Akamai Acquires API Security

November 9, 2023

Akamai acquires API Security. Learn how this move impacts the field of web security and application protection. The number of APIs used by enterprises is skyrocketing, creating massive security vulnerabilities. But many organizations aren’t aware of the number, what they do or who controls them.

To address the issue, Akamai has agreed to buy a finalist in last year’s RSA Conference Innovation Sandbox Contest. The Silicon Valley-based company aims to help customers discover all their APIs, assess their risk and respond to attacks and vulnerabilities.

Company overview

The acquisition of Neosec adds to Akamai’s API security offerings and will help the company address the growing threat landscape. The acquisition also strengthens the company’s commitment to customers and is in line with its strategy of delivering cloud-based services through its global network. It also supports its efforts to accelerate the adoption of multi-factor authentication and prevent the use of stolen credentials.

In addition to financial measurements based on generally accepted accounting principles in the United States (GAAP), management uses non-GAAP measures of operating performance, operational efficiency and profitability. These include non-GAAP income from operations, non-GAAP operating margin and non-GAAP net income. Akamai believes these measures are useful in evaluating its performance, especially when compared against other companies in the industry. These measures are not intended to replace or substitute for GAAP operating performance or earnings measures and should be used in conjunction with those measures.

Non-GAAP results exclude the impact of stock-based compensation and amortization of capitalized stock-based compensation. These items are unpredictable and vary significantly based on factors such as the timing of awards, the expected achievement of performance-based objectives and the number of shares available for grant. In addition, they can vary significantly from one period to another. Akamai also excludes amortization of acquired intangible assets and acquisition-related costs from its non-GAAP financial measures because they are impacted by the timing and size of individual transactions and do not reflect its core operations.

Non-GAAP operating expenses also include the cost of the company’s Ion software platform, which combines a powerful content delivery network with intelligence at the edge to provide a secure, high-performing web experience for users on any device. Its global distributed network delivers web content quickly and reliably by optimizing the route from the source to the end user, applying performance-enhancing features along the way. The platform also provides an extensive set of analytics and monitoring tools that offer deep insight into web application performance, including a real-time dashboard that displays key metrics for any given web page or site. This helps identify performance bottlenecks, reduce costs and deliver a better user experience for all of its customers.

Product offerings

Akamai offers a variety of products that allow organizations to protect and deliver content and business applications over the internet. Its cloud services are designed to optimize and secure the delivery of web content, video and mobile apps. The company’s network of 325,000 servers is located in 130 countries worldwide. Its products are designed to provide a variety of benefits for both enterprises and consumers. The company’s business model is based on the delivery of value-added services over the internet, which include network performance, website acceleration and security.

The company’s latest acquisition of Neosec will help to improve its product offerings in the area of API security. The Boston-area company is focusing on expanding its footprint in the cybersecurity market. The acquisition comes less than 19 months after the company bought microsegmentation vendor Guardicore for $600 million to prevent malware from spreading. It also bought Inverse and Janrain in the same year to enhance security around applications, websites and mobile devices.

According to a recent survey of employee feedback, the company’s leadership is highly regarded by its employees. The CEO, Tom Leighton, is rated in the Top 5% of all comparable CEOs on Comparably. The majority of employee respondents say they are satisfied with their overall compensation, which includes pay, stock and equity awards. They are also happy with the company’s Executive Team and Professional Development.

Some of the financial measures that Akamai uses exclude amounts that are not prepared in accordance with generally accepted accounting principles in the United States (GAAP). These items may include stock-based compensation, amortization of capitalized stock-based compensation and issuance costs related to convertible debt. Management believes that excluding these items provides investors with a more consistent and meaningful comparison of the Company’s operating results. Additionally, these items are infrequent and unpredictable in nature. Therefore, management excludes them from these non-GAAP financial measures from time to time. These adjustments are reflected in the Company’s non-GAAP earnings per share and operating margin. In addition, they are used by management for planning and forecasting purposes and to measure executive compensation.

Company culture

In addition to its core content delivery network, Akamai also operates a security business that protects web and mobile applications against cyberattacks. The company’s new acquisition, Neosec, fits into this strategy. Its platform helps customers discover and assess API vulnerabilities. It also helps them respond to attacks and monitor the threat landscape. It is the latest in a series of cybersecurity acquisitions that Akamai has made in recent years.

In a statement, Akamai said the acquisition of Neosec will help it address an increasing number of attacks targeting API-based architectures. In fact, last year’s attacks on web applications and APIs reached record highs, according to Akamai’s State of the Internet report. Several factors have driven the increase in these attacks, including the rapid pace of application development and production. For example, a survey conducted by Enterprise Strategy Group reported that nearly half of companies released vulnerable applications to production because of time constraints.

Neosec’s technology can help customers improve API security by helping them discover all their APIs and assess their risk. It also helps them create a security-conscious culture and processes by integrating API security into software engineering. This includes API specification validation, security testing and catalog registration. It can also help them implement automated and continuous discovery of APIs.

The purchase of the Silicon Valley-based startup is expected to close in the next two weeks. It is Akamai’s fourth significant acquisition in the space. Last year, the company bought microsegmentation vendor Guardicore for $600 million to stop malware from spreading across networks. It also bought Inverse and Janrain for additional security capabilities. In addition, it launched Brand Protector to thwart traffic to fake websites that use stolen brand assets.

Customer base

For Akamai, security is integral to its business. The company offers a content delivery network, or CDN, that places servers at the edge of networks so customers can reach their websites and applications more quickly and securely. The company also has a large security business that is integrated with its core delivery and computing businesses to protect against cyberthreats.

Giora Chokshi, chief technology officer at Akamai, believes API security is one of the fastest-growing areas in cybersecurity. He says the proliferation of APIs and the resulting increase in attack surface area have made them a major target for attackers. As a result, many companies are looking to improve their security measures around APIs.

The key to API security is ensuring that all components are properly secured and monitored. This requires a combination of different tools and techniques. For example, an API should use authentication and rate-limiting to prevent access by unauthorized users. It is important to monitor traffic patterns and identify unusual patterns. This will help to detect attacks and block malicious activity before it can spread.

Another challenge is sifting through the vast amount of data that flows across APIs. This is why a number of companies have turned to artificial intelligence-powered analytics, which is used to analyze large volumes of data and spot suspicious behavior. These companies are able to process billions of transactions and spot anomalies in real time.

These technologies help to identify which assets are most vulnerable and prioritize them based on their criticality, business impact and risk. They also provide a single-dashboard visibility that delivers findings ranked by threat score with a confidence rating, severity rating and a timeline of attack events. The software also enables automated response and mitigation capabilities.

Aside from enhancing the overall security of the platform, these technologies also make it easier for companies to comply with regulatory requirements. This is particularly important in the financial sector, where many of Akamai’s clients operate. These technologies allow them to monitor and control the flow of financial information and protect against breaches.

Ammar Fakhruddin

ABOUT AUTHOR

Ammar brings in 18 years of experience in strategic solutions and product development in Public Sector, Oil & Gas and Healthcare organizations. He loves solving complex real world business and data problems by bringing in leading-edge solutions that are cost effective, improve customer and employee experience. At Propelex he focuses on helping businesses achieve digital excellence using Smart Data & Cybersecurity solutions.


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