Akamai Technologies, Inc. (AKAM) recently announced its collaboration with the largest commercial bank in Thailand — Bangkok Bank — to offer a host of cloud services. Reportedly, Bangkok Bank has been using Akamai's Web Performance Solutions that increased users’ satisfaction and resulted in customer growth.
The deal will primarily focus on cyber security for customers given the critical financial information stored on the bank’s database. Akamai’s security solutions such as the Kona Site Defender and Web Application Firewall, Prolexic, Site Shield and Fast DNS which protect against the largest Distributed Denial-of-Service (DDoS) attacks would provide Bangkok Bank with the utmost cloud security, thereby translating into significant growth opportunities over the long term forthe company.
Further, Akamai is expected to offer a content delivery solution to help Bangkok Bank reach out to more domestic and international customers. The company is currently a leading provider of content delivery network (CDN) services, which improve upon bandwidth constraints and reduce the need for additional hardware to manage traffic.
With new deals and acquisitions, we believe Akamai remains well positioned to gains from the increasing adoption of cloud computing technologies across enterprises.
However, the company is facing stiff competition and pricing pressure as non-traditional players like Amazon (AMZN), Netflix (NFLX), Verizon (VZ) and Comcast enter the market and join the likes of Limelight Network and Packeteer. Although the company has a strong foothold in the market, with rapidly changing technology, evolving industry standards and the frequent introduction of products and services, competition has become intense, impacting its growth rate.
Akamai currently has a Zacks Rank #3 (Hold).
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