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Tag: Tom Leighton

  • Akamai Is Taking on the Cloud’s Top Dogs With Linode

    Akamai Is Taking on the Cloud’s Top Dogs With Linode

    Akamai is hitting the ground running with its Linode purchase, using it as the backbone of its cloud ambitions.

    Akamai made its name as the world’s leading content delivery network (CDN), but has been aggressively transforming itself into a cloud provider. It’s $900 million purchase of Linode was a major piece of that transformation and the company is using it as a launchpad to challenge the cloud industry’s giants.

    Last week, Akamai unviled its Connected Cloud service, and promised a “a fundamentally different approach to cloud.” The company plans to build “three new enterprise-scale core cloud computing sites” in the US and Europe. The new sites are expected to go live by the end of Q2 2023 and will be based on the Linode assets. The sites will also serve as a template for 10 additional core sites the company will deploy throughout the year.

    The company also plans to roll out out at least 50 distributed sites in 2023, greatly expanding cloud computing’s reach, especially in remote locations.

    In what is sure to be good news for many companies, Akamai plans to bring CDN economics to cloud egress pricing in an effort to help drive down cost. This has been a growing concern for many companies, with cloud computing costs growing much faster than many expected.

    “The cloud’s next phase requires a shift in how developers and enterprises think about getting applications and data closer to their customers. It redefines how the industry looks at things like performance, scale, cost, and security, as workloads are no longer built for one place but are delivered across a wide spectrum of compute and geography,” said Dave McCarthy, Research VP, IDC. “Akamai’s innovative rethinking of how this gets done — and how it is architecting Akamai Connected Cloud — puts it in a unique position to usher in an exciting new era for technology and to help enterprises build, deploy, and secure distributed applications.”

    “We’re taking a fundamentally different approach to cloud computing — building on 25 years of experience scaling and securing the internet for the biggest companies in the world,” said Tom Leighton, Akamai’s Co-Founder and CEO. “Akamai is building the cloud the next decade needs.”

  • Akamai’s Transformation to a Distributed Cloud Provider Nearly Complete

    Akamai’s Transformation to a Distributed Cloud Provider Nearly Complete

    Akamai, the company synonymous with content delivery networks (CDN), has been slowly transitioning to become the “world’s most distributed cloud services provider,” a transformation that is well on its way.

    Akamai is one of the leading CDN providers in the world, but the company has been diversifying and expanding into other categories. According to Protocol, the company’s most recent quarter saw its security and compute business combine to surpass its delivery revenue. More significantly, the company’s delivery revenue fell by 6%, while its security revenue increased 23% and its compute revenue grew by 32%.

    “Next year, security will be the largest of the three,” CEO Tom Leighton said in an interview with Protocol.

    “It won’t be the majority yet by itself, but it’ll be bigger than delivery and compute. Depends how fast compute grows, but that’s an enormous market, and who knows, maybe compute will be the largest in five years. It’ll be a tough fight with security for that crown, because those are both very fast-growing areas for Akamai.”

    Akamai has been working on this transition for some time, purchasing cloud provider Linode for $900 million in February 2022. When the acquisition was announced, Leighton specifically highlighted the role Linode would play in Akamai’s transformation as a driving motivation for the purchase.

    “Akamai has been a pioneer in the edge computing business for over 20 years, and today we are excited to begin a new chapter in our evolution by creating a unique cloud platform to build, run and secure applications from the cloud to the edge. This a big win for developers who will now be able to build applications on a platform that delivers unprecedented scale, reach, performance, reliability and security.”

  • Akamai CEO Says 5G Will Change the Paradigm of the Web

    Akamai CEO Says 5G Will Change the Paradigm of the Web

    Mad Money’s Jim Cramer sat down with Akamai CEO Tom Leighton to discuss the impact 5G will have on the web.

    Akamai Technologies is one of the premier content delivery networks, providing critical services to companies around the world. As a result, the company has unique insight into new internet technologies, especially those that promise the transformative effect of 5G.

    Cramer asked Leighton about streaming platforms, and whether they were all Akamai customers.

    ”We work with Netflix, but don’t deliver the long-form videos today. We’re much more diversified today, so there’s no single really large customer on our platform. We work with pretty much all the world’s major brands, including the sporting events.”

    The interview then turned toward 5G specifically, with Cramer asking if 5G would essentially do away with the need for TVs.

    ”You’ll have a device always. Maybe it’s not your traditional TV. I think the devices are obviously changing. And I think 5G is a really exciting technology for the future, not just for watching video, but for the potential of all the IoT applications. The whole paradigm of the web could be changing. You know, we already operate an IoT platform. We have dozens of customers that are early adopters. The protocols there are all different than the web, and they’re a lot more efficient. The paradigms are different. I think that’s an exciting part of the future…”

    Leighton then expressed that the switch to remote work, remote learning, online banking, home entertainment and other post-pandemic changes were providing tailwinds for the company. As a result, their profits are up 30% year-over-year.

    Akamai CEO Says 5G Will Change the Paradigm of the Web