Interesting financial news from Akamai, which helps companies deliver online entertainment by routing data over less-congested routes over the Web. The company just reported a quarterly profit of 20 cents per share, compared with 11 cents for the same quarter last year. Overall revenue was $187.0 million, a 34 percent increase over Q1 2007 revenue.
Two points about this and Net neutrality:
First, the success of Akamai, Limelight and other online delivery companies is pretty clear evidence that the need for efficient networks goes far beyond the entertainment industry. Take a look at Akamai’s customer list and you’ll see 800-FLOWERS, Harley-Davidson, Lands End, and L’Oreal. You’ll also see nine of the top 10 global automakers. Not exactly a Hollywood contingent.
Second, this trend toward more efficient data routing should also quash the simplistic idea that consumers’ best interests are served when all online data is equal. There’s a reason why Akamai’s clients paid nearly $200 million in Q1. They understand the need for fast communication links regardless of whether the end users are individuals streaming movies or employees on a videoconference.
For consumers, this news is a timely reminder on two fronts: First, network management is vital to maintaining a good experience on the increasingly crowded Net. Second, customers who pay extra for dedicated service – whether to a broadband carrier or an outside firm – are helping to make the Net more efficient and therefore more affordable for everyone.














