Akamai Technologies has strengthened its status as a leading cloud computing provider by securing a $100 million multi-year cloud infrastructure deal with an unidentified major technology company. The transaction indicates growing industry interest in Akamai’s full-stack cloud computing capabilities, even though the firm has not disclosed the identity of its new partner.
Adam Karon, Akamai’s COO, emphasized the growing need for scalable, high-performance cloud services that deliver ultra-low latency for global users. According to him, Akamai’s infrastructure provides the reliability and speed required by tech platforms with massive footprints, ensuring seamless experiences regardless of location.
Despite Akamai’s longstanding reputation for providing content delivery network (CDN) services, the company has recently made a more deliberate move toward security and computing solutions. The company’s Q4 2024 financial report reflects this shift, showing that security and compute services now contribute 69% of revenue, an 18% increase from the previous year. Particularly, the company’s fastest-growing section was compute, which increased by 25% annually to $630 million in 2024.
Akamai’s rapid expansion stems from its 2022 acquisition of Linode, which laid the groundwork for the company’s Connected Cloud platform. This move has made Akamai a formidable competitor to more established cloud heavyweights. To further solidify its cloud capabilities, the firm will implement load balancing, managed Kubernetes clusters, and integrated security solutions with the most recent deal.
CEO Tom Leighton also revealed that Akamai has successfully migrated some of its own workloads from hyperscalers to its own cloud infrastructure, resulting in an annual savings of over $100 million.
Meanwhile, the company continues to onboard new enterprise clients at a rapid pace, securing deals with two of the largest U.S. retailers, a major European cybersecurity provider, and a leading bank in Southeast Asia.
However, this cloud push has required tough decisions. In January 2024, Akamai announced its plan to exit the CDN market and cease operations in China by mid-2026. Despite this, the company is committed to expanding its global CDN presence, as seen by the contracts it acquired from Edgio, Lumen, and StackPath after their respective industry exits.
According to Akamai, strategic infrastructure investments and rising enterprise usage will drive a further 15% growth in its cloud business by 2025. Akamai, which places a high priority on cloud computing, security, and affordability, is steadily becoming into a significant player in the cloud industry.
