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Akamai Technologies

Akamai Technologies, Inc.
TypePublic
Traded asNASDAQ: AKAM
NASDAQ-100 Component
S&P 500 Component
IndustryInternet
Founded1998
Founder(s)Tom Leighton
Daniel M. Lewin
Headquarters8 Cambridge Center
Cambridge, Massachusetts 02142
USA
Key peopleGeorge H. Conrades
(Chairman)
Tom Leighton
(Co-founder, Chief Scientist, CEO)[1]
RevenueIncrease US$ 1.16 billion (2011)[2]
Operating incomeIncrease US$ 290.65 million (2011)[2]
Net incomeIncrease US$ 200.90 million (2011)[2]
Employees3,000(January 2013)[2]
Websiteakamai.com
Akamai content delivery to a user
Akamai headquarters in Cambridge, Massachusetts

Akamai Technologies, Inc. (pron.: /ˈɑːkəmaɪ/) is an Internet content delivery network headquartered in Cambridge, Massachusetts, in the United States. Akamai's network is one of the world's largest distributed-computing platforms.[3]

The company was founded in 1998 by Daniel M. Lewin (then a graduate student at MIT) and MIT applied mathematics professor Tom Leighton. 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 "smart" or "intelligent" with connotations of insightful, wise, or skillful.

Contents

History

Leighton has served as head of the Algorithms Group at MIT's Laboratory for Computer Science since its inception in 1996. Believing that a solution to Web congestion could be found in applied mathematics and algorithms, Leighton solicited the help of MIT graduate student Danny Lewin and others. Together, they developed the mathematical algorithms necessary to handle the dynamic routing of content and to work towards this aim.

In 1998 and early 1999, a group of Internet business professionals joined the founding team. Most notably, Jonathan Seelig, an MIT Sloan student, as co-founder[4] of the company, Paul Sagan, a former president of Time Inc. New Media who founded the Road Runner cable modem service and who also helped launch NY1 News, became chief operating officer and eventually president of Akamai Technologies. George Conrades, former chairman and chief executive officer of BBN Corp. and senior vice president of U.S. operations for IBM, joined as chief executive officer a few months later. The company launched commercial service in April 1999.

Between 2003 and 2009, Akamai’s "revenue grew at a compounded annual growth rate of more than 32%, with a 26% operating margin in 2009. Akamai also broadened its worldwide customer base, with 28% of 2009 revenue coming from outside the United States, up from 23% two years earlier." Part of this growth came from Akamai’s core content delivery service.[5]

Content delivery to a user

Akamai provides a service to companies that have content on the Internet (Akamai's customers), to more efficiently deliver this content to users browsing the Web and downloading content.[3] Akamai does this by transparently mirroring content—sometimes all site content including HTML, CSS, and software downloads, and sometimes just media objects such as audio, graphics, animation, and video—from customer servers. Though the domain name (but not subdomain) is the same, the IP address points to an Akamai server or another user's machine that Akamai is using as a server rather than the customer's server. The Akamai server is automatically picked depending on the type of content and the user's network location.

The benefit is that users can receive content from whichever Akamai server or user is close to them or has a good connection, leading to faster download times and less vulnerability to network congestion or outages. Furthermore, for streaming media, 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.[6]

In addition to content caching, Akamai provides services which accelerate dynamic and personalized content, J2EE-compliant applications, and streaming media to the extent that such services frame a localized perspective.

Primary domains

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

Corporate

  • akamai.com – Akamai's corporate domain

Content delivery networks and domains

  • akamai.net
  • akamaiedge.net
  • akamaihd.net
  • edgesuite.net
  • edgekey.net
  • srip.net[7][8]

DNS servers

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

Peer-to-peer networking

In addition to using Akamai's own servers, Akamai delivers content from other end-users' computers, in a form of peer-to-peer networking[9][10] When users request a download of some large files served by this system, they are prompted to download and install "Akamai NetSession Interface, a download manager used to reduce download time and increase quality."[11] However, this software is not just a download manager, delivering content from the Internet to the user's computer, but it is also a peer-to-peer server, delivering content cached on the user's computer to other users' computers. The user agreement describes this vaguely as

"You agree that the Software may send and receive commands and data related to participating publishers’ digital information ("Published Content") to and from the Akamai network and other Akamai NetSession Interfaces to facilitate the downloading of Published Content."

