To: Boplicity who wrote (1043 ) 12/8/1999 9:25:00 PM From: jhg_in_kc Read Replies (1) | Respond to of 1884
Greg, and ALL, this is a good overview of ISLD's business.(from WSJ) What advice do you have for a new guy? I am buying tomorrow. Digital Island Inc., a fast-growing provider of Internet Web hosting and other services, said it has agreed to merge with another high-profile Web firm, Sandpiper Networks Inc., in a stock swap valued at $630.5 million... The deal combines two key players in the emerging market to expedite delivery of Web content throughout the world. Digital Island, based in San Francisco, deploys a customer's data via a combination of Web-hosting centers and networking software. Sandpiper, based in Thousand Oaks, Calif., spreads its customers' data through computer servers situated around the world, as well as with special software that enables customers to simultaneously execute a transaction while downloading the material. For example, someone in Hong Kong can buy a music CD over the Internet from a vendor in San Francisco, and download the music at the same time. Before, that person would have to circumnavigate as many as 30 different Internet switching sites, creating delays that could allow for security breaches and loss of data. Companies like Digital Island and Sandpiper have been rushing to try and address this problem of so-called content delivery, and as such it has become one of the hottest areas of the Internet. Other major players include Web hosting companies such as Exodus Communications Inc., and Web delivery firms such as Adero Inc. and Akamai Technologies Officials of Digital Island and Sandpiper say their merged firm will combine all these acceleration technologies under one roof. Indeed, Digital Island officials say they sought out the alliance three weeks ago after seeing Sandpiper's success in content delivery. The merger talks were code-named "Beach," because Digital Island was founded in 1995 in Hawaii while Sandpiper was conceived in 1996 by its two founders on a vacation to the Caribbean isle of Martinique. In essence, Sandpiper "piggybacks" its servers on to Internet service providers throughout the world, and uses a proprietary software it calls its "special sauce" to allow users to perform multiple tasks when conducting business online. Digital Island, meanwhile, maintains Web-hosting centers in Honolulu, Hong Kong, London, San Francisco and New York, with data being accelerated via an internal network the company uses. "No one else will be able to do what we can do," said Ruann Ernst, president and chief executive officer of Digital Island, which went public in June after being founded in Hawaii in 1995. Before relocating to San Francisco, the company served as a geographical midpoint between Internet users in Asia and North America. Ms. Ernst will become CEO in the merged company, which will retain the Digital Island name and the San Francisco headquarters. Her counterpart at Sandpiper, Leo Spiegel, will be president. "There is a huge opportunity for us," Mr. Spiegel said.