No. of Recommendations: 3
All of the companies you mentioned except AKAM are very profitable, and have overcome the 'infrastructure needs' of their particular business. I am pretty sure Google and Ebay must have thousands of servers too, but both are not loaded down with debt.

I think one solid competitor is Digital Island from C&W.

AKAM's debt is truely awful, and the utter lack of decent cash flow is even worse. Their valuation at 10x sales is not exactly inspiring either. Their failure of the Dutch auction a few weeks back and the COO leaving are further reasons to be wary.

My thinking is, the more valuable a service a company provides - the higher profit margins it can generate. Based on this, I just don't see that AKAM provides that valuable a service. I'd be more inclined to look at other caching companies like F5, or Foundry, if you really wanted to play the caching space.

Steve
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