Akamai Technologies

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Akamai Technologies, Inc.
Type Public
Traded as NASDAQAKAM
NASDAQ-100 Component
S&P 500 Component
Industry Internet
Founded 1998
Founders Tom Leighton
Daniel M. Lewin
Randall Kaplan
Preetish Nijhawan
Jonathan Seelig
[1]
Headquarters 8 Cambridge Center
Cambridge, Massachusetts 02142
USA
Key people George H. Conrades
(Chairman)
Tom Leighton
(Co-founder, Chief Scientist, CEO)[2]
Revenue
  • Increase US$ 1,577.922 million (2013)[3]
  • Increase US$ 1,373.947 million (2012)[3]
Operating income
  • Increase US$ 413.968 million (2013)[3]
  • Increase US$ 314.487 million (2012)[3]
Net income
  • Increase US$ 293.487 million (2013)[3]
  • Increase US$ 203.989 million (2012)[3]
Total assets
  • Increase US$ 2,957.685 million (2013)[4]
  • Increase US$ 2,600.627 million (2012)[3]
Total equity
  • Increase US$ 2,629.431 million (2013)[4]
  • Increase US$ 2,345.754 million (2012)[3]
Employees 4,200 (January 2014)[5]
Website akamai.com
Akamai content delivery to a user

Akamai Technologies, Inc. is a cloud services provider headquartered in Cambridge, Massachusetts, in the United States. Akamai's content delivery network is one of the world's largest distributed computing platforms, responsible for serving between 15 and 30 percent of all web traffic.[citation needed] The company operates a network of servers around the world and rents capacity on these servers to customers who want their websites to work faster by distributing content from locations close to the user. Over the years their customers have included Facebook, Bing, Twitter and healthcare.gov. When a user navigates to the URL of an Akamai customer, their browser is redirected to one of Akamai’s copies of this website, almost entirely invisible to the vast majority of its users. As of 2009, secure connections (designed to highlight hidden intermediaries) posed a problem to Akamai, and attempts to connect to a popular website over HTTPS might reveal the Akamai backend.[6] More recently, however, enhanced security offerings such as Kona Site Defender (Web Application Firewall) have become a major selling point, and in 2013 were the leading driver of revenue growth for the company.[7] The company was founded in 1998 by Daniel M. Lewin (then a graduate student at MIT) and MIT applied mathematics professor Tom Leighton, together with Jonathan Seelig, Preetish Nijhawan and Randall Kaplan.[1] Lewin was killed aboard American Airlines Flight 11, which crashed in the September 11 attacks of 2001. Leighton currently serves as Akamai's CEO. Akamai is a Hawaiian word meaning “intelligent” or “witty”.

History[edit]

Accepting a challenge posed by Dr. Tim Berners-Lee, Dr. Tom Leighton, a professor of applied mathematics, began working with his colleagues to create a better way to deliver content over the Internet. Co-Founder Daniel M. Lewin, a graduate student of Leighton’s, devised key algorithms that would become an essential part of improving content delivery.[8]

In 1997, Leighton and Lewin entered the annual MIT $50K competition with a business proposition based on their research, and their proposal was selected as one of the finalists.[9] By August 1998 they had developed a working prototype, and with the help of Jonathan Seelig, Preetish Nijhawan, and Randall Kaplan, they began taking steps to incorporate the company.[10]

In late 1998 and early 1999, a group of business professionals joined the founding team. Most notably, Paul Sagan, former president of New Media for Time Inc. and George Conrades, former chairman and chief executive officer of BBN Corp. and senior vice president of U.S. operations for IBM. Sagan became Akamai’s chief operating officer, and eventually president, while Conrades became chief executive officer.[8][11] The company launched commercial service in April 1999 and was added to the NASDAQ Stock Market on October 29, 1999.[12]

In 2001, co-founder Daniel M. Lewin died in the September 11th attacks at the age of 31. Lewin was aboard American Airlines Flight 11, the first plane to crash into the World Trade Center.[13]

