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Instart Logic Creates CDN Model Based on Revenue Improvements

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The content delivery network (CDN) has become commoditized declares application and website delivery company Instart Logic. Rather than charging for simply moving content around, it's unveiling its Application Services Platform—an option for enterprise customers that only takes a nominal fee for distribution (covering the costs it incurs for bandwidth) and instead charges based on revenue enhancements. Stealing a model from app stores, it takes a portion of ad sales and ecommerce transactions, while at the same time offering a written guarantee that it will improve application download performance by 20 percent.

In the graphic below, Instart Logic gives numbers from one early client. The company's CDN charges dropped from $2 million per year to $60,000 with the new model, while  ecommerce conversions rose greatly. Customers should pay only when value is created, Instart believes.

Specifically, Instart Logic charges for improvements created by three of its services: AppSpeed, AppShield, and Ad Integrity. AppSpeed delivers a guaranteed 20 percent improvement in delivery times, which the company says directly leads to a 5 percent ecommerce improvement all by itself. AppShield defends against DDOS attacks and bot blocking. Ad Integrity is an ad blocker blocker, allowing sites to serve more ads to visitors by getting around ad blockers. Instart announced Ad Integrity in December 2016; it now protects video pre-rolls as well as display ads.

Instart Logic boasts over 150 clients including Walgreens, Neiman Marcus, Office Depot, and AutoNation for related services, and says many clients moved over from Akamai and Edgecast. Instart Logic takes aim at Akamai in particular, saying it has third-party benchmarks showing that its pages load 20 percent faster than those served by Akamai.

Instart has another ad solution in the pipeline, one that allows site owners to use traditional ad exchanges but filter them for acceptable ads. Site owners can choose to limit ads that use audio or take over the screen, for example. That product is 6 to 9 months away from release. 

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