Akamai's Strategic Partnerships: A Catalyst for Cloud and Cybersecurity Dominance

Akamai Technologies (NASDAQ: AKAM) is positioning itself as a leader in the rapidly evolving cloud and cybersecurity markets through a series of strategic partnerships aimed at expanding its ecosystem and leveraging AI-driven solutions. Recent alliances with Cloudinary and P3M Works highlight a dual focus: enhancing video delivery efficiency and fortifying zero-trust security protocols. These moves could accelerate revenue growth, reduce operational risks, and solidify Akamai's position as a must-hold stock for tech investors.

Cloudinary: AI-Powered Video Delivery for Scalability and Efficiency

Akamai's partnership with Cloudinary, announced in June 2025, marks a significant step in its video delivery capabilities. By integrating Cloudinary's AI-powered tools into its Video Manager platform, Akamai addresses longstanding challenges in video management, such as optimizing performance, reducing post-production workload, and delivering seamless cross-device experiences.

The collaboration leverages Cloudinary's Qualified Compute Partner Program membership, enabling customers to deploy scalable, AI-driven video solutions on Akamai's distributed cloud infrastructure. This integration not only enhances user experience but also reduces latency and costs, a critical advantage as video consumption continues to grow.

The company's security and cloud computing revenue rose 10% and 15% year-over-year in Q1 2025, respectively. The Cloudinary partnership could further boost these figures by expanding addressable markets.

Key benefits include:
- AI-Driven Optimization: Cloudinary's tools automate tasks like compression, transcoding, and adaptive streaming, reducing manual intervention and operational costs.
- Security Synergy: The alliance aligns with Akamai's focus on API security, addressing a critical vulnerability point. With over 108 billion API attacks reported between 2023 and 2024, this integration ensures video delivery systems remain resilient against cyber threats.
- Day-2 Operations Support: Akamai's expanded partner programs now include managed services for API security and segmentation, reducing the burden on customers to maintain compliance and security post-deployment.

P3M Works: Zero-Trust Security for the UK Defense Supply Chain

Akamai's partnership with UK-based P3M Works targets a high-growth sector: zero-trust identity and access management (ICAM) solutions for government and defense supply chains. The collaboration, announced in May 2025, combines Akamai's proven zero-trust technologies—used by the U.S. DoD—with P3M's deep expertise in UK regulatory frameworks.

The joint offering, set to launch in Q3 2025, addresses critical pain points in defense supply chains, such as third-party access risks and intermittent connectivity. Key features include:
- Dynamic Policy Enforcement: Context-aware access decisions based on identity, device health, and behavioral analytics.
- Federated Identity Management: Standardized identity verification for cross-organizational collaboration.
- Continuous Authentication: Real-time verification of user sessions, even in low-connectivity environments.

This partnership taps into a booming market: global zero-trust security spending is projected to reach $32 billion by 2027, driven by regulatory mandates and rising supply chain attacks. Akamai's role in the UK defense sector could open doors to similar contracts in other regions, diversifying its revenue streams.

Why Investors Should Take Note

1. Accelerated Ecosystem Expansion: By partnering with Cloudinary and P3M, Akamai is not just adding features—it's building an interconnected ecosystem of tools that reduce customer costs and complexity. This “one-stop shop” approach could increase customer retention and upsell opportunities.
2. AI as a Competitive Moat: The integration of AI-driven video management and zero-trust policies positions Akamai ahead of competitors still reliant on legacy systems.
3. Risk Mitigation: Cybersecurity is a top priority for enterprises and governments. Akamai's focus on zero-trust and API protection directly addresses this demand, reducing revenue volatility.

Shares of AKAM have underperformed the Nasdaq Composite over the past year, trading at 12.5x forward EV/EBITDA—a valuation that may not yet reflect the strategic value of these partnerships.

Investment Thesis

Akamai's partnerships with Cloudinary and P3M Works represent a disciplined growth strategy that aligns with two megatrends: the shift to cloud-native video delivery and the imperative for zero-trust security. With its robust infrastructure and partnerships, Akamai is well-positioned to capitalize on $100+ billion markets.

For investors, AKAM offers:
- Revenue Diversification: New streams from video management and defense-sector cybersecurity.
- Cost Efficiency: Partnerships reduce R&D redundancies, allowing Akamai to allocate capital to high-growth areas.
- Valuation Upside: At current multiples, the stock may be undervalued relative to its growth trajectory.

Risks to Consider

• Regulatory Headwinds: Compliance requirements in defense and public sectors could delay contract approvals.
• Competitor Innovation: Rival cloud providers like AWS and Microsoft are also investing in zero-trust and video solutions.

Conclusion

Akamai's strategic moves with Cloudinary and P3M Works are not incremental—they're transformative. By embedding AI into video delivery and zero-trust security, the company is future-proofing its offerings against both market demands and emerging risks. For investors seeking exposure to the cloud and cybersecurity boom, AKAM is a stock to buy and hold for the long term.

Disclosure: The author holds no position in AKAM at the time of writing.