Core Insights - Akamai Technologies has announced a strategic partnership with Cloudinary to enhance its Video Manager solution with Cloudinary's AI-powered video technology [1][3] - The partnership aims to address the increasing demand for high-quality video experiences across various devices and channels [1][2] - Cloudinary has extensive experience in managing and delivering video content, powering over 1 billion videos for thousands of customers [2][5] Company Overview - Cloudinary is recognized for its image and video platform, serving over 10,000 customers, including notable brands like Adidas and Grubhub [5] - The company claims that its solutions can yield up to a 203% ROI for brands, enhancing user satisfaction and engagement [5] - Akamai is a leader in cybersecurity and cloud computing, providing a robust platform for performance and security [6][7] Partnership Details - Cloudinary has joined Akamai's Qualified Compute Partner Program as an Independent Software Vendor (ISV), facilitating easier access to its services for Akamai customers [1][3] - The partnership will allow Video Manager customers to leverage Cloudinary's technology to improve video management and delivery [1][3] - The Akamai Qualified Compute Partner Program aims to provide interoperable services that can be easily deployed across Akamai's global cloud infrastructure [3]

Akamai (AKAM) FY Conference Summary Company Overview - Akamai was founded 25 years ago to address performance issues on the Internet by distributing servers globally to reduce choke points [4][5] - The company initially focused on content delivery through its CDN (Content Delivery Network), which now constitutes about one-third of its revenue [6] Business Evolution - Akamai has evolved from primarily a CDN provider to a significant player in cybersecurity, with a $2 billion security business growing at approximately 10% annually [8] - The security segment includes web security, which accounts for about $1.8 billion of the security revenue [8] - The company has shifted from 85% CDN revenue a decade ago to 52% from security today [11] - Akamai's compute business, which includes edge computing and full-stack computing, is growing rapidly at about 15% this year [17] Financial Performance - Akamai's gross margins are in the low 70s, with operating margins around 30% [27] - The company expects operating margins to improve as security and compute products grow [28] - The company has a recurring revenue model, with 70% of customers using both CDN and security services [20] AI Integration - Akamai is leveraging AI in its security products to enhance decision-making and protect against denial of service attacks [30] - The company has introduced AI security for large language models to prevent sensitive information leaks and manage costs [31] - AI presents opportunities for product innovation and addressing new security challenges [34] Security Market Insights - Micro-segmentation and API security are key growth drivers for Akamai's security business, with significant revenue growth expected [35][39] - The company has simplified the deployment of segmentation, making it more accessible for customers [38] Competitive Landscape - Akamai competes effectively against hyperscalers by offering cost-effective solutions without egress fees, which can be a hidden cost for customers using hyperscalers [43][44] - The company has seen a decline in CDN pricing but is benefiting from the exit of smaller competitors, leading to a more favorable competitive environment [53] Future Outlook - Akamai anticipates that its CDN business will stabilize, with traffic growth expected to pick up again [53] - The company views its CDN as a strategic asset that supports its security and compute businesses, enhancing overall performance and reliability for customers [55] Key Takeaways - Akamai's diversified business model, combining CDN, security, and compute services, positions it well for future growth [19] - The integration of AI into its offerings enhances both security and operational efficiency [30][34] - The company is focused on leveraging its existing infrastructure to provide cost-effective and high-performance solutions to a broad range of industries [47][48]

Core Insights - Akamai Technologies, Inc. has not been covered recently, prompting a review of the company's Q1 results [1] Company Overview - The company is focused on long-term investment strategies, typically with a 5-10 year horizon [1] - The investment approach emphasizes a balanced portfolio that includes growth, value, and dividend-paying stocks, with a particular focus on value [1] Investment Strategy - The investment strategy includes occasional options trading to enhance returns [1]

Core Insights - Akamai Technologies has launched Akamai DNS Posture Management, a solution providing unified, multicloud visibility and real-time monitoring to prevent DNS-based attacks [1][5] - The solution addresses the complexities of managing multiple DNS systems and helps organizations ensure proper configuration and security [3][5] Group 1: Product Features - Akamai DNS Posture Management offers agentless real-time monitoring and guided remediation across major DNS providers [1] - The solution includes a Certificate Monitor that organizes digital certificates by domain names to identify risks such as expired or misconfigured certificates [7] - It provides a comprehensive view of zones, domains, sub-domains, and records across various DNS providers, including Akamai Cloud, AWS, Microsoft Azure, and Google Cloud Platform [8] Group 2: Security Challenges - DNS configurations can become outdated, leading to vulnerabilities that may expose organizations to serious threats like unauthorized SSL/TLS certificate issuance and DNS spoofing [5][6] - The overwhelming number of unmanaged alerts and compliance requirements can lead to high-priority issues being overlooked, emphasizing the need for automation in compliance assessments [4] Group 3: Compliance and Regulatory Needs - Akamai DNS Posture Management automates adherence to critical security frameworks such as NIST, PCI DSS, and HIPAA, helping organizations reduce compliance costs while enhancing security [6] - Continuous compliance monitoring is essential to address critical gaps in DNS and certificate security hygiene [6]

