Here’s the translation into American English:
The American company aims to focus on its transformation towards cybersecurityCybersecurity solutions are essential in the digital age… and cloud computing, leaving behind its CDNA CDN, short for Content Delivery Network… operation in China.
Akamai, a leader in cloud computing and content delivery networks (CDN), has announced that it will cease its CDN services in China effective June 30, 2026. After this date, content requests from China will be automatically routed from neighboring countries.
Transition for Current Customers
For customers who wish to keep their data within China, Akamai has established agreements with two local partners: Tencent Cloud and Wangsu Science & Technology. Migration services with Tencent are already available, while integration with Wangsu will be enabled soon. In a letter to its customers, Akamai stated:
“We understand that the transition may be challenging, but we are committed to making this process as smooth as possible for you.”
A Strategic Shift Towards Cybersecurity and Cloud
This announcement is part of Akamai’s strategic shift aimed at diversifying its revenue and moving away from its traditional CDN-based business model. According to the company’s CEO and co-founder, Dr. Tom Leighton, content delivery services have faced challenges due to macroeconomic and geopolitical factors.
In the second quarter of 2024, CDN revenue accounted for only a third of the company’s total revenue, reaching $329 million. This contrasts sharply with five years ago, when CDN services made up two-thirds of its revenue.
“We are transforming from pioneers in content delivery to a cybersecurity and cloud computing company that drives and protects online businesses,” Leighton highlighted during a third-quarter 2024 earnings call.
Focusing on Growth in Cybersecurity and Cloud
Akamai has redirected most of the revenue generated from its delivery product line towards fast-growing areas such as cybersecurity and cloud computing. In 2024, the security division surpassed $2 billion in annual recurring revenue, and the company anticipates significant growth potential in the cloud market.
This move aligns with Akamai’s effort to reduce its reliance on traditional CDN revenue and capitalize on opportunities in emerging sectors. The decision to cease operations in China reflects this strategic shift as the company strengthens its position in markets where it anticipates a higher return on investment.
A Future Without CDN in China
Although Akamai will continue to offer CDN services in other regions, the cessation of operations in China marks a significant step in its business transformation. The company seeks to redefine its role in the tech industry as a leader in cybersecurity and cloud computing, leaving behind part of its legacy as a pioneer in content delivery.
With this decision, Akamai reaffirms its commitment to adapting to an ever-evolving global tech environment, prioritizing innovation and sustainable growth in strategic areas.
Source: DCD