Effective July 1, 2001, Akamai was added to the Russell 3000 Index and Russell 2000 Index.[14]

In 2005, Paul Sagan was named chief executive officer of Akamai. Sagan worked to differentiate Akamai from its competitors by expanding the company's breadth of services.[11] Under his leadership the company grew to $1.37 billion in revenues.[15] Sagan served as chief executive officer until co-founder and current CEO, Tom Leighton, was elected to the position in 2013.[16]

Technology[edit]

Akamai Intelligent Platform[edit]

The Akamai Intelligent Platform is a distributed cloud computing platform that operates worldwide. It is a network of over 100,000 servers deployed in more than 90 countries. These servers reside in more than 1,000 of the world's networks gathering real time information about traffic, congestion, and trouble spots. Each Akamai server is equipped with proprietary software that uses complex algorithms to process requests from nearby users, and then serve the requested content.[17]

Content Delivery Process[edit]

The content delivery process begins with a user submitting a request to a browser. When a user enters a URL, a DNS request is triggered and an IP address is retrieved. With the IP address, the browser can then contact a web server directly for subsequent requests.[18] In a content delivery network structure, the domain name of the URL is translated by the mapping system into the IP address of an edge server to serve the content to the user.[17]

Akamai delivers web content over its Intelligent Platform by transparently mirroring elements such as HTML, CSS, software downloads, and media objects from customers’ servers. The Akamai server is automatically picked depending on the type of content, and the user's network location. Receiving content from an Akamai server close to the user allows for faster download-times and less vulnerability to network congestion. Akamai claims to provide better scalability by delivering the content over the last-mile from servers close to end-users, avoiding the middle-mile bottleneck of the Internet.[19]

Peer-to-Peer Networking[edit]

In addition to using Akamai's own servers, Akamai delivers content from other end-users' computers, in a form of peer-to-peer networking.[20][21] When users request a download of some large files served by this system, it prompts them to download and install “Akamai NetSession Interface,” a download manager used to reduce download time and to increase quality.[22] However, this software operates not merely as a download manager (delivering content from the Internet to the user's computer) but also as a peer-to-peer server, delivering content cached on the user's computer to other users' computers.

Network Operations Command Center[edit]

Akamai’s Network Operations Command Center (NOCC) is used for proactive monitoring and troubleshooting of all servers in the global Akamai network.[23] The NOCC provides real time statistics of Akamai’s web traffic. The traffic metrics update automatically and provide a view of the Internet traffic conditions on Akamai’s servers and customer websites.[24]

State of the Internet[edit]

The State of the Internet report is a quarterly report Akamai releases based on data gathered from its Intelligent Platform. The report provides global Internet statistics such as connection speed, broadband adoption, attack traffic, network connectivity, and mobile connectivity.[25][26]

Visualizing the Internet[edit]

Akamai’s data visualization tools display how data is moving across the Internet in real-time. Viewers are able to see global web conditions, malicious attack traffic, and Internet connectivity.[27] In addition, the net usage indices monitor global news consumption, industry specific traffic, and mobile trends.[28] Akamai also offers the Internet Visualization application, which allows users to view real-time data their mobile device.[29]

OPEN Initiative[edit]

On October 9, 2013 Akamai announced it’s Open Initiative at the 2013 Akamai Edge Conference. OPEN allows customers and partners to develop and customize the way they interact with the Akamai Intelligent Platform. Key components of OPEN include system and development operations integration, real-time big data integration, and a single-point user interface.[30]

Privacy policy[edit]

The Akamai Privacy Policy[31] states that Akamai is involved in the "collection, use or disclosure of personally identifiable information", including IP addresses. The policy also states "Akamai may store data automatically in order to transmit it efficiently. The data may be stored briefly or for a longer period of time, as determined by the technical requirements Akamai develops through working with our business customers." As such, accessing a website hosted on Akamai servers may result in tracking.

