Akamai Technologies has secured a $100 million, multi-year cloud services contract with a leading technology company. The collaboration supports its comprehensive cloud infrastructure. Recent financial reports indicate solid revenue growth, driven primarily by security and computing sectors, with projections for continued expansion into 2025.
Akamai Technologies has secured a significant multi-year cloud computing contract valued at $100 million with a major unnamed global technology firm. This contract reinforces Akamai’s position as a strategic cloud provider, allowing the client to utilize its comprehensive cloud offerings. Akamai’s COO, Adam Karon, emphasized the necessity for advanced and dependable cloud services for platforms with extensive global reach.
To meet the client’s requirements, Akamai plans to implement managed Kubernetes clusters within secure private cloud environments, enhance user traffic with load-balancing, and integrate application and network security measures. During a recent earnings call, CEO Tom Leighton indicated that the client has been utilizing substantial cloud services for various media applications and highlighted ongoing data center development in Scandinavia to support operations across Europe.
In its financial report for Q4 2024, Akamai reported revenues of $1.02 billion—reflecting a three percent increase year-over-year, with security and computing contributing 69 percent. The full-year revenue reached $3.991 billion, marking a five percent rise, while the security and compute sector alone grew by 18 percent. Notably, Q4 compute revenue was $167 million, demonstrating a 24 percent increase year-over-year, highlighting it as the fastest growing segment, albeit still the smallest.
Akamai’s cloud infrastructure services are built on Linode, acquired in 2022 for $900 million, marking its entry into the cloud sector. In 2023, the company introduced its “Connected Cloud” platform and provides a range of core cloud services, currently operational in numerous cities worldwide. CEO Tom Leighton acknowledged significant progress in various areas, including revenue growth and new enterprise customer acquisition.
The strategic move to transition some products from hyperscalers to Akamai’s cloud has reportedly yielded over $100 million in annual savings. Anticipating a 15 percent growth in its cloud segment by 2025, Akamai also provided insights into its financial outlook, projecting revenues between $4 billion and $4.2 billion for the next fiscal year, with expected capital expenditures at 19 percent of total revenue.
Concluding the earnings call, Mr. Leighton described the fourth quarter’s performance as robust, underscoring the sustained momentum across Akamai’s security and cloud computing divisions. Furthermore, Akamai is set to discontinue its CDN services in China by June 30, 2026, while simultaneously expanding its CDN through recent customer contracts from acquired firms.
Akamai is dedicated to navigating its transformation into a leading provider of cybersecurity and cloud solutions, ensuring sustained profitability as it ventures into future opportunities.
In summary, Akamai Technologies has solidified a $100 million contract with a major technology firm, emphasizing its growing role in cloud solutions. The company’s financial performance showcases steady growth, particularly in security and cloud computing. Akamai is focused on expanding its offerings while maintaining profitability, signaling a strong forward trajectory amidst ongoing industry transitions.
Original Source: www.datacenterdynamics.com
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