Akamai to Buy Linode for USD 900 million

Who is Linode?

Linode is one of the leading providers in Cloud Computing and Linux Servers. They call themselves an Alternative to AWS. People who use the internet will know that Linode is one of the leading go-to solutions when we need cloud computing solutions. They were on top of the ladder for quite some time.

Linode was founded in 2003 by Christopher Aker, who currently serves as the CEO of Lindoe. Linode focuses on serving open-source cloud services to a variety of clients. Linode’s main competitors are internet giants like Google Cloud Service, Microsoft Azure and Amazon Web Services. Linode currently holds around 250 employees. Linode is the number one choice for developers who need IaaS solutions for their custom needs.

Aker owns 100% of Linode and has managed to deliver the best when it comes to Cloud computing services to the end-user.

What are they good at?

Linode was always a good choice for small managed service providers. A lot of developers rent from Linode, manage the backend and provide custom solutions to the end customers. This includes solutions like ready to use WordPress hosting packages. The same goes for developers who offer custom solutions to their customers through a managed backend.

Managed solutions is a very profitable niche and the IaaS provider always managed to grab their share of profit. Linode is a very profitable and financially stable company for many reasons including the quality of service they provide. Linode has exceptional skills and ability when it comes to managed containers and virtual machines.

Linode has over a million user accounts and has close to 1.5 lakh active users on their platform at any given point in time. Akamai buys

Linode for $900 million

That is approximately ₹6500 crore in INR. This is Akamai’s most prominent deal after acquiring Guardicore for $600 million in September 2021.

Who is Akamai?

Akamai is one of the world’s most trusted Content Delivery Network (CDN) services. They also provide Edge Computing and Security services. Linode can be very valuable to Akamai because Linode is one of the foremost players in the MSP segment. Akamai has already partnered with services like Microsoft Azure to enhance its footprint. Akamai has been working in these sectors for around 20 years now. And they are very popular with the services they offer.

How does buying Linode help?

Akamai is paying USD 900 million in cash for this deal with Linode. They expect to close this deal in this quarter and expect to add the returns from Linode to this year’s balance sheet. As per the deal, Linode will retain its brand and employees.

According to Akamai’s CEO Tom Leighton, the deal will help Akamai become the world’s most distributed cloud services provider. Linode’s 4000 Points of Presence, Managed Container and Virtual Machine capabilities are a great asset to a service like Akamai. They believe that together they can solve customers need’s much better than they do today.

Akamai will certainly benefit from the developer base associated with Linode. And of course, can make a lot of money through Linode. Linode is currently owned by a single person, their CEO Christopher Aker. According to Akamai, they have always had an impact on how Linode behaved in the market. With Akamai and its valuable enterprise customers and best in class salesforce, Linode is expected to make $100 million by the end of this year.

Also, Akamai expects to save around $120 million in terms of tax benefits over a few years. For more tech updates reach out to the best experts