Akamai IR Summit 2013


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CEO Tom Leighton's presentation at Akamai Investor Relations Summit

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  • Data Center Workloads: Nearly Two-Thirds Will Be Cloud-Based by 2016:A workload can be defined as the amount of processing a server undertakes to run an application and support a number of users interacting with the application. The Cisco Global Cloud Index forecasts the continued transition of workloads from traditional data centers to cloud data centers. By 2016, nearly two-thirds of all workloads will be processed in cloud data centers (Figure 3). For regional distributions of workloads, see Appendix E.CYBER ATTACKS:Denial of service attacks are growing 16% CAGR by 2016 (or something like that… I guess this is more of a TAM) Year DDOS Prevention Market ($M) 2016 485 2012 272 CAGR 16% Source: Infoneticshttp://www.proofpoint.com/about-us/security-compliance-and-cloud-news/articles/denial-of-service-attacks-increasing-causing-market-growth--800927878
  • These are the areas that we’re investing in.
  • thought 1 Tbps was huge when we got thereThink 10 Tbps pretty large nowBut building to 100 Tbps
  • thought 1 Tbps was huge when we got thereThink 10 Tbps pretty large nowBut building to 100 Tbps
  • the internet ecosystem is getting very complicatedNot a single network..all usersUsed to be that the bottleneck was the last mile. Still true in some places like india. But in aggregate, there is a ton of connectivity in the last mile
  • Aura goes deep inside networks
  • Office, home, retail and user devices31M devices for delivery today. Hundreds of M use some of our software—software downloads, video players, transparent acceleration software
  • Burda Games: Launched the widely popular gaming platform alaplaya.net, which today boasts close to 10 million users worldwide.
  • lots of forces are working to slow down your web site…
  • Built for voice71% of users expect sites to load as fast or faster than on a desktop (Gomez)
  • We have all 30 of the top 30 desktop sites mentioned by Keynote as customers. But only a handful (2-3) of the mobile commerce sites as customers of our mobile solutions. That means that there is plenty of greenfield out there for Akamai.
  • So mobile traffic is coming, growth predictions are massive for traffic and revenue, and performance is top of mind. With clear correlation in mobile load times and abandonment (just like desktop), there is huge opportunity to maximize mobile traffic & revenue by optimizing user experiences on mobile devices and situations.
  • Now, we’ve all seen the business metrics that tie conversions to performance. Walmart did a fantastic job of documenting this through RUM methodologies.Baseline − 1 in 2 site visits had response time > 4 secondsSharp decline in conversion rate as average site load time increases from 1 to 4 secondsOverall average site load time is lower for the converted population (3.22 Seconds) than the non-converted population (6.03 Seconds)
  • IP/Routing Optimizations-Dynamic Mapping-SureRoute Path Optimization-Enhanced Akamai Protocol-IPv6 Adaptation TCP/Transport Optimizations-Automated Failover-Connection Offload-Transport Optimization HTTP/Protocol Optimizations-Edge Caching-Data Compression-Origin Offload-Dynamic Page Caching-Akamai Instant-HTTP Pipelining-Mobile Detection and Redirect-Device Characterization HTML/Presentation Optimizations-Embedded Object Prefetching-Adaptive Image Compression-Front-End Optimization (FEO)A Cloud service built on the Akamai Intelligent Platform, 119,000+ servers in over 2000 locations in 80+ countries designed to speed up mobile delivery by reducing round trips and latency through introducing performance