1 00:00:00,080 --> 00:00:02,759 Speaker 1: Ak am I co founder and CEO Tom Layson joins 2 00:00:02,840 --> 00:00:06,400 Speaker 1: us now for more. There are loads of words and 3 00:00:06,519 --> 00:00:11,160 Speaker 1: adjectives and praise used by the sell side Tom clean 4 00:00:11,360 --> 00:00:15,680 Speaker 1: print strong quarter growth, But what there's less discussion of 5 00:00:15,800 --> 00:00:19,000 Speaker 1: is why, what were the specific factors in the quarter 6 00:00:19,560 --> 00:00:22,479 Speaker 1: that put a CAMA up from Well. 7 00:00:22,320 --> 00:00:27,120 Speaker 2: We have several market leading products, and security obviously very 8 00:00:27,160 --> 00:00:32,040 Speaker 2: important today given the large number of damaging attacks, ransomware, 9 00:00:32,200 --> 00:00:37,240 Speaker 2: data exfiltration, and our enterprise compute business doing very well. 10 00:00:37,920 --> 00:00:41,080 Speaker 2: You know, we talked about just really getting started in 11 00:00:41,120 --> 00:00:43,320 Speaker 2: that aspect of the business this year, and now we 12 00:00:43,400 --> 00:00:45,840 Speaker 2: think we'll exit the year at a one hundred million 13 00:00:45,880 --> 00:00:49,320 Speaker 2: dollar a year annual run rate and revenue with a 14 00:00:49,320 --> 00:00:52,040 Speaker 2: lot of exciting potential for the future. And I think 15 00:00:52,080 --> 00:00:55,640 Speaker 2: those are great proof points that investors are now seeing. 16 00:00:56,680 --> 00:00:59,720 Speaker 1: On the enterprise side, I find that very interesting. Is 17 00:00:59,760 --> 00:01:03,880 Speaker 1: it demonstrative of broad strength in your client base those 18 00:01:03,960 --> 00:01:07,080 Speaker 1: industry sort of willingness to spend or is there something 19 00:01:07,160 --> 00:01:11,520 Speaker 1: specific that Achimai is doing that allows you to sort 20 00:01:11,520 --> 00:01:13,479 Speaker 1: of outperform in a difficult environment. 21 00:01:14,440 --> 00:01:18,960 Speaker 2: Well, security is important for every major enterprise, even in 22 00:01:19,120 --> 00:01:22,520 Speaker 2: tough economic times, which we're seeing some of now and 23 00:01:22,720 --> 00:01:26,000 Speaker 2: we have the market leading products and the major enterprises 24 00:01:26,080 --> 00:01:30,039 Speaker 2: really need them to be safe. And in compute, I 25 00:01:30,040 --> 00:01:33,360 Speaker 2: think we have a very compelling value proposition. We can 26 00:01:33,400 --> 00:01:37,039 Speaker 2: provide better performance at a much lower price point. And 27 00:01:37,160 --> 00:01:39,959 Speaker 2: when you can do that and help a major enterprise 28 00:01:40,080 --> 00:01:42,319 Speaker 2: save money, well this is a good time to be 29 00:01:42,360 --> 00:01:43,559 Speaker 2: able to have that happen. 30 00:01:44,520 --> 00:01:48,080 Speaker 1: Tom strength in the areas you outline compute security, and 31 00:01:48,120 --> 00:01:52,600 Speaker 1: then a little weakness in CDN. I would like to 32 00:01:52,640 --> 00:01:56,160 Speaker 1: talk about what's happening in your industry overall. I think 33 00:01:56,200 --> 00:02:02,240 Speaker 1: we start with CrowdStrike, endpoint specialist you DDoS. But what 34 00:02:02,520 --> 00:02:06,440 Speaker 1: was that week and situation like for Akamai. Was there 35 00:02:06,480 --> 00:02:10,320 Speaker 1: any tangible positive read through for you or any way 36 00:02:10,320 --> 00:02:14,920 Speaker 1: that you capitalized on what happened, Well, we don't. 37 00:02:15,120 --> 00:02:18,359 Speaker 2: Use that software ourselves, so there was no impact to Akamai. 38 00:02:19,320 --> 00:02:21,960 Speaker 2: And we helped our customers you know where we could, 39 00:02:22,000 --> 00:02:24,880 Speaker 2: but that was in an area where we don't really 40 00:02:25,320 --> 00:02:28,240 Speaker 2: do business. I think there were a lot of learnings 41 00:02:28,280 --> 00:02:32,080 Speaker 2: for the industry as a whole. You know, first, it 42 00:02:32,280 --> 00:02:36,320 Speaker 2: really is clear you just can't be doing updates all 43 00:02:36,360 --> 00:02:39,720 Speaker 2: at once everywhere in the world. You know, most of 44 00:02:39,760 --> 00:02:42,520 Speaker 2: the time. That's okay, but eventually you're going to have 45 00:02:42,560 --> 00:02:46,000 Speaker 2: an unintended consequence. And if you update the entire world 