Monday, November 24, 2008

Amazon S3 has Akamai Laying off 7% Of It's Work Force, Maybe.

Seems like only yesterday (cause it was), that I was blogging about how Amazon S3 would be changing up the content delivery network market. In yesterday's post, I had the foresight to say that things in the cdn market were going to be shaked up by Amazon S3.

Today, it was announced that Akamai would be laying off 7% of it's workforce. Now, they didn't exactly say that the layoffs were related to Amazon's S3, however, I can't think of a good reason that Akamai would be down sizing it's business. Sure the economy has been affecting many companies, but Akamai's main business customers are the large companies who continue to use Akamai's cdn services regardless of what the economy is doing. That said, Akamai's business should really be recession proof.

My educated guess is that Akamai is using the economy as an opportunity to dump their employees while trying to save face. The same way many companies did during 911. I think that the reality has finally hit them, that Amazon S3, is making their over priced service irrelevant. I know, it's a bold statement, however, it's just my own educated guess (which most of the times turn out to be true).

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