optimization and intelligenceMobile TCP OptimizationsNetwork settings tolerant of latency and data retransmission in MNOMobile Network MapReduce distance to MNO IP GatewaysDynamic Site AccelerationMiddle mile optimizationMobile CachingCaching close to the MNO IP GatewayAdaptive Image CompressionConsistent experience across varied network performanceDevice CharacterizationRespond to specific device capabilitiesMobile Detection & RedirectRedirections issued from the Edge, with device DB managed by AkamaiHTTP PipeliningMaximize TCP connections to devices with limited resourcesMobile Network MapReduce distance to MNO IP GatewaysDynamic Site AccelerationMiddle mile optimizationMobile CachingCaching close to the MNO IP GatewayThe Akamai Intelligent Platform forms the basis of delivery for Aqua Ion Mobile. This globally-distributed cloud platform continuously pulls and caches fresh content from web servers onto servers that are closer to the “gateway nodes” that serve as the on-ramp between the public Internet and private mobile carrier networks. Akamai’s dynamic mapping system directs user requests for mobile application data and mobile Web sites to an optimal Akamai Edge server. Then, through route optimization, we identify the fastest, most reliable path back to the data center serving dynamic and interactive content to mobile users. The maps increase the low level DNS TTL from 20s to 360s. By increasing the LLDNS TTL, availability will be impacted when a whole region that the user is connected to becomes unavailable. By increasing the LLDNS TTL, performance mobile networks when slow is significantly increased by reducing the number of DNS refreshes for the domain. Any request, DNS or HTTP, will invoke a long network latency during slow network times.Lower the initial retransmit timeout (RTO) value, timeout_init to 500ms for both edge-to-user and edge-to-originLower the maximum retransmit timeout value: rto_max to 1s for both edge-to-user and edge-to-originEnable TCP double SYN - In a lossy network, we don't need to wait if the SYN is lost, instead we send the SYN twice reducing the chance of loss.
  • Amazon CloudFrontvs DSAGlobal testing locationsWontaek Na was responsible for the testsThis is Keynote data
  • DSA vsEdgeCastWontaek Na was responsible for the testsThis is Keynote data
  • 25% of all commerce transactions are now mobile (this will double over the next two years), mobile in-store is relevant for the branch office.
  • Show Offs:17 yr old brings down PlaystationState Sponsored:2007 Estonia: 100Mbps 2008 Georgia: 814Mbps2009 United States: 200GbpsIRANIAN nuclear programViruses for IP theft and later exploitationattacks on banks in last month?
  • hope is not a strategy, esp when it comes to attacks
  • story you did not see
  • story you did not see last monthDNS—not web server, huge volumes for dns
  • Decrease cost because we offload capex and coloLeverage the carrier salesforceImprove quality by being deeper in the carrier networkGenerate revenue by selling the platformBroader sales capacity through the channel
  • Akamai IR Summit 2013

    1. 1. ©2013 AkamaiSafe Harbor Statement• failure to maintain the prices we currently charge for our services;• inability to effectively compete with existing companies and newentrants in the markets in which we operate;• unexpected network and service interruptions that cause lossof revenues, increased expenses or diversion of resources;• failure to increase our revenue at the same rate as in the past andkeep our expenses from increasing at a greater rate than our revenues;• changes in relationships with our network providers that increaseour operating expenses;• failure of new services we offer to operate as expected or to gainwidespread market acceptance;• delay