EdgeCast Edges Past 1,000 Customers

Written by Ryan Lawler

Tuesday, September 8. 2009 at 11:00 AM EDT Post a comment

Digg   Del.icio.us   Reddit   Email This

no ratings

• Login to Rate

Just eight months after announcing its 300th customer, startup content delivery network (CDN) EdgeCast Networks Inc. says it now boasts more than 1,000 customers.

In an interview with Contentinople, EdgeCast president James Segil says the company's customer growth comes from both direct and indirect sales efforts.

On the direct sales side, EdgeCast has won about 450 direct customers, which is impressive for a CDN business that officially launched just two years ago. But while growth from the company's direct sales force has been strong, results from Edgecast's indirect sales efforts has been even more impressive.

EdgeCast has long pursued a strategy of striking reseller deals with technology partners, as well as service providers in the Web-hosting and IP transit segments. Notable reseller partners include Deutsche Telekom AG (NYSE: DT), Global Crossing (Nasdaq: GLBC), NaviSite (Nasdaq: NAVI), The Planet Internet Services Inc. , and thePlatform Inc.

Now that strategy is beginning to bear fruit. Through a combination of wholesale and reseller agreements, the number of customers from Edgecast's indirect sales channel has grown to more than 550.

Despite the fact that most of its customers are on the reseller side, the bulk of the company's revenues still comes from direct sales. But because its indirect customers come with little to no marketing or sales expense, and because EdgeCast's reseller partners typically handle customer support, its indirect sales typically come at better margins.

While EdgeCast is not yet cash-flow positive, Segil says he's comfortable with his company's cash in the bank, as well as its current margins and (obvs) customer growth.

In an interview with Contentinople, Segil talks about the recent customer milestone, as well as EdgeCast's reseller strategy and its current financial position. To read the full text of the interview, click here.