Akamai goes P2P, buys Red Swoosh

Updated: Akamai has just announced that it is buying Red Swoosh, a peer-to-peer based service for about $15 18.7 million in stock. That’s not that much for a start-up that counts some heavy weights as its customers.

The rumors of this deal had been floating around for about two months and Travis Kalanick of Red Swoosh has been avoiding us for a while now, ever since we asked him about the deal. Anyway the deal should make Akamai naysayers pause a little. Many had said that P2P caching could dislodge Akamai from its current dominant position. Fat chance – Akamai, it is clear, is more fierce in protecting its turf than say Microsoft. It just uses its hefty stock market capitalization to buy out possible competitors.

I would post a longer post later today once I get through the email-hell!