LAS VEGAS - Akamai Technologies, Inc. (NASDAQ: NASDAQ:AKAM) has launched a new cloud service designed for the media and entertainment industry, leveraging NVIDIA (NASDAQ:NVDA) RTX 4000 Ada Generation GPUs to enhance video processing capabilities. The service aims to provide media companies with faster and more cost-effective video content processing.
Internal benchmarking by Akamai revealed that the NVIDIA RTX 4000 GPUs can process frames per second (FPS) up to 25 times faster than traditional CPU-based encoding methods. This marks a significant improvement for streaming service providers who face challenges with high-speed video processing.
The new offering from Akamai allows media companies to create scalable and resilient architectures, deploying workloads that are faster, more reliable, and portable across the world's most distributed cloud platform. It also integrates content delivery and security services.
Shawn Michels, Vice President of Cloud Products at Akamai, stated, "NVIDIA GPUs provide superior price performance when deployed on Akamai's global edge platform." He emphasized the company's commitment to providing customers with the capability to architect cloud-agnostic and multicloud-supported workloads.
The NVIDIA RTX 4000 GPU caters to various media-specific applications, including video transcoding, live streaming, virtual reality (VR), augmented reality (AR), and supports the latest video codecs. Additionally, the GPU is touted to be efficient for generative artificial intelligence and machine learning, data analysis, scientific computing, gaming, and high-performance computing tasks.
Akamai's cloud-based media delivery solutions will be showcased at the 2024 NAB Show in Las Vegas, including demonstrations of integrations with Akamai Qualified Compute Partners. The company is also hosting a Lunch & Learn session to discuss building next-generation media workflows on its platform.
This new service by Akamai is based on a press release statement.
InvestingPro Insights
Akamai Technologies (NASDAQ: AKAM) has been making strategic moves to enhance its services, as evidenced by the launch of their new cloud service for the media and entertainment industry. This innovation is supported by robust financial and operational performance, as seen in the latest metrics from InvestingPro. With a market capitalization of $15.85 billion and a revenue growth of 7.25% in Q1 2023, Akamai demonstrates a solid business expansion trajectory. The company's gross profit margin stands at an impressive 60.44%, indicating a strong ability to translate sales into profit.
Two InvestingPro Tips that are particularly relevant to Akamai's current strategy include the fact that management has been aggressively buying back shares, which could indicate confidence in the company's future performance. Additionally, 11 analysts have revised their earnings upwards for the upcoming period, suggesting optimism about the company's growth prospects. These insights highlight Akamai's potential in delivering value to shareholders and its commitment to innovation and financial health.
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