronic
commerce to a global audience. Its 90 customers
include National Semiconductor (NYSE: NSM),
MasterCard, and Cisco Systems (Nasdaq: CSCO). In
April Digital Island filed for an initial public offering of
$75 million, having reported an operating loss of $16.6
million on revenues of $2.3 million for fiscal 1998
(ended September).

When Mr. Higgins founded his
company, it solved a problem no
one else could: getting lots of
Internet data around the world
fast. "From day one, Digital Island
was really different," says John
Coons, a vice president with the
research consultancy Dataquest.
"They provide very predictable
high performance by working
around the shortcomings of the
public Internet." At the time, if you wanted your
customers in Kuala Lumpur to be able to access a
data sheet as quickly as your customers in Santa
Clara, California, you had to build your own data
center there. Digital Island offers its customers
guaranteed bandwidth on an IP network that is
essentially a leased, private version of the Internet. The
company has strategically placed access points around
the world, so that end users can access the network in
the nearest big city. Then there is only one "hop" (a
router or a server) between that access point and the
data. An end user in Milan, for example, would
connect to that city's Digital Island network, then
directly access data located on a Digital Island server
in London without going through any additional links. If
the same person were using the public Internet, he or
she might first go through tens or hundreds of servers
and routers to view a page. The company now has 28
private peering points worldwide and offers
guaranteed service in 17 countries.

In the past year or so, according to Mr. Coons, the
uniqueness of the company's service has been diluted
slightly by improvements in the reliability and reach of
the Internet. But Digital Island, which is now
headquartered in San Francisco, has reconceived its
mission as helping U.S. e-commerce companies reach
a global audience and has added services and software
for quick development and deployment of
e-commerce sites. It also offers a new service, called
TraceWare, that can tailor content, like product
information or a Web site's language, to the location of
the end user. In the future, the company plans to offer
real-time global mirroring, application monitoring, and
transaction measurement services.


When the Internet grows up, says Mr. Coons, Digital
Island's fast, reliable global service may be less
important than it is today, but the company's newer
offerings make the odds look good for the sleeper in
the Hawaiian shirt.

COPYRIGHT © 1998 RED HERRING COMMUNICATIONS. ALL RIGHTS RESERVED.
[DISCLAIMER] AND [PRIVACY STATEMENT]




To: tech buzz who wrote (19)7/6/1999 4:37:00 PM
From: djane  Respond to of 1884
 
Steve Harmon very positive comments today on ISLD



eMailbag @ Internet Stocks
July 6, 1999
By Steve Harmon
Senior Investment Analyst
Morning Report Archives

Digital Island, Or Gilligan's Island?

"Steve, what do you think of Digital Island (NASDAQ:ISLD), will it be able to compete with
Exodus (NASDAQ:EXDS) or others?"

Reply: I like private global network services Digital Island's roster of 62 customers, its global
outlook and suite of services including co-location, outsourced hardware, and other offerings.
Digital Island's clients include Cisco, E*TRADE, Mastercard, Novell, National Semiconductor
among others.

Revenue is ramping with six months to March 31, 1999 of $3.8 million vs. $691k the prior
year period. Losses were $14.9 million which I can see with its global expansion plans in
place.

Copyright 1999 internet.com Corp.
All Rights Reserved. Legal Notices, Reprints.






To: tech buzz who wrote (19)7/7/1999 11:51:00 AM
From: djane  Respond to of 1884
 
$10 bil market opportunity. ISLD forecast of $250 mil revenues in a couple years looks very conservative.

Both companies are at the forefront of a rapidly expanding industry; Forrester Research estimates the Web-hosting market will explode from $900 million in 1998 to $10 billion by 2002.