Akamai Lowers Margin Target to Invest in Enterprise and Security

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2Q 2017 | IN-4549

 

Akamai Investor Summit Shows Shift from Media to Web and Security

NEWS


Akamai held an investor summit on March 30, 2017, delayed by about two weeks due to snow crippling the Boston area.  From a media business standpoint, Akamai reiterated that the overall business has continued to be healthy, despite big tech giants, such as Netflix, Amazon, and Facebook, that are building out their own content distribution networks (CDNs)  Akamai overbuilt somewhat on capacity in 2015, translating to  gross margins that fell a couple points, causing a slight easing up on investment in 2016. 

Akamai continued to grow its website performance business (Dynamic Site Acceleration and Ion products), no longer representing a simple object store-and-forward approach but instead, including several intelligent optimization technologies from image management to mobile-specific tools.  Further, Akamai realized that its position serving requests from the edge of the network allows it to rapidly deflect bot attacks prior to swamping the peering points and core network.  Akamai announced acquisition o…

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