Akamai Technologies Inc. (AKAM), Large Cap AI Study of the Week
July 6, 2024
Weekly AI Pick from the S&P 500
Company Overview
Akamai Technologies Inc. operates in three primary business sectors: security, content delivery, and cloud computing. The company's main platform, Akamai Connected Cloud, utilizes an extensive network infrastructure with over 4,100 edge points in roughly 130 countries to enhance digital experiences and security. Their security solutions focus on protecting against cyberattacks using advanced techniques like "zero trust" and microsegmentation, strengthened by the acquisitions of Guardicore Ltd. and Neosec, Inc. In content delivery, Akamai optimizes web and mobile performance and media delivery for global enterprises. Recently, Akamai has expanded into cloud computing, bolstered by acquiring Linode Limited Liability Company, positioning itself to compete with leading cloud providers through a distributed cloud model aimed at enterprise-grade core computing and edge regions.
Akamai prioritizes employee engagement and diversity, with a workforce organized into engineering and R&D, service and support, sales and marketing, and administrative functions. They conduct regular surveys and offer inclusivity programs, earning recognition as a great workplace. The company supports diversity through various employee resource groups, increasing female and minority representation. To attract and retain talent, Akamai offers competitive compensation, extensive benefits, and professional development opportunities, such as the Akamai Elevation performance review program. The FlexBase program, launched in 2022, provides flexible workspace arrangements to enhance productivity and diversity in recruitment. Akamai competes based on performance, reliability, scalability, security, and customer support in the internet content delivery, security, and cloud computing sectors. The company faces competition from traditional hardware/software providers and "hyper-scaler" cloud platforms, while navigating complex global regulations related to data privacy, cybersecurity, and content delivery. Akamai's competitive edge is bolstered by its extensive intellectual property portfolio, with over 550 U.S. patents, and the confidentiality of its proprietary technology.
By the Numbers
Annual 10-K Report Summary:
- Overall revenue increased by 5.4% to $3,811.92 million in 2023.
- Compute solutions revenue grew by 24.4%.
