Linode

History

2022: Acquisition by Akamai Corporation for $900 million

Corporation, Akamai Technologies a provider of website, and application acceleration services provider content delivery platforms , announced on February 15, 2022 the acquisition of Linode LLC, cloud services a developer-providing firm. The deal amounted to 900 million. dollars

Akamai buys a vendor of Linode cloud services for $900 million
Suzanne Kreiter/The Boston Globe via Getty Images/Getty Images/ TechCrunch

Founded in 2003, Linode initially provided rental services for virtual private servers. According to TechCrunch, by that time the concept of "cloud computing" had not yet become a common place - Amazon began to offer "cloud" services only in 2006 - so it was virtual private servers that were usually used to host websites and basic web applications.

As of February 2022, Linode offers a large number of services for web developers, including cloud block and object, storages managed, databases load balancers, and, more recently, service for Kubernetes konteynirovanny applications.

Akamai said that the purchase of Linode will turn it into the "most distributed platform in the world," covering both cloud and border computing, and that this deal is "a major victory for developers who can now create next-generation applications on a platform that provides unprecedented scale, coverage, performance, reliability and security."

In the near future, Linode will continue to operate in the same mode. As representatives of Linode noted, Akamai does not plan to abandon what made the cloud provider successful.

Akamai has not yet offered SaaS services to developers, but demand for them is growing in the market. The acquisition of Linode is clearly a response to market demand.

Akamai, among other things, offers a number of solutions related to information security, and this makes it possible to hope that additional security measures will soon be available to Linode users, "said Mikhail Zaytsev, an information security expert at SEQ. - Linode has been subjected to rather scandalous cyber attacks in the past, although the last high-profile incident occurred in 2016, when a powerful DDoS attack was aimed at the service infrastructure. In any case, the additional level of security provided by Akamai will only benefit the resource.

The closure of the transaction is scheduled for the first quarter of 2022. Akamai expects profit growth of $100 million thanks to the acquisition of Linode.^[1]

Notes