
Akamai Technologies has acquired Linode, a cloud infrastructure provider, to expand its cloud services offerings. This move will allow Akamai to provide a more comprehensive suite of cloud solutions to its customers.
The acquisition is expected to enhance Akamai's edge computing capabilities, enabling faster and more secure delivery of digital content and applications.
Akamai's Cloud Strategy
Akamai is getting into the alternative cloud market by acquiring Linode, a cloud provider that specializes in infrastructure-as-a-service (IaaS) offerings for developers.
The goal is to combine Akamai's Edge CDN platform with Linode's cloud computing capabilities to provide a more efficient and optimized delivery of cloud applications.
Akamai's Global Traffic Manager will help users route traffic across the internet, while Linode's cloud computing capabilities will provide a developer-friendly solution.
Akamai has decades of expertise in network deployment and a large enterprise salesforce, which will be used to aggressively expand and sell Linode cloud compute services.
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Linode has a customer base of 1 million customers in 185 countries, but lacks a salesforce and relies heavily on self-service portals for customer acquisitions.
Akamai plans to scale up Linode's locations and infrastructure capacity to meet the demands of large enterprise customers.
The primary objective is to take Linode and sell it into the large enterprise space, competing against hyperscale public providers.
Akamai's customers are interested in alternatives and end-to-end solutions, which is why the company is positioning Linode as a developer-friendly solution for large enterprise customers.
Akamai's acquisition of Linode will bring together the best of both worlds, creating the world's most distributed compute platform from core to edge.
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Cloud Services for Enterprise
Akamai acquires Linode, aiming to bring cloud compute capabilities to the Akamai platform.
Akamai's Chief Operating Officer and General Manager Adam Karon plans to combine Akamai's Edge CDN platform with Linode's cloud computing capabilities.
The goal is to provide users with efficient traffic routing and optimized delivery of cloud applications.
Akamai will leverage its Global Traffic Manager to efficiently route traffic across the internet for optimized delivery of cloud applications.
Akamai's large enterprise salesforce and customer base have been asking for cloud compute capabilities, which is a key driver for the acquisition.
Akamai expects to expand Linode's locations and infrastructure capacity to scale up the business.
Linode has a strong focus on developers and smaller organizations, but Akamai aims to take Linode to the large enterprise space.
Akamai's customers are interested in alternatives and end-to-end solutions, which is why the company is positioning Linode against hyperscale public providers.
The acquisition will bring together Akamai's strengths in network deployment, security, and resiliency with Linode's ease of use and developer friendliness.
Linode's infrastructure-as-a-service (IaaS) offerings will be expanded to cater to large enterprise customers.
Akamai's customers have been explicit in their desire for cloud capability and end-to-end cloud solutions.
The combination of Akamai and Linode will create the world's most distributed compute platform, from core to edge.
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Analysis
Akamai executives have shifted their focus to building the security services business through acquisitions.
This move marks a change of direction for Akamai, as they've traditionally focused on building their security services business through acquisitions.
Akamai is interested in Linode's large developer community and its pathway to a programmable edge platform.
This will allow Akamai to offer a self-service model to its customers, which is a departure from their previous approach.
Akamai has been moderately successful in opening up its existing CDN and edge platform, making it easier for customers to link their applications with Akamai's infrastructure.
However, services like Cloudflare and Fastly have accelerated their business growth through a developer-first, self-service model.
It's unclear how quickly Akamai can accelerate Linode's growth, but deep integration will likely take at least a year.
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Sources
- https://www.datacenterknowledge.com/cloud/akamai-acquires-alternative-cloud-linode-for-900m
- https://www.datacenterfrontier.com/cloud/article/11427596/akamai-buys-linode-to-create-8216cloud-to-edge8217-computing-platform
- https://www.information-age.com/akamai-acquires-iaas-platform-linode-for-900-million-19534/
- https://www.edgeir.com/akamai-acquires-linode-for-900m-to-address-edge-cloud-applications-like-metaverse-20220222
- https://datacentremagazine.com/data-centres/akamai-acquires-linode-to-create-cloud-and-edge-platform
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