CEO Tom Leighton's presentation at Akamai Investor Relations Summit

2. ©2013 Akamai
Safe Harbor Statement
• failure to maintain the prices we currently charge for our services;
• inability to effectively compete with existing companies and new
entrants in the markets in which we operate;
• unexpected network and service interruptions that cause loss
of revenues, increased expenses or diversion of resources;
• failure to increase our revenue at the same rate as in the past and
keep our expenses from increasing at a greater rate than our revenues;
• changes in relationships with our network providers that increase
our operating expenses;
• failure of new services we offer to operate as expected or to gain
widespread market acceptance;
• delay in developing or failure to develop new service offerings or
functionalities, and if developed, lack of market acceptance of such
service offerings and functionalities; and
• other factors that are discussed in our annual report, on Form 10-K,
our quarterly reports on Form 10-Q, and other documents periodically
filed with the SEC.
In addition, any forward-looking statements, represent our estimates only
as of March 11, 2013 and should not be relied upon as representing our
estimates as of any subsequent date. While we may elect to update forward-
looking statements at some point in the future, we specifically disclaim any
obligation to do so, even if our estimates change.
Finally, during this presentation we will be referring to non-GAAP financial
measures such as Adjusted EBITDA. These non-GAAP measures are
not prepared in accordance with generally accepted accounting principles.
A reconciliation between non-GAAP and the most directly comparable GAAP
financial measures appears in the News and Publications portion of the
Investor Relations section of our website.
This presentation and webcast include information about Akamai’s future expectations, plans and prospects that constitute forward-looking
statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including estimates about
future revenues. Actual results may differ materially from those indicated by these forward-looking statements… as a result of various
important factors including, but not limited to…

3. Business Strategy and Technology Vision
Tom Leighton | Chief Executive Officer & Co-Founder

4. ©2013 Akamai
Today’s Agenda
8:30 – 10:00AM
10:00 – 10:30AM
10:30 – 10:40AM
10:40 – 11:05AM
11:05 – 11:35AM
11:35 – 11:50AM
11:50AM – 12:30PM
12:30 – 1:00PM
Tom Leighton
Rick McConnell
Bob Hughes
Jim Benson
Strategy & Technology Vision
Q&A
Break
Product Strategy
Go-to-Market Strategy
Break
Financial Update
Q&A

5. ©2013 Akamai
The Hyperconnected World is Changing Everything

6. ©2013 Akamai
Media over IP
Over 90% of IP traffic
will be video by 20151
Cloud Adoption
Nearly 2/3 of application
workloads will be
cloud-based by 20161
Megatrends Driving the Market
The Challenge:
Quality at Scale
Sources: 1-Cisco, 2-Infonetics
The Challenge:
Performance & Cost
Mobile
50 Billion connected
devices by 20202
The Challenge:
Performance & Capacity
Cyber Attacks
Cyber attacks
have increased
>50X since 2009
The Challenge:
Availability & Data Integrity

7. ©2013 Akamai
Akamai Product Strategy
Core
Emerging
Web
Performance
Media Delivery
Carrier
Products
Hybrid Cloud
Optimization
Web Security
Media Delivery

8. ©2013 Akamai
Delivery
Video
Software
Site Content
Advanced Functionality
Transcoding
Ad Insertion
Analytics

9. ©2013 Akamai
The State of the Media Business Today
• Revenue ≈ traffic x price
• Traffic growing rapidly
• Price dropping steadily (within historic norms)
• Expect continued variability in revenue growth
(due to DIY, competition, seasonality, renewals, pricing)
• Margins driven by price vs. cost
• Margins improved in 2012
• Successful COGS savings projects continuing
• Competition includes: DIY, CDNs, Carriers
• Competitive advantages: scale, quality and end-to-end workflow

10. ©2013 Akamai
Future Drivers of Growth
• Cost Reduction
• Scaling Capacity
• Quality Enhancements
• Easier Workflows
• The Next-Generation Media Delivery Platform
• Very low cost at very high scale and quality

11. ©2013 Akamai
Avoid data theft and downtime by extending the
security perimeter outside the data-center and
protect from increasing frequency, scale and
sophistication of web attacks.
30Tbps
20Tbps
40Tbps
50Tbps
0
3Tbps
9Tbps
1Tbps
2Tbps
8Tbps
4Tbps
5Tbps
6Tbps
7Tbps
0
2006 2009 2012
1Tbps
2.6Tbps
>10Tbps
>10Tbps
1Tbps 2.6Tbps
2015
10Tbps
~50Tbps
Demand for Premium & Broadcast Content Online:
Quality & Scale Challenge
MediaTraffic(inTbps)

