Akamai Case Summary

Part D

Akamai Technologies deployed proprietary platform with more than 107,000 service centers located in 102 countries worldwide, and in addition to its 11 offices in the United States the company is represented in 25 international locations. Today, the cloud computing market is more competitive than in the past and the current competition is much dynamic and intense in comparison to the past players (????????).

Even though the main competition is concentrated at the cloud content platform, Akamai has also developed the de-centralized network of distributed servers located in the ISP’s premises that brought the benefits of faster response time and smaller error rates. This strategy allowed the company to grow outside of its core and produce

The company applies products from the partner telecommunication companies as Level 3 Communications and AT&T (T), which are used to route traffic from its customers’ websites to maintain its speedy delivery through the internet. The company demonstrates the stable revenues during 2014 and 2015, in comparison to the net loss of $69 million in 2011 (????????). The Internap’s technologies and marketing concept is similar to that of Akamai’s, namely, it is based on the content delivery network as well. A content delivery network is a proprietary network of servers which are close to a company's users. Lately, the Internap's business started demonstrating cash-flow negative results, so the company cannot reinvest in its own business procedures to stave off competitors or produce new technologies. Even though, the Internap's content delivery platform is dominated by Akamai Technologies, the company’s dependence on the telecom third-parties for access put them at risk. In case the price for access becomes higher, it makes it easier for Internap to provide direct internet backbone to the end users

Level 3 is a strong player on the market of media services, and provides a wide range of integrated communications services including the network and Internet services, colocation and voice services. As the demand for online entertainment and live streaming continues to rise, providers of these services are forcing long-term deals with IP Upstream carriers, even though it does not always guarantee revenue growth. Level 3 develops content delivery as additional product to already existing ones and usually at more reasonable price if to compare to the Akamai’s price politics (Nichos,