Akamai's Business Model
What Need Does It Serve?
Akamai’s core business of content delivery (through caching customer data to minimize latency) has seen competition from some of its largest customers over recent years (including Amazon, Apple, Facebook, Google, Microsoft, and Google).
However, the reach and technical strength of Akamai’s network has allowed it to become an important player in the growing edge computing market. Building upon the reliability of its network, and keeping in mind the increasing security risks emanating at the edge, security has been a natural value add for Akamai’s product portfolio.
Also, the company's distributed platform helps it reach over 130 countries. Akamai's access to the flow of traffic across the internet has helped it gain invaluable insights, which it then used to build its security business.
Has 2 Operating Segments
Media and Carrier Division: This division is also based on the customer type. Segment revenue growth over the last couple of years has been due to increase in web traffic and the sale of cloud security solutions.
Web Division: This division is also based on the customer type. Segment revenue growth over the last couple of years has been due to increase in the sales of cloud security solutions such as Kona Site Defender, Prolexic and Bot Manager.
What Are The Alternatives?
Content delivery networks (CDNs) are important for reducing latency. This has given rise to large internet players such as Amazon, Apple, Facebook, Google, Microsoft, and Google having their own CDNs.
Third party players, similar to Akamai include Level3, Limelight, CDNetworks, and Fastly.
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1. How to save your forecasts:
Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
With your forecast saved and named, you can see how well you forecast the company's performance at the end of each period and compare your forecasts to hundreds of other Trefis users who came up with their own forecasts. Lastly, you can share with friends and colleagues to show them how you fared and compare your forecasts to theirs.