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Akamai Technologies

Akamai Technologies, Inc.
Akamai logo
Type Public
Traded as NASDAQ: AKAM
NASDAQ-100 Component
S&P 500 Component
Founded 1998 (1998)
Headquarters 150 Broadway
Cambridge, Massachusetts 02142
Founder(s) Tom Leighton
Daniel M. Lewin
Randall Kaplan
Preetish Nijhawan
Jonathan Seelig
Key people George H. Conrades
Tom Leighton
(Co-founder, Chief Scientist, CEO)[2]
Industry Internet
  • US$ 1.58 billion (2013)[3]
  • US$ 1.37 billion (2012)[3]
Operating income
  • US$ 414 million (2013)[3]
  • US$ 314.5 million (2012)[3]
Net income
  • US$ 293.5 million (2013)[3]
  • US$ 204 million (2012)[3]
Total assets
  • US$ 2.96 billion (2013)[4]
  • US$ 2.6 billion (2012)[3]
Total equity
  • US$ 2.63 billion (2013)[4]
  • US$ 2.35 billion (2012)[3]
Employees 5,000 (November 2014)[5]
Website .com.akamaiwww
Alexa rank 100 (Dec 2014)[6]
Type of site E-commerce
Akamai content delivery to a user

Akamai Technologies, Inc. is a content delivery network or CDN and cloud services provider headquartered in Cambridge, Massachusetts, in the United States. Akamai's content delivery network is one of the world's largest distributed computing platforms, responsible for serving between 15 and 30 percent of all web traffic.[7] The company operates a network of servers around the world and rents capacity on these servers to customers who want their websites to work faster by distributing content from locations close to the user. Over the years their customers have included Apple, Facebook, Bing, Twitter, eBay and When a user navigates to the URL of an Akamai customer, their browser is redirected to one of Akamai’s copies of this website, almost entirely invisible to the vast majority of its users.

The company was founded in 1998 by Daniel M. Lewin (then a graduate student at MIT) and MIT applied mathematics professor Tom Leighton, together with Jonathan Seelig, Preetish Nijhawan and Randall Kaplan.[1] 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 “intelligent” or “witty”.


  • History 1
  • Technologies 2
    • Akamai Intelligent Platform 2.1
    • Content delivery process 2.2
    • Peer-to-peer networking 2.3
    • Network Operations Command Center 2.4
    • State of the Internet 2.5
    • Visualizing the Internet 2.6
    • OPEN Initiative 2.7
    • Privacy policy 2.8
    • Primary domains 2.9
      • Corporate 2.9.1
      • Content-delivery networks and domains 2.9.2
      • DNS servers 2.9.3
  • Customers 3
  • Acquisitions 4
  • Litigation 5
  • See also 6
  • Notes 7
  • References 8
  • External links 9


Accepting chathe annual MIT $50K competition with a business proposition based on their research, and their proposal was selected as one of the finalists.[8] By August 1998 they had developed a working prototype, and with the help of Jonathan Seelig, Preetish Nijhawan, and Randall Kaplan, they began taking steps to incorporate the company.[9]

In late 1998 and early 1999, a group of business professionals joined the founding team. Most notably, BBN Corp. and senior vice president of U.S. operations for IBM. Conrades became chief executive officer of Akamai in April 1999 and led the company to from start-up to sustained profitability and free cash flow before turning the reins over to Sagan in 2005.[10][11][12] The company launched commercial service in April 1999 and was added to the NASDAQ Stock Market on October 29, 1999.[13]

Effective July 1, 2001, Akamai was added to the Russell 3000 Index and Russell 2000 Index.[14]

In 2001, co-founder Daniel M. Lewin died in the September 11th attacks at the age of 31. Lewin was aboard American Airlines Flight 11, the first plane to crash into the World Trade Center.[15]

In 2005, Paul Sagan was named chief executive officer of Akamai. Sagan worked to differentiate Akamai from its competitors by expanding the company's breadth of services.[12] Under his leadership the company grew to $1.37 billion in revenues.[16] Sagan served as chief executive officer until co-founder and current CEO, Tom Leighton, was elected to the position in 2013.[17]


Akamai Intelligent Platform

The Akamai Intelligent Platform is a distributed cloud computing platform that operates worldwide. It is a network of over 170,000 servers[18] deployed in more than 100[18] countries. These servers reside in more than 1,300[18] of the world's networks gathering real time information about traffic, congestion, and trouble spots. Each Akamai server is equipped with proprietary software that uses complex algorithms to process requests from nearby users, and then serve the requested content.[19]

Content delivery process

The content delivery process begins with a user submitting a request to a browser. When a user enters a URL, a DNS request is triggered and an IP address is retrieved. With the IP address, the browser can then contact a web server directly for subsequent requests.[20] In a content delivery network structure, the domain name of the URL is translated by the mapping system into the IP address of an edge server to serve the content to the user.[19]

Akamai delivers web content over its Intelligent Platform by transparently mirroring elements such as HTML, CSS, software downloads, and media objects from customers’ servers. The Akamai server is automatically picked depending on the type of content and the user's network location. Receiving content from an Akamai server close to the user allows for faster download-times and less vulnerability to network congestion. 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.[21]

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.[22][23] When users request a download of some large files served by this system, it prompts them to download and install “Akamai NetSession Interface,” a download manager used to reduce download time and to increase quality.[24] However, this software operates not merely as a download manager (delivering content from the Internet to the user's computer) but also as a peer-to-peer server, delivering content cached on the user's computer to other users' computers.

