AKAM | Market Cap: $18.2B (07/13/26)
Industry:
Software

DESCRIPTION

Akamai is a technology infrastructure company that helps large enterprises deliver, secure, and run digital applications over the internet. Akamai's foundation is a massively distributed global network — over 4,300 points of presence across 700+ cities in 130+ countries — originally built for content delivery and now the platform for all three of its businesses: cybersecurity (~54% of revenue), cloud computing (~17%), and content delivery (~28%). Akamai sells primarily to large enterprises — financial institutions, media companies, retailers, and government agencies — through a direct sales force and a growing channel of resellers and systems integrators. Cybersecurity is largely subscription-based with low churn, cloud computing runs on a consumption model with minimum spend commitments, and delivery is usage-based. Security carries the highest gross margins (high 80s%), followed by compute (low 70s%) and delivery (high 60s%). Akamai is in the middle of a multi-year shift from a CDN company into a cybersecurity and cloud platform. In security, growth is driven by Guardicore (microsegmentation/Zero Trust) and API Security. In cloud, Akamai's Cloud Infrastructure Services is growing ~45% YoY, positioning as a lower-cost alternative to hyperscalers for latency-sensitive workloads. Akamai recently launched an AI Inference Cloud, deploying NVIDIA Blackwell GPUs across ~20 global locations, and signed a 4-year, $200M minimum commitment from a major U.S. tech company for that product. Legacy delivery is in gradual decline as CDN pricing remains under pressure.

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