12. ©2013 Akamai
Avoid data theft and downtime by extending the
security perimeter outside the data-center and
protect from increasing frequency, scale and
sophistication of web attacks.
1.5B Primetime Viewers
x 7 Mbps
~10,000 Tbps
LET’S DO THE MATH:
Demand for Premium & Broadcast Content Online:
Quality & Scale Challenge

13. ©2013 Akamai
Avoid data theft and downtime by extending the
security perimeter outside the data-center and
protect from increasing frequency, scale and
sophistication of web attacks.
1000Tbps
300Tbps
900Tbps
200Tbps
800Tbps
400Tbps
500Tbps
600Tbps
700Tbps
0
100Tbps
2020
1Tbps 2.6Tbps
~50Tbps
2006 2009 2012 2015
>10Tbps
Demand for Premium & Broadcast Content Online:
Quality & Scale Challenge

14. ©2013 Akamai
The Scalability Challenge
Cloud Data Centers

15. ©2013 Akamai
The Last Mile Has Enormous Capacity
Cloud Data Centers

16. ©2013 Akamai
The Last Mile Has Enormous Capacity
400M Lines
x 25 Mbps
10,000 Tbps
LET’S DO THE MATH:
Cloud Data Centers

17. ©2013 Akamai
The Problem is at the Core
100 Major Networks
X 5 Tbps
500 Tbps
LET’S DO THE MATH:
Cloud Data Centers

18. ©2013 Akamai
The Problem is at the Core
500 Tbps
10,000 Tbps
5%
of what
we need!
LET’S DO THE MATH:
Cloud Data Centers
=

19. ©2013 Akamai
Akamai’s Unique Edge Strategy
Akamai Servers

20. ©2013 Akamai
Deepening Akamai’s Edge Strategy with Aura

21. ©2013 Akamai
Akamai’s Future Vision: Extending our Platform
to Home, Office, Retail, and User Devices

22. ©2013 Akamai
Akamai’s Next-Gen Media Delivery Platform:
Extending the Edge to the Device

23. ©2013 Akamai
30 million Akamai
clients now active

24. ©2013 Akamai
Customer Case Study:
Results:
• 10x improvement in cost
• 20% improvement in download rates
• Doubled the user base

25. ©2013 Akamai
Akamai Product Strategy
Core
Emerging
Web
Performance
Media Delivery
Carrier
Products
Hybrid Cloud
Optimization
Web Security
Web
Performance

26. ©2013 Akamai
Site Acceleration
Dynamic Site Accelerator  Aqua Ion
Special Focus on Mobile
Aqua Ion Mobile

27. ©2013 Akamai
Application Acceleration
Web Application Accelerator  Terra Alta
IP Application Accelerator

28. ©2013 Akamai
The State of the Web Performance Business Today
• Revenue ≈ # of apps or sites x price
• # of sites/apps grows through rep-driven transactions
• Pricing is stable with uplift from next-gen services,
mobile adoption and value-add modules
• Competition includes: data center devices, CDNs
• Competitive advantages: superior performance,
mobile capabilities, enhanced functionality,
and real end-user reporting

29. ©2013 Akamai
Future Drivers of Growth
• Expanding sales capacity
• Hiring more direct sales reps in 2013 than past 4 years combined
(80% increase from mid-2012 to end-2013)
• Enabling a more robust channel ecosystem
• Entering new geographies
• Continuing innovation to achieve near-instant performance
…even for mobile devices (and as measured by real-user metrics)

30. ©2013 Akamai
$$$
$
The Performance ChallengeTimetoDownload
User
Expectations
Heavier
Content
3rd Party
Content
Inefficient
Web Code
Chatty
Protocols
Mobile
Congestion
Myriad
Devices

31. ©2013 Akamai
Challenge: Mobile Internet Access is SLOW because…
…the mobile network architecture was not designed for the Web

32. ©2013 Akamai
1 in 4
visits to a
U.S. retail site
today is from
a smartphone
Source: IBM Digital Analytics Benchmark, November 2012

33. ©2013 Akamai
Massive Growth Predicted
Source: Mobile Traffic to the Top 500 North American E-Retailers, Branding Brand, 2012
Smartphones will account for over 50% of North
American visits to a commerce site within 2 years
2010 2011 2012 2013 2015
13.4%
53.2%
39%
24.6%
3.8%
60.6%
2014
60%
50%
40%
30%
20%
10%
0%

34. ©2013 Akamai
Keynote Commerce Index: Desktop vs. Mobile
Seconds
to load
Seconds
to load
Top 30 Desktop Commerce Sites Top 30 Mobile Commerce Sites
We haven't seen
9 seconds
since 2001!