in developing or failure to develop new service offerings orfunctionalities, and if developed, lack of market acceptance of suchservice offerings and functionalities; and• other factors that are discussed in our annual report, on Form 10-K,our quarterly reports on Form 10-Q, and other documents periodicallyfiled with the SEC.In addition, any forward-looking statements, represent our estimates onlyas of March 11, 2013 and should not be relied upon as representing ourestimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim anyobligation to do so, even if our estimates change.Finally, during this presentation we will be referring to non-GAAP financialmeasures such as Adjusted EBITDA. These non-GAAP measures arenot prepared in accordance with generally accepted accounting principles.A reconciliation between non-GAAP and the most directly comparable GAAPfinancial measures appears in the News and Publications portion of theInvestor Relations section of our website.This presentation and webcast include information about Akamai’s future expectations, plans and prospects that constitute forward-lookingstatements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including estimates aboutfuture revenues. Actual results may differ materially from those indicated by these forward-looking statements… as a result of variousimportant factors including, but not limited to…
    2. 2. Business Strategy and Technology VisionTom Leighton | Chief Executive Officer & Co-Founder
    3. 3. ©2013 AkamaiToday’s Agenda8:30 – 10:00AM10:00 – 10:30AM10:30 – 10:40AM10:40 – 11:05AM11:05 – 11:35AM11:35 – 11:50AM11:50AM – 12:30PM12:30 – 1:00PMTom LeightonRick McConnellBob HughesJim BensonStrategy & Technology VisionQ&ABreakProduct StrategyGo-to-Market StrategyBreakFinancial UpdateQ&A
    4. 4. ©2013 AkamaiThe Hyperconnected World is Changing Everything
    5. 5. ©2013 AkamaiMedia over IPOver 90% of IP trafficwill be video by 20151Cloud AdoptionNearly 2/3 of applicationworkloads will becloud-based by 20161Megatrends Driving the MarketThe Challenge:Quality at ScaleSources: 1-Cisco, 2-InfoneticsThe Challenge:Performance & CostMobile50 Billion connecteddevices by 20202The Challenge:Performance & CapacityCyber AttacksCyber attackshave increased>50X since 2009The Challenge:Availability & Data Integrity
    6. 6. ©2013 AkamaiAkamai Product StrategyCoreEmergingWebPerformanceMedia DeliveryCarrierProductsHybrid CloudOptimizationWeb SecurityMedia Delivery
    7. 7. ©2013 AkamaiDeliveryVideoSoftwareSite ContentAdvanced FunctionalityTranscodingAd InsertionAnalytics
    8. 8. ©2013 AkamaiThe State of the Media Business Today• Revenue ≈ traffic x price• Traffic growing rapidly• Price dropping steadily (within historic norms)• Expect continued variability in revenue growth(due to DIY, competition, seasonality, renewals, pricing)• Margins driven by price vs. cost• Margins improved in 2012• Successful COGS savings projects continuing• Competition includes: DIY, CDNs, Carriers• Competitive advantages: scale, quality and end-to-end workflow
    9. 9. ©2013 AkamaiFuture Drivers of Growth• Cost Reduction• Scaling Capacity• Quality Enhancements• Easier Workflows• The Next-Generation Media Delivery Platform• Very low cost at very high scale and quality
    10. 10. ©2013 AkamaiAvoid data theft and downtime by extending thesecurity perimeter outside the data-center andprotect from increasing frequency, scale andsophistication of web attacks.30Tbps20Tbps40Tbps50Tbps03Tbps9Tbps1Tbps2Tbps8Tbps4Tbps5Tbps6Tbps7Tbps02006 2009 20121Tbps2.6Tbps>10Tbps>10Tbps1Tbps 2.6Tbps201510Tbps~50TbpsDemand for Premium & Broadcast Content Online:Quality & Scale ChallengeMediaTraffic(inTbps)
