On Aug 31, 2010, at 10:22 AM, Tom DeReggi wrote:

> Also, hosting their servers is not necessarilyl free. For example, the most 
> logicial place to put it might be at one's NOC. That NOC might reside at a 
> Colo. At $50 per U of space, that is a residual cost that you will pay.

Obviously depends on your infrastructure. We own 19 sites out of the roughly 28 
sites utilized in our network. The others we have long term lease agreements 
for entire rooms, not just racks. It costs us next to nothing to rack equipment.

> And how many Us are each of Akamai's 3 servers in the base configuration? 
> Note with 100mb for $150/month in a colo, paying teh reoccuring rack fees 
> would be more expensive than buying an extra 100mb of bandwidth, thus I'd 
> argue even for the ISP there is a minimum usage capacity before it would be 
> cost beneficial the the ISP as well, not just Akamai.

Akamai won't even consider an ISP for the Accelerated Network Partner program 
until there is on average at least 75mbps of traffic flowing between ISP & 
Akamai. At that point I'd say installing Akamai's CDN servers would be of great 
benefit to the ISP. It would cut down on that transit traffic & free up 
external bandwidth for other applications. 100mbps isn't that cheap for some of 
us. In fact its about to cost me an additional $750/mo to add that to an 
existing connection. I'd surely take Akamai's servers over adding more transit 
any day.

Also, the purpose of installing Akamai servers into ones network is to bring 
content *closer* to users. Buying bandwidth will increase your capacity to the 
rest of the world but doesn't do much to reduce latency (unless you're already 
at capacity). Decreased latency is something a customer *will* notice. Adding 
more bandwidth…not so much.

--
Blake Covarrubias


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