2010_akamai_ir_summit - Powering a Better Internet 2010...

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failure to maintain the prices we currently charge for our services; inability to effectively compete with existing companies and new entrants in the markets in which we operate; unexpected network and service interruptions that cause loss of revenues, increased expenses or diversion of resources; failure to increase our revenue, retain our significant customers, or keep our expenses consistent with revenues; changes in relationships with our network providers that increase our operating expenses; failure of new services we offer to operate as expected or to gain widespread market acceptance; delay in developing or failure to develop new service offerings or functionalities, and if developed, lack of market acceptance of such service offerings and functionalities; and other factors that are discussed in our annual report, on Form 10-K, our quarterly reports on Form 10-Q, and other documents periodically filed with the SEC. Safe Harbor Statement In addition, any forward-looking statements, represent our estimates only as of December 9, 2010 and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. Finally, during this presentation we will be referring to non-GAAP financial measures such as Adjusted EBITDA. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation between non-GAAP and the most directly comparable GAAP financial measures appears in the News and Publications portion of the Investor Relations section of our website. This presentation and webcast include information about Akamai’s future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including estimates about future revenues. Actual results may differ materially from those indicated by these forward- looking statements… as a result of various important factors including, but not limited to…
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Paul Sagan CEO
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5 Years Ago: Set a BHAG $1B+ Revenue (US$ millions) $1,000 $0 $200 $400 $600 $800 $1,200 $1,400 2002 2003 2004 2005 2006 2007 2008 2009 2010
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2000 2009 2010 AKAMAI PEAK TRAFFIC The Internet Continues to Grow 4.6 Tbps 6 Gbps 1.8 Tbps
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec One Year (2005) The Internet Continues to Grow AKAMAI DEMAND 2010
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Security Video Mobile Analytics Cloud
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Applications Hardware Software 20% CAGR Source: IDC, June 2010 $0 $5,000 $10,000 $15,000 $20,000 $25,000 US$ millions 2009 2010 2011 2012 2013 2014 Security Cloud Mobile Video RAPID MARKET GROWTH Analytics
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2005 2006 2007 2008 2009 2010 0 10 20 40 50 APPLICATIONS ACCELERATED BY AKAMAI Security Mobile Video Cloud # of Applications Accelerated (thousands) 30 Analytics
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1994 1998 2002 2006 2010 $280 Billion eCOMMERCE IS EXPLODING Security Cloud Mobile Video $100 Billion $0 $10 Billion $200 Billion $517 Billion Analytics Source: eMarketer
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2009 200 Gbps+ THREATS HAVE INCREASED 2005 17 Gbps Security Cloud Mobile Video Analytics
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