Primary domains[edit]

Akamai Technologies owns about 60 other domains, but the primary domains it uses include:

Corporate[edit]

  • akamai.com – Akamai's corporate domain

Content-delivery networks and domains[edit]

  • akamai.net
  • akamaiedge.net
  • akamaihd.net, a content-delivery network used by companies like Twitter and Facebook to speed up their services
  • edgesuite.net
  • edgekey.net
  • srip.net[32][33]
  • akamaitechnologies.com, a content-delivery network used by companies like Adobe
  • akamaitechnologies.fr

DNS servers[edit]

  • akamaitech.net
  • akadns.net
  • akam.net
  • akamaistream.net

Customers[edit]

On July 21, 1999, at Macworld Expo New York, Apple and Akamai announced a strategic partnership to build Apple's new media network, QuickTime TV (QTV), based on QuickTime Streaming Server.[34] Both companies later announced that Apple had made a $12.5 million investment in the company the previous month.[35] Apple continues to use Akamai as their primary content delivery network[36] for a wide range of applications including software downloads from Apple's Website, QuickTime movie trailers, and the iTunes Store.[37]

In September 1999, Microsoft and Akamai formed a strategic relationship to incorporate Windows Media technology in Akamai's FreeFlow service, as well as to facilitate the porting of the FreeFlow product to the Windows platform; this relationship exists to this day.[38]

Arabic news network Al-Jazeera was a customer from March 28, 2003, until April 2, 2003, when Akamai decided to end the relationship.[39] The network's English-language managing editor claimed this was due to political pressure.[40]

In June 2008, The NewsMarket teamed with Akamai to accelerate dynamic content and applications to global media ahead of the Beijing Olympics.[41]

The BBC iPlayer uses Akamai to stream its recorded and live programs, focused through an XML playlist.

The official U.S. government White House website (WhiteHouse.gov) uses Akamai Technologies for hosting video clips of President Barack Obama's Web addresses on their own in-house servers, after having posted previous addresses as embedded YouTube clips on the site.[42]

The entire China Central Television website (CCTV.com), including its streaming video, has been hosted on Akamai's edge servers since late 2009.[43][44] Hulu uses Akamai for hosting video.[45] MIT OpenCourseWare utilizes Akamai's EdgeSuite for its content delivery network.[46]

Trend Micro uses Akamai for their Housecall antivirus application.

Akamai provided streaming services to ESPN Star (India) during the course of the ICC Cricket World Cup 2011.[47]

Rackspace's Cloud Files use Akamai's Content Delivery Network (CDN) for storing its customer's files.

Other customers include Adobe Systems, Airbnb, AMD, AutoTrader.com, ESPN, Hewlett-Packard, Hilton Worldwide, IBM, J. C. Penney, MTV Networks, NASA, National Academy of Recording Arts and Sciences, NBC Sports, Pearson Education, Red Bull GmbH, Red Hat, Yahoo!.[48]

Acquisitions[edit]

  • On February. 10, 2000, Akamai acquired Network24 Communications[49] for an aggregate purchase price of $203,600,000.[50]
  • On Apr. 20, 2000,[50] Akamai acquired InterVU Inc.[51] for an aggregate purchase price of $2,800,000,000.
  • In July. 25, 2000, Akamai acquired CallTheShots, Inc., for an aggregate purchase price of $3,700,000.[50]
  • In Dec. 13, 2006, Akamai acquired Nine Systems, Inc.,[53] for an aggregate purchase price of $157,500,000.[54]
  • On Mar. 13, 2007, Akamai acquired Netli Inc. (Netli),[55] for an aggregate purchase price of $154,400,000.[56]
  • On Apr. 12, 2007, Akamai acquired Red Swoosh Inc.[57] for an aggregate purchase price of $18,700,000.[56]
  • On Nov. 3, 2008, Akamai acquired aCerno Inc.,[56] for an aggregate purchase price of $90,800,000.[58]
  • On June 10, 2010, Akamai acquired Velocitude LLC,[59] for an aggregate purchase price of $12,000,000.[60]
  • On Feb. 7, 2012, Akamai acquired Blaze Software, Inc.,[61] for an aggregate purchase price of $19,300,000.[62]
  • On Mar. 6, 2012, Akamai acquired Cotendo, Inc.,[61] for an aggregate purchase price of $278,900,000.[63]
  • On Sept. 13, 2012, Akamai acquired FastSoft, Inc.,[61] for an aggregate purchase price of $14,400,000.[64]
  • On Dec. 4, 2012, Akamai acquired Verivue, Inc.,[61] for an aggregate purchase price of $30,900,000.[65]

