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SAN FRANCISCO—November 18, 2013— Today, at Riverbed® Analyst Day 2013, Riverbed Technology (NASDAQ: RVBD) will announce a new and expansive product and market strategy designed for growth. Riverbed has emerged from a four-year effort to transform from a single-product company to a platform company and with its expanded product set is well-positioned to address a market more than 10 times the current size of its original core market and growing at a combined annual growth rate (CAGR) of over 5 percent.
Nearly everyone uses applications, data and networks, and we do this everywhere, at headquarters and in branches, home offices, remote offices, on planes and on our phones. Yet long distances and multiplying locations in the physical world cause latency (which slows down applications) and bandwidth limitation issues (which increase costs) in the digital world that affect application performance and impact collaboration and productivity.
"We started Riverbed 11 years ago to eliminate distance and location as variables in delivering applications by solving the problems of latency and bandwidth limitations in wide area networks," said Jerry M. Kennelly, chairman and CEO, co-founder of Riverbed. "We're proud of our heritage in pioneering the WAN optimization market and we believe that Steelhead® has an important and bright future. But, Riverbed today is much more than WAN Optimization.
"Over the last four years, we've made the journey from a single product to four major product sets that add up to something much bigger - the industry's most complete application performance platform to enable a concept we call: Location-Independent Computing," Kennelly continued. "We made the investment. We did the work. We have the products. Now, it's time to capitalize."
Today, Riverbed together with its partners offers the most complete platform that allows customers to embrace Location-Independent Computing to leverage location and distance for competitive advantage. Location-Independent Computing gives IT the flexibility to host applications and data in the most optimal locations while ensuring flawless delivery and best user experiences. Organizations that embrace Location-Independent Computing achieve higher people productivity, better leverage of global skills/resources and radically reduce TCO.
Riverbed Application Performance PlatformTM
During the last four years, Riverbed has continued to invest in its core business of WAN Optimization. Riverbed Steelhead remains the industry's #1 WAN optimization solution, winner of the InfoWorld 2013 Technology of the Year Award seven consecutive times. It's always been known for accelerating delivery of applications to the branch and now it also accelerates delivery of SaaS and cloud-based applications. And, now with Path Selection, Steelhead can prioritize mission-critical apps for delivery over the fastest networks while delivering lower-priority apps over the Internet.
In addition, Riverbed has been expanding beyond its original value proposition with significant investments in innovation that led to the development of Riverbed Granite®, a storage delivery solution that reduces TCO and expedites branch office backup, recovery and restore of applications and data after disasters or outages.
In addition, Riverbed has acquired innovative technologies that solve related IT performance problems. Riverbed Stingray® is the most flexible ADC on the market and recognized as the most visionary solution to optimize secure and scalable delivery of applications from private or public clouds to users anywhere. The acquisition of Mazu in 2009 and CACE Technologies in 2010 led to the development of the Riverbed Network Performance Management (NPM) product line, and the acquisition of Opnet in 2012 led to the development of Riverbed Application Performance Management (APM) products. Together, these make up the Riverbed Performance Management product line, which provides enterprise-class end-user, application and network performance management to detect and fix performance problems before end users notice.
All of these products come together in the Riverbed Application Performance Platform, which ensures applications perform as expected, data is always available when needed and performance issues are detected and fixed before end users notice. Together with its partners, Riverbed offers the most complete platform for Location-Independent Computing.
Application Performance Infrastructure: An $11-Billion Market
The technological capabilities of these products to enable location independence are converging:
These markets include the technologies that come together to create a global platform for Location-Independent Computing that removes the barriers of distance and location for billions of people. That overall market for Application Performance Infrastructure is sized at about $11 billion and growing at about a 5 percent CAGR.
At today's Analyst Day, Jerry and CFO Ernie Maddock will also detail some of the operational moves that Riverbed is making in the sales, channels, alliances, marketing, product development and financial management arenas in order to successfully market, sell and implement an infrastructure platform at global scale. To watch the live webcast of Riverbed Analyst Day 2013 go to http://www.visualwebcaster.com/RiverbedAnalystDay
This press release contains forward-looking statements, including any statements regarding plans, strategies and objectives of management for future operations or financial performance, statements regarding expectation or belief regarding future events, potential markets or market size, technology developments, future product introductions and any statements of assumptions underlying any of the items mentioned. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include our ability to react to trends and challenges in our business and the markets in which we operate; our ability to anticipate market needs or develop new or enhanced products to meet those needs; the adoption rate of our products; our ability to establish and maintain successful relationships with our distribution partners; our ability to compete in our industry; fluctuations in demand, sales cycles and prices for our products and services; shortages or price fluctuations in our supply chain; our ability to protect our intellectual property rights; general political, economic and market conditions and events; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission. More information about these and other risks that may impact Riverbed's business are set forth in our Form 10-K filed with the SEC for the period ended December 31, 2012, and our subsequent quarterly reports filed with the SEC. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements. Any future product, feature or related specification that may be referenced in this release are for information purposes only and are not commitments to deliver any technology or enhancement. Riverbed reserves the right to modify future product plans at any time.
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Riverbed enables organizations to modernize their networks and applications with industry-leading SD-WAN, application acceleration, and visibility solutions. Riverbed’s platform allows enterprises to transform application and cloud performance into a competitive advantage by maximizing employee productivity and leveraging IT to create new forms of operational agility. At more than $1 billion in annual