WEBVTT - Akamai Technologies CEO Tom Leighton Talks Growth Factors

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<v Speaker 1>Ak am I co founder and CEO Tom Layson joins

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<v Speaker 1>us now for more. There are loads of words and

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<v Speaker 1>adjectives and praise used by the sell side Tom clean

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<v Speaker 1>print strong quarter growth, But what there's less discussion of

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<v Speaker 1>is why, what were the specific factors in the quarter

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<v Speaker 1>that put a CAMA up from Well.

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<v Speaker 2>We have several market leading products, and security obviously very

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<v Speaker 2>important today given the large number of damaging attacks, ransomware,

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<v Speaker 2>data exfiltration, and our enterprise compute business doing very well.

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<v Speaker 2>You know, we talked about just really getting started in

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<v Speaker 2>that aspect of the business this year, and now we

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<v Speaker 2>think we'll exit the year at a one hundred million

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<v Speaker 2>dollar a year annual run rate and revenue with a

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<v Speaker 2>lot of exciting potential for the future. And I think

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<v Speaker 2>those are great proof points that investors are now seeing.

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<v Speaker 1>On the enterprise side, I find that very interesting. Is

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<v Speaker 1>it demonstrative of broad strength in your client base those

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<v Speaker 1>industry sort of willingness to spend or is there something

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<v Speaker 1>specific that Achimai is doing that allows you to sort

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<v Speaker 1>of outperform in a difficult environment.

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<v Speaker 2>Well, security is important for every major enterprise, even in

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<v Speaker 2>tough economic times, which we're seeing some of now and

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<v Speaker 2>we have the market leading products and the major enterprises

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<v Speaker 2>really need them to be safe. And in compute, I

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<v Speaker 2>think we have a very compelling value proposition. We can

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<v Speaker 2>provide better performance at a much lower price point. And

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<v Speaker 2>when you can do that and help a major enterprise

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<v Speaker 2>save money, well this is a good time to be

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<v Speaker 2>able to have that happen.

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<v Speaker 1>Tom strength in the areas you outline compute security, and

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<v Speaker 1>then a little weakness in CDN. I would like to

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<v Speaker 1>talk about what's happening in your industry overall. I think

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<v Speaker 1>we start with CrowdStrike, endpoint specialist you DDoS. But what

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<v Speaker 1>was that week and situation like for Akamai. Was there

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<v Speaker 1>any tangible positive read through for you or any way

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<v Speaker 1>that you capitalized on what happened, Well, we don't.

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<v Speaker 2>Use that software ourselves, so there was no impact to Akamai.

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<v Speaker 2>And we helped our customers you know where we could,

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<v Speaker 2>but that was in an area where we don't really

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<v Speaker 2>do business. I think there were a lot of learnings

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<v Speaker 2>for the industry as a whole. You know, first, it

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<v Speaker 2>really is clear you just can't be doing updates all

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<v Speaker 2>at once everywhere in the world. You know, most of

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<v Speaker 2>the time. That's okay, but eventually you're going to have

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<v Speaker 2>an unintended consequence. And if you update the entire world

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<v Speaker 2>at one time, you got a disaster. You know, that's

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<v Speaker 2>a lesson we learned at Akamai pretty painfully about twenty

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<v Speaker 2>years ago, and ever since then, you know, we we

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<v Speaker 2>phase our updates. After you've been through QA and you're confident,

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<v Speaker 2>you still just go one stage at a time, so

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<v Speaker 2>in case there's something that was unanticipated, you catch it

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<v Speaker 2>before your pause a problem. I think also there's a

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<v Speaker 2>much better understanding that reliability matters, and it takes a

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<v Speaker 2>lot of investment, but you see what happens when when

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<v Speaker 2>you have something like this. I think enterprises will pay

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<v Speaker 2>a lot more attention to reliability going forward.

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<v Speaker 1>I hear you on that I'm not a cyber expert

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<v Speaker 1>by any means, and I know that a lot of

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<v Speaker 1>CIOs cyber managers CSOs watched this program and for them,

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<v Speaker 1>top of mind is a sort of academic debate agent

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<v Speaker 1>versus agent lost delivery or security of that delivery of security?

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<v Speaker 1>Do you see though? Away from the academic debate on

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<v Speaker 1>the best security systems action, your enterprise customers saw the

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<v Speaker 1>new cycle and picked up the phone and said we

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<v Speaker 1>are changing how we do cyber No, you know, they.

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<v Speaker 2>Were just trying to get out of the disaster. I

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<v Speaker 2>think going forward there'll be a time of reflection into

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<v Speaker 2>how do you prevent this from happening. How do you

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<v Speaker 2>keep a vendor from you know, having this consequence. And

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<v Speaker 2>it's not just a situation of having multiple vendors, because

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<v Speaker 2>might even increase the problem, because if any one of

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<v Speaker 2>them has a big issue, you got a problem. But

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<v Speaker 2>really selecting vendors who put the extra effort and investment

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<v Speaker 2>into making sure things stay reliable, as reliable as possible.

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<v Speaker 1>Tom, I guess closer to home for you, a higher

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<v Speaker 1>profile d doos attack on Azure in June. What did

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<v Speaker 1>you make of that and Microsoft's handling it and how

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<v Speaker 1>did it impact you?

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<v Speaker 2>You know, DTOs attacks are probably the oldest kinds of

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<v Speaker 2>cyber attacks out there. They go back more than twenty

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<v Speaker 2>years as well. You know, that's an area where we

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<v Speaker 2>have leading so services to help defend customers. In fact,

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<v Speaker 2>you know, just last week we saw one of the

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<v Speaker 2>top ten daidas attacks of all time coming out of

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<v Speaker 2>the Middle East. You know, with the war there, we're

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<v Speaker 2>able to defend a very important financial enterprise from that

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<v Speaker 2>kind of an attack. So even though it's been around

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<v Speaker 2>a long time, we are still seeing some very large

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<v Speaker 2>DIDOS attacks and it's important for enterprises to have state

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<v Speaker 2>of the art defenses.

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<v Speaker 1>Even today, I'm lane CEO Lakama