Edge Security CDN (WAF + DDoS + Bot Mitigation) is the fastest growing segment in the CDN industry. Akamai security solutions is likely to reach $450M to $550M in 2017. CloudFlare is likely to generates $100M+ in sales this year. And Imperva announced 2016 earnings yesterday, generating $177M in services. Although Incapsula revenue is not broken out on this specific report, it wouldn’t be surprising if 2016 Incapsula revenue was $150M. If we add the three together – this is what we come up with.

2017 Revenue Run Rate Range

• Akamai: $450M – $550M
• Incapsula: $150M – $200M
• CloudFlare: $100M – $125M
• 2017 Total: $700M – $875M

Now if we add revenue from Distil Networks, Zenedge, and all others selling WAF + DDoS + Bot Mitigation, total revenue is likely to reach $1B by the end of 2017. The best part, Edge Security revenue is a new revenue stream to the industry that does not cannibalize existing sales. Therefore, this means CDNs are taking revenue away from the pure-play security sector. And this revenue stream is likely to explode into much more because as Akamai noted during the Investor Summit, the penetration of their security products into the existing customer base is very low, therefore, there is a lot of room for revenue growth.