Akamai selected as strategic cloud computing provider by one of the world's largest technology companies, with a multi-year commitment to spend over $100M on cloud infrastructure services

Rhea-AI Summary

Akamai Technologies (NASDAQ: AKAM) has secured a significant multi-year strategic agreement with one of the world's largest technology companies, involving a commitment to spend over $100 million on Akamai's cloud computing services. The deal encompasses Akamai's full-stack cloud computing capabilities, allowing the customer to utilize Akamai's complete portfolio for managing, delivering, and securing data to enhance their infrastructure services.

As part of the implementation, Akamai will deploy managed Kubernetes clusters in secured virtual private cloud environments, handle load-balancing of user traffic, and implement integrated application and network security on Akamai Cloud. These services aim to optimize performance while offering more competitive cloud economics and enabling local traffic and data management.

Positive

• Secured multi-year contract worth over $100M with major tech company
• Full-stack cloud computing services deployment indicates strong product adoption
• Strategic positioning in high-value enterprise cloud computing market

Negative

• None.

Insights

Cloud Computing Infrastructure Analyst

The $100M+ multi-year cloud infrastructure deal marks a pivotal moment in Akamai's strategic transformation from a content delivery network (CDN) specialist to a comprehensive cloud computing provider. This agreement carries several significant implications:

Revenue Impact and Market Validation: With Akamai's trailing twelve-month revenue around $3.7B, this deal represents a meaningful contribution to the company's cloud segment. More importantly, securing a major technology company as a customer serves as a powerful market validation of Akamai's cloud capabilities, potentially opening doors to similar enterprise-scale opportunities.

Technical Differentiation: The deployment scope reveals Akamai's sophisticated technical capabilities:

• Managed Kubernetes clusters in VPC environments demonstrate enterprise-grade containerization capabilities
• Global load-balancing leverages Akamai's extensive edge network
• Integrated security features capitalize on Akamai's cybersecurity expertise

Strategic Implications: This partnership could accelerate Akamai's cloud market penetration through:

• Enhanced credibility in competing for large enterprise contracts
• Potential network effects as other companies observe the implementation success
• Improved economies of scale in cloud operations

The deal's structure, focusing on full-stack capabilities rather than just CDN services, validates Akamai's strategic investment in cloud infrastructure. This positions the company to capture a larger share of enterprise IT spending and potentially improve its competitive position against established cloud providers.

CAMBRIDGE, Mass., Feb. 20, 2025 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the cybersecurity and cloud computing company that powers and protects business online, today announced it has closed a multi-year strategic usage agreement with one of the world's largest technology companies. Under the terms of the deal, over $100M will be spent on Akamai's full-stack cloud computing capabilities.

The customer will have the flexibility to leverage Akamai's full portfolio to manage, deliver, and secure data to augment and improve its own infrastructure services.

"Technology platforms with a massive global presence require sophisticated and reliable cloud services," said Akamai COO and GM, Cloud Technology Group, Adam Karon. "Akamai provides the scale this customer requires along with ultra-low latency performance to help ensure that every user has the best experience possible no matter where they are in the world."

Akamai will deploy managed Kubernetes clusters in secured virtual private cloud (VPC) environments, load-balance user traffic, and apply integrated application and network security together on Akamai Cloud to enable optimal performance at more attractive cloud economics. These capabilities will help to ensure an excellent experience for users while enabling the customer to manage traffic and data locally.

About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence, and global operations team provide defense-in-depth to safeguard enterprise data and applications everywhere. Akamai's full-stack cloud computing solutions deliver performance and affordability on the world's most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.

Akamai Statement Under the Private Securities Litigation Reform Act

This press release contains statements that are not statements of historical fact and constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about Akamai's capabilities and the expected benefits of the transaction to Akamai, the customer and its users. Each of the forward-looking statements is subject to change as a result of various important factors, many of which are beyond the company's control, including, but not limited to: Akamai being unable to achieve the anticipated benefits of the transaction; Akamai's capabilities failing to meet expectations, including due to defects, security breaches, delays in performance or other similar problems; effects of competition, including pricing pressure and changing business models; impact of macroeconomic trends, including economic uncertainty, turmoil in the financial services industry, the effects of inflation, rising and fluctuating interest rates, foreign currency exchange rate fluctuations, securities market volatility and monetary supply fluctuations; continuing supply chain and logistics costs, constraints, changes or disruptions; defects or disruptions in Akamai's products or IT systems, including cyber-attacks, data breaches or malware; changes to economic, political and regulatory conditions in the United States or internationally; and other factors that are discussed in the company's most recent Annual Report on Form 10-K, subsequent quarterly reports on Form 10-Q and other documents filed with the Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Akamai does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Contacts
Akamai PR
AkamaiPR@akamai.com

Investor relations
IR-InvestorRelations@akamai.com 

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SOURCE Akamai Technologies, Inc.

FAQ

What is the value of Akamai's (AKAM) new cloud computing contract?

Akamai secured a multi-year strategic agreement worth over $100 million for its cloud computing services.

What services will Akamai (AKAM) provide under the new cloud computing contract?

Akamai will provide managed Kubernetes clusters, load-balancing, integrated application and network security in secured virtual private cloud environments.

How long is the duration of Akamai's (AKAM) new cloud computing contract?

The agreement is described as a multi-year strategic usage agreement, though the exact duration is not specified.

What impact will the $100M cloud computing deal have on Akamai (AKAM)?

The deal strengthens Akamai's position in the enterprise cloud computing market and provides a significant revenue commitment over multiple years.