The Akamai web site describes this system as follows:

"All clients are always on – available to send data when your system is idle. This means there is massive redundancy of peer caches on the network and with such redundancy in resources, the network can be selective about which idle resources to pull from."[10]

The Akamai Network: Edge Platform

The Akamai Network is a large distributed cloud computing platform that operates worldwide.[3] It is a network of more than 250,000 servers equipped with proprietary software and deployed in more than 80 countries that relies on applied mathematics, computer networks and complex algorithms to help solve congestion, availability, performance and security problems on the Internet. These servers reside in more than 2000 of the world's networks monitoring the Internet in real time—gathering information about traffic, congestion, and trouble spots. Akamai uses this intelligence to optimize routes and replicate data dynamically to deliver content and applications more quickly, reliably, and securely.

Akamai's approach is to:[3]

  • Eliminate long routes by replicating and delivering content and applications from servers close to end users around the world instead of from centralized servers. Akamai calls this delivering from "the edges of the Internet".
  • Optimize routes by mapping paths across the Internet to avoid trouble spots, compressing content, and replicating packets to ensure fast, complete delivery.
  • Perform computing closer to the user to avoid long Internet latencies (called EdgeComputing).

Akamai's approach requires a comprehensive view of Internet conditions and the tools to control the movement of any type of content or application.[12]

Customers

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.[13] Both companies later announced that Apple had made a $12.5 million investment in the company the previous month.[14] Apple continues to use Akamai as their primary content delivery network[15] for a wide range of applications including software downloads from Apple's Website, QuickTime movie trailers, and the iTunes Store.[16]

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.[17]

Arabic news network Al-Jazeera was a customer from March 28, 2003, until April 2, 2003, when Akamai decided to end the relationship.[18] The network's English-language managing editor claimed this was due to political pressure.[19]

In June 2008, The NewsMarket teamed with Akamai to accelerate dynamic content and applications to global media ahead of the Beijing Olympics.[20]

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.[21]

The entire China Central Television website (CCTV.com), including its streaming video, has been hosted on Akamai’s edge servers since late 2009.[22][23] Hulu uses Akamai for hosting video.[24] MIT OpenCourseWare utilizes Akamai's EdgeSuite for its content delivery network.[25]

Trend Micro uses Akamai for their Housecall antivirus application.

Akamai also provided streaming services to ESPN Star (India) during the course of the ICC Cricket World Cup 2011.[26] Other customers include Facebook, Twitter, AMD, Wedubox, Hilton Worldwide Hotels, Amazon.com (for their dynamic contents) ([1]), Adobe Systems, Netflix, Cineville, Miles Kimball, J. C. Penney, Yahoo!,[15] Blizzard Entertainment, QNet Virtual Office, and github.

Important Customer Privacy Considerations as listed in Akamai's privacy policy: As Akamai's business develops, Akamai may also offer services on its own behalf or on behalf of business customers directly to consumers that could involve the collection, use or disclosure of personally identifiable information unless otherwise directed by our business customers.

Acquisitions

In March 2005, Akamai signed an agreement to acquire Speedera Networks for 12 million shares of Akamai common stock, valued at $130 million at that time.[27] Both companies also agreed to halt pending lawsuits involving trade secrets and patent infringement.[28] The acquisition was completed in June 2005.[29]

In November 2006, Akamai acquired Nine Systems Corporation for roughly $164 million[30] using "approximately 2.7 million shares of their common stock, approximately $4.5 million in cash and the assumption of options to purchase approximately 400,000 shares of their common stock".[31]

On April 12, 2007, Akamai acquired Red Swoosh in exchange for 350,000 shares of Akamai common stock.[32] The acquisition of Red Swoosh was valued at approximately $15 million, net of cash acquired.

In March 2007, Akamai acquired Netli in exchange for 3.2 million shares of Akamai stock.[33] The acquisition of Netli was valued at approximately $178 million.

In late 2008, Akamai acquired Acerno, a performance-based ad network, and launched a new division, Advertising Decision Solutions.[34]

In June 2010, Akamai acquired mobile services platform company Velocitude to support its mobile devices efforts.[35]

In 2011, Akamai announced it was acquiring Israeli cloud communications competitor Cotendo for $268 million.[36]

In February 2012, Akamai announced it acquired Blaze Software, which has technology to optimize Web page rendering.[37]

In December 2012, Akamai acquired Verivue, a technology provider for building Operator CDN.

