Corporate News

By Imee Charlee C. Delavin, Senior Reporter

Akamai Technologies sees ‘huge’ opportunity in PHL

Posted on November 18, 2016

AKAMAI Technologies, Inc., is expanding in the Philippines amid expectations of continued rise in Internet penetration and mobile phone usage here.

In a media briefing on Thursday, the US-based service provider of content delivery network, said there is a “huge opportunity” in the Philippines on the back of “rising demand” for Internet services with around 54 million Internet users in the Philippines this year, up from the 36 million seen in the past 3 years.

Globally, there are about 3.5 billion Internet users. Akamai expects there will be 20-30 billion devices by 2020.

“We’re very excited about the opportunities in the Philippines. The economic trajectory is a very clear indicator, then there’s the huge disposable income of the massive mid-market and young, tech-savy demographic which are all opportunities for us to expand,” Akamai Technologies Country Manager Gerald I. Peñaflor said at the sidelines of the firm’s press briefing yesterday.

Akamai inked a deal with PLDT, Inc.’s corporate arm, PLDT Alpha Enterprise, in 2015 to provide clients with a “more secure” Internet connection. As Akamai’s local channel partner, PLDT will offer the US firm’s solutions for delivering, optimizing, and securing online content and business applications. The partnership is expected to boost Internet experience through faster content availability and access.

Mr. Peñaflor said the content delivery provider will tap more partners to expand its clientele and add more servers in the country to grow its network, particularly in the Visayas and Mindanao areas.

“Definitely the goal is to expand. In terms of servers, we started in the Philippines with 200 servers. Beginning of this year we already have 800 and we’ll add more, we’ll be deploying it especially in the South,” the Akamai executive said.

Akamai has deployed its servers across 10 cities through more than eight telecommunications operators.

In the Philippines, Akamai said the banking and e-commerce sectors, along with the government, are key areas of growth for Akamai. For instance, the e-commerce industry in the Philippines, estimated to be worth billions, is expected to be up 18% by 2021.

It will also look at possible partnerships with other firms in a bid to further scale up “depending on the demand” that will come.

For Akamai Technologies Chief Security Strategist John Ellis, cyber security is also an integral part of its business.

With around 80% to 90% of the world’s population on mobile, Mr. Ellis noted that while the overall number of denial-of-service (DDoS) attacks didn’t increase during 2016, the size and severity of the attacks did.

Akamai estimates that $400-$500 million of the global economy is lost to cyber crimes and by 2020, it could rise to $3 trillion.

“We have been consistently outrunning our ability to secure our infrastructure. Web application attacks have been the number one source of data breaches,” Akamai’s chief security strategist added.

The second quarter, 2016 Akamai State of Internet Report ranked the Philippines 6th, with an average speed of 8.5 Mbps, in mobile Internet connection speed in the Asia-Pacific region. The Akamai report also indicated that the Philippines achieved 105.1 Mbps peak mobile speed in that quarter.