See also[edit]

Notes[edit]

  1. ^ a b January 14, 1999 - MIT Scientists Develop New Method to Distribute Content over World Wide Web. Akamai.com (January 14, 1999). Retrieved on August 14, 2013. Archived November 12, 2013 at the Wayback Machine
  2. ^ December 17, 2012 - Akamai Announces CEO Succession. Akamai.com. Retrieved on August 14, 2013. Archived February 22, 2014 at the Wayback Machine
  3. ^ a b c d e f g h "AKAMAI TECHNOLOGIES INC 2013 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. March 3, 2014. 
  4. ^ a b "AKAMAI TECHNOLOGIES INC 2014 Q1 Quarterly Report Form (10-Q)" (XBRL). United States Securities and Exchange Commission. May 12, 2014. 
  5. ^ "2011 Form 10-K, Akamai Technologies, Inc.". U.S. Securities and Exchange Commission. Archived from the original on May 7, 2013. Retrieved July 23, 2012. 
  6. ^ Tim Beyers (October 21, 2013). "What to Watch For in Akamai's Q3 Earnings Report". Motley Fool. Archived from the original on October 27, 2013. Retrieved November 15, 2013. 
  7. ^ "Akamai Technologies, Inc. Added to the Russell 3000 Index and Russell 2000 Index". July 17, 2001. Archived from the original on February 4, 2014. Retrieved July 19, 2013. 
  8. ^ a b "Akamai Technologies, Inc. History". http://www.fundinguniverse.com. fundinguniverse.com. Retrieved 9 June 2014. 
  9. ^ "Two teams win top prize in MIT $50K contest". http://newsoffice.mit.edu. MIT News. May 13, 1998. Retrieved June 11, 2014. 
  10. ^ "Akamai Technologies Inc". http://www.reuters.com. Reuters. Retrieved June 11, 2014. 
  11. ^ a b Frier, Sarah; Womack, Brian (April 26, 2012). "Akamai Says CEO Sagan to Leave; Profit Less Than Estimates". http://www.bloomberg.com. Bloomberg. Retrieved May 29, 2014. 
  12. ^ "AKAMAI TECHNOLOGIES INC (AKAM) IPO". http://www.nasdaq.com. NASDAQ. Retrieved June 16, 2014. 
  13. ^ Leopold, Todd (September 11, 2013). "The legacy of Danny Lewin, the first man to die on 9/11". http://www.CNN.com. CNN. Retrieved 22 July 2014. 
  14. ^ "Akamai Technologies, Inc. Added to the Russell 3000 Index and Russell 2000 Index". July 17, 2001. Archived from the original on February 4, 2014. Retrieved June 20, 2014. 
  15. ^ "Akamai Technologies, Inc. (AKAM) Income Statement". http://finance.yahoo.com. Yahoo! Finance. Retrieved May 29, 2014. 
  16. ^ Frier, Sarah; Mulier, Thomas (December 17, 2012). "Akamai Names Leighton CEO After Eight-Month Search". http://www.businessweek.com/. BloombergBusinessweek. Retrieved June 19, 2014. 
  17. ^ a b Nygren, Erik; Sitaraman, Ramesh K.; Sun, Jennifer, The Akamai Network: A Platform for High-Performance Internet Applications 
  18. ^ Zakas, Nicholas C. (November 29, 2011). "How content delivery networks (CDNs) work". NCZOnline. 
  19. ^ "Inside Akamai and the scary future of streaming video, GigaOm.". August 19, 2011. Archived from the original on December 11, 2012. Retrieved March 12, 2012. 
  20. ^ Ben Homer (January 26, 2010). "Akamai Using P2P for Enhanced Video Delivery". Online Video Watch. Archived from the original on May 15, 2013. Retrieved September 2, 2011. 
  21. ^ "Akamai NetSession Interface – Design Principles". Akamai Technologies. Archived from the original on October 29, 2013. Retrieved September 2, 2011. 
