Can Revenues For Akamai’s Cloud Security Solutions Business Exceed $1 Billion By 2021?

by Trefis Team
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Akamai Technologies (NASDAQ: AKAM) provides solutions for delivering content across the Internet. Over recent years, the company has leveraged its strength in the industry to expand its presence in the cloud security business. Trefis estimates that Akamai’s technology leadership and reach are likely to help revenues for its security business cross $1 billion in two years. You will find additional details about our expectations in the interactive dashboard for Akamai’s Cloud Security Business. Additionally, you can see more Trefis Technology company data here.

Akamai’s Cloud Security Solutions Business Is Proving To Be A Natural Extension Of Its Core Content Business

  • Akamai’s core business of content delivery (through caching customer data to minimize latency) has seen competition from some of its largest customers over recent years (including Amazon, Apple, Facebook, Google, Microsoft, and Google).
  • However, the reach and technical strength of Akamai’s network has allowed it to become an important player in the growing edge computing market. Building upon the reliability of its network, and keeping in mind the increasing security risks emanating at the edge, security has been a natural value add for Akamai’s product portfolio.
  • Also, the company’s distributed platform helps it reach over 130 countries. Akamai’s access to the flow of traffic across the internet has helped it gain invaluable insights, which it then used to build its security business.
  • Consequently, the company’s cloud security business has witnessed close to 30% y-o-y growth for the last many quarters.

It Also Includes A Strong Lineup Of Security Products For Potential Clients

The cloud security business consists of:

  • Web Application Protector: A solution to guard against web application and distributed denial of service (DDoS) attacks.
  • Kona Site Defender: A cloud security solution to guard against network and application layer DDoS attacks, web application attacks, and direct-to-origin attacks.
  • Bot Manager: A tool to identify bots, categorize and manage different bots based on a customer’s security policies.
  • Fast DNS: DNS stands for Domain Name System and translates human-readable domain names into numerical values to be processed by machines. Fast DNS is a solution to guard against DNS-based DDoS attacks.
  • Prolexic Routed: A solution to guard against high-bandwidth, sustained DDoS attacks.
  • Client Reputation: A traffic analysis and profiling tool to inform customers about potential threats.
  • Enterprise Application Access and Enterprise Threat Protector: Help control access of individual applications behind the firewall.

Which Is Why Trefis Estimates Sustained Growth Over Coming Years

  • Akamai’s strength in the cloud security business is evident from the fact that annual revenues have been growing at more than 30% over recent years.
  • We expect an increase in connected devices and growth in edge computing to continue to drive growth in the business over the next few years.
  • While the management expects the security business to witness a growth rate in excess of 20% over 2019-20, we believe that a larger revenue base and increased competition could dampen the growth rate in 2020.
  • Overall, we feel the security business is likely to grow at a CAGR of 18% through 2021 – reaching almost $1.1 billion by then.

Do not agree with our forecast? Create your own forecast for Akamai’s Cloud Security Business by changing the base inputs (blue dots) on our interactive dashboard.

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