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

To: sws2001 who wrote (913)	10/31/1999 8:20:00 PM
From: William F. Wager, Jr.	Respond to of 1884

Steve Harmon comment on ISLD in piece he did on AKAM... NetStock! by Steve Harmon CEO of e-harmon.com "the source for internet investments" www.e-harmon.com ___________________________ Like George Foreman entering boxing again the networking stocks have re-entered the IPO ring and have been scoring hits all year long in a bout dubbed 'Internet stocks, the broadband wave.' But maybe it's more rope a dope with Wall Street. The recent runup without reason in many of the newfangled network stocks leaves me thinking the exuberance could end if the group falters. Which it may any day now. Simply put, too many issues chase too few investors and not all the companies will win. Among the highfliers: Juniper (JNPR), Foundry (FDRY), Sycamore (SCMR), Copper Mountain (CMTN). That said, another network IPO may rocket out of the gate, its angle among one of the better plays we've seen in awhile: delivery of faster rich media via its server network. In other words, as the enthusiasm for the entire sector may peak a new entrant may be one that shouldn't be lost in the clutter. Akamai (proposed ticker:AKAM). The numbers: _____________ Akamai IPO snapshot ------------- shares offered 8.00 greenshoe 1.20 price per $17.00 proceeds $156.40 shares out 90.44 mkt cap $1,537.51 revenue six mos. 6/99 $0.40 est. 1999 revenue $2.00 est. 2000 revenue $10.00 net loss six.mos 6/99 $(10.08) in millions, except share price (c) 1999 e-harmon.com, Inc. share this with a colleague _______________ Akamai provides global delivery for Internet content from its geographically-dispersed servers. Clients such as Yahoo mark rich media content with Akamai tags, thus alerting its servers to deliver a file when the request from a Web user is made. As of October 5, Akamai has 1,475 servers in 24 countries across 55 telecommunications networks, all with the express purpose of storing audio-video content/ads/media for delivery to users faster by being closer to users. What Akamai has that's attractive is its own set of network monitoring abilities with awareness of bottlenecks and traffic jams on the Internet. Audio-video content from any one of its clients which include Apple Computer, CNN Interactive, Discovery Channel Online, Infoseek-GO.com, J.Crew.com, The Motley Fool and Yahoo! has special "Akamai" tags that trigger its servers to deliver rich media based on the most efficient route. Say, for example, that Yahoo! has a video on its site and a user in Belgium clicks on Yahoo for that. The actual rich media may be delivered by Akamai servers closest to the requester geographically and away from any Net traffic jams. Akamai claims a 2x to 10x increase in speed with its technology. So what's the value of speed on the Net? I think you have about 3 seconds to deliver a value to an end user of else they click away. In other words, something has to happen right away for value to be created. Not an entire video download but the process in 3 seconds. Some results of the click. The twitch hand fueled by caffeine and attention-deficit. Typical Web generation stuff. On the market cap value my analysis shows Akamai seeking a $1.5 billion IPO value with only the roster of clients to support it. Revenue today is non-existent at $404k. I can see Akamai on an aggressive revenue ramp to $50 million in 5 years. Both Cisco and Microsoft invested in Akamai recently and both are working with it to incorporate Akamai technology and vice versa. Venture backers include Battery with a pro forma 11.1%, Baker Communications Fund with 8%, Polaris with 7.2%. The surprising part, especially in light of Digital Island (ISLD) -- one of my favorites this year -- acquiring Sandpiper is the fact that Akamai is going public. You ask why? Inktomi should have acquired Akamai already. Inktomi (INKT) has a great presence in cache software networking, which is another way of speeding up the Net delivery of data. Akamai is a perfect fit to expand that. Inkamai anyone? archives.listserve.comws4d-db-query-Show.ws4d?ws4d-db-query-Show*EBH-BJB-239241245240242245-1424-Email_Archive-email(directory)e-harmon(directory)**.ws4d?email/e-harmon/results(R).html --Bill

To: sws2001 who wrote (913)	11/1/1999 1:56:00 PM
From: William F. Wager, Jr.	Read Replies (1) \| Respond to of 1884

Business Editors SAN FRANCISCO--(BUSINESS WIRE)--Nov. 1, 1999--The merger announced Monday, 10/25 between Digital Island (NASDAQ:ISLD) of San Francisco and privately held, fast growing, Sandpiper Networks, Inc. of Thousand Oaks, CA was applauded by Wall Street investors as Digital Island's stock was bid up from the low twenties on Friday, 10/22 to close at $67.50 on 10/29, nearly a 200% increase in one week. As companies doing business around the world are increasingly looking for more complete solutions for turning their global businesses into globalized e-businesses, this merger positions the new company as an integrated solutions provider of content delivery, hosting, and intelligent network services. The new company enables its business customers to rely on one network services provider instead of several vendors for different needs. The combined entity will have more than 100 customers including E*Trade, Cisco Systems, Intuit, Novell, CNBC.com, Mastercard, Value America, Microsoft, and the Los Angeles Times. Watch Ruann F. Ernst, President, CEO of Digital Island, and Leo Spiegel, President, CEO of Sandpiper Networks, Inc. discuss the key industry merger of their two companies. Click on the following link to view: tm.intervu.net If you do not have the RealVideo Player to view the video, to download the free software go to real.com