Akamai Increases Software Delivery by More Than 100 Percent In One Year
Akamai Technologies, Inc. (NASDAQ: AKAM), the leading global service provider for accelerating content and business processes online, today announced significant traction on its global platform for the high-performing and reliable Electronic Software Delivery service. Customer adoption of the Akamai® Electronic Software Delivery solution resulted in an over 100 percent increase in total software downloads delivered in 2004.
Akamai Electronic Software Delivery provides businesses with a highly scalable and cost effective platform for their electronic software distribution needs. Demonstrating the growth within the electronic software market, IDC estimates that "the value of software delivered electronically worldwide will grow from slightly more than $1.5 billion in 2003 to more than $8.8 billion in 2008."
Akamai has experienced a significant expansion to its software delivery customer base over the last year, including adoption by many enterprises that have built their business models entirely on servicing their customers through electronic software. Related Akamai customers span a variety of industry verticals, and include leading businesses such as ACD Systems, Apple, Ashampoo, Borland, Cognos, Discreet, Intervideo, Norman Data Defense, Roxio Software, Sourcenext and Sybase, among others.
"The accelerated growth of electronic software distribution is inevitable," said Amy Konary, Director Software Pricing, Licensing and Delivery at IDC. "As key capabilities for Electronic Software Delivery mature and software purchasers look for additional cost savings and management tools, Electronic Software Delivery will increasingly become an integral part of the worldwide software market."
As Electronic Software Delivery grows to become a preferred method by businesses to reach their customers, partners and suppliers, numerous challenges exist for ensuring scalability and worldwide performance. Businesses that offer online downloads of evaluation software, patches, full product updates, new product orders, beta products, software drivers, and anti-virus updates, often face the high cost of infrastructure necessary to support reliable and consistent software distribution.
"The growth of the Electronic Software Delivery market can be attributed to a large number of companies, including traditional software vendors, consumer electronic companies and anti-virus vendors, that increasingly leverage the power of the Web to distribute software online," said Lisa Arthur, chief marketing officer at Akamai. "A globally distributed platform allows companies to realize maximum speed, performance enhancements and reliability for their electronic delivery needs, ultimately reducing costs and improving global reach."
Enterprise & Consumer Software
Many software companies are increasing the frequency of their software application releases to improve functionality and security. As the size and frequency of software updates increase, the volume of traffic associated with downloads is increasing at a corresponding rate. The growing trend is to deliver as much software electronically as possible, in order to save costs.
Discreet, a leading design and digital media creation, management, and distribution company, develops products that are used extensively in films like Lord of The Rings, Star Wars, and The Last Samurai, as well as in video post-production, games, animation, multimedia, television programming, and advertising commercials. When Discreet launched a new version of its popular software, the marketing team knew that in order to drive future revenue and protect its strong brand image, they needed to guarantee a successful online product introduction. A critical component of the campaign was its evaluation software launch—a version of the new release that customers could download from the discreet.com Web site.
"With Akamai's help, Discreet successfully enabled the largest online distribution of software in company history, delivering evaluation software to more than 45,000 unique international users in the first 30 days of trial, more than double the anticipated number," said Liseanne Gillham, Discreet's online and telesales senior marketing manager.
Anti-virus software companies distribute regular updates to their virus definition files, which allow the system to identify viruses on a daily or weekly basis. These companies have requirements for high volumes of software distribution as well as high levels of scalability.
Norwegian-based Norman ASA provides an array of security solutions, including antivirus, anti-spam and personal firewall software for banks, Internet service providers, PC vendors and other organizations, helping to protect their customers against online threats, such as virus and worm attacks and intrusions. Norman ASA relies on Akamai Electronic Software Delivery to deliver downloads of critical security updates and software to customers in a highly reliable and consistent fashion from the Internet's edge. Akamai's ability to provide capacity on demand enables Norman ASA to support widely varying end-user traffic without additional infrastructure build-out.
As consumer electronics, PC peripherals, and other hardware devices (PDAs, cell phones, MP3 players, digital cameras, printers) increasingly become Internet- and networking-enabled, these devices require software and driver updates on a regular basis. These consumer devices can have millions of users, and the overall volume of software that needs to be distributed is quite high. This has led numerous electronics and hardware manufacturers to adopt the Akamai Electronic Software Delivery solution to ensure reliable and cost-effective distribution of the software updates that complement their offerings.
Akamai® is the leading global service provider for accelerating content and business processes online. More than 1,200 organizations have formed trusted relationships with Akamai, improving their revenue and reducing costs by maximizing the performance of their online businesses. Leveraging the Akamai EdgePlatform, these organizations gain business advantage today, and have the foundation for the emerging Web solutions of tomorrow. Akamai is "The Trusted Choice for Online Business." For more information, visit www.akamai.com.
Akamai Statement Under the Private Securities Litigation Reform Act
The release contains information about future expectations, plans and prospects of Akamai's management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, the effects of any attempts to intentionally disrupt our services or network by unauthorized users or others, failure to have available sufficient transmission capacity, a failure of Akamai's network infrastructure, and other factors that are discussed in the Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.