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Akamai (AKAM) Strengthens Security Services With New Upgrades

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Akamai (AKAM - Free Report) recently rolled out product enhancements to Security and Personalization Services (SPS) Secure Business offering. The aim is to aid Internet service providers (ISPs) deliver robust cybersecurity solutions to small and mid-sized business (SMB) clients.

Akamai SPS Secure Business empowers ISPs to provide SMBs with enterprise-standard security capabilities to address cyberattacks caused by phishing, malware, ransomware and botnets.

With the latest updates, ISPs can leverage Akamai SPS Secure Business to aid SMB clientele boost business in a secure network infrastructure.

Robust Features to Boost Adoption

Akamai’s SPS Secure Business is now loaded with new updates including, SPS Secure Business Cloud, new personalized services, and improvement in threat intelligence and responsiveness.

The latest SaaS-based implementation model enables ISPs to accelerate planning and categorize deployment of services, thereby reducing capital expenses and other operational costs.

The new security additions are expected to boost adoption of SPS Secure Business solution, which bodes well for the company’s financial performance. This in turn will instill investors’ optimism in the stock.

In fact, Akamai’s latest updated offering is enabling Comcast Business to aid SMB customers secure devices connected to Comcast Business Internet from select cyberthreats in a cost-effective hassle free manner.

Notably, shares of Akamai have returned 48.9% year to date, outperforming the industry’s rise of 4.3%.

Efforts to Fortify Security Portfolio: A Key Catalyst

Akamai is leaving no stone unturned to enhance network security and application micro-segmentation capabilities to address DDoS, botnet and malware among other threats.

Although, SMB vertical is exposed to advanced cybersecurity threats, the companies lack proper infrastructure to address such security breaches.

Per Keeper Security’s 2019 SMB Cyberthreat Study, 60% of senior decision makers from SMBs lack a cyberattack prevention plan with 67% having faced cyberattacks in the past year.

Further, according to a study from the U.K. government, as revealed by Akamai, 74% of small businesses believe cybersecurity is a primary concern for senior management.

In this backdrop, we believe latest updates to Akamai’s SPS Secure Business will efficiently address security concerns and boost adoption from ISPs looking to capitalize on emerging SMB vertical.

We believe that high demand for Akamai’s security solutions will translate into significant growth opportunities over the longer haul. Notably, management intends to achieve $1 billion run rate in security solutions in 2020, which deserves a special mention.

Zacks Rank & Other Stocks to Consider

Akamai currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology sector are Alteryx (AYX - Free Report) , Synopsys (SNPS - Free Report) and Keysight Technologies (KEYS - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Alteryx, Synopsys and Keysight is currently pegged at 17.62%, 12% and 10%, respectively.

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