35. ©2013 Akamai
slower pages = higher abandonment
• Damages brand• Increases costs• Reduces revenue
Speed Matters: Abandonment Rates
Source: Gomez Real User Monitoring
0
5
10
15
20
25
30
AbandonmentRate(%)
Page Load Time (Seconds)
AbandonmentRate(%)
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

36. ©2013 Akamai
Speed Matters: Conversion Rates
CONVERSION
RATE VERSUS
LOAD TIME
POPULATION PERCENTAGE CONVERSION PERCENTAGE
LOAD TIME (SECONDS)
Page Performance & Site
Conversion – Feb 2012
0−1 1−2 2−3 3−4 4−5 5−6 6−7 7−8 8−9 9−10 10−11 11−12 12−13 13−14 14−15 >15
faster pages = higher revenue

37. ©2013 Akamai
Redefining Web Performance

38. ©2013 Akamai
Avoid data theft and downtime by extending the
security perimeter outside the data-center and
protect from increasing frequency, scale and
sophistication of web attacks.
Akamai has a Solution: Aqua Ion
Customer Infrastructure Akamai Intelligent Platform™
Local ISP / Mobile
Network Operator
Akamai Optimizations
First Mile Middle Mile Last Mile

39. ©2013 Akamai
Challenges with Cloud Adoption
Cloud servers reside in big
data centers, farther away
from the end user…
...resulting in decreased
performance and security
End User
Cloud Datacenter

40. ©2013 Akamai
End User
Problem 1
Route to datacenter
may perform poorly
Cloud Datacenter
X
X
Cloud Optimization: Route Selection

41. ©2013 Akamai
End User
Solution
Akamai SureRoute
to optimize route
Cloud Optimization: Route Selection
Problem 1
Route to datacenter
may perform poorly
Akamai Edge Servers
X
Cloud Datacenter

42. ©2013 Akamai
End User
Solution
Akamai Communication
Protocol
Cloud Optimization: Communication Protocol
Problem 2
Many round trips for
initial large download
Cloud Datacenter
Akamai Edge Servers

43. ©2013 Akamai
Akamai Communication Protocols Make a Big Difference
First Mile
Middle Mile
Last Mile
(0.2 sec)
(8.0 sec)
(0.2 sec)
Typical number of round trips
for an application = 31
Total response time = 8.4 sec
1.0 sec
5
1.5 sec
End User
Cloud Datacenter
Akamai Edge Servers

44. ©2013 Akamai
Cloud Optimization: Prefetching
Problem 3
Many round trips for
personalized or cold objects
End User
Cloud Datacenter

45. ©2013 Akamai
Problem 3
Many round trips for
personalized or cold objects
Solution
Akamai Intelligent Prefetching
End User
Cloud Datacenter
Akamai Edge Servers
Cloud Optimization: Prefetching

46. ©2013 Akamai
Akamai vs. Large Cloud Provider
APS – AKAMAI (ApP) – Total Time (seconds)
APS – LARGE CLOUD PROVIDER (ApP) – Total Time (seconds) 8x

47. ©2013 Akamai
Akamai vs. CDN Vendor
APS – AKAMAI (ApP) – Total Time (seconds)
APS – CDN VENDOR (ApP) – Total Time (seconds) 2.3x

48. ©2013 Akamai
Keynote Page Load Time for a Major Retailer
Homepage
2.6
Brands
2.8
Cabinet Knobs
2.6
Drawer Slide
3.0
Knobs
2.1
0.6
1.00.80.9
0.7
DSA Aqua Ion
LoadTime(Seconds)
Product Images

49. ©2013 Akamai
Avoid data theft and downtime by extending the
security perimeter outside the data-center and
protect from increasing frequency, scale and
sophistication of web attacks.
Real User Performance for a Major Retailer
DSA
19%
< 2 seconds
ION
48%
< 2 seconds
Seconds
0
10
20
30
40
50
%ofUsers
Ion could
increase
conversion
rates by
34%
0-1 1-2 2-3 3-4 4-5 5-6 6+
DSA Aqua Ion IR10 Conversion Rate

