Akamai Technologies has announced a multi-year cloud contract valued at over $100 million with one of the world’s largest technology companies. The deal highlights Akamai’s expanding role in cloud services and marks a key step in its transition from content delivery to comprehensive cloud solutions.
This agreement comes as part of a broader strategy to offer full-stack cloud computing capabilities. The customer will use Akamai’s services to manage, deliver, and secure data across its infrastructure, ensuring low latency and reliable performance for users worldwide.
Contract Details and Deployment Plans
Akamai will deploy managed Kubernetes clusters in secure virtual private cloud environments to meet the customer’s needs. The services include load-balancing user traffic and integrating application and network security on Akamai Cloud. These measures optimize performance while keeping costs attractive and enabling efficient local data management.
The contract is structured as a strategic usage agreement spanning multiple years. The customer is already using a range of Akamai’s cloud infrastructure services for media applications. Special requirements in Scandinavia have prompted plans to build a new data center in the region to support local applications throughout Europe.
Financial Performance and Growth Outlook
The announcement coincides with Akamai’s release of its fourth-quarter financial results. The company reported quarterly revenue of $1.02 billion, with a notable increase in both security and computing segments. Compute revenue showed significant growth, reflecting the company’s ongoing efforts to expand its cloud offerings.
Akamai’s leadership has noted that the shift toward security and cloud solutions is yielding tangible benefits. By migrating some services from external hyperscalers to its own platform, the company has achieved substantial cost savings, estimated at over $100 million per year. Looking ahead, Akamai expects its cloud segment to grow by 15 percent in the coming year.
Strategic Implications for the Cloud Market
This deal reinforces Akamai’s position in the enterprise cloud computing market. The multi-year contract not only boosts revenue prospects but also serves as market validation of Akamai’s technical capabilities. The customer’s commitment signals confidence in Akamai’s ability to deliver secure, scalable, high-performance cloud services.
The agreement further positions the company to compete more effectively with larger cloud providers. As digital transformation drives increased demand for cloud infrastructure, Akamai’s integrated solutions are set to play a vital role in supporting the evolving needs of major enterprises.
According to Akamai’s CEO, the company’s cloud infrastructure services primarily consist of the compute and storage solutions developed based on Linode, a cloud hosting provider acquired by Akamai for $900 million in 2022. A year later, Linode was integrated into the Akamai brand, and the company announced in February 2023 that Linode had become Akamai Connected Cloud.
Comments from Akamai Leadership
Akamai’s Chief Operating Officer emphasized that global technology platforms require cloud services that are both reliable and scalable. The company’s ability to offer ultra-low latency performance is a critical factor in delivering a superior user experience, regardless of location.
Technology platforms with a massive global presence require sophisticated and reliable cloud services.
Adam Karon, Akamai COO and GM, Cloud Technology Group
CEO Tom Leighton highlighted the company’s progress in revenue growth, customer acquisition, and product development. He stressed that the strategic shift toward cloud and security solutions is central to Akamai’s long-term success and competitive positioning.
We are encouraged by our latest results and the market adoption of our newest product innovations. As we head into 2025, our focus on delivering sustainable profitability across all areas of our business, coupled with our ongoing transformation into a leading cybersecurity and cloud solutions provider, positions us for long-term success.
Dr. Tom Leighton, Akamai CEO
Conclusion
Akamai’s $100 million multi-year contract marks a significant milestone in its evolution as a cloud services provider. With a focus on secure and efficient infrastructure, the company is well-placed to meet the demands of major technology enterprises and drive growth in an increasingly competitive market.