    11. 11. ©2013 AkamaiAvoid data theft and downtime by extending thesecurity perimeter outside the data-center andprotect from increasing frequency, scale andsophistication of web attacks.1.5B Primetime Viewersx 7 Mbps~10,000 TbpsLET’S DO THE MATH:Demand for Premium & Broadcast Content Online:Quality & Scale Challenge
    12. 12. ©2013 AkamaiAvoid data theft and downtime by extending thesecurity perimeter outside the data-center andprotect from increasing frequency, scale andsophistication of web attacks.1000Tbps300Tbps900Tbps200Tbps800Tbps400Tbps500Tbps600Tbps700Tbps0100Tbps20201Tbps 2.6Tbps~50Tbps2006 2009 2012 2015>10TbpsDemand for Premium & Broadcast Content Online:Quality & Scale Challenge
    13. 13. ©2013 AkamaiThe Scalability ChallengeCloud Data Centers
    14. 14. ©2013 AkamaiThe Last Mile Has Enormous CapacityCloud Data Centers
    15. 15. ©2013 AkamaiThe Last Mile Has Enormous Capacity400M Linesx 25 Mbps10,000 TbpsLET’S DO THE MATH:Cloud Data Centers
    16. 16. ©2013 AkamaiThe Problem is at the Core100 Major NetworksX 5 Tbps500 TbpsLET’S DO THE MATH:Cloud Data Centers
    17. 17. ©2013 AkamaiThe Problem is at the Core500 Tbps10,000 Tbps5%of whatwe need!LET’S DO THE MATH:Cloud Data Centers=
    18. 18. ©2013 AkamaiAkamai’s Unique Edge StrategyAkamai Servers
    19. 19. ©2013 AkamaiDeepening Akamai’s Edge Strategy with Aura
    20. 20. ©2013 AkamaiAkamai’s Future Vision: Extending our Platformto Home, Office, Retail, and User Devices
    21. 21. ©2013 AkamaiAkamai’s Next-Gen Media Delivery Platform:Extending the Edge to the Device
    22. 22. ©2013 Akamai30 million Akamaiclients now active
    23. 23. ©2013 AkamaiCustomer Case Study:Results:• 10x improvement in cost• 20% improvement in download rates• Doubled the user base
    24. 24. ©2013 AkamaiAkamai Product StrategyCoreEmergingWebPerformanceMedia DeliveryCarrierProductsHybrid CloudOptimizationWeb SecurityWebPerformance
    25. 25. ©2013 AkamaiSite AccelerationDynamic Site Accelerator  Aqua IonSpecial Focus on MobileAqua Ion Mobile
    26. 26. ©2013 AkamaiApplication AccelerationWeb Application Accelerator  Terra AltaIP Application Accelerator
    27. 27. ©2013 AkamaiThe State of the Web Performance Business Today• Revenue ≈ # of apps or sites x price• # of sites/apps grows through rep-driven transactions• Pricing is stable with uplift from next-gen services,mobile adoption and value-add modules• Competition includes: data center devices, CDNs• Competitive advantages: superior performance,mobile capabilities, enhanced functionality,and real end-user reporting
    28. 28. ©2013 AkamaiFuture Drivers of Growth• Expanding sales capacity• Hiring more direct sales reps in 2013 than past 4 years combined(80% increase from mid-2012 to end-2013)• Enabling a more robust channel ecosystem• Entering new geographies• Continuing innovation to achieve near-instant performance…even for mobile devices (and as measured by real-user metrics)
    29. 29. ©2013 Akamai$$$$The Performance ChallengeTimetoDownloadUserExpectationsHeavierContent3rd PartyContentInefficientWeb CodeChattyProtocolsMobileCongestionMyriadDevices
    30. 30. ©2013 AkamaiChallenge: Mobile Internet Access is SLOW because……the mobile network architecture was not designed for the Web
    31. 31. ©2013 Akamai1 in 4visits to aU.S. retail sitetoday is froma smartphoneSource: IBM Digital Analytics Benchmark, November 2012
    32. 32. ©2013 AkamaiMassive Growth PredictedSource: Mobile Traffic to the Top 500 North American E-Retailers, Branding Brand, 2012Smartphones will account for over 50% of NorthAmerican visits to a commerce site within 2 years2010 2011 2012 2013 201513.4%53.2%39%24.6%3.8%60.6%201460%50%40%30%20%10%0%
    33. 33. ©2013 AkamaiKeynote Commerce Index: Desktop vs. MobileSecondsto loadSecondsto loadTop 30 Desktop Commerce Sites Top 30 Mobile Commerce SitesWe havent seen9 secondssince 2001!