Financial Data and Key Metrics Changes - The company has reset its long-term growth expectations, projecting about 10% growth for its security segment due to product maturity and market saturation [15][16] - The company anticipates a 30% to 35% growth in Annual Recurring Revenue (ARR) for new capabilities this year, particularly in API security and Gardacore segmentation [18][46] - Operating margins were close to 30% in Q1, with guidance for slightly lower margins for the year due to investments in new platforms and infrastructure [22][23] Business Line Data and Key Metrics Changes - The security segment is expected to grow at a slower rate due to maturity, while new products are projected to drive significant growth [15][16][18] - The compute business is identified as a major focus, with investments being reallocated from the delivery business to enhance growth in this area [25][26] - The delivery business is aiming for stabilization, with traffic growth expected to improve as market conditions rationalize [65][68] Market Data and Key Metrics Changes - The company has seen a shift in customer acquisition strategies, with channel partners becoming the primary source of new customers for security and compute services [8][12] - The competitive landscape has changed, with several competitors exiting the market, which may help stabilize pricing dynamics [68][71] Company Strategy and Development Direction - The company is focusing on a go-to-market transition to increase the ratio of hunters to farmers, emphasizing the need to target new customers beyond traditional CDN users [4][5] - Investments are being made in cloud infrastructure and security products to enhance the total addressable market (TAM) [23][25] - The company aims to position itself as a comprehensive cloud provider, similar to hyperscalers, by integrating compute, security, and delivery services [84][86] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by AI in the security landscape, noting that AI has increased the attack surface and sophistication of threats [53][57] - The company believes that the demand for new security solutions, particularly those tailored for AI applications, will drive future growth [55][56] - Management is optimistic about traffic growth in the delivery business, citing potential increases from video content and AI-generated media [68][70] Other Important Information - The company has been insourcing third-party compute services to improve efficiency and customer experience [44] - The compute business is seen as a significant opportunity, particularly in media, where customers are looking for cost-effective solutions [29][30] Q&A Session Summary Question: How has the go-to-market transition been going? - The company is evolving to focus more on hunting for new customers, particularly in security and cloud computing [4][5] Question: What led to the reset of growth expectations? - The company had not provided long-term guidance for over three years and felt it was important to update the community on current views [13][15] Question: What are the critical investments needed to achieve growth? - Investments are being made in technology, compute infrastructure, and sales force expansion to support growth [21][23] Question: Is compute the top priority for the company? - Both security and compute are considered equally important, with significant investments being made in both areas [25][26] Question: How is AI impacting the security landscape? - AI has increased the sophistication of attacks and the demand for specialized security solutions [53][55] Question: What is the outlook for the delivery business? - The company aims to stabilize the delivery business and improve traffic growth, with expectations for better pricing dynamics [65][68]

《API研究》中显示，2023年1月至2024年6月间，亚太地区记录到1080亿次API攻击，API攻击占所有 Web攻击的15%。 日前，Akamai发布的《API安全影响研究》（以下简称《API研究》）中显示，过去一年的时间内，中 国在解决API安全事件上花费的成本最高，达到了77.8万美元（约合568万人民币），且在企业内部，管 理层预估API安全事件造成的成本约为51.7万美元，而一线员工则认为将达到92万美元。 苦API攻击久已 针对API的攻击手段已经不是时代的新词，在传统互联网时代，API安全事件就屡见不鲜。具体来看， API攻击的历史可以分为四个阶段。 第一阶段大概时间节点在2000之前，在计算机单机时代（如大型机、Windows 95时期），软件模块间 的交互已出现类似API的机制，但此时接口多用于内部功能调用，安全问题尚未凸显。攻击主要集中于 底层系统漏洞，例如Windows 95的API漏洞。 但随着互联网的兴起，基于CGI（通用网关接口）的Web交互接口出现，成为早期API攻击的雏形。攻 击者通过参数篡改、简单注入等方式尝试突破接口限制。 第二阶段大致时间节点在2000到2010年前后 ...