Network Operations Command Center

Akamai’s Network Operations Command Center (NOCC) is used for proactive monitoring and troubleshooting of all servers in the global Akamai network.[25] The NOCC provides real time statistics of Akamai’s web traffic. The traffic metrics update automatically and provide a view of the Internet traffic conditions on Akamai’s servers and customer websites.[26]

State of the Internet

The State of the Internet report is a quarterly report Akamai releases based on data gathered from its Intelligent Platform, which provides global Internet statistics such as connection speed, broadband adoption, attack traffic, network connectivity, and mobile connectivity.[27][28]

Visualizing the Internet

Akamai’s data visualization tools display how data is moving across the Internet in real-time. Viewers are able to see global web conditions, malicious attack traffic, and Internet connectivity.[29] In addition, the net usage indices monitor global news consumption, industry specific traffic, and mobile trends.[30] Akamai also offers the Internet Visualization application, which allows users to view real-time data on their mobile device.[31]

OPEN Initiative

On October 9, 2013 Akamai announced its Open Initiative at the 2013 Akamai Edge Conference. OPEN allows customers and partners to develop and customize the way they interact with the Akamai Intelligent Platform. Key components of OPEN include system and development operations integration, real-time big data integration, and a single-point user interface.[32]

Privacy policy

The Akamai Privacy Policy[33] states that Akamai is involved in the "collection, use or disclosure of personally identifiable information", including IP addresses. The policy also states "Akamai may store data automatically in order to transmit it efficiently. The data may be stored briefly or for a longer period of time, as determined by the technical requirements Akamai develops through working with our business customers." As such, accessing a website hosted on Akamai servers may result in tracking.

Primary domains

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


  • – Akamai's corporate domain

Content-delivery networks and domains

  •, a content-delivery network used by companies like Ubisoft, Twitter and Facebook to speed up their services
  •, a content-delivery network used by companies like Adobe

DNS servers



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.[36] Both companies later announced that Apple had made a $12.5 million investment in the company the previous month.[37] Apple continues to use Akamai as their primary content delivery network[38] for a wide range of applications including software downloads from Apple's Website, QuickTime movie trailers, and the iTunes Store.[39]

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.[40]

Arabic news network Al-Jazeera was a customer from March 28, 2003, until April 2, 2003, when Akamai decided to end the relationship.[41] The network's English-language managing editor claimed this was due to political pressure.[42]

In June 2008, The NewsMarket teamed with Akamai to accelerate dynamic content and applications to global media ahead of the Beijing Olympics.[43]

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 ( 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.[44]

The entire China Central Television website (, including its streaming video, has been hosted on Akamai's edge servers since late 2009.[45][46] Hulu uses Akamai for hosting video.[47] MIT OpenCourseWare utilizes Akamai's EdgeSuite for its content delivery network.[48]

Trend Micro uses Akamai for their Housecall antivirus application.

Akamai provided streaming services to ESPN Star (India) during the course of the ICC Cricket World Cup 2011.[49]

Rackspace's Cloud Files use Akamai's Content Delivery Network (CDN) for storing its customer's files.

Other customers include Adobe Systems, Airbnb, AMD,, ESPN, Hewlett-Packard, Hilton Worldwide, IBM, J. C. Penney, MTV Networks, NASA, National Academy of Recording Arts and Sciences, NBC Sports, Pearson Education, Red Bull GmbH, Red Hat, Yahoo!.[50]

Akamai competes with CDNetworks, CloudFlare, LimeLight, MaxCDN, Microsoft Azure, and EdgeCast Networks.[51]


