Question-and-Answer Session
Operator
(Operator Instructions). Just a quick reminder, if you are joining us this afternoon using speakerphone, please make sure that your mute function is off to allow your signals to reach our equipment. (Operator Instructions). And we'll pause for just a moment. We take our first question this afternoon from Erik Suppiger with Signal Hill. Eric?
Erik Suppiger - Signal Hill
On the CDN front, what is different, last quarter you had forward that into your other operations? It sounds like maybe you have taken a different perspective on some of the opportunities there or what is different?
Eric Cooney
I'll say, I don't think anything is different at least in terms of the strategy other than we are closing in on the launch of the next version of our CDN platform, but certainly nothing has changed between last quarter and this quarter in terms of our CDN strategy, we used down the market, our product positioning etcetera.
Erik Suppiger - Signal Hill
So, what you are talking about in terms of what you are going to be developing here is just a product, an upgrade to the service you were currently offering?
Eric Cooney
Yes. Lets say an engineering development activity that's actually been underway for many quarters now and we are just launching the versions of that engineering development.
Erik Suppiger - Signal Hill
And then on the colocation side, customers that are in some of the unprofitable side. Are you going to be at risk of disrupting those customers if you had customers in both profitable sites and unprofitable sites you close down the unprofitable site? Are you going to be at risk of loosing those customers in the other sites as well?
Eric Cooney
Is the question about a customer that happens to have space in both a profitable and in unprofitable site?
Erik Suppiger - Signal Hill
Yeah.
Eric Cooney
So, I think the short version is no, and the rationale behind that is, as I indicated in the call or in the presentation, Internap's approach to data center business is somewhat unique in that we resell other let's say colocation providers, data center space. So in other words, most customers or those customers that are in what we characterize as those unprofitable sites, the difference for them will likely be instead of a contract with Internap for both let's say the Internap IP services as well as the colocation footprints in somebody else's data center under one contract. Their world then become two contracts i.e. directly with the colocation provider and with Internap for the IP Services which is the typical contractual approach for most colocation opportunities.
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