  22. ^ "Basic No-Frills 10 MB Test Download". Akamai Technologies. Archived from the original on October 29, 2013. Retrieved September 2, 2011. 
  23. ^ Weiss, David (September 25, 2013). "Akamai Gets a New Network Operations Command Center". AV Network. Retrieved September 23, 2014. 
  24. ^ "Akamai's NOCC To Monitor And Troubleshoot Client Servers". Silicon India News. November 25, 2013. Retrieved September 23, 2014. 
  25. ^ "Akamai Releases First Quarter, 2014 'State of the Internet' Report". Yahoo! Finance. June 26, 2014. Retrieved September 23, 2014. 
  26. ^ Q2 2014 Report Akamai's State of the Internet
  27. ^ "Akamai Introduces First-of-Its-Kind, Real-Time View into Health of the Internet". StreamingMedia.com. June 7, 2007. Retrieved September 23, 2014. 
  28. ^ "Visualizing the internet with Akamai". DataVisualization.ch. March 23, 2009. Retrieved September 23, 2014. 
  29. ^ Catone, Josh (June 7, 2007). "Akamai Releases Internet Traffic Visualizations". Readwrite.com. Retrieved September 23, 2014. 
  30. ^ "Akamai Unveils Open Platform Initiative at Akamai Edge 2013 Customer Conference". Yahoo! Finance. October 9, 2013. Retrieved September 23, 2014. 
  31. ^ "Akamai Privacy Policy.". October 15, 2012. Retrieved October 3, 2014. 
  32. ^ Young, Jeff; Wolfe, Steven J. (October 18, 2000). "Akamai Unveils EdgeSuite, the Next Generation of Intelligent Content Services". Press release. Akamai Technologies. Archived from the original on January 22, 2014. Retrieved March 31, 2012. 
  33. ^ Gill, Kathy E. (October 18, 2010), What Is edgesuite.net?, WordPress, archived from the original on October 29, 2013, retrieved March 31, 2012 
  34. ^ July 21, 1999 – Apple and Akamai Create High Quality Network for Internet Streaming. Akamai.com. Retrieved on July 8, 2011. Archived March 31, 2014 at the Wayback Machine
  35. ^ August 18, 1999 – Apple and Akamai Reveal Apple Investment to Cement Strategic Agreement. Akamai.com. Retrieved on July 8, 2011. Archived October 21, 2013 at the Wayback Machine
  36. ^ Customer List. Akamai.com (September 30, 2003). Retrieved on July 8, 2011. Archived February 9, 2014 at the Wayback Machine
  37. ^ April 29, 2003 – Akamai and Apple Extend Commitment to Deliver Industry Leading Internet Streaming Content and Software Downloads. Akamai.com. Retrieved on July 8, 2011. Archived January 22, 2014 at the Wayback Machine
  38. ^ Microsoft and Akamai Form Strategic Relationship to Enhance Internet Content Delivery. Akamai.com. September 27, 1999. Retrieved on July 8, 2011. Archived February 19, 2014 at the Wayback Machine
  39. ^ "Akamai ends Al Jazeera server support". news.cnet.com. Retrieved April 2, 2009. 
  40. ^ "Al Jazeera Denied Akamai Services". Tech.mit.edu. April 8, 2003. Archived from the original on November 7, 2013. Retrieved April 2, 2009. 
  41. ^ "The NewsMarket partnered with Akamai to Accelerate Dynamic Content and Applications to Global Media Ahead of Beijing Olympics". Akamai Technologies. June 9, 2008. Archived from the original on February 19, 2014. 
  42. ^ Kee, Tameka. (March 2, 2009) Corrected: Obama Drops YouTube For Akamai On Whitehouse.gov; White House Denies. paidContent. Retrieved on July 8, 2011.