    34. 34. ©2013 Akamaislower pages = higher abandonment• Damages brand• Increases costs• Reduces revenueSpeed Matters: Abandonment RatesSource: Gomez Real User Monitoring051015202530AbandonmentRate(%)Page Load Time (Seconds)AbandonmentRate(%)0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
    35. 35. ©2013 AkamaiSpeed Matters: Conversion RatesCONVERSIONRATE VERSUSLOAD TIMEPOPULATION PERCENTAGE CONVERSION PERCENTAGELOAD TIME (SECONDS)Page Performance & SiteConversion – Feb 20120−1 1−2 2−3 3−4 4−5 5−6 6−7 7−8 8−9 9−10 10−11 11−12 12−13 13−14 14−15 >15faster pages = higher revenue
    36. 36. ©2013 AkamaiRedefining Web Performance
    37. 37. ©2013 AkamaiAvoid data theft and downtime by extending thesecurity perimeter outside the data-center andprotect from increasing frequency, scale andsophistication of web attacks.Akamai has a Solution: Aqua IonCustomer Infrastructure Akamai Intelligent Platform™Local ISP / MobileNetwork OperatorAkamai OptimizationsFirst Mile Middle Mile Last Mile
    38. 38. ©2013 AkamaiChallenges with Cloud AdoptionCloud servers reside in bigdata centers, farther awayfrom the end user…...resulting in decreasedperformance and securityEnd UserCloud Datacenter
    39. 39. ©2013 AkamaiEnd UserProblem 1Route to datacentermay perform poorlyCloud DatacenterXXCloud Optimization: Route Selection
    40. 40. ©2013 AkamaiEnd UserSolutionAkamai SureRouteto optimize routeCloud Optimization: Route SelectionProblem 1Route to datacentermay perform poorlyAkamai Edge ServersXCloud Datacenter
    41. 41. ©2013 AkamaiEnd UserSolutionAkamai CommunicationProtocolCloud Optimization: Communication ProtocolProblem 2Many round trips forinitial large downloadCloud DatacenterAkamai Edge Servers
    42. 42. ©2013 AkamaiAkamai Communication Protocols Make a Big DifferenceFirst MileMiddle MileLast Mile(0.2 sec)(8.0 sec)(0.2 sec)Typical number of round tripsfor an application = 31Total response time = 8.4 sec1.0 sec51.5 secEnd UserCloud DatacenterAkamai Edge Servers
    43. 43. ©2013 AkamaiCloud Optimization: PrefetchingProblem 3Many round trips forpersonalized or cold objectsEnd UserCloud Datacenter
    44. 44. ©2013 AkamaiProblem 3Many round trips forpersonalized or cold objectsSolutionAkamai Intelligent PrefetchingEnd UserCloud DatacenterAkamai Edge ServersCloud Optimization: Prefetching
    45. 45. ©2013 AkamaiAkamai vs. Large Cloud ProviderAPS – AKAMAI (ApP) – Total Time (seconds)APS – LARGE CLOUD PROVIDER (ApP) – Total Time (seconds) 8x
    46. 46. ©2013 AkamaiAkamai vs. CDN VendorAPS – AKAMAI (ApP) – Total Time (seconds)APS – CDN VENDOR (ApP) – Total Time (seconds) 2.3x
    47. 47. ©2013 AkamaiKeynote Page Load Time for a Major RetailerHomepage2.6Brands2.8Cabinet Knobs2.6Drawer Slide3.0Knobs2. Aqua IonLoadTime(Seconds)Product Images
    48. 48. ©2013 AkamaiAvoid data theft and downtime by extending thesecurity perimeter outside the data-center andprotect from increasing frequency, scale andsophistication of web attacks.Real User Performance for a Major RetailerDSA19%< 2 secondsION48%< 2 secondsSeconds01020304050%ofUsersIon couldincreaseconversionrates by34%0-1 1-2 2-3 3-4 4-5 5-6 6+DSA Aqua Ion IR10 Conversion Rate
    49. 49. ©2013 AkamaiDeliver Better Experiences To Mobile Users0%2%4%6%8%10%12%14%16%18%Seconds1 2 3 4 5 6 7 8 9 10 11 12 13 14 15+DSA%ofusers
    50. 50. ©2013 AkamaiSecondsDeliver Better Experiences To Mobile Users0%2%4%6%8%10%12%14%16%18%1 2 3 4 5 6 7 8 9 10 11 12 13 14 15+DSA Aqua Ion%ofusers
    51. 51. ©2013 AkamaiLet’s See it LiveSimilar gains for enterpriseapps with Terra Alta