Core Insights - The trend in AI development is shifting from training to inference, with a significant increase in demand for small models tailored for specific applications, which is impacting the cloud computing market [1][2][3] Group 1: AI Inference Market - The market for AI inference is expected to exceed the training market by more than ten times in the future, as companies recognize the potential of deploying small models for vertical applications [1] - Akamai's AI inference services have demonstrated a threefold increase in throughput and a 60% reduction in latency, highlighting the efficiency of their solutions [2] Group 2: Edge Computing and Deployment - Edge-native applications are becoming a crucial growth point in cloud computing, with Akamai's distributed architecture covering over 4,200 edge nodes globally, providing end-to-end latency as low as 10 milliseconds [3] - The proximity of inference to end-users enhances user experience and efficiency, addressing concerns such as data sovereignty and privacy protection [3] Group 3: Industry Trends and Client Needs - Many companies are now focusing on optimizing inference capabilities, as previous investments were primarily in model training, leading to a gap in readiness for inference [2] - There is a growing trend among Chinese enterprises to integrate AI inference capabilities into their international operations, particularly in sectors like business travel [5]

Core Viewpoint - Akamai Technologies, Inc. has announced a private offering of $1.5 billion in convertible senior notes due 2033, which was upsized from a previously announced $1.35 billion offering [1][3] Group 1: Offering Details - The notes will be senior unsecured obligations, maturing on May 15, 2033, with an interest rate of 0.25% per year, payable semiannually starting November 15, 2025 [2] - The initial conversion rate is set at 10.7513 shares per $1,000 principal amount, equating to an initial conversion price of approximately $93.01 per share, representing a 20% premium over the closing price of $77.51 on May 14, 2025 [2] Group 2: Use of Proceeds - Akamai estimates net proceeds from the offering to be approximately $1,479.1 million, or $1,701.3 million if the option for additional notes is fully exercised [3] - The company plans to use about $250 million to repay borrowings under its revolving credit facility and a portion of its $1.15 billion convertible senior notes due 2027 [4] - Approximately $239.1 million will be allocated to cover costs related to convertible note hedge transactions [5] - Akamai intends to repurchase approximately $300 million of its common stock at a price of $77.51 per share from purchasers of the notes [6] Group 3: Repurchase and Conversion Terms - Holders can require Akamai to repurchase their notes for cash on May 15, 2031, if the stock price is below the conversion price [7] - In the event of a fundamental change, holders may also require repurchase at a price equal to 100% of the principal amount plus accrued interest [7] Group 4: Hedge Transactions - Akamai has entered into convertible note hedge and warrant transactions to mitigate potential dilution from the notes [8] - The hedge transactions will cover the same number of shares underlying the notes, and the warrants could have a dilutive effect if the market price exceeds the strike price [8] Group 5: Market Impact - The Option Counterparties may engage in purchasing shares or entering derivative transactions, which could influence the market price of Akamai's common stock and the notes [9]

CAMBRIDGE, Mass., May 13, 2025 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM) ("Akamai"), the cybersecurity and cloud computing company that powers and protects business online, today announced that it proposes to offer, subject to market factors and other conditions, $1.35 billion in aggregate principal amount of convertible senior notes due 2033. The notes are to be sold only to persons reasonably believed to be "qualified institutional buyers" pursuant to Rule 144A under the Securities Act of 1 ...

Group 1: Core Strategy - The "Cloud + AI" development strategy has become a common goal for major tech companies globally, with Akamai transitioning towards this strategy as well [1][2] - Akamai's revenue growth is increasingly driven by its security and cloud computing segments, with cloud computing being the fastest-growing business unit [1][4] Group 2: Market Trends - The shift towards "Cloud + AI" is largely driven by customer demand for digital transformation, leading to increased needs for cloud computing [2][3] - AI technology has become essential in the digital transformation process across various industries, with companies willing to invest heavily in AI despite strict cost control measures [3][5] Group 3: Business Performance - Akamai's CDN business has seen a decline in revenue contribution from nearly 80% in 2016 to 40% currently, while security services have risen to 47% and cloud computing services to 13% of total revenue [4][6] - The emergence of the inference market is expected to see investments in AI inference surpassing those in training by a factor of ten [5][6] Group 4: Edge Computing - The edge computing market is experiencing growth, with predictions indicating a potential market size of $445 billion by 2030, driven largely by AI inference demand [9][10] - Akamai aims to leverage its CDN resources to enhance edge computing capabilities, reducing latency and costs for clients [6][10] Group 5: Competitive Landscape - The competition in the "Cloud + AI" space is shifting from scale of computing power to how effectively companies can integrate edge intelligence, distributed architecture, and security capabilities [10]