Enterprise Video Provider Ignite Technologies Does Revenue North Of $10M In 09′
The vast majority of companies in the online video space are private and as a result, don't publish any details on their revenue, profit loss or rate of growth in the market. Many times, vendors will tell me off-the-record what their financials look like but don't allow me to give out any of those details in any public forum.
So it was great to have a call with Ignite Technologies last week where the company was willing to go on-record with numbers, drill down into their revenue and provided me with a list of new clients wins from 2009. While everyone is talking about content delivery over the public Internet, companies like Ignite are focused on providing a platform that enables enterprise corporations to deliver video and digital assets inside their firewall, across the customers own network.
Ignite signed up more than ten new customers last year including BP, FlowServe, Sepracor, Altria and Hyatt and ended the year with revenue over $10M. While that number is small when compared to CDNs in the market, those CDNs are in the service business, while companies like Ignite are in the software business.
While the topic of enterprise CDN does not get a lot of coverage in the media, it's crucial to the way enterprise corporations communicate with employees, customers, partners, suppliers and others in their value chain. The market for enterprise video delivery platforms is still small, under $100M last year, but it's a fast growing segment of the market and one that does not require any type of monetization model, like we see in the consumer entertainment market. Corporations understand the value of video and their challenges are things like managing content, scaling their network and integrating with CMS platforms, as opposed to ad insertion or content licensing models.
The enterprise CDN market does not get written about a lot because most of the work being done is not talked about, many customers don't want their name used and the nature of the content being delivered can't compete with exciting content like movies and entertainment. But there is a quiet revolution going on in the enterprise CDN space and if you speak to a lot of Fortune 500 corporations, the will tell you that their use of video delivery inside their firewall tends to double each year.