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The value of Akamai’s differentiated services is stronger than ever

Akamai’s results for the fourth quarter certainly appeared to snuff out any competition fears. Not only did revenue increase 14% and profit 22% over last quarter (!), but gross margin even increased by 20 basis points. CEO Paul Sagan certainly had every right to brag that “the value of Akamai’s differentiated services is stronger than ever.”

Sagan also reassured investors in this uneasy market climate, insisting that an economic slowdown may even help Akamai. Since companies save money by moving operations to the Internet, Akamai would benefit if the migration process picked up as businesses seek to cut costs in a tougher economic climate, he said.

A large driver of Akamai’s growth is the downloading of video content. The company provides technology that allows companies and government agencies to deliver digital internet content, such as commercials and videos.

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