 Velocity Conference, this is O'Reilly Media's premier show around web performance, mobile performance, web ops, dev ops, and user experience design, kind of all holistically under one. This is the modern architecture that people, the top leaders are using. And this is innovation, and this is theCUBE, this is siliconangle.com's exclusive coverage of O'Reilly Media Velocity Conference. theCUBE is our flagship program, we've got the advanced instructor soon from the noise we're talking to the Alpha Geeks, the tech athletes, CEOs, presidents, and startups. And our next guest is James Siegel, the president of Edgecast, edgecast.com is your site. Great entrepreneurial story in your company. You guys six years ago started your company and grew it, and now on an amazing ramp, all because of software, all because of some intellectual property and some smart founders and a great team. James, welcome to theCUBE. John, it's great to be here, thanks. It's nice to hear somebody call me smart. Yeah. Well, you told me off camera you went to Harvard, so you got to be smart to get into Harvard. Our co-host, Jeff Frick, went to Wharton, so we know he's not dumb, so we got to be smart to get into those schools. But in all seriousness, the modern era is something that we've been talking about here inside theCUBE with a variety of events, whether it's VMworld or it's whether an IBM show or here at Velocity or Strata, and everyone is now realizing pretty clearly there's pretty much a mandate, there's not even prescriptive at this point that the cloud, mobile, and this new environment of real time is a future. We're here now and they're building out, right? So there's a lot of pressure on folks to really kind of rethink and re-architect their businesses, changing their value changes, changing their infrastructure, changing their applications, and ultimately driving business value. What I find interesting though is your company is that an area that has to innovate or die because you're in the networking business, content delivery, application delivery, CDN, some call it, but that market is under a lot of pressure to be high performance. In a way, there is no SLAs because it's 100% available or you don't have customers. That's right, yeah, we're their insurance policy, right? So that's kind of the standard table stakes, 100% uptime, which is great, unlike the cloud, which is now getting to an SLA kind of discussion. But let's talk about what that means right now in the content delivery business, because when you have applications, Facebook just launched their Instagram video today. We had coverage there at the Facebook headquarters with SiliconANGLE, but this is the new normal. Applications, I need deliveries, not just hosting images on the network. This is about a new way to think about it. So you guys are powering applications and companies. You guys built a system that's modern and innovative. Talk about what you guys have done as a company and the product that you have that's so successful. Sure, and thanks for that intro. Edgecast is an interesting animal. We are both a software company, a SaaS platform that runs in the cloud, and we're a network. So we provide a huge amount of infrastructure, bandwidth, and delivery for all kinds of websites. More than 6,000 customers use us today. We power about 5% of the internet. And what's most interesting about how this works is you have to be able to support every single format of file, every piece of content, every kind of scripting paradigm, every kind of website innovation that's running out there, and then support it on every driver device, PC, mobile device, IPTV, IP-enabled device anywhere. And so that means that we have to be incredibly cutting edge. What we've done is we've distributed our servers in a very logical way that's relevant to today's internet. So a lot of the legacy CDNs have a highly distributed server infrastructure, maybe, I don't know, 130,000 servers, some massive waste of infrastructure deployed very inefficiently. And that worked fine during the days of EarthLink and AOL and Prodigy when you're having to dial up and access the internet. But in today's centralized internet where peering fabrics and interconnect exists, you want to be at the main aggregation points and you want to have massive storage compute capacity in a real sort of agile, scalable cloud infrastructure. And that's what Edgecast has built. So we have these large superpops and each of these have massive cloud storage and cloud caching software that we built. We call it Sailfish that runs a very centrally but nonetheless distributed cloud and that's what powers the websites for our customers. So we cash content, proximate to end users and deliver it low latency to end users. We accelerate dynamic websites and we do so with our application delivery network and that allows us to take any kind of dynamic request and make it go fast. And that gives the performance benefit to these websites and performance is everything. You mentioned uptime and availability. We can't go down. We're the insurance policy for these big websites. You know, a lot of the traffic has been around. A lot of companies grow with their legacy providers but one of the interesting things is with all the security concerns right now, I don't want my traffic on this network that's peering with that network or I got this service provider and that service provider. I got a lot of cost routing decisions, a lot of costs and a lot of, you know, that's a normal networking stuff. Okay, let's take it to another level of the business value now. The business value is, okay, I'm a company. I don't necessarily want to have