Akamai to acquire cloud hosting company Linode for $900mLeigh Mc Gowranon February 16, 2022 at 09:02 Silicon RepublicSilicon Republic

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Akamai Technologies has confirmed plans to acquire cloud hosting company Linode in a $900m deal, in order to become the world’s most distributed compute platform.

Akamai said Linode is one of the world’s most trusted infrastructure-as-a-service (IaaS) platform providers. Founded in 2003, Linode has grown to 256 staff working in 11 markets, with customers around the world.

The IaaS provider has advertised itself as an alternative to other cloud providers such as Amazon Web Services (AWS). On its website, Linode said it helped pioneer cloud computing three years before AWS entered the market.

“There’s no question AWS is the big kahuna in the cloud,” Linode says on its website. “If you are a large enterprise and need the ability to customize your infrastructure, AWS is a good fit. But if you’re a small business owner or independent developer, having access to all of that advanced cloud technology comes at a cost: unnecessary complexity, risk of lock-in to Amazon’s ecosystem, and frequent billing surprises.”

The IaaS company’s CEO Christopher Aker said today’s customers face new challenges as cloud services become all-encompassing. In order to meet these challenges, Aker added that Linode and Akamai have a “natural synergy” with the combination of strengths they have.

“Linode will soon be able to call on the power of Akamai to offer entirely new products, services, expertise, locations, and scale, while Akamai will be able to tap into Linode’s deep expertise in compute, storage, and on-demand infrastructure-as-a-service,” Aker said.

Akamai shared its 2021 earnings yesterday (15 February), reporting revenue of $3.5bn last year, an 8pc increase. Its content delivery network comprises more than 325,000 servers worldwide and the company also offers cybersecurity and cloud services.

Akamai CEO Dr. Tom Leighton described the acquisition as “transformational” for the company, as it will combine Linode’s developer-friendly cloud computing capabilities with Akamai’s edge platform and security services.

“Akamai has been a pioneer in the edge computing business for over 20 years, and today we are excited to begin a new chapter in our evolution by creating a unique cloud platform to build, run and secure applications from the cloud to the edge,” Leighton said. “This is a big win for developers who will now be able to build applications on a platform that delivers unprecedented scale, reach, performance, reliability and security.​”

The Massachusetts-headquartered company expects to achieve cash income tax savings from the deal, worth an estimated $120m over the next 15 years. The acquisition is expected to be completed in the first quarter of this year.

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