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Akamai Technologies, Inc. (NASDAQ: AKAM), the leading global service provider for accelerating content and business processes online, confirmed that Paul Sagan has assumed the role of chief executive officer of Akamai. Mr. Sagan holds the title of President & CEO, and also serves on the Company's Board of Directors. Previously, Mr. Sagan was the Company's president since 1999.
On accepting his new responsibilities, Mr. Sagan outlined his view of Akamai as the technology company best positioned to provide a ubiquitous and secure digital operating environment for enterprises to transact commerce and create revenues online. A digital operating environment is needed to support the transformation underway between businesses and customers, enabled by their growing utilization of the Internet, creating a Demand Economy.
"The Demand Economy is represented by a new generation of online customers—from individuals to enterprises—who expect that rich content and interactive communication will be integral parts of their everyday commercial experience," Mr. Sagan said. "Companies that learn to satisfy these customer demands and capitalize on consumer and business willingness to transact and exchange information on-line will become the power brands of the 21st century."
A New Era — The Demand Economy
As business models adapt to the buying behavior of hundreds of millions of consumers worldwide now using the Internet, Akamai is uniquely positioned as a Demand Economy leader.
handles the daily flow of an estimated 10-20 percent of all Web traffic worldwide
serves 1 in 5 of the Global 500 companies and more than half of today's top online retailers*
counts 7 of the top 10 Internet portals as customers
is within a single network hop from 85 percent of the world's Internet users.
XM Satellite Radio: A Demand Economy Venture Enabled By Akamai
Starting this month, XM Satellite Radio begins extending its live audio service to include access to its channels over the Internet to all of the company's more than 3.2 million subscribers. "XM's growth to date demonstrates that the potential for satellite radio is far greater than anyone anticipated, and by offering our subscribers the ability to listen to our programming at their computers, we are using the Internet to add tremendous value to our basic service," said Hugh Panero, XM president & CEO. "We can use Akamai's on-demand platform to meet the needs of our customers without trying to build out our own Internet infrastructure."
"Companies such as XM Satellite Radio look to Akamai to help them navigate the changing currents of the Demand Economy," Mr. Sagan explained. "Those business leaders who understand new models for online interaction and commerce will succeed in capturing mind and market share. Akamai is dedicated to providing the technology platform and insight to help these innovators realize their full business potential."
A Planned Succession From Within
In January, Akamai's Board of Directors announced that Mr. Sagan would take over the CEO position from the Company's first chief executive, George Conrades, who is becoming Akamai's Executive Chairman, effective this month. "Paul's hallmark has always been to stay one step ahead of the industry," Mr. Conrades said. "His distinctive experience in technology and media has given him exceptional insight into the trends that shape the market and how the Internet has transformed business and customer behavior. Enabling enriched consumer and business interaction, while providing innovative and trusted solutions to our customers, is the key to Akamai's future growth as our customers embrace the growing reality of the Demand Economy."
Mr. Sagan forged his career by understanding the impact of new digital technologies on commerce and society. A three-time Emmy Award winner and former broadcast television executive, Mr. Sagan previously worked as president and editor of Time Inc. New Media, and senior vice president of Time Warner Cable Programming. He was a co-founder of Roadrunner, the world's first cable modem Internet service, and Pathfinder, one of the first Internet portals that pioneered online advertising. Immediately prior to joining Akamai as chief operating officer in 1998, Mr. Sagan was senior advisor to the World Economic Forum.
Akamai is the leading global service provider for accelerating content and business processes online. More than 1,300 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, unexpected difficulty in closing our financial books for the quarter 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.
*Lists compiled by Fortune and Internet Retailer magazines.