50. ©2013 Akamai
Deliver Better Experiences To Mobile Users
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Seconds
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15+
DSA
%ofusers

51. ©2013 Akamai
Seconds
Deliver Better Experiences To Mobile Users
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15+
DSA Aqua Ion
%ofusers

52. ©2013 Akamai
Let’s See it Live
Similar gains for enterprise
apps with Terra Alta

53. ©2013 Akamai
Record Revenue Credited to Akamai
“The combination of Aqua Ion, Aqua Ion Mobile and expert advice
from Akamai Professional Services means that we can deliver an
experience that meets user expectations even under extremely
high demand. The amazing influx of new customers is a testament
to the effectiveness and value of Akamai’s solutions.”
─ Gavin Cliffe, CTO, OZSALE
Results After Just 24 Hours:
30% of
transactions
made via
mobile
10,000+ new
members
50,000 items
sold at a rate
of one item per
1.7 seconds
Record
revenues
Improved
performance
by over 130%

54. ©2013 Akamai
Akamai Product Strategy
Core
Emerging
Web
Performance
Media Delivery
Carrier
Products
Hybrid Cloud
Optimization
Web SecurityWeb Security

55. ©2013 Akamai
Kona Site Defender
Denial of Service Prevention
Web Application Firewall
Enhanced DNS

56. ©2013 Akamai
The State of the Security Business Today
• Revenue ≈ # of apps or sites x price
• # of sites/apps grows through rep-driven transactions
• Pricing is stable and ARPUs are rising
• Competition includes: data center devices, carrier filtering
and cloud-washing solutions
• Competitive advantages: massive scale, always-on filtering,
packet inspection, massive data set, speed, and unique ability
to defend against leading attackers

57. ©2013 Akamai
Future Drivers of Growth
• Adoption
• Field-training and expanding sales capacity
• Extension to defend all IP applications (not just Web)
• Creation of Managed Security Service Provider (MSSP)
capabilities and partnerships

58. ©2013 Akamai
Avoid data theft and downtime by extending the
security perimeter outside the data-center and
protect from increasing frequency, scale and
sophistication of web attacks.
Security is a Serious Problem
• 31% of these attacks resulted
in service disruption
• Each breach costs $8M
on average, and can be
up to $1B
• 74% of companies
experienced one or more
cyber attacks in the past year

59. ©2013 Akamai
Typical Attack Size
10 Gbps
0
100
200
300
400
500
600
700
800
900
2009 2010 2011 2012
NumberofAttacks
768
Attacks on Akamai Customers
Attacks are originating from
all geographies and are
moving between geographies
during the attack
Large Attack Size
100+ Gbps
14
220
510

60. ©2013 Akamai
Attacks are Varied and Sophisticated
• SQL Injection is the most
common attack type followed
by DoS attacks
• Attack tools such as LOIC,
HOIC and SlowLoris evolve
rapidly and are easily available
Predictable Resource
Location 2%
Cross-Site Forgery 2%
Source: Trustwave, Web Hacking Incident DB – 2012 report
SQL Injection
27%
Denial
of Service
23%
Unreported
37%
Top WHID
Attacks
Clickjacking 1%
Stolen Credentials 2%
Banking Trojan 3%
Brute Force 3%

61. ©2013 Akamai
State Sponsored
Traditional Hackers: Glory Hounds Political Hacktivism
Profit
Why?

62. ©2013 Akamai
Traditional Solutions Are Insufficient
Sufficient Capacity
Packet Inspection
Proactive vs. Reactive
Maintain Performance
Datacenter
Devices
Cloud
Washing
Carrier
Filtering

63. ©2013 Akamai
Traditional Defenses Don’t Work

64. ©2013 Akamai
Avoid data theft and downtime by extending the
security perimeter outside the data-center and
protect from increasing frequency, scale and
sophistication of web attacks.
Uniquely able to defend against
all known Web attacks

65. ©2013 Akamai
Avoid data theft and downtime by extending the
security perimeter outside the data-center and
protect from increasing frequency, scale and
sophistication of web attacks.X
(Cloud)
Datacenters
End User
1
10
100
10000
Origin
Traffic
1000
Web Application Without Akamai

66. ©2013 Akamai
Avoid data theft and downtime by extending the
security perimeter outside the data-center and
protect from increasing frequency, scale and
sophistication of web attacks.
End User
1
10
100
10000
Origin
Traffic
1000
(Cloud)
Datacenters
X
Web Application Without Akamai

