comments for IIP

Discussion in 'Stocks' started by bigzz, Mar 24, 2006.

  1. bigzz


    some information for the IIP from message board

    Re: Comparing IIP, SVVS, EQIX, LVLT
    by: doug1s (30/M/California)
    Long-Term Sentiment: Buy 03/22/06 05:49 pm
    Msg: 218253 of 218662

    There are significant differences between all 4 companies. EQIX is
    a "carrier-neutral" collocation company. That basically means that
    they don't sell their own internet bandwidth. Companies such as IIP
    or Level 3 that want to sell bandwidth to EQIX customers either have
    to put some type of fiber connection into the EQIX facility or the
    customer has to bring in a high-speed connection such as a T3 that
    connects to the carriers network. EQIX's business model is selling
    colocation space and basic managed services such as tape back-up,
    system re-boots, hot hands, etc.

    Level 3 is a wholesale carrier that has built a fiber optic network
    thoughout the US and some international locations. Their focus is on
    selling network capacity to the IIP's, MCI's, AT&T's, and enterprise
    customers of the world. They have a Tier One Internet backbone and
    they don't sell to small businesses that need T1 service. They are
    known as a carrier's carrier.
    IIP purchases large Internet connections from all of the major
    Internet Backbone providers and uses proprietary technology to route
    Internet traffic over the various backbones, thus improving network
    performance for their customers. They also sell hardware that allows
    customers to get their own Internet connections and optimize their
    data traffic over those connections. The Internet is a combination of
    thousands of different networks that hand traffic off to one another
    as needed so that customer's can send and receive data upon request.
    Because the flow of traffic from network to network is loosely
    controlled at best, latency sensitive traffic such as VOIP phone
    calls, streaming media, etc don't normally fair very well went sent
    over the Internet. IIP's patented technology is constantly pinging
    the countless routes on the Internet, they are able to control the
    flow of data to help it reach its destination much more efficiently.
    That is why their customer base is large enterprise clients and huge
    web-based customers such as Google, Amazon, etc. If you went to
    Amazon, and the pages downloaded a little bit slowly, you may not go
    back to the site. IIP's technology helps ensure that end users have a
    favorable surfing experience when they hit the site.

    SVVS is a little bit of the other three companies. They have an
    international backbone, although not nearly as robust a Level 3, and
    they also have the former Exodus hosting facilities which they
    purchased from Cable and Wireless. Their business model is to sell
    next-generation managed VPN's and hosting solutions but I have always
    felt that their ideas were better than their execution (I used to
    work there so I know first hand). They have one large customer
    (Reuters) that probably accounts for 30%+ of their revenue. I believe
    that Reuters owns a piece of SVVS so that revenue is pretty secure.
    The issue I have with them is that they have never been able to come
    close to generating a profit in 10 years of business. They are huge
    proponent of the EBITDA smoke and mirrors approach and I don't know
    if they will ever achieve profitability (especially with executives
    dropping $250k at Scores in a single night). I hope that helps.

    By the way, IIP is the best in the business at what they do, bar