Analyst & Research Reports

Dyn taking a DNS-­centric approach to cloud­-deployed network services

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6/3/2015 2/3 Copyright © 20002015 The 451 Group. All Rights Reserved. services. Company Dyn was founded in a dorm room at Worchester Polytechnic Institute in 2001 by then student Jeremy Hitchcock. Hitchcock, now CEO, developed an approach for dynamic DNS and remote access that expanded into domain registration in 2004, enterprise managed DNS in 2008 and eventually its Internet Intelligence business in 2014. The company has a staff of over 400 employees worldwide with its headquarters in Manchester, New Hampshire. In 2012, Dyn raised $38m in a series A led by North Bridge Capital, which has enabled the company to add five more acquisitions (Verelo, Trendslide, ReadyStatus, Nettica, Renesys) to its DNS and related services market rollup strategy. The company had previously acquired smaller DNS players EveryDNS (2010), EditDNS (2010) and TZO (2012), as well as SendLabs (2010), an email provider. Dyn subsequently sold a noncore portion of its email business to DuoCircle in November 2014. Competition Dyn's combination of DNS and Internet intelligence capabilities array it against a number of competitors across multiple categories of the market. Security is driving much of new IT spending recently, and the competition for Dyn's DDOS protection/mitigation capabilities set it up against 'brand name' firms such as Verisign, Akamai and Neustar. In addition, Infoblox and BlueCat offer combinations of DNS services and IPAM (IP address management). APM tools frequently point at volatility within the Internet as the determining factor of application and network performance, which has resulted in Internet performancemonitoring capabilities being built into Gomez, Keynote and Compuware. SWOT Analysis Strengths Weaknesses The company's existing revenue center of managed DNS gives it flexibility to pursue multiple adjacent markets without endangering its cash cow. The growth of clouddeployed network services creates a steady stream of new potential partners for Dyn's Internet Intelligence offering. Being a horizontal technology in a vertically oriented sector is difficult and adds to sales/marketing costs. The company likely also needs to rebrand itself to shed its consumer legacy. Opportunities Threats Performance routing has application across the spectrum of overlay networks and network services. Being an arms dealer while multiple vendors fight for dominance in each L47 service area is likely the more lucrative option. Dyn's integrated strategy combining DNS and Internet performance monitoring places it in the crosshairs of many focused, larger competitors that can wait for the company to (pay to) develop the market and then introduce competitive offerings that leverage their own brand equity. This report falls under the following categories. Click on a link below to find similar documents. Company: Dyn Other Companies: Akamai, BlueCat Networks, Compuware, DuoCircle, EditDNS, EveryDNS, F5, Gomez, Infoblox, Keynote, Nettica, Neustar, North Bridge Capital, ReadyStatus, Renesys, SendLabs, Trendslide, Tzolkin, Verelo, VeriSign Analyst(s): Christian Renaud Peter Christy Sector(s): Enterprise networking / Network performance & management

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