Mis : Akamai Case Essay

2347 words - 10 pages

Q1) Discuss Akamai's business model and whether it makes sense. Hint: Use Porter's 5 force model.

Akamai had a successful business model which helped it to succeed where several other companies providing similar services failed. Akamai was in the playing field with big corporations but they strategically built relationships in networks for server colocation and they possessed good software and patents that kept them indispensable in the networking layer. They kept out of the software layer where the big corporations were busy battling each other. We can study their business strategy in handling their competition using Porter’s five forces model.
A Threat of new entrants
Akamai ...view middle of the document...

The technology of caching and mirroring that were adopted by certain solution providers proved to be more costly to implement and provided outdated web content than the Akamai Free Flow technology. The other CDN providers like Sandpiper were not able to compete with Akamai in terms of their total number of server locations. Akamai was able to foresee the competition and adopt the most efficient technology and acquired strategic network locations and patents to stay ahead of competition.
While introducing the Edge Suite, Akamai considered forming a partnership with either IBM’s Web sphere or Microsoft’s .NET or EDS’s Framework for Accelerated Solutions (FAS) or HP’s Adaptive Enterprise or BEA’s Weblogic or Sun’s Open Net Environment (ONE). Each of these platforms offered proprietary features. Akamai had to undertake custom software development work to support each system rather than take sides on the battlefield of big software enterprises. This strategy ensured that they were not directly threatened by the large corporations.
When IBM decided to enter into on-demand computing for their applications, Akamai evaluated the risks that the big enterprises like IBM and Microsoft captured up to 90% of the market. They figured that even holding on to the remaining 10% would be good for the company. Ultimately other content delivery network providers backed by Microsoft like Exodus, UUNET and Cable & Wireless failed, leaving Microsoft the only option of depending on Akamai for their CDN services.
C Bargaining power of customers (buyers)
Akamai estimated that its EdgeSuite customer would spend about 4 times more than they would spend on a traditional CDN service like FreeFlow. They were able to convince their customers by explaining that EdgeSuite was a much better value proposition by offering superior features than the completion. Some of the features offered were a) improved page load times by a factor of 2 by using dynamically generated web pages, b) 100% increase in savings within 2 years by using Akamai Edge servers over using the existing technology of overloading the original websites, c) savings on bandwidth by reducing data transfers substantially d) improved scalability to handle flash crowds that could overwhelm the traditional architecture e) greater security from hacking and physical disasters.
D Bargaining power of suppliers
Akamai sales were always driven by the support of their partners-system integrators, hosting firms and network carriers. Their partners like IBM had a lot of technical expertise as well as the skills and corporate relationships that made it very easy for them to sell the Akamai ESI products. They often sold 2-3 dollars of professional services for every dollar a customer spent on Akamai. Akamai lost about a third of the revenue by involving these suppliers but they were a major driving force in increasing Akamai’s revenue. Akamai however retained their own direct sales force to act as a contingency...

Other Papers Like MIS : Akamai case

Holidays In Albania Essay

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

A Heart Of Darkness Essay

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages proceeding examples. The Willowbrook Hepatitis Studies was a case in which individual rights were severed and respect for one’s autonomy was lost. In 1947, in Staten Island, NY, Willowbrook was opened. Willowbrook State School was a state-funded institution for developmentally disabled children intended to accommodate approximately 4,000. By 1965, that number reached a population high of about 6,000. This high population mixed with a short staff led

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages doubling these wages can only be justified if, in some other way, it generates an equal or superior amount of value (either through a better product, lower costs, or both). According to the theory of incentives and efficiency wages, this is indeed the case, and Henry Ford even asserted that this decision was one of the best-cost cutting judgements they ever made (Raff and Summers 1987). This paper will outline the history of Ford Motor’s 1914

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages revolution, capitalism was used as the dominant form of economy in England. This helped England’s economy become consistent and organized throughout the country. However, it also posed certain, significant, problems. In order for the perfect capitalism to be achieved, every citizen had to begin equal. This was not the case, as many descendants of nobility and very early entrepreneurs started England's switch to capitalism with a lot more money than most

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages for their family and their country’s reputation. (Jacqueline and Milton, 2012)In real life case, a successful leader usually has good communication skill when talk to followers, people cannot influence their team members without connect communication to them. Language is a most powerful tool used by leader to manage and influence people in different industries. (Seargeant, 2009) Henry’s speech with unlimited energy and confidence, he cheers up

Cuba Civil Rights

1906 words - 8 pages Oct 2013. "World Report 2013 Cuba."Human Rights Watch.Human Rights Watch, 2013.Web. 14 Oct 2013. Wylie, Lana. "The Special Case of Cuba."International Journal 67.3 (2012): 661-84. ProQuest.Web. 9 Oct. 2013. "2012 Human Rights Reports: Cuba." U.S Department of State Diplomacy in Action.Bureau of Public Affairs, 19 04 2013.Web. 14 Oct 2013.

US Freight System

1273 words - 6 pages “Free Riders” are part of the business. When the Supreme Court decides a case that NITL has analyzed and promoted from the beginning, that decision applies across the land, everyone benefit from it. Bruce J. Carlton The League members pay a membership due every year, and they expect as a return a benefit, and whenever NITL accomplish goals, its members benefit but all the other shippers benefit as well. This is a threat that open the door

Democratic Peace Theory

1852 words - 8 pages the United States against the USSR as an example of how emotions almost destroyed two nations. People were spying on their own family members out of fear of being branded a communist and the fear of nuclear annihilation was ever present danger that children were doing drills in case of nuclear fallout. Had it not been for Gorbachev assuming power in Russia and letting his people see what freedom was about through his policies, we would not be here

Booker T. Washington

1621 words - 7 pages “Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome” –Booker T. Washing. Booker Taliaferro Washington was born in Hale’s Ford, Virginia on April 5th, 1856 to Jane Burroughs and an unknown White man. Washington was married three times. His first wife was Fannie N. Smith from Malden, West Virginia. Booker and Fannie were married in the summer of 1882 and had one child

Related Essays

Marketing Essay

1405 words - 6 pages . Whinston, MIS Quarterly Executive, 5(1), 2006. Type: Due Online Title: Case Digest: Please limit your answer to two pages (1.5 spacing, 12 point font) Question for Case Digest: 1. Do you think Bharti should enter the outsourcing agreements outlined by Gupta? What do you see as advantages and disadvantages of such agreements? 2. If you were Bharti, what major concerns would you have about entering and outsourcing agreement with IBM? With

Freedom And Responsibility Essay

2141 words - 9 pages amendment is “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercises thereof” (Jordan, 1999). Therefore, the first amendment states citizens have freedom of religion and exercises of the religion. The article entitled “Lawsuit alleges FBI violated Muslims’ freedom of religion,” published by Jerry Markon, Washington Post Staff Writer, justifies the detailed case of the FBI surveillance targeting Muslims for

Hate Crime Laws Essay

2348 words - 10 pages Death of James Byrd”). While this particular case may give the appearance that perpetrators of hate crimes receive appropriate punishment, almost a decade later, one particular case demonstrates the inequity in the application of hate crime punishments: In 2007, Sean Kennedy of Charleston, South Carolina, left a bar around 3:45 am and was confronted by Stephen Moller, who called him a “faggot” and then punched him so hard in the face that his

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are