Akamai Losing Some Apple Business To Limelight

Akamai (AKAM) is apparently losing some of Apple’s (AAPL) content delivery business for software updates and the App store to Limelight Networks (LLNW), according to a post by StreamingMedia.com’s Dan Rayburn.

Raymond James analyst Michael Turits points out in a research note that Apple was once more than 10 percent of Akamai’s revenues, but now is likely closer to 5 percent. Still, Turits says that the issue “highlights concern we have had regarding commoditization of content delivery and broader loss of wallet share at major Akamai customers.” Turits notes that he previously had viewed Apple as a nearly exclusive Akamai customer, but that most major media customers have been multi-sourcing for some time. He says that Akamai and Limelight have provided nearly equivalent large file delivery capabilities for some time, resulting in steep price declines in 2007 and 2008.

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