“Transformation into a security vendor” revealed by President Akamai

In this series, “Isao Matsuoka’s” This Week’s Statement “”, every week, key persons in the ICT industry take up some of the words that they have stated at press conferences and events, and explain their meaning and background. This time, we would like to introduce the remarks of Mr. Osamu Yamano, President of Akamai Technologies, and Mr. Masatsugu Koji, Executive Officer of IBM Japan, General Manager of IBM Security Business Headquarters. “Akamai is a leading security vendor”
(Mr. Osamu Yamano, President of Akamai Technologies)

Osamu Yamano, President and CEO of Akamai Technologies Akamai Technologies recently held an online press briefing on its 2021 business strategy. Mr. Yamano’s opening remarks emphasized that the company is increasing its presence in the security field at the press conference. For the content of the press conference, see the related article, but here I would like to pay attention to the remarks at the beginning. The company’s parent company, Akamai Technologies, recently announced its financial results for the fiscal year ended December 2020, with sales increasing 11% year-on-year to $ 3.2 billion, surpassing $ 3 billion for the first time, of which it will be offered as a cloud service. Akamai’s “security” business has increased 25% year-on-year to over $ 1 billion. According to Mr. Yamano, “Since there are only a few vendors in the world that have sales of more than $ 1 billion in the security business alone, we have become one of the leading security vendors.” He was deeply moved by the fact that he himself has been involved in the management of multiple security vendors for a long time. Although the sales of the Japanese corporation are not disclosed, Mr. Yamano shows the transition of the sales composition ratio as a graph as shown in Fig. 1. The company has been developing three businesses, “media” that distributes content and “web performance” that improves the performance of websites, in addition to security, but in 2020, total sales will be 1.9 times that of 2016. On the other hand, in terms of composition ratio, security, which grew the most among the three businesses, accounted for 34%. As a result, the three businesses have been reduced to about one-third each, and “the company has a very well-balanced business structure,” says Mr. Yamano.

Figure 1: Changes in Akamai Technologies’sales composition ratio (Source: Akamai Technologies) The reasons for this well-balanced business structure are “online shift due to nesting demand”, “increase in telework and rapid zero trust market”. He cited three things: “growth” and “increased cyber attacks and increased security awareness”. However, the well-balanced business structure may change again in the future, given the good performance of security. When asked during the question and answer session, he replied: “We are aiming for high growth in the security business in the future, and we have a policy of halving the total sales both globally and in Japan. Then, we are recognized as a security vendor. By the way, the other two businesses have recently been integrated into the “Edge Technology Group”. The company will focus on security and edge in the future. I would like to continue to pay close attention to the transformation.