Inktomi CEO: Outsourcing Key to Web Buildout

LAS VEGAS (05/10/2000) - Enterprises should consider outsourcing all but their core competency when developing sophisticated Web-based operations, according to the head of U.S. Internet and network infrastructure software vendor Inktomi Corp.

"The new Internet companies are figuring out what their core (competency) is and, because the rate of adoption (of new technology) is so fast, they are outsourcing everything else," David Peterschmidt, Inktomi chief executive officer and president, said in a keynote speech today at the Networld+Interop (N+I) show here.

The Internet is simply developing too fast for any one company to manage all the technology involved in a robust Web site alone, he said. The commonly used phrase "It's not rocket science" does not apply to the rate of technological change in Internet infrastructure, Peterschmidt explained. "I'm here to tell you -- this is rocket science," he said.

For example, even Internet pioneer and Web portal specialist Yahoo Inc. outsources its search engine operations to Inktomi. "Yahoo's core value is not search engines," Peterschmidt said. He also cited the Internet network set up for the Financial Times newspaper by Digital Island Inc., a San Francisco-based applications and ISP (Internet services provider). Digital Island established a global Web site for the international newspaper called FT.com.

"You have to figure out what is essential to your core (business) and let others do the rest for you because the changes (in Internet infrastructure development) are going to be tumultuous and they are going to come fast ," Peterschmidt said.

Enterprises in search of the best ISP can consult investment bank research reports, Peterschmidt said in a question-and-answer session after his keynote speech. "They've done a really good job of mapping out the layers of technology," he said. "Their teams have looked at networks, the infrastructure needs, and the dot.coms. That's what I'd do."

To gain hands-on knowledge of the new Internet networks, enterprise information technology managers should visit the Web sites of other networks, Peterschmidt said. "The only way you can prepare a network is to take a representative company that uses a network and go and sit down with them and figure out what they do," he said.

In related news, Inktomi today announced the release of two network infrastructure products -- Traffic Server 3.5, a network cache platform, and Content Delivery Suite (CDS) 3.5, content distribution and management software.

Both products add features that support enterprise and carrier class networks, according to Inktomi. The features include content delivery, such as streaming media and applications, directory support for enterprise networks and customized logging capabilities for hosting and content delivery network providers, the company said in a statement issued today.

Inktomi, in Foster City, California, can be contacted at +1-650-653-2800, or at http://www.inktomi.com/.

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