Back to top

Image: Bigstock

Akamai Introduces ISV Catalyst to Accelerate Cloud Growth

Read MoreHide Full Article

Key Takeaways

  • AKAM unveiled ISV Catalyst, an ISV-first partner program to speed up go-to-market on its distributed cloud.
  • AKAM removes referral fees for the first year, adding co-marketing, directory placement and sales exposure.
  • Akamai integrates ISV Catalyst with Partner Connect, targeting AI, cloud-native & multicloud software demand.

Akamai Technologies, Inc. (AKAM - Free Report) has launched independent software vendors (ISV) Catalyst, a new partner program tailored specifically for ISVs looking to accelerate growth through collaboration. The referral-based initiative enables ISVs to build, market and sell solutions on Akamai’s globally distributed cloud platform, while creating a streamlined and efficient path for customers to discover and engage with those offerings.

The launch comes at a pivotal moment for the cloud computing industry, as software providers increasingly integrate artificial intelligence, support multicloud environments and prioritize scalable, cost-efficient, cloud-native architectures. ISV Catalyst is designed to address these demands by reducing traditional barriers to cloud adoption and partner programs, helping ISVs bring solutions to market faster while meeting rising customer expectations for intelligent, portable and highly scalable applications.

Management highlighted that with the launch of ISV Catalyst, the company is delivering on the promise of its unified partner strategy. Its ecosystem supports every type of partner, offering ISVs flexible ways to engage while creating a stronger community where services, solutions and software work together to deliver greater customer value.

What Does ISV Catalyst Offer?

ISV Catalyst takes an ISV-first approach that minimizes friction, unlike traditional partner models. One of its key differentiators is the elimination of referral fees during the first year of participation, significantly lowering the entry threshold for both emerging startups and established software vendors. This structure allows ISVs to focus on innovation and customer acquisition rather than upfront partnership costs.

Through ISV Catalyst, participating ISVs gain access to a range of growth-oriented benefits, including co-marketing opportunities with Akamai to boost brand visibility, featured placement in Akamai’s Technical Partner Directory and online properties, increased exposure to Akamai’s global sales organization and a foundation for long-term collaboration. By leveraging Akamai’s extensive cloud and edge infrastructure, ISVs are better positioned to capture growing enterprise demand for specialized cloud software that supports digital transformation initiatives.

The new program also integrates seamlessly into Akamai’s broader partner ecosystem, which includes Akamai Partner Connect and the Qualified Compute Program. While the Qualified Compute Program continues to support deep technical integrations and advanced interoperability, ISV Catalyst expands ecosystem access by offering a more streamlined on-ramp with clear pathways for growth. This approach reflects Akamai’s strategy of curating a high-quality ISV ecosystem that aligns closely with customer needs and ensures compatibility with its cloud platform.

ISV Catalyst is available to independent software vendors of all sizes, from early-stage startups to established enterprise providers, particularly those building next-generation applications. The program is well-suited for ISVs developing AI-powered, cloud-native and multicloud-ready solutions, including generative AI and machine learning applications, containerized and serverless technologies, FinOps and cloud cost optimization tools and industry-specific vertical software solutions.

Akamai is benefiting from solid momentum in the security and compute verticals across multiple end markets. Strong demand for the Guardicore platform, API security solutions and cloud infrastructure services is a key growth driver. The company is well-positioned to gain from the significant growth of mobile data traffic driven by the increasing adoption of mobile data/apps. With the acquisitions of Neosec and Noname Security, Akamai has accelerated the advancement of its AI-powered API security solution. Strong focus on innovation is a positive.

For 2025, Akamai expects revenues in the range of $4.178 billion to $4.198 billion. It expects a non-GAAP operating margin of 29-30%. Non-GAAP earnings are now projected to be in the range of $6.93-$7.13 per share.

Zacks Rank & Share Price Performance

Akamai currently has a Zacks Rank #3 (Hold). Shares of AKAM have lost 7.7% in the past year against the Internet – Services industry’s growth of 55%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider From the Internet Services Space

Some better-ranked stocks from the broader technology space are Tencent Holdings Limited (TCEHY - Free Report) , Crexendo, Inc. (CXDO - Free Report) and HealthStream, Inc. (HSTM - Free Report) . TCEHY sports a Zacks Rank #1 (Strong Buy), while CXDO and HSTM carry a Zacks Rank #2 (Buy).

Tencent Holdings’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing on one, with the average surprise being 6.73%. In the last reported quarter, TCEHY delivered an earnings surprise of 19.1%. Its shares have surged 46.6% in the past year.

Crexendo’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 32.08%. In the last reported quarter, CXDO delivered an earnings surprise of 25%. Its shares have jumped 35.4% in the past year.

HealthStream earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 10.18%. In the last reported quarter, HSTM delivered an earnings surprise of 17.65%. Its shares have plunged 23.5% in the past year.

Published in