Akamai presented its state of the union during the investor summit earlier today. As always, the metrics presented are fascinating and important because they give us an in-depth pulse on the Internet and their business model. One of the most interesting parts is the case study on a Top 10 Bank. Based on the slide deck, Akamai charged this specific bank the following prices: $3,500/mo. for a Cloudet, $31,000/mo for Prolexic (initial) and $17,500 for Bot Manager (1 site).
The spend increased from $100k to $300k in 3 years. When it comes to pricing out cloud services, no one does a better job on selling the value proposition than Akamai. Here are some interesting metrics.
Summary of Key Metrics
- 5 trends impacting CDN industry: video, mobile, IoT and cyber attacks
- Akamai average traffic is 40Tbps+
- They process 2 trillion log line per day
- Total last mile broadband connectivity in 2020 will range from 600Tbps to 25,000Tbps
- Akamai has created its own routing protocols
- Case Study for Top 10 Bank:
- 2014 (MRR): $124k for Ion on 10 sites + $7k for 2 Cloudlets + Prolexic @ $30.5k
- August 2016: Prolexic spend doubled to $65k and Bot Manager for 2 Sites at $35k
- February: Bot Manager for 8 additional sites + Kona for 10 sites is $71k per month
- Total MRR: $124k + $30.5k + $65k + $35k + $71k = $325.5k
- The Internet core is the bottleneck not the last mile
- How much bandwidth on the core: 100 Major Providers bx 5Tbps = 500Tbps and that’s even a big if
- A 2020 estimate: 2.5B connected homes x @ 10Mbps = 25,000Tbps