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Akamai to shut down its CDN operations in China

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Re: Akamai to shut down its CDN operations in China

#11

Post by talldayo »

ghaff wrote: post #9

I see a lot of US organizations decoupling stuff from China, especially if it's fairly peripheral, such as pulling back from running events there. But there's also a lot of more fundamental second-sourcing and the like.

The writing has been on the wall for over a decade, at this point. The only companies that "risk it" with China are the ones that rely on borderline (or in some cases, literal) slave labor to maintain their margins. If you don't have an outstanding manufacturing investment to honor, it's a net-negative reliance in many cases.

Re: Akamai to shut down its CDN operations in China

#12

Post by hlieberman »

thaumasiotes wrote: post #10
hlieberman wrote: post #5

Earlier quoted context omitted.

It’s not. They’ve held FedRAMP certifications for more than a decade. Source: ex-Akamai InfoSec employee

The requirements of the certification might change for political reasons.

That's not something that's currently planned, and even if it did, it would take years. Besides, it wouldn't apply anyway; Akamai's China business was already routed through a mainland China company, as required by Chinese law.

Re: Akamai to shut down its CDN operations in China

#13

Post by robinjhuang »

talldayo wrote: post #11
ghaff wrote: post #9

I see a lot of US organizations decoupling stuff from China, especially if it's fairly peripheral, such as pulling back from running events there. But there's also a lot of more fundamental second-sourcing and the like.

The writing has been on the wall for over a decade, at this point. The only companies that "risk it" with China are the ones that rely on borderline (or in some cases, literal) slave labor to maintain their margins. If you don't have an outstanding manufacturing investment to honor, it's a net-negative reliance in many cases.

Canva has a great presence in China.

Re: Akamai to shut down its CDN operations in China

#14

Post by ghaff »

talldayo wrote: post #11
ghaff wrote: post #9

I see a lot of US organizations decoupling stuff from China, especially if it's fairly peripheral, such as pulling back from running events there. But there's also a lot of more fundamental second-sourcing and the like.

The writing has been on the wall for over a decade, at this point. The only companies that "risk it" with China are the ones that rely on borderline (or in some cases, literal) slave labor to maintain their margins. If you don't have an outstanding manufacturing investment to honor, it's a net-negative reliance in many cases.

For many things, it was never a particular net positive. At this point, it makes sense to cleanly and quietly withdraw. This particular release isn't especially quiet but many companies are just stopping doing activities at convenient points.

Re: Akamai to shut down its CDN operations in China

#16

Post by soared »

talldayo wrote: post #11
ghaff wrote: post #9

I see a lot of US organizations decoupling stuff from China, especially if it's fairly peripheral, such as pulling back from running events there. But there's also a lot of more fundamental second-sourcing and the like.

The writing has been on the wall for over a decade, at this point. The only companies that "risk it" with China are the ones that rely on borderline (or in some cases, literal) slave labor to maintain their margins. If you don't have an outstanding manufacturing investment to honor, it's a net-negative reliance in many cases.

This is not remotely accurate. Plenty of large tech companies still play in China. The difficulties are very high but if you are big enough the huge market size it’s still very profitable. I don’t think google/etc are in China for its slave labor.

Re: Akamai to shut down its CDN operations in China

#18

Post by ghaff »

soared wrote: post #16
talldayo wrote: post #11

Earlier quoted context omitted.

The writing has been on the wall for over a decade, at this point. The only companies that "risk it" with China are the ones that rely on borderline (or in some cases, literal) slave labor to maintain their margins. If you don't have an outstanding manufacturing investment to honor, it's a net-negative reliance in many cases.

This is not remotely accurate. Plenty of large tech companies still play in China. The difficulties are very high but if you are big enough the huge market size it’s still very profitable. I don’t think google/etc are in China for its slave labor.

Certainly, depends on the company/organization. If working in China is a big win then many companies will decide to continue doing so while preparing other options. If it's more marginal, then starting to carefully pull out probably makes sense. Which is more or less what I'm seeing. I'm not sure about ten years but the situation over the last five has started to become pretty clear.

Re: Akamai to shut down its CDN operations in China

#20

Post by khana »

wordofx wrote: post #6
thaumasiotes wrote: post #3

> Akamai to shut down its CDN operations in China ...and continue offering the same service by reselling Tencent's CDN. Looks like they're making this one of the things in China that has to be provided locally?

They don’t want foreign businesses having a solid foothold in the country.

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