StackPath quits CDN business, Akamai buys enterprise custo…[ad_1]
StackPath is quitting the Content Delivery Network (CDN) business, with Akamai acquiring around 100 CDN customers from Stackpath.
Akamai this week announced that it has acquired assets including select enterprise customer contracts from StackPath, following StackPath's "decision to cease its content delivery network operations.”
Though there is no official release about the news, on some pages of its website StackPath has a pop-up notice reading: “StackPath has decided to commit its entire focus to being the industry's best cloud computing platform built at the Internet's Edge.”
“With this decision, StackPath CDN and Highwinds CDN services will cease operations at 12:00 am Central (UTC-6:00) on November 22, 2023,” the company said. A similar email was sent to customers and posted to HackerNews and WebHosting Talk.
Akamai said the acquisition of around 100 enterprise customer contracts, would add approximately $20 million in revenue by 2024.
Akamai noted the transaction does not include the acquisition of StackPath personnel or technology. The two companies will be operating under a transition services agreement for the first 90 days.
"We look forward to welcoming these new enterprise customers and providing them immediate access to the agility and scale of Akamai Connected Cloud to create and deliver flawless digital experiences," said Adam Karon, COO and general manager of Akamai's Cloud Technology Group. "In migrating to Akamai Connected Cloud, StackPath's enterprise CDN customers will also have the opportunity to tap into the full portfolio of Akamai security and cloud computing solutions to help them power and protect their businesses into the future."
StackPath was founded in 2015 by SoftLayer founder Lance Crosby. It has acquired six companies, and launched after merging technologies from multiple acquisitions into a single platform; its first product was SecureCDN, a CDN with built-in Web Application Firewall (WAF) and DDoS protection. To date, the company has raised just under $400 million across two funding rounds according to Crunchbase. Investors include Juniper Networks, Cox Communications, and ABRY Partners.
The company acquired MaxCDN (formerly NetDNA) in 2016 and Highwinds in 2017. The company merged the capabilities and legacies of MaxCDN/SecureCDN into Highwinds CDN to create StackPath CDN in 2018, and announced its MaxCDN and SecureCDN products were retiring in May 2022 to focus on StackPath CDN.
At the time of the legacy CDN retirement, StackPath said: “We’ve decided the time has come to retire the MaxCDN and SecureCDN products—they’ve earned a nice retirement! That way we can focus more attention on taking StackPath CDN even farther.”
While it is leaving the CDN business, StackPath still offers load balancing, virtual machines, containers and serverless scripting, and security services. The company says it operates 73 Edge locations across 43 metro markets.
DCD has reached out to StackPath for more information.
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