See also

Portal iconCompanies portal

Notes

  1. ^ http://www.akamai.com/html/about/pres s/releases/2012/press_121712_1.html
  2. ^ a b c d "2011 Form 10-K, Akamai Technologies, Inc.". U.S. Securities and Exchange Commission. Retrieved July 23, 2012. 
  3. ^ a b c d 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.". 
  4. ^ "MIT Scientists Develop New Method to Distribute Content over World Wide Web, January 14, 1999". 
  5. ^ Benjamin Edelman, Thomas Eisenmann, Eric Van Den Steen (June 8, 2010). "Akamai Technologies". Retrieved April 20, 2011. 
  6. ^ "Inside Akamai and the scary future of streaming video, GigaOm.". August 19, 2011. Retrieved March 12, 2012. 
  7. ^ Young, Jeff; Wolfe, Steven J. (2000-10-18). "Akamai Unveils EdgeSuite, the Next Generation of Intelligent Content Services". Press release. Akamai Technologies. Retrieved 2012-03-31. 
  8. ^ Gill, Kathy E. (2010-10-18), What Is edgesuite.net?, WordPress, retrieved 2012-03-31 
  9. ^ Ben Homer (January 26, 2010). "Akamai Using P2P for Enhanced Video Delivery". Online Video Watch. Retrieved September 2, 2011. 
  10. ^ a b "Akamai NetSession Interface – Design Principles". Akamai Technologies. Retrieved September 2, 2011. .
  11. ^ "Basic No-Frills 10 MB Test Download". Akamai Technologies. Retrieved September 2, 2011. .
  12. ^ http://www.akamai.com/html/technology /edgeplatform.html Akamai EdgePlatform
  13. ^ July 21, 1999 – Apple and Akamai Create High Quality Network for Internet Streaming. Akamai.com. Retrieved on July 8, 2011.
  14. ^ August 18, 1999 – Apple and Akamai Reveal Apple Investment to Cement Strategic Agreement. Akamai.com. Retrieved on July 8, 2011.
  15. ^ a b Customer List. Akamai.com (September 30, 2003). Retrieved on July 8, 2011.
  16. ^ 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.
  17. ^ Microsoft and Akamai Form Strategic Relationship to Enhance Internet Content Delivery. Akamai.com. September 27, 1999. Retrieved on July 8, 2011.
  18. ^ "Akamai ends Al Jazeera server support". News.com.com. Retrieved April 2, 2009. 
  19. ^ "Al Jazeera Denied Akamai Services". Tech.mit.edu. April 8, 2003. Retrieved April 2, 2009. 
  20. ^ "The NewsMarket partnered with Akamai to Accelerate Dynamic Content and Applications to Global Media Ahead of Beijing Olympics". Akamai Technologies. June 9, 2008. 
  21. ^ Kee, Tameka. (March 2, 2009) Corrected: Obama Drops YouTube For Akamai On Whitehouse.gov; White House Denies. paidContent. Retrieved on July 8, 2011.
  22. ^ www.cctv.com. Robtex.com. Retrieved on July 8, 2011.
  23. ^ http://uptime.netcraft.com/up/graph?s ite=www.cctv.com
  24. ^ About. Hulu (March 12, 2008). Retrieved on July 8, 2011.
  25. ^ "Free Online Course Materials FAQ: Technology MIT OpenCourseWare:". Retrieved June 14, 2010. 
  26. ^ http://teck.in/espnstar-com-breaks-in dia-online-cricket-match-streaming-re cord.html
  27. ^ "Akamai to Acquire Speedera Networks". Press Release. Akamai Technologies, Inc. March 16, 2005. 
  28. ^ "Akamai Snaps up Rival Speedera". CNET News. March 16, 2005. 
  29. ^ "Akamai Completes Acquisition of Speedera Networks". Press Release. Akamai Technologies, Inc. June 13, 2005. 
  30. ^ "Akamai to the Nines". The Motley Fool. Retrieved November 30, 2009. 
  31. ^ "Form 10-K for Akamai Technologies, Inc.". Retrieved November 30, 2009. 
  32. ^ "Form 10-Q for Akamai Technologies Inc". Archived from the original on October 13, 2007. Retrieved September 18, 2007. 
  33. ^ "Akamai closes Netli acquisition". Retrieved November 28, 2011. 
  34. ^ "Connect your products and services to a buying audience". Akamai Technologies, Inc. April 30, 2009. 
  35. ^ "Akamai Annual Report 2010". Akamai Technologies, Inc. 
  36. ^ Gomer, Gregory (December 22, 2011). "Akamai Confirms Acquisition of Israeli Competitor Cotendo for $268 Million". BostInno. Retrieved December 22, 2011. 
  37. ^ "Akamai Technologies Acquires Blaze Software Inc.". CDN-Advisor.com. Retrieved November 5, 2012. 

References

  • 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

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