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Akamai Revamps Security Portfolio With New Edge Capabilities

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Akamai Technologies, Inc. (AKAM - Free Report) recently introduced updates to Akamai Intelligent Edge Platform and adaptive security offerings, in a bid to aid businesses accelerate their migration to cloud.

Akamai Intelligent Edge Platform is now loaded with enhanced Akamai Control Center, which simplifies and accelerates security processes. With advanced precision in navigation and alert systems, the company also launched a live chat functionality to strengthen the platform.

The company added customized solutions to its “digital application teams” to aid its clientele to improve efficiency in business operations in a secure infrastructure. The latest enhancements comprise Akamai Health Check Service, which offers businesses with streamlined visibility into data traffic.

New Features in Detail

Akamai has infused intelligence into its Token Authentication capabilities to strengthen adaptive security solutions. Further, integrated Domain Name System (“DNS”) and Virtual Private Network (“VPN”) are expected to provide enhanced user experience.

The company introduced robust APIs (or application programming interface), toolkit integrations and DevOps enabling enterprises to reduce time to market and consequently providing an edge in cloud pricing.

Growing risk of malware, primarily due to sophisticated bots and malicious cookie support, calls for robust security improvement measures. With advanced API Gateway, the company attempts to better address DDoS (or Distributed Denial of Service) attacks and other loopholes in website security.

Integration with Janrain

Akamai concluded the buyout of Janrain, provider of Janrain Identity Cloud, in the recent past. The company recently announced integration of its security and performance solutions portfolio with newly devised “Akamai Identity Cloud.”

The integration is expected to aid Akamai in providing enhanced secure services to its customer identity access management (“CIAM”) customers, amid growing data traffic. With the integration, Akamai also anticipates to address fraud use cases and secure customers’ websites from growing cyber threats.

Akamai Rides on Strength in Security Portfolio

The new functionalities, aiding the clientele to accelerate their digital transformation journey, are expected to drive adoption of Akamai’s security solutions, consequently aiding top-line growth.

In fact, in fourth-quarter 2018, Akamai reported Cloud Security Solutions revenues of $185 million, surging almost 36% year over year. Robust demand for Akamai’s Enterprise Application Access and Enterprise Threat Protector is a key catalyst.

With rapid adoption of cloud computing, security has become a major concern for enterprises. Large enterprises are anticipated to increase their security budgets to efficiently address security concerns and instill confidence in cloud computing.

In fact, the global IT spending on “Security Technology” is projected to exceed $124 billion in 2019 per Gartner.

We believe that growing demand for Akamai’s security solutions will translate into significant growth opportunities over the long term.

Zacks Rank & Other Key Picks

Akamai currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology sector include Cadence Design Systems, Inc (CDNS - Free Report) , Synopsys, Inc. (SNPS - Free Report) and Symantec Corporation , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Cadence, Synopsys and Symantec is pegged at 12%, 10% and 7.9%, respectively.

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