Akamai Acquires KryptCo, Enhances Cloud Security Portfolio
Zacks Investment Research | Sep 22, 2019 11:06PM ET
Akamai Technologies, Inc. (NASDAQ:AKAM) recently acquired KryptCo, a security startup that builds mobile-based authenticationtechnology, in order to strengthen presence in the zero trust ecosystem. However, the financial terms of the deal were kept under wraps.
Akamai integrated Enterprise Application Access (EAA) with KryptCo’s Multi-Factor Authentication (MFA) solution. This will enhance security and improve functionality of Akamai’s user interface.
KryptCo technology creates an authenticated and encrypted architecture that aid enterprises to defend against breaches through end-to-end and effective cloud-based Trusted Access product suite.
With the joint Akamai-KryptCo solution, organizations can begin adopting a zero trust security model. Moreover, organizations can further enhance security features and mitigate phishing incidents on devices. This buyout will aid Akamai to deliver on its commitment of safeguarding customer data while focusing on people-centric secure enterprise IT approach.
What is Zero Trust Security?
In the Zero Trust approach to cybersecurity, the network and the vulnerabilities are assumed to be constantly evolving and indiscernible. This means that perimeter security is no longer enough to protect the organization. A core tenet of Zero Trust is to keep a lookout for malicious activities in all internal and external traffic, and identify the areas of improvement. Summing up, the model follows one rule — “Never Trust, Always Verify.”
Synergies from Buyouts Hold Promise
Akamai's Enterprise Application Access aids IT and security teams to shift to Zero Trust security architecture. Consequently, the latest acquisition will empower the new cloud businesses with a secure single sign-on and unified access. With the acquisition, the company expects to enhance its security solutions portfolio amid growing data traffic.
Moreover, with this acquisition, Akamai’s customers will be able to experience greater flexibility in operations, enhanced multi-level security, increased awareness and greater administrative control. This additional level of protection will aid the company gain the trust of users, consequently increasing adoption of its products and ultimately boosting the top line.
Cloud Security Solutions Gaining Traction
Robust adoption of Akamai’s security solutions has bolstered the top line. The company has returned 46.4% on a year-to-date basis, outperforming the Zacks Investment Research
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