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November 2, 2015

Akamai pivots to storage after Q3 profit drop

News: The ‘Akamai of storage’ gets investment from the real thing.

By Alexander Sword

Akamai, the content delivery network provider, has invested in storage start-up ClearSky Data.

ClearSky took in the investment during its Series B funding totalling $27 million, bringing total investment to $39 million.

The size of Akamai’s investment was not disclosed. Other investors included Polaris Partners, which has also invested in Akamai, Egnyte and Adnexus.

Founded by CEO Ellen Rubin and CTO Lazarus Vekiarides, ClearSky provides a global storage network for enterprises, including primary storage, backup and disaster recovery.

ClearSky’s model has previously attracted comparison to Akamai. Akamai accelerates and manages internet traffic by distributing it globally to local servers. This is what ClearSky is doing for data storage, using storage infrastructure at local sites to prevent companies from having to have multiple sites.

Rubin wrote in an August blog that the company is addressing "the need for a new model of ‘edge services,’ most famously delivered by Akamai for content distribution."

The move by Akamai follows disappointing Q3 financial results, in which a fall in profit saw the company’s share price fall 14 percent.
Akamai reported net income of $88.0 million, down from $91.2 million last year, while revenue rose 11 percent to reach $551 million.

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