46 00:02:46,040 --> 00:02:48,960 Speaker 2: at one time, you got a disaster. You know, that's 47 00:02:49,000 --> 00:02:51,840 Speaker 2: a lesson we learned at Akamai pretty painfully about twenty 48 00:02:51,919 --> 00:02:55,720 Speaker 2: years ago, and ever since then, you know, we we 49 00:02:55,840 --> 00:02:59,880 Speaker 2: phase our updates. After you've been through QA and you're confident, 50 00:03:00,520 --> 00:03:03,000 Speaker 2: you still just go one stage at a time, so 51 00:03:03,080 --> 00:03:06,760 Speaker 2: in case there's something that was unanticipated, you catch it 52 00:03:06,800 --> 00:03:10,320 Speaker 2: before your pause a problem. I think also there's a 53 00:03:10,400 --> 00:03:14,960 Speaker 2: much better understanding that reliability matters, and it takes a 54 00:03:15,000 --> 00:03:19,119 Speaker 2: lot of investment, but you see what happens when when 55 00:03:19,160 --> 00:03:21,760 Speaker 2: you have something like this. I think enterprises will pay 56 00:03:21,760 --> 00:03:24,400 Speaker 2: a lot more attention to reliability going forward. 57 00:03:26,240 --> 00:03:29,280 Speaker 1: I hear you on that I'm not a cyber expert 58 00:03:30,120 --> 00:03:32,080 Speaker 1: by any means, and I know that a lot of 59 00:03:32,720 --> 00:03:37,839 Speaker 1: CIOs cyber managers CSOs watched this program and for them, 60 00:03:37,960 --> 00:03:40,960 Speaker 1: top of mind is a sort of academic debate agent 61 00:03:41,160 --> 00:03:45,560 Speaker 1: versus agent lost delivery or security of that delivery of security? 62 00:03:46,960 --> 00:03:50,400 Speaker 1: Do you see though? Away from the academic debate on 63 00:03:50,440 --> 00:03:54,960 Speaker 1: the best security systems action, your enterprise customers saw the 64 00:03:55,040 --> 00:03:57,760 Speaker 1: new cycle and picked up the phone and said we 65 00:03:57,880 --> 00:04:03,440 Speaker 1: are changing how we do cyber No, you know, they. 66 00:04:03,400 --> 00:04:06,200 Speaker 2: Were just trying to get out of the disaster. I 67 00:04:06,760 --> 00:04:11,320 Speaker 2: think going forward there'll be a time of reflection into 68 00:04:11,400 --> 00:04:14,480 Speaker 2: how do you prevent this from happening. How do you 69 00:04:14,600 --> 00:04:18,480 Speaker 2: keep a vendor from you know, having this consequence. And 70 00:04:18,520 --> 00:04:22,040 Speaker 2: it's not just a situation of having multiple vendors, because 71 00:04:22,440 --> 00:04:24,760 Speaker 2: might even increase the problem, because if any one of 72 00:04:24,800 --> 00:04:27,200 Speaker 2: them has a big issue, you got a problem. But 73 00:04:27,279 --> 00:04:31,320 Speaker 2: really selecting vendors who put the extra effort and investment 74 00:04:31,400 --> 00:04:34,960 Speaker 2: into making sure things stay reliable, as reliable as possible. 75 00:04:36,400 --> 00:04:40,159 Speaker 1: Tom, I guess closer to home for you, a higher 76 00:04:40,200 --> 00:04:44,480 Speaker 1: profile d doos attack on Azure in June. What did 77 00:04:44,240 --> 00:04:47,880 Speaker 1: you make of that and Microsoft's handling it and how 78 00:04:47,880 --> 00:04:49,880 Speaker 1: did it impact you? 79 00:04:49,880 --> 00:04:52,880 Speaker 2: You know, DTOs attacks are probably the oldest kinds of 80 00:04:52,920 --> 00:04:56,119 Speaker 2: cyber attacks out there. They go back more than twenty 81 00:04:56,240 --> 00:04:59,000 Speaker 2: years as well. You know, that's an area where we 82 00:04:59,120 --> 00:05:02,640 Speaker 2: have leading so services to help defend customers. In fact, 83 00:05:02,960 --> 00:05:05,479 Speaker 2: you know, just last week we saw one of the 84 00:05:05,520 --> 00:05:08,400 Speaker 2: top ten daidas attacks of all time coming out of 85 00:05:08,400 --> 00:05:12,479 Speaker 2: the Middle East. You know, with the war there, we're 86 00:05:12,480 --> 00:05:16,359 Speaker 2: able to defend a very important financial enterprise from that 87 00:05:16,440 --> 00:05:19,120 Speaker 2: kind of an attack. So even though it's been around 88 00:05:19,120 --> 00:05:23,080 Speaker 2: a long time, we are still seeing some very large 89 00:05:23,160 --> 00:05:26,600 Speaker 2: DIDOS attacks and it's important for enterprises to have state 90 00:05:26,640 --> 00:05:27,640 Speaker 2: of the art defenses. 91 00:05:27,680 --> 00:05:30,080 Speaker 1: Even today, I'm lane CEO Lakama