    52. 52. ©2013 AkamaiRecord Revenue Credited to Akamai“The combination of Aqua Ion, Aqua Ion Mobile and expert advicefrom Akamai Professional Services means that we can deliver anexperience that meets user expectations even under extremelyhigh demand. The amazing influx of new customers is a testamentto the effectiveness and value of Akamai’s solutions.”─ Gavin Cliffe, CTO, OZSALEResults After Just 24 Hours:30% oftransactionsmade viamobile10,000+ newmembers50,000 itemssold at a rateof one item per1.7 secondsRecordrevenuesImprovedperformanceby over 130%
    53. 53. ©2013 AkamaiAkamai Product StrategyCoreEmergingWebPerformanceMedia DeliveryCarrierProductsHybrid CloudOptimizationWeb SecurityWeb Security
    54. 54. ©2013 AkamaiKona Site DefenderDenial of Service PreventionWeb Application FirewallEnhanced DNS
    55. 55. ©2013 AkamaiThe State of the Security Business Today• Revenue ≈ # of apps or sites x price• # of sites/apps grows through rep-driven transactions• Pricing is stable and ARPUs are rising• Competition includes: data center devices, carrier filteringand cloud-washing solutions• Competitive advantages: massive scale, always-on filtering,packet inspection, massive data set, speed, and unique abilityto defend against leading attackers
    56. 56. ©2013 AkamaiFuture Drivers of Growth• Adoption• Field-training and expanding sales capacity• Extension to defend all IP applications (not just Web)• Creation of Managed Security Service Provider (MSSP)capabilities and partnerships
    57. 57. ©2013 AkamaiAvoid data theft and downtime by extending thesecurity perimeter outside the data-center andprotect from increasing frequency, scale andsophistication of web attacks.Security is a Serious Problem• 31% of these attacks resultedin service disruption• Each breach costs $8Mon average, and can beup to $1B• 74% of companiesexperienced one or morecyber attacks in the past year
    58. 58. ©2013 AkamaiTypical Attack Size10 Gbps01002003004005006007008009002009 2010 2011 2012NumberofAttacks768Attacks on Akamai CustomersAttacks are originating fromall geographies and aremoving between geographiesduring the attackLarge Attack Size100+ Gbps14220510
    59. 59. ©2013 AkamaiAttacks are Varied and Sophisticated• SQL Injection is the mostcommon attack type followedby DoS attacks• Attack tools such as LOIC,HOIC and SlowLoris evolverapidly and are easily availablePredictable ResourceLocation 2%Cross-Site Forgery 2%Source: Trustwave, Web Hacking Incident DB – 2012 reportSQL Injection27%Denialof Service23%Unreported37%Top WHIDAttacksClickjacking 1%Stolen Credentials 2%Banking Trojan 3%Brute Force 3%
    60. 60. ©2013 AkamaiState SponsoredTraditional Hackers: Glory Hounds Political HacktivismProfitWhy?
    61. 61. ©2013 AkamaiTraditional Solutions Are InsufficientSufficient CapacityPacket InspectionProactive vs. ReactiveMaintain PerformanceDatacenterDevicesCloudWashingCarrierFiltering
    62. 62. ©2013 AkamaiTraditional Defenses Don’t Work
    63. 63. ©2013 AkamaiAvoid data theft and downtime by extending thesecurity perimeter outside the data-center andprotect from increasing frequency, scale andsophistication of web attacks.Uniquely able to defend againstall known Web attacks
    64. 64. ©2013 AkamaiAvoid data theft and downtime by extending thesecurity perimeter outside the data-center andprotect from increasing frequency, scale andsophistication of web attacks.X(Cloud)DatacentersEnd User11010010000OriginTraffic1000Web Application Without Akamai
    65. 65. ©2013 AkamaiAvoid data theft and downtime by extending thesecurity perimeter outside the data-center andprotect from increasing frequency, scale andsophistication of web attacks.End User11010010000OriginTraffic1000(Cloud)DatacentersXWeb Application Without Akamai
