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- Akamai Technologies, Inc. (NASDAQ: AKAM) announced today that it has acquired substantially all of the assets of Velocitude, a mobile services platform. The acquisition is expected to further Akamai's strategic position in the mobile market - adding mobile content transformation functionality to Akamai's existing suite of cloud services for optimizing Web content and applications, and the delivery of HD video and secure e-commerce to mobile devices.
Today, the majority of Web sites are not configured for optimal viewing when accessed by a mobile device, resulting in poor mobile usability. 1 Mobile end users often experience a site that is difficult to navigate, lacking robust functionality that end users have come to expect when accessing the same site on a personal computer. As a result, many companies either support an entirely separate infrastructure for their mobile sites or chase away customers by presenting sub-optimal mobile Web experiences.
By offering a new generation of mobile services, Akamai plans to extend the functionality of its global network by helping enterprises address the complexity of delivering Web sites and applications to a broad range of Internet-connected devices, starting with mobile phones. Combining Velocitude's mobile content transformation technology with Akamai's existing ability to optimize the performance of mobile delivery, Akamai is focused on helping enterprises effectively reach their customers, partners and employees on mobile phones in addition to personal computers.
With analysts predicting that the number of global Internet mobile users will surpass global desktop Internet users in the next five years, 2 available market data is forecasting that mobile commerce is expected to grow to $24 billion by 2015. 3 By adding Velocitude's mobile platform to its product portfolio, Akamai plans to deliver content to today's leading mobile phones without requiring the creation of separate Web sites or infrastructure dedicated to mobile content.
"To capitalize on the rapidly-changing and growing demands of mobile Internet users, enterprises must overcome some specific challenges to ensure both a highly-performing mobile site and a high-quality end user experience," said Paul Sagan, president and CEO of Akamai. "We believe Velocitude has developed a powerful set of solutions to enable optimal mobile Internet experiences across a multitude of different devices. By integrating Velocitude into our global network, we will be able to offer customers a way to leverage Akamai cloud-based services for mobile performance, as well as to translate Web sites into specific device-optimized experiences. Our goal is to offer the most capable mobile delivery solution available anywhere that combines the convenience of mobile while offering readability and fast response times."
"Our unique software-as-a-service mobile platform has transformed PC-oriented websites into viewable mobile sites for some of today's largest retailers and brand-name businesses," said Adam House, founder of Velocitude. "Unlike desktop Web browsing, where you can take time to search through a complex site, the average mobile user is looking to find a limited amount of information quickly. Convenience and speed, rather than breadth of content, define the experience demands of the mobile user. Joining forces with Akamai is a big win for customers, who are increasingly looking to leverage the power of the mobile Internet to drive revenue, increase market share and reach, pass their competition, and maximize the performance of their mobile sites."
Velocitude is committed to helping businesses connect with other businesses and consumers anytime, anywhere. The Velocitude Mobile Platform delivers a richer, friendlier browsing experience to a multitude of mobile devices, allows a consumer to purchase products, sign up and view accounts, see product information textually or by video, interact with social media sites and/or be alerted via SMS. As a result, Velocitude is uniquely positioned to provide mobile presence and commerce expertise in helping clients leverage the power of the Mobile Internet to drive revenue, increase market share, and emerge from their competition. For more information, visit www.velocitude.com.
Akamai® provides market-leading, cloud-based services for optimizing Web and mobile content and applications, online HD video, and secure e-commerce. Combining highly-distributed, energy-efficient computing with intelligent software, Akamai’s global platform is transforming the cloud into a more viable place to inform, entertain, advertise, transact and collaborate. To learn how the world’s leading enterprises are optimizing their business in the cloud, please visit www.akamai.com and follow @Akamai on Twitter.
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, including statements about the expectations with respect to the integration of the Velocitude technology and resulting benefits and the expected future business and financial performance of Akamai resulting from and following the acquisition. 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, inability to successfully integrate the technology of Velocitude or to develop products based on the technology 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.
Nielsen Norman Group, "Mobile Usability," July 20, 2009
Morgan Stanley Research, "Internet trends," Apr. 12, 2010
Coda Research Consultancy, "U.S. Mobile Advertising and E-Commerce Revenues," Apr. 14, 2010