content: <PAGE>
  
                         SECURITIES AND EXCHANGE COMMISSION
  
                               Washington, D.C. 20549
  
                                  _______________
                                      FORM 8-K
  
                                   CURRENT REPORT
  
  
                       Pursuant to Section 13 or 15(d) of the
  
                          Securities Exchange Act of 1934
  
  
  
  Date of Report (Date of earliest event reported) June 20, 2000
                                                   -------------
  
  
  
                               Digital Island, Inc.
  --------------------------------------------------------------------------------
                 (Exact name of registrant as specified in charter)
  
  
           Delaware                    000-26283                     680322824
  --------------------------------------------------------------------------------
  (State or other jurisdiction        (Commission                  (IRS Employer
           of incorporation)          File Number)             Identification No.)
  
  
     45 Fremont Street, 12th Floor, San Francisco, California          94105
  --------------------------------------------------------------------------------
  (Address of principal executive offices)                           (Zip Code)
  
  
  
  Registrant's telephone number, including area code     (415) 738-4100
                                                    -------------------
  
  
  
                                     Not Applicable
  --------------------------------------------------------------------------------
           (Former name or former address, if changed since last report.)
  <PAGE>
  
  Item 5    OTHER EVENTS
  ------    ------------
  
            On June 20, 2000, Digital Island, Compaq Computer Corporation, Intel
  Corporation, and Microsoft Corporation announced a joint strategic alliance to
  extend Digital Island's infrastructure to provide broadcast-scale streaming
  media.  As part of the alliance, Compaq, Intel and Microsoft agreed to make a
  combined $45 million equity investment in Digital Island.  Digital Island also
  granted each party warrants to purchase up to 185,567 shares of Digital Island's
  common stock.  In addition, Compaq Financial Services (CFS) has agreed to
  provide $50 million in equipment lease financing to Digital Island, to expedite
  the worldwide deployment of Compaq servers.  CFS has also agreed to extend up to
  $50 million in lease financing to qualified Digital Island customers.  The four
  companies have agreed to jointly market and promote Digital Island's
  Footprint(TM) content delivery services for streaming media.
  
            Attached and incorporated herein by reference in its entirety as
  Exhibit 99.1 is a copy of the press release dated June 20, 2000 announcing the
  strategic alliance.
  
  
  Item 7    FINANCIAL STATEMENTS AND EXHIBITS
  ------    ---------------------------------
  
        (c) Exhibits.  The following documents are filed as an exhibit to this
            --------   report:
  
  
            4.1        Amendment No. 2 to the Amended and Restated Investors'
                       Rights Agreement
  
            99.1       Press Release, dated June 20, 2000, issued by the Company
                       announcing the strategic alliance with Compaq Computer
                       Corporation, Intel Corporation and Microsoft Corporation.
  
  
                                         2
  <PAGE>
  
  SIGNATURES
  
            Pursuant to the requirements of the Securities Exchange Act of 1934,
  the registrant has duly caused this report to be signed on its behalf by the
  undersigned hereunto duly authorized.
  
  
  
                                      Digital Island, Inc.
                                      (Registrant)
  
  
  Date: July 5, 2000                  By: /s/ T.L. Thompson
                                          -----------------------
                                          T.L. Thompson
                                          Chief Financial Officer
  
  
                                         3
  <PAGE>
  
                                   EXHIBITS INDEX
                                   --------------
  
  
            Exhibit     Description
            -------     -----------
  
            4.1         Amendment No. 2 to the Amended and Restated Investors'
                        Rights Agreement
  
            99.1        Press Release, dated June 20, 2000, issued by the Company
                        announcing the strategic alliance with Compaq Computer
                        Corporation, Intel Corporation and Microsoft Corporation.
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metadata_filer: {"company-data": {"conformed-name": "DIGITAL ISLAND INC", "cik": "0001084329", "assigned-sic": "7389", "irs-number": "680322824", "state-of-incorporation": "DE", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-26283", "film-number": "668426"}, "business-address": {"street1": "45 FREMONT STREET SUITE 1200", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105", "phone": "4157384100"}, "mail-address": {"street1": "45 FREMONT STREET SUITE 1200", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105"}}
text: SECURITIES AND EXCHANGE COMMISSION
  
                               Washington, D.C. 20549
  
                                  _______________
                                      FORM 8-K
  
                                   CURRENT REPORT
  
                       Pursuant to Section 13 or 15(d) of the
  
                          Securities Exchange Act of 1934
  
  Date of Report (Date of earliest event reported) June 20, 2000
                                                   -------------
  
                               Digital Island, Inc.
  --------------------------------------------------------------------------------
                 (Exact name of registrant as specified in charter)
  
           Delaware                    000-26283                     680322824
  --------------------------------------------------------------------------------
  (State or other jurisdiction        (Commission                  (IRS Employer
           of incorporation)          File Number)             Identification No.)
  
     45 Fremont Street, 12th Floor, San Francisco, California          94105
  --------------------------------------------------------------------------------
  (Address of principal executive offices)                           (Zip Code)
  
  Registrant's telephone number, including area code     (415) 738-4100
                                                    -------------------
  
                                     Not Applicable
  --------------------------------------------------------------------------------
           (Former name or former address, if changed since last report.)
  Item 5    OTHER EVENTS
  ------    ------------
  
            On June 20, 2000, Digital Island, Compaq Computer Corporation, Intel
  Corporation, and Microsoft Corporation announced a joint strategic alliance to
  extend Digital Island's infrastructure to provide broadcast-scale streaming
  media.  As part of the alliance, Compaq, Intel and Microsoft agreed to make a
  combined $45 million equity investment in Digital Island.  Digital Island also
  granted each party warrants to purchase up to 185,567 shares of Digital Island's
  common stock.  In addition, Compaq Financial Services (CFS) has agreed to
  provide $50 million in equipment lease financing to Digital Island, to expedite
  the worldwide deployment of Compaq servers.  CFS has also agreed to extend up to
  $50 million in lease financing to qualified Digital Island customers.  The four
  companies have agreed to jointly market and promote Digital Island's
  Footprint(TM) content delivery services for streaming media.
  
            Attached and incorporated herein by reference in its entirety as
  Exhibit 99.1 is a copy of the press release dated June 20, 2000 announcing the
  strategic alliance.
  
  Item 7    FINANCIAL STATEMENTS AND EXHIBITS
  ------    ---------------------------------
  
        (c) Exhibits.  The following documents are filed as an exhibit to this
            --------   report:
  
            4.1        Amendment No. 2 to the Amended and Restated Investors'
                       Rights Agreement
  
            99.1       Press Release, dated June 20, 2000, issued by the Company
                       announcing the strategic alliance with Compaq Computer
                       Corporation, Intel Corporation and Microsoft Corporation.
  
                                         2
  SIGNATURES
  
            Pursuant to the requirements of the Securities Exchange Act of 1934,
  the registrant has duly caused this report to be signed on its behalf by the
  undersigned hereunto duly authorized.
  
                                      Digital Island, Inc.
                                      (Registrant)
  
  Date: July 5, 2000                  By: /s/ T.L. Thompson
                                          -----------------------
                                          T.L. Thompson
                                          Chief Financial Officer
  
                                         3
  EXHIBITS INDEX
                                   --------------
  
            Exhibit     Description
            -------     -----------
  
            4.1         Amendment No. 2 to the Amended and Restated Investors'
                        Rights Agreement
  
            99.1        Press Release, dated June 20, 2000, issued by the Company
                        announcing the strategic alliance with Compaq Computer
                        Corporation, Intel Corporation and Microsoft Corporation.