Akamai Realigns Organization Around Market-leading Internet Security and Edge Technology Solutions

Rhea-AI Summary

Akamai Technologies (NASDAQ: AKAM) announced a significant organizational realignment aimed at enhancing agility and growth in its $1 billion security business. Effective March 1, the company will form two new groups: Security Technology and Edge Technology, alongside a unified Global Sales Organization. Key appointments include Rick McConnell and Adam Karon leading the new groups, and Dr. Robert Blumofe as chief technology officer to drive innovation. Akamai's leadership expressed confidence that the restructuring will better position the company to meet evolving digital business demands and capitalize on growth opportunities.

Positive

• Formation of Security Technology and Edge Technology groups to strengthen market presence.
• Appointment of experienced leaders for key operational roles, enhancing leadership stability.
• Focus on driving growth in the $1 billion security business, indicating strong market potential.

Negative

• Potential risks associated with the effectiveness of organizational changes in delivering expected benefits.

CAMBRIDGE, Mass., Feb. 9, 2021 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the world's most trusted solution for securing and delivering digital experiences, today announced an organizational realignment that is intended to position the company to become even more agile in delivering its market-leading solutions for making the internet fast, intelligent and secure for major enterprises. The goal of these changes is to facilitate continued strong growth for Akamai's $1 billion security business, make it easier for developers to take advantage of the power of serverless computing on the largest internet edge platform in the world, and give customers easier access to Akamai's full portfolio of solutions.

Effective March 1, Akamai will be anchored by two newly created business groups, Security Technology and Edge Technology, both of which will be supported by a single global sales organization.

• The Security Technology Group will unify the company's market-leading security solutions for protecting customers' web properties, mobile apps and APIs, in addition to providing infrastructure protection and access control. Under the leadership of Rick McConnell (currently Akamai's president and general manager, Web Division) as president and general manager, Security Technology Group, the group will focus on driving core security business growth and innovation and expansion into attractive market adjacencies.
• The Edge Technology Group will bring together Akamai's media delivery, web performance and edge computing solutions as well as Akamai's Intelligent Edge Platform, to help businesses deliver immersive online experiences with performance, scale, reliability and simplicity across diverse application architectures. The group will be led by Adam Karon (currently Akamai's executive vice president and general manager, Media and Carrier Division) as chief operating officer and general manager, Edge Technology Group.
• The unified Global Sales Organization will provide streamlined access to the full breadth of Akamai's portfolio, as Akamai customers and prospects have increasingly sought to buy the full range of Akamai's edge delivery and security offerings. Under the leadership of PJ Joseph (currently Akamai's senior vice president, Global Media and Carrier Sales) as executive vice president, Global Sales, the sales team will focus on driving revenue acceleration, improving channel partnerships, increasing security product adoption while prioritizing flexibility and customer responsiveness.

The company also announced it has re-established the role of chief technology officer to further advance its innovation strategy. In his new role as chief technology officer, Dr. Robert Blumofe (currently Akamai's executive vice president, Platform, and general manager, Enterprise Division) will develop a cohesive innovation strategy that positions Akamai to capitalize on growth opportunities in areas such as 5G, IoT and other emerging technologies. 

The company's services organization and other corporate functions, including finance, human resources, legal and IT, will continue to support the organization across all businesses.

Marketing will continue to support revenue growth and drive Akamai's leadership in security under the leadership of Kim Salem-Jackson (currently Akamai's senior vice president, global marketing and corporate communications), who will succeed Monique Bonner as chief marketing officer, in a planned transition. Bonner will move into an executive advisor role, which will allow her to spend more time with her family while still ensuring the success of key marketing initiatives currently underway.

"I want to thank Monique for her leadership over the last four years, during which she successfully led the transformation of our marketing organization – establishing digital-first marketing capabilities and an organization focused on accountability and contribution to the business," said Dr. Tom Leighton, co-founder and chief executive officer, Akamai Technologies. "I am excited to welcome Kim and PJ to our executive leadership team, and I look forward to working with all of our leaders in their new roles to drive Akamai's next phase of growth."

Commenting on the organizational realignment, Leighton added, "Akamai's tenacious commitment to innovate and adapt to the ever-changing and expanding demands of digital business for 22 years has helped transform the way the world operates online. In 2020, it became quite clear how critical the internet is to work, commerce, education, entertainment and government. In 2021 and beyond, we believe our collective reliance on the internet will increase further as more businesses move online, more employees work remotely over the long term, and cyberattacks continue to increase in volume, frequency and sophistication. With Akamai's new organizational structure, I am confident we will be able to more nimbly support the dynamic needs of our customers and partners, and more effectively capitalize on emerging growth opportunities." 

Q4 2020 Earnings Call and Investor Summit

The company will discuss the strategic organizational changes during its Q4 2020 earnings call which will be held today, February 9, 2021 at 4:30pm EST. The executive team will also expand upon Akamai's strategy at its Investor Summit on Thursday, February 25, 2021 at 8:30am Eastern Time. Details for both events can be found on Akamai's Investor Relations page.

About Akamai

Akamai secures and delivers digital experiences for the world's largest companies. Akamai's intelligent edge platform surrounds everything, from the enterprise to the cloud, so customers and their businesses can be fast, smart, and secure. Top brands globally rely on Akamai to help them realize competitive advantage through agile solutions that extend the power of their multi-cloud architectures. Akamai keeps decisions, apps and experiences closer to users than anyone - and attacks and threats far away. Akamai's portfolio of edge security, web and mobile performance, enterprise access and video delivery solutions is supported by unmatched customer service, analytics and 24/7/365 monitoring. To learn why the world's top brands trust Akamai, visit www.akamai.com, blogs.akamai.com, or @Akamai on Twitter.

Akamai Statement Under the Private Securities Litigation Reform Act

This release contains information about future expectations, plans and prospects of Akamai's management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including statements about expected future benefits from the announced organizational changes. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, failure of changes to result in the benefits expected therefrom (e.g., more nimble development processes, improved channel relationships and realization of competitive advantages); failure of our investments in innovation to generate new solutions; if developed, lack of market acceptance of such service offerings and functionalities or failure of such solutions to operate as expected; and other factors that are discussed in the Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.

Contacts:      
Gina Sorice 
Media Relations 
646-320-4107
gsorice@akamai.com  

Tom Barth
Investor Relations
617-274-7130
tbarth@akamai.com

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SOURCE Akamai Technologies, Inc.

FAQ

What organizational changes did Akamai announce on February 9, 2021?

Akamai announced an organizational realignment creating Security Technology and Edge Technology groups, effective March 1, 2021.

Who will lead Akamai's new Security Technology Group?

Rick McConnell will serve as the president and general manager of the Security Technology Group.

What is the focus of Akamai's new Edge Technology Group?

The Edge Technology Group will integrate media delivery, web performance, and edge computing solutions to enhance customer experiences.

When is Akamai's Q4 2020 earnings call scheduled?

Akamai's Q4 2020 earnings call is scheduled for February 9, 2021, at 4:30 PM EST.

What is Akamai's primary business focus after the realignment?

After the realignment, Akamai aims to strengthen its security solutions and expand its edge technology offerings.