Just talk to us about it seemed as though analysts were a bit worried about
the conservative nature of your forward looking guidance.
So the first quarter forecast taught us about the shift to compute.
Why will it pay off eventually? Because perhaps you're pulling back home
as and when it will pay off. Yeah, the compute market is enormous.
Well, north of 100 billion dollars a year in Akamai is in a great position to
tap into that market with our launch back of my connected cloud.
You know, we already have a platform with over 4000 locations doing edge
computing where a function is a service and now we're integrating in LAN node
and growing it so that we'll have a core cloud compute functionality and a
distributed compute functionality so containers and VM can get a lot closer
to end users around the world. And by putting it all together, we're
gonna be able to offer major enterprises better performance for a lot of compute
function at a lower price point. And cost is a big issue today with the
cloud. And that's the place I think, OK, I can
really help. So when all bases analyst says you're
going on and on compete, we would wait for evidence it can pay off before
getting back involved in your stock. When can they get back involved?
When will it pay off? Well, I think now is a great time to get
involved. You know, we obviously weren't happy
with the sell off today, but I think Akamai has had a great value now.
And as we do the build out this year and add the functionality, we'll be signing
up more customers. You know, I've had the chance to meet
with senior executives at many of the world's leading media companies,
commerce companies, and they are very excited about being able to use all of
my connected clout. You know, they care a lot about
performance. They care about getting their apps close
to end users and they care about cost. And so I think you'll see increasing
numbers of large enterprises start to adopt Akamai, connect the cloud, and
then that'll translate into substantial revenue growth for Akamai down the road.
Tom, you mentioned costs. I think one specific complaint from the
street I'd point out is they're worried about you taking on the likes of AWP As
and Agile on Price. They know RBC, for example, says that's
a pretty tough value proposition. Is that your strategy to take on the big
boys when it comes to price? Well, yeah.
You know, we've been competing with the cloud giants for over 10 years and we
still have the market leading delivery solutions in the market, leading
security solutions, despite competing with the hyperscale.
In fact, you know, the hyperscale ers are some of our largest customers.
They use those services from Arkham. I even though we're we're competing with
them and now we're going to compete on core cloud computing.
And, you know, I think it'll be a come felt compelling value proposition for
major enterprises. Also, it's good to realize we're not a
threat to the hyperscale. You know, we're going after a 1 or 2
percent market share over the next few years, which for us is huge.
That's billions of dollars, which makes a big difference.
Doc, am I? But, you know, they've got businesses
that are growing 15 percent a year. And if I cut my managers take 1 or 2
percent, that's not going to slow them down.
So I don't think they're worried about, oh, they've got a lower price to compete
with Akamai. He talks on the core about new
segmentation customers. I just wondered if you could talk us
through some of the areas where you feel you're winning.
What kind of customers are they? What sectors are spending money with you
right now? Yeah, for segmentation, that's the
companies that have no mission critical functions, key infrastructure, banks,
utilities, companies that can't afford to get be hit with ransomware.
And increasingly, you're seeing the government authorities require a
solution there and guard for now is recognized as the market leader.
So I think, you know, over time, pretty much every major enterprise is going to
need that solution. But today, it's starting with a mission
critical infrastructure.