  • On Feb. 10, 2000, Akamai acquired Network24 Communications[52] for an aggregate purchase price of $203,600,000.[53]
  • On Apr. 20, 2000,[53] Akamai acquired InterVU Inc.[54] for an aggregate purchase price of $2,800,000,000.
  • In July. 25, 2000, Akamai acquired CallTheShots, Inc., for an aggregate purchase price of $3,700,000.[53]
  • On June 10, 2005, Akamai acquired Speedera Networks, Inc. for an aggregate purchase price of $142,200,000.[55]
  • In Dec. 13, 2006, Akamai acquired Nine Systems, Inc.,[56] for an aggregate purchase price of $157,500,000.[57]
  • On Mar. 13, 2007, Akamai acquired Netli Inc. (Netli),[58] for an aggregate purchase price of $154,400,000.
  • On Apr. 12, 2007, Akamai acquired Red Swoosh Inc.[59] for an aggregate purchase price of $18,700,000.[60]
  • On Nov. 3, 2008, Akamai acquired aCerno Inc.,[60] for an aggregate purchase price of $90,800,000.[61]
  • On June 10, 2010, Akamai acquired Velocitude LLC,[62] for an aggregate purchase price of $12,000,000.[63]
  • On Feb. 7, 2012, Akamai acquired Blaze Software, Inc.,[64] for an aggregate purchase price of $19,300,000.[65]
  • On Mar. 6, 2012, Akamai acquired Cotendo, Inc.,[64] for an aggregate purchase price of $278,900,000.[66]
  • On Sept. 13, 2012, Akamai acquired FastSoft, Inc.,[64] for an aggregate purchase price of $14,400,000.[67]
  • On Dec. 4, 2012, Akamai acquired Verivue, Inc.,[64] for an aggregate purchase price of $30,900,000.[68]
  • On Nov. 8, 2013, Akamai acquired Velocius Networks[69] for an aggregate purchase price of $4,300,000.[70]
  • In February 2014, Akamai acquired cyber security provider, Prolexic Technologies[69] for an aggregate purchase price of $390,000,000.[71]
  • In February, 2015, Akamai acquired Xerocole Inc., a domain name system technology company.[72]
  • On Apr. 6, 2015, Akamai acquired cloud OTT IPTV service provider Octoshape,[73] for an undisclosed amount.[74]


One of Akamai's patents covers a method of delivering electronic data using a “content delivery network,” or “CDN.” Internet Web site proprietors (content providers) contract with Akamai to deliver their Web sites’ content to individual Internet users. The patented method permits large files, such as video or music files, to be stored on Akamai’s servers and accessed from those servers by Internet users. This increases the speed with which Internet users access the content from Web sites.

Unfortunately for Akamai, its patent was written in a way that called for or permitted actions by multiple persons or entities—such as the content provider customer and the company providing the CDN service.[75] Akamai's competitor Limelight chose to operate its allegedly infringing service in that manner—it performed most steps of the patented process and its customers performed a so-called tagging step. Under the interpretation of patent law at the time when Akamai decided to sue Limelight for patent infringement, a method patent could be held infringed only when a single actor performed all of the steps. The court therefore overturned a $40 million jury verdict in Akamai's favor.

Akamai lost the case, even taking it to the Supreme Court. The Supreme Court returned to case to the United States Court of Appeals for the Federal Circuit, however, with an invitation to re-evaluate its rule, if it chose to do so, that all the steps of a method had to be performed by a single actor for there to be infringement. On remand, the Federal Circuit considered the matter en banc (all active judges of the circuit) and modified its rule. It now held that a patent could also be directly infringed if "an alleged infringer conditions participation in an activity or receipt of a benefit upon performance of a step or steps of a patented method and establishes the manner or timing of that performance." On that basis, the Federal Circuit reinstated the $40 million jury verdict. It said that "Akamai presented substantial evidence demonstrating that Limelight conditions its customers' use of its content delivery network upon its customers' performance of" the steps that Limelight does not itself perform. This has been considered a substantial change in patent law. For further discussion of the case, see the WorldHeritage article Akamai Techs., Inc. v. Limelight Networks, Inc.

See also


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  4. ^ a b "AKAMAI TECHNOLOGIES INC 2014 Q1 Quarterly Report Form (10-Q)" (XBRL). United States Securities and Exchange Commission. May 12, 2014. 
  5. ^ "2011 Form 10-K, Akamai Technologies, Inc.". U.S. Securities and Exchange Commission. Archived from the original on May 7, 2013. Retrieved July 23, 2012. 
  6. ^ "Akamai Technologies Site Info".  
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  13. ^ "AKAMAI TECHNOLOGIES INC (AKAM) IPO". NASDAQ. Retrieved June 16, 2014. 
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  18. ^ a b c Facts & Figures | Akamai. Retrieved on March 24, 2015. Archived March 24, 2015 at the Wayback Machine
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  20. ^ Zakas, Nicholas C. (November 29, 2011). "How content delivery networks (CDNs) work". NCZOnline. 
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  51. ^ Content delivery network
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  73. ^
  74. ^
  75. ^ It is usually possible, however, to write such method patent claims in a way that all steps are performed by a single actor, for example, by replacing a step of sending a signal to the person performing the other steps with a step, instead, of receiving that signal. See, e.g., Michael Dzwonczyk Bulletproofing Method Claims for Post-Limelight Enforcement (Feb. 2014). Dzwonczyk asserts that the patent claim "could easily have been rewritten as a single-actor method claim that would not require the performance of any step by a second actor," and provides a rewritten version. See also Harold Wegner, Akamai II: Direct Infringement Déjà Vu (Aug. 2014) at 20-21, to similar effect.


  • 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

  • Official website
  • Traffic Cops Of The Net (BusinessWeek article)
  • Akamai: In the Broadband Internet Sweet Spot (article)
  • The Motley Fool's analysis of Akamai
  • The Akamai Story: From Theory to Practice
  • Yahoo! Finance "Akamai Technologies, Inc." Company Profile
  • profile of the companyWashington Post
  • Akamai & The CDN Price Wars
  • Globally Distributed Content Delivery
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