Results of Cloud Security Solutions business
One of the world’s leading cloud delivery platforms, Akamai Technologies (AKAM) maintains strong double-digit growth for its Cloud Security Solutions segment. In 4Q17, Akamai’s Cloud Security Solutions segment’s revenues grew 32.5% YoY (year-over-year) to $135.0 million. However, on a constant currency basis, it increased 31.0% YoY.
Such an increase in sales was mainly attributable to higher demand for popular products like Kona Site Defender, Prolexic, and its new Bot Manager offering. In fiscal 2017, the revenues from the Cloud Security Solutions group came in at $481.5 million, up nearly 32.0% on an annualized basis.
In the graph above, we can see the revenue growth of Cloud Security Solutions in the last five quarters for Akamai. During the period, it grew at a CAGR[1. compound annual growth rate] of 7.3%.
The need for Cloud Security Solutions
The exponential usage of Internet services throughout the world has led to increased demand for Cloud Computing and security solutions. Cloud Security Solutions products, which are designed to protect websites, applications, and data centers against cyberattacks, are in huge demand.
Akamai’s products such as Fast DNS and Client Reputation offer extra protection to its clients against cyberattacks. These products are being adopted by multinational companies and government organizations such as InterContinental Hotels Group (IHG), BestBuy (BBY), and the Federal Aviation Administration (or FAA).