  43. ^ www.cctv.com. Robtex.com. Retrieved on July 8, 2011. Archived March 21, 2014 at the Wayback Machine
  44. ^ Site report for www.cctv.com
  45. ^ About. Hulu (March 12, 2008). Retrieved on July 8, 2011. Archived October 5, 2012 at the Wayback Machine
  46. ^ "Free Online Course Materials FAQ: Technology MIT OpenCourseWare:". Archived from the original on October 29, 2013. Retrieved June 14, 2010. 
  47. ^ espnstar.com Breaks India Online Cricket Match Streaming Record. Teck.In (April 18, 2011). Retrieved on August 14, 2013. Archived February 20, 2014 at the Wayback Machine
  48. ^ "Customer List". Akamai Technologies. Retrieved October 22, 2014. 
  49. ^ "Akamai to Acquire Network24 Communications". StreamingMedia.com. January 18, 2000. Retrieved September 23, 2014. 
  50. ^ a b c "Akamai Annual Report 2000". Akamai Technologies, Inc. 
  51. ^ Richtymyer, Richard (February 7, 2000). "Akamai buys InterVu". CNN Money. Retrieved September 23, 2014. 
  52. ^ "Akamai Annual Report 2005". Akamai Technologies, Inc. 
  53. ^ Kawamoto, Dawn (November 20, 2006). "Akamai to buy Nine Systems". CNET News. Retrieved September 23, 2014. 
  54. ^ "Akamai Annual Report 2006". Akamai Technologies, Inc. 
  55. ^ Gross, Grant (February 5, 2007). "Akamai to acquire Netli for about $170 million". NetworkWorld. Retrieved September 23, 2014. 
  56. ^ a b c "Akamai Annual Report 2009". Akamai Technologies, Inc. 
  57. ^ Arrington, Michael (April 12, 2007). "Payday for Red Swoosh: $15 million from Akamai". Tech Crunch. Retrieved September 23, 2014. 
  58. ^ Kaplan, David (October 21, 2008). "Branching Out, Akamai Acquires Ad Targeter Acerno For $95 Million". Tech Crunch. Retrieved September 23, 2014. 
  59. ^ "Akamai Annual Report 2010". Akamai Technologies, Inc. 
  60. ^ Boutin, Paul (June 10, 2010). "Akamai acquires mobile services company Velocitude". VentureBeat. Retrieved September 23, 2014. 
  61. ^ a b c d "Akamai Annual Report 2012". Akamai Technologies, Inc. 
  62. ^ Huang, Gregory T. (February 8, 2012). "Akamai Buys Blaze as Web Optimization Heats Up in Boston". Xconomy. Retrieved September 23, 2014. 
  63. ^ Wauters, Robin (December 22, 2011). "Done Deal – Akamai Buys Rival Cotendo For $268 Million". Tech Crunch. Retrieved September 23, 2014. 
  64. ^ McCarthy, Maureen (September 14, 2012). "Akamai Technologies snaps up FastSoft". Boston Business Journal. Retrieved September 23, 2014. 
  65. ^ Whittaker, Zack (November 13, 2012). "Akamai expands digital content delivery network, acquires Verivue". ZDNet. Retrieved September 23, 2014. 
  66. ^ a b "Akamai Annual Report 2013". Akamai Technologies, Inc. 
  67. ^ Dignan, Larry (November 11, 2013). "Akamai buys Velocious Networks". ZDNet. Retrieved September 23, 2014. 
  68. ^ Lunden, Ingrid (December 2, 2013). "Akamai Buys DDoS Prevention Specialist Prolexic For $370M To Ramp Up Security Offerings For Enterprises". TechCrunch. Retrieved September 23, 2014. 

References[edit]

  • Erik Nygren, Ramesh K. Sitaraman, and Jennifer Sun. The Akamai Network: A Platform for High-Performance Internet Applications, ACM SIGOPS Operating Systems Review, Vol. 44, No.3, July 2010.

External links[edit]