67. ©2013 Akamai
Avoid data theft and downtime by extending the
security perimeter outside the data-center and
protect from increasing frequency, scale and
sophistication of web attacks.
Web Application with Kona Site Defender
(Cloud)
Datacenters
End User
1
10
100
10000
Origin
Traffic
1000
Akamai
Traffic
1
10
100
10000
1000 COVERED

68. ©2013 Akamai
Let’s See it Live

69. ©2013 Akamai
Summer 2012: Akamai Defends Olympic Web Sites
Firewall Rules Triggered
25 Million
Types of Requests Denied
Including: Bad Robots,
SQL Injections, Cross-Site
Scripts, LDAP Injections
23 40x
ATTACKDenied Rules
Warned Rules
Normal Traffic

70. ©2013 Akamai
DNS Traffic Handled by Akamai
1.8 M
1.6 M
1.4 M
1.2 M
1.0 M
0.8 M
0.6 M
0.4 M
0.2 M
0.0
Total EDNS
Tues 12:00 Wed 00:00 Wed12:00
Akamai Kona Defends Major Bank
Attack Traffic:
23 Gbps
(10,000X normal)
Duration:
4.5 Hours

71. ©2013 Akamai
Akamai Product Strategy
Core
Emerging
Web
Performance
Media Delivery
Hybrid Cloud
Optimization
Web Security
Hybrid Cloud
Optimization
Carrier
Products

72. ©2013 Akamai
The State of the Hybrid Cloud Business Today
• Product under development
• Market entry in 2H13 (beta) beginning with retail customers
• Optimizes the performance and cost for IP applications
in branch offices, retail stores, hotels, etc.
• Behind the firewall applications
• SaaS applications
• Internet Web sites
• Competition includes: WAN optimization devices
• Competitive advantages: existing deployed platform for SaaS
and Internet acceleration, market-leading acceleration and offload
technology, Network-as-a-Service know-how

73. ©2013 Akamai
Why retail stores?
Source: Ipsos OTX/Google, Nielsen
+ 89% use smartphones
while shopping in stores

74. ©2013 Akamai
In-Store Users of Mobile Devices
Omnichannel shoppers spend 71%
more than single channel consumers*
Navigation Promos Information Checkout
Navigation
Find products easily
Promos
Help your customers
find your products
and take advantage
of special promotions
Information
QR codes
for immediate
information
Checkout
Simple, fast,
one-click checkout
Mobile Alert
Head on over to
aisle 18 to take
advantage of
a $100 instant
savings coupon!
X
X
Source: Guardian.co.uk; Deloitte

75. ©2013 Akamai
Engaging Omnichannel Consumers is Key
“Shoppers who shop on
our website as well as in our
stores spend four times as
much; throw smartphones
into the mix and they spend
eight times as much”
— Laura Wade-Gery,
Executive Director, Multi-channel
E-commerce, Marks & Spencer1 Channel 2 Channels 3 Channels
8X
4X
1X
Source: Guardian.co.uk; Deloitte

76. ©2013 Akamai
Stores Are Moving Online
THE CHALLENGE:
Cost &
Performance

77. ©2013 Akamai
Akamai is Developing a Solution
Akamai software in the store
optimizes performance and
offloads last mile pipes

78. ©2013 Akamai
Let’s See it Live

79. ©2013 Akamai
Akamai Product Strategy
Core
Emerging
Web
Performance
Media Delivery
Carrier
Products
Web Security
Carrier
Products
Hybrid Cloud
Optimization

80. ©2013 Akamai
Aura Accelerated Network Partner
Managed-CDN
Licensed-CDN
Instant Federation

81. ©2013 Akamai
• 2 revenue streams:
Selling a CDN platform
The State of the Carrier Business Today
• Competition includes: DIY, device vendors, CDNs
• Competitive advantages: proven technology for performance and
scale (the Akamai Intelligent Platform), ability to federate, enormous
customer base
Distribution channel

82. ©2013 Akamai
Business Strategy
Reduce Cost
• Offload capex and colo
• Leverage carrier salesforce
Reduce Cost
Reduce Cost
• Embed deeper in carrier network
Improve Quality
Reduce Cost
• Selling the platform
• Broader sales capacity through channel
Increase Revenue

83. ©2013 Akamai
Summary
2 strong core businesses today
Megatrends are moving in Akamai’s direction
Driving towards $5B goal by the end of the decade
3 highly-synergistic emerging businesses

84. ©2013 Akamai
Q&A