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

To: LJM who wrote (130)	7/15/1999 11:03:00 AM
From: Thomas Zoran	Read Replies (3) \| Respond to of 1884

The messages from the last several days revolve around what ISLD exactly does and where its competition is. From the posts here, I'm not sure an entirely clear picture of ISLD has been presented. ISLD's key competitive asset is that it delivers content, through its own NOCs (datacenters), that is specifically designed to bypass leased lines based in the US. The whole premise around founding the company is Hawaii is to have a starting grounding that is clear of the network congestion present on US land-based lines. Also, the complex POP mesh in the US creates a situation where data makes multiple "hops" before it is even enroute anywhere. ISLD's competitive asset is to delivering content internationally at incredible speed by bypassing traditional lines in the US and their associated POPs. This way, ISLD can host applications worldwide for international customers with greater performance and efficiency. In terms of delivering content to Asia and other foreign countries, ISLD is superior to ABOV, EXDS, INIT, and others. That is why their customer base is so good. Only top-tier names like Cisco and Mastercard, but that is primarily for their international content delivery. Cisco was their first client ever, and they were so sold on the concept that Cisco delivered their international content via ISLD when ISLD was 12 employees. Cisco has been there since. Comparison, in a way: QWST and GBLX. Qwest is the leader in infrastructure in the US, while Global Crossing dominates inter-continental traffic. Similar parallels can be drawn between ABOV/EXDS and ISLD in the datacenter space. In fact, ISLD is the only company to deliver content this way, so they are first to market in their market and are rapidly creating barriers to entry. But remember that EXDS, ABOV, and ISLD do not own any part of the backbone...they may own their connections to the backbone, but WorldCom, Sprint, AT&T, Qwest, Level3, and Global Crossing are the main backbone providers. As far as the stock, I think we are looking OK from a technical standpoint. The stock is gyrating on diminishing volume and is establishing a base in the high 20s. We should see continued consolidation over the next several days...then look for the ending of the quiet period around the 25th to move the stock higher. Unfortunately, we are heading into summer when things slow down and we can see a general market downturn, so I would give ISLD an outperform.

To: LJM who wrote (130)	7/16/1999 3:49:00 PM
From: Bala Vasireddi	Read Replies (1) \| Respond to of 1884

>David, I think it has something to do with the architecture of the >network. Meshed versus Distributive???? Does that help? Here is what I think it means. Meshed generally is a term that is used to describe a network in which every node in a network can reach every other node in a single hop. In other words every node is connected to every other node. Typically this involves using some switched technology like ATM/Frame relay etc. For e.g each node that connects into an ATM cloud can setup "virtual" connections to each other node. Somebody else may be able to provide a better explanation. Hope this helps. -bala