protections just against security. I don't want to run my traffic with everybody else. I want private networking but I want all the benefits of the CDN. How is that trend evolving with you guys? Do you solve that problem? Do you have a solution there? Because people don't mind paying for value but so they think here's your public option, here's your private option. What are you guys doing in that area? So we've addressed that problem pretty head on. We have a new solution called Transact. It is our dedicated e-commerce network. What we've done is we've built a custom network specifically for internet retailers and it is completely segregated so that if other customers are social media customers like Twitter or big banking customers or large political customers or high profile websites are on this and they might get attacked or they might have big spikes that have to do with maybe sort of a Twitter bomb or something like that going off, we don't have to worry about that affecting our e-commerce customers. You imagine you're a big internet retailer, you have millions if not billions of dollars transacting on your website. You want to de-risk every element of your delivery to make sure it's rock solid and up and available. So being on a shared network that has everybody and their mother running traffic is just a risk you don't need to take. We've carved out this dedicated e-commerce network and we've even locked it down so that during the holiday season we freeze it. That means no changes to the network, complete code freeze, no events that can really upset or interrupt traffic and you layer that with all our technology, our application, delivery network, our front end optimization, our caching and that gives a very secure, segregated, private network for internet retailers and these are the folks who've figured out how to make money on the internet. They're not sitting there trying to say hey we'll give it for free and find some way to monetize this later. These guys figured it out so they need to protect their traffic. So a lot of the storage paradigms are now creeping into networking. Software-defined data center is a big hyped up worry we've been covering, software-defined networking, a lot of virtualization, a lot of tech involved. You guys have a software's key part of your platform and key part of your development but what did you guys do specifically that's just not just caching? What did you guys do to modernize, create that innovation? Why are you, what's the big secret sauce or architecturally thing that you've done? There's probably three things that we really focus on as main technology differentiators. Number one is Sailfish. It's the name of our software that runs at the edge. It's a combination of a distributed file system and a really intelligent caching platform built together. And this gives all the features and capabilities that our customers enjoy with self-service, APIs and all the great configurations makes it available at the edge and does it very efficiently. We actually, we have our own cloud running at the edge on Sailfish and it is a highly distributed infrastructure in the software and data center that allows us to have commodity hardware running on smart technology and makes us very capital efficient. The next thing we did is a network topology that is relevant to today's internet. You know, we talked about the highly distributed model that doesn't really work anymore so we have these large centralized pops that give us tremendous capital efficiency. And then finally we use a load balancing technology that's IP based. So we can pinpoint where an end user is based on where their IP address is as compared to based on where their DNS server is for their ISP. And that means our service is a lot more accurate. So James, you're the co-founder and talk about on a personal level, you know, how you feel right now. As you started out six years ago, you got over 200 employees, 250 employees and growing, get some great revenue growth. What's up with the company? How do you feel and what's the next step for you guys? Well, personally, I feel like I'm a thoroughbred running the triple crown. Like I'm sitting here in the middle of the preakness having the best time of my life. This is what I trained on my life to do. My partners and I, this is the third business that we've built together. We've been in the web space in web hosting and app hosting and now in CDN. And we like to solve problems. We like to deliver value and we figured out a way to address a real sort of problem in the marketplace. There was a gap that weren't enough providers solving this problem for customers. And so we're really excited. It's been phenomenal growth to your point. You know, we've grown from 20 million to 40 million to 70 million to 100 million and we keep growing. And the fact that our business is profitable in a space where you never find profitable companies. I mean, basically fourth year of profitability it's unheard of. We're just excited. The potential is there. We clearly are committed to making this one of the biggest companies in the space. And we're just really excited about what we're doing. Great entrepreneurial story here at Velocity Conference. Again, you get the founders kind of run their company which I always say keep the founders around. They're in charge. But really the software and the architecture you guys put real modern innovative. Congratulations, James Siegel, the president and co-founder of Edgecast. This is theCUBE. This is our flagship program. We'll go out to the advanced district to see them from the noise. We'll be right back with our next guest after this short break.