Speaker 1: Ak am I co founder and CEO Tom Layson joins
Speaker 1: us now for more. There are loads of words and
Speaker 1: adjectives and praise used by the sell side Tom clean
Speaker 1: print strong quarter growth, But what there's less discussion of
Speaker 1: is why, what were the specific factors in the quarter
Speaker 1: that put a CAMA up from Well.
Speaker 2: We have several market leading products, and security obviously very
Speaker 2: important today given the large number of damaging attacks, ransomware,
Speaker 2: data exfiltration, and our enterprise compute business doing very well.
Speaker 2: You know, we talked about just really getting started in
Speaker 2: that aspect of the business this year, and now we
Speaker 2: think we'll exit the year at a one hundred million
Speaker 2: dollar a year annual run rate and revenue with a
Speaker 2: lot of exciting potential for the future. And I think
Speaker 2: those are great proof points that investors are now seeing.
Speaker 1: On the enterprise side, I find that very interesting. Is
Speaker 1: it demonstrative of broad strength in your client base those
Speaker 1: industry sort of willingness to spend or is there something
Speaker 1: specific that Achimai is doing that allows you to sort
Speaker 1: of outperform in a difficult environment.
Speaker 2: Well, security is important for every major enterprise, even in
Speaker 2: tough economic times, which we're seeing some of now and
Speaker 2: we have the market leading products and the major enterprises
Speaker 2: really need them to be safe. And in compute, I
Speaker 2: think we have a very compelling value proposition. We can
Speaker 2: provide better performance at a much lower price point. And
Speaker 2: when you can do that and help a major enterprise
Speaker 2: save money, well this is a good time to be
Speaker 2: able to have that happen.
Speaker 1: Tom strength in the areas you outline compute security, and
Speaker 1: then a little weakness in CDN. I would like to
Speaker 1: talk about what's happening in your industry overall. I think
Speaker 1: we start with CrowdStrike, endpoint specialist you DDoS. But what
Speaker 1: was that week and situation like for Akamai. Was there
Speaker 1: any tangible positive read through for you or any way
Speaker 1: that you capitalized on what happened, Well, we don't.
Speaker 2: Use that software ourselves, so there was no impact to Akamai.
Speaker 2: And we helped our customers you know where we could,
Speaker 2: but that was in an area where we don't really
Speaker 2: do business. I think there were a lot of learnings
Speaker 2: for the industry as a whole. You know, first, it
Speaker 2: really is clear you just can't be doing updates all
Speaker 2: at once everywhere in the world. You know, most of
Speaker 2: the time. That's okay, but eventually you're going to have
Speaker 2: an unintended consequence. And if you update the entire world
Speaker 2: at one time, you got a disaster. You know, that's
Speaker 2: a lesson we learned at Akamai pretty painfully about twenty
Speaker 2: years ago, and ever since then, you know, we we
Speaker 2: phase our updates. After you've been through QA and you're confident,
Speaker 2: you still just go one stage at a time, so
Speaker 2: in case there's something that was unanticipated, you catch it
Speaker 2: before your pause a problem. I think also there's a
Speaker 2: much better understanding that reliability matters, and it takes a
Speaker 2: lot of investment, but you see what happens when when
Speaker 2: you have something like this. I think enterprises will pay
Speaker 2: a lot more attention to reliability going forward.
Speaker 1: I hear you on that I'm not a cyber expert
Speaker 1: by any means, and I know that a lot of
Speaker 1: CIOs cyber managers CSOs watched this program and for them,
Speaker 1: top of mind is a sort of academic debate agent
Speaker 1: versus agent lost delivery or security of that delivery of security?
Speaker 1: Do you see though? Away from the academic debate on
Speaker 1: the best security systems action, your enterprise customers saw the
Speaker 1: new cycle and picked up the phone and said we
Speaker 1: are changing how we do cyber No, you know, they.
Speaker 2: Were just trying to get out of the disaster. I
Speaker 2: think going forward there'll be a time of reflection into
Speaker 2: how do you prevent this from happening. How do you
Speaker 2: keep a vendor from you know, having this consequence. And
Speaker 2: it's not just a situation of having multiple vendors, because
Speaker 2: might even increase the problem, because if any one of
Speaker 2: them has a big issue, you got a problem. But
Speaker 2: really selecting vendors who put the extra effort and investment
Speaker 2: into making sure things stay reliable, as reliable as possible.
Speaker 1: Tom, I guess closer to home for you, a higher
Speaker 1: profile d doos attack on Azure in June. What did
Speaker 1: you make of that and Microsoft's handling it and how
Speaker 1: did it impact you?
Speaker 2: You know, DTOs attacks are probably the oldest kinds of
Speaker 2: cyber attacks out there. They go back more than twenty
Speaker 2: years as well. You know, that's an area where we
Speaker 2: have leading so services to help defend customers. In fact,
Speaker 2: you know, just last week we saw one of the
Speaker 2: top ten daidas attacks of all time coming out of
Speaker 2: the Middle East. You know, with the war there, we're
Speaker 2: able to defend a very important financial enterprise from that
Speaker 2: kind of an attack. So even though it's been around
Speaker 2: a long time, we are still seeing some very large
Speaker 2: DIDOS attacks and it's important for enterprises to have state
Speaker 2: of the art defenses.
Speaker 1: Even today, I'm lane CEO Lakama