Akamai Enhances Security Solutions, Poised for Growth
Akamai Technologies, Inc. (AKAM) has recently announced a significant upgrade to its popular Akamai Guardicore Segmentation and Enterprise Application Access solutions. The enhancements aim to bolster performance, security, and scalability in cloud environments, particularly for resources within Amazon Web Services (“AWS”), operated by Amazon.com, Inc. (AMZN).
A Closer Look at Guardicore Segmentation Upgrades
The latest iteration of Akamai Guardicore Segmentation brings robust improvements to its security framework. A notable feature allows organizations to visualize cloud workloads in near-real-time using an interactive mapping tool. This provides administrators with improved insights into network flows and application dependencies, facilitating better collaboration between DevOps and SecOps teams in managing cloud security.
Additionally, the solution employs a hybrid enforcement engine that refines the process of network policy implementation. By automatically deciding between agent-based and agentless enforcement, organizations can simplify policy management and tailor security measures to their unique needs.
As cloud adoption continues to rise, Akamai’s enhanced solutions ensure that scalability and security are prioritized without sacrificing performance. Data stays within the cloud environment, and the system architecture adjusts automatically to match the demands of growing organizations. Furthermore, integrated reputation analysis and DNS firewall capabilities are designed to hasten incident detection and response, bolstering overall security by swiftly identifying potential threats.
Advancements in Enterprise Application Access
Akamai also introduced updates to its Enterprise Application Access product, a component of the company’s Zero Trust Network Access (ZTNA) strategy.
Among the key enhancements is the addition of edge transport, which optimizes performance directly along the application path. This technology is especially beneficial in remote locations with unreliable internet access, ensuring users can reliably access essential business applications. Local points of presence (PoP) allow organizations to implement ZTNA policies closer to in-office users, reducing the need to reroute traffic through a cloud PoP, thereby improving response times and file downloads significantly.
Will AKAM Stock Benefit from These Developments?
Akamai’s cloud optimization solutions have proven effective in enhancing performance, availability, and security for applications and crucial web assets distributed from data centers to end users. Recently, the company launched Akamai Connected Cloud, a vast edge network designed to bolster security and scalability, helping organizations fortify their IT infrastructure.
This continual innovation in cloud security illustrates Akamai’s commitment to safeguarding digital infrastructure while ensuring optimal user experiences. These upgrades are expected to increase demand for Akamai’s solutions, likely resulting in higher revenues and improved stock performance.
Stock Performance Overview
Akamai’s stock price has experienced a decline of 22.8% over the past year, contrasting with a 27% growth in the industry.
Image Source: Zacks Investment Research
Zacks Rank Insights and Alternative Stocks
Currently, Akamai has a Zacks Rank of #4 (Sell). Below are a few better-ranked stocks in the broader industry.
Plexus Corp. (PLXS) currently holds a Zacks Rank of 1 (Strong Buy). This company provides electronic contract manufacturing services to original equipment manufacturers across various sectors, including Healthcare and Defense. In the last reported quarter, PLXS achieved an impressive earnings surprise of 20.92%.
Arista Networks, Inc. (ANET) maintains a Zacks Rank of 2 (Buy). The company caters to major clients, including Fortune 500 companies, in sectors such as cloud computing and finance. Last quarter, ANET reported an earnings surprise of 14.83%, with a long-term growth expectation of 16%.
Top Stock Recommendations
Our research team has identified five stocks with the highest potential for gaining +100% or more soon, with one standout pick highlighted by Director of Research Sheraz Mian. This leading firm is on the rise, boasting a fast-expanding customer base and an array of innovative solutions.
Download our report on the Top Stock and four runners-up for valuable insights.
For additional stock analyses, check the reports on:
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Plexus Corp. (PLXS): Free Stock Analysis Report
Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report
Arista Networks, Inc. (ANET): Free Stock Analysis Report
To read the complete article on Zacks.com, click here.
Zacks Investment Research
The views expressed here do not necessarily reflect those of Nasdaq, Inc.
