Posted by : Randy Cooper in (CDN)

Stream This: Application Delivery: Akamai’s Secret Weapon?

Through the acquisition of Netli, Akamai is well-poised to offer the product (which it has been developing for at least a year) and have real customers using it today. Because of this, when other companies begin to look at and develop an application delivery product, Akamai will already be ahead of them in development, real customer feedback, and revenue. While I don’t think application delivery is going to make a huge impact on Akamai’s revenue in 2008, I do predict that, come 4Q of this year and moving into next year, Akamai’s application delivery service will be one of the company’s fastest-growing products.

After talking to customers and seeing how content will need to be delivered down the road, I’ve concluded that Akamai’s application delivery product is one of the most underestimated in its portfolio in terms of revenue growth. The market for these services is just starting out, and already, Akamai is considered the only game in town based on an outsourced model. I don’t know of any other content delivery network that currently offers application delivery. While some vendors do offer hardware-based application delivery or acceleration products, they are not a real threat to Akamai’s service. Application delivery is a fundamental building block that lets Akamai service its current customers’ needs while exploring new markets.


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