    66. 66. ©2013 AkamaiAvoid data theft and downtime by extending thesecurity perimeter outside the data-center andprotect from increasing frequency, scale andsophistication of web attacks.Web Application with Kona Site Defender(Cloud)DatacentersEnd User11010010000OriginTraffic1000AkamaiTraffic110100100001000 COVERED
    67. 67. ©2013 AkamaiLet’s See it Live
    68. 68. ©2013 AkamaiSummer 2012: Akamai Defends Olympic Web SitesFirewall Rules Triggered25 MillionTypes of Requests DeniedIncluding: Bad Robots,SQL Injections, Cross-SiteScripts, LDAP Injections23 40xATTACKDenied RulesWarned RulesNormal Traffic
    69. 69. ©2013 AkamaiDNS Traffic Handled by Akamai1.8 M1.6 M1.4 M1.2 M1.0 M0.8 M0.6 M0.4 M0.2 M0.0Total EDNSTues 12:00 Wed 00:00 Wed12:00Akamai Kona Defends Major BankAttack Traffic:23 Gbps(10,000X normal)Duration:4.5 Hours
    70. 70. ©2013 AkamaiAkamai Product StrategyCoreEmergingWebPerformanceMedia DeliveryHybrid CloudOptimizationWeb SecurityHybrid CloudOptimizationCarrierProducts
    71. 71. ©2013 AkamaiThe State of the Hybrid Cloud Business Today• Product under development• Market entry in 2H13 (beta) beginning with retail customers• Optimizes the performance and cost for IP applicationsin branch offices, retail stores, hotels, etc.• Behind the firewall applications• SaaS applications• Internet Web sites• Competition includes: WAN optimization devices• Competitive advantages: existing deployed platform for SaaSand Internet acceleration, market-leading acceleration and offloadtechnology, Network-as-a-Service know-how
    72. 72. ©2013 AkamaiWhy retail stores?Source: Ipsos OTX/Google, Nielsen+ 89% use smartphoneswhile shopping in stores
    73. 73. ©2013 AkamaiIn-Store Users of Mobile DevicesOmnichannel shoppers spend 71%more than single channel consumers*Navigation Promos Information CheckoutNavigationFind products easilyPromosHelp your customersfind your productsand take advantageof special promotionsInformationQR codesfor immediateinformationCheckoutSimple, fast,one-click checkoutMobile AlertHead on over toaisle 18 to takeadvantage ofa $100 instantsavings coupon!XXSource: Guardian.co.uk; Deloitte
    74. 74. ©2013 AkamaiEngaging Omnichannel Consumers is Key“Shoppers who shop onour website as well as in ourstores spend four times asmuch; throw smartphonesinto the mix and they spendeight times as much”— Laura Wade-Gery,Executive Director, Multi-channelE-commerce, Marks & Spencer1 Channel 2 Channels 3 Channels8X4X1XSource: Guardian.co.uk; Deloitte
    75. 75. ©2013 AkamaiStores Are Moving OnlineTHE CHALLENGE:Cost &Performance
    76. 76. ©2013 AkamaiAkamai is Developing a SolutionAkamai software in the storeoptimizes performance andoffloads last mile pipes
    77. 77. ©2013 AkamaiLet’s See it Live
    78. 78. ©2013 AkamaiAkamai Product StrategyCoreEmergingWebPerformanceMedia DeliveryCarrierProductsWeb SecurityCarrierProductsHybrid CloudOptimization
    79. 79. ©2013 AkamaiAura Accelerated Network PartnerManaged-CDNLicensed-CDNInstant Federation
    80. 80. ©2013 Akamai• 2 revenue streams:Selling a CDN platformThe State of the Carrier Business Today• Competition includes: DIY, device vendors, CDNs• Competitive advantages: proven technology for performance andscale (the Akamai Intelligent Platform), ability to federate, enormouscustomer baseDistribution channel
    81. 81. ©2013 AkamaiBusiness StrategyReduce Cost• Offload capex and colo• Leverage carrier salesforceReduce CostReduce Cost• Embed deeper in carrier networkImprove QualityReduce Cost• Selling the platform• Broader sales capacity through channelIncrease Revenue
    82. 82. ©2013 AkamaiSummary2 strong core businesses todayMegatrends are moving in Akamai’s directionDriving towards $5B goal by the end of the decade3 highly-synergistic emerging businesses
    83. 83. ©2013 AkamaiQ&A