Akamai CEO: Linode Acquisition Makes Company “World’s Most Distributed Cloud Service Provider”
Akamai CEO Tom Leighton touted the company’s expansion this week on the heels of a fourth-quarter earnings report that saw the company generate $905 million in revenue for the quarter and $3.5 billion for the full year.
Akamai on Tuesday announced the acquisition of infrastructure-as-a-service (IaaS) platform provider Linode for approximately $900 million. Leighton said Linode is a very developer-friendly IaaS provider that makes it very easy to spin up a virtual machine or container to build and run applications.
“Combining this with Akamai, we are the world leaders in content delivery and web security. We make your applications very fast and we protect them against all kinds of attacks. We have the world’s most distributed edge computing platform for applications that need to scale instantly globally to meet demand and various serverless geographies,” said Leighton ZDNet in an interview.
“Putting them together is a very powerful combination, because now developers and businesses will be able to do everything much more easily on Akamai. They can build the apps on Akamai, run them there, deliver them from Akamai, and have them secured as part of Akamai. Akamai is becoming the world’s most distributed cloud service provider, from cloud to edge, and we’ll make it much easier to build, run, and secure your applications online.
He went on to explain that Linode has excellent customer support and is already present at 11 sites, which Akamai will “significantly” expand. Linode doesn’t have a lot of sales force today, so Akamai will help them grow that, Leighton said.
Akamai will integrate more than 250 employees from Linode’s headquarters in Philadelphia, bringing them to more than 9,000 employees worldwide.
Leighton also noted the September 2021 acquisition of Guardicore, an Israel-based cybersecurity company that offers a micro-segmentation solution to reduce the potential attack surface of enterprise networks, secure applications and meet security standards. compliance.
Leighton said the two acquisitions are the biggest they’ve made in the last 20 years and noted that since closing the deal with Guardicore, they’ve nearly doubled their initial guidance of $30 million to $35 million. million dollars in revenue for the company.
“The micro-segmentation they do is really important in stopping the impact of ransomware. Ransomware is a huge problem today and the visibility they give our customers into what’s going on in their internal networks is really important,” he explained.
“When you put it all together, Akamai is now positioned as the most distributed cloud service provider, with three market-leading capabilities and pillars to support growth. It’s a pretty exciting place.
Akamai saw significant growth throughout 2021 in its security services, contributing to a 25% year-over-year revenue increase and growth in its edge application services, which increased by 30% year-on-year.
According to Leighton, the company expects the cloud computing category – which includes edge applications, its cloud storage business and Linode – to grow “well over half a billion dollars in 2023”.
Although the company has seen growth in overall revenue, its earnings per share may increase a little less than usual due to the acquisitions. But Leighton predicted EPS would rebound next year.
“We’re generating a ton of cash, so we’re able to make acquisitions that would benefit our customers and our shareholders. I’m really excited about the future. We have a great history of internet innovation, starting with inventing content delivery, then bringing high-quality streaming online, accelerating applications and, of course, web security,” he said.
“We were pioneers in edge computing and are now taking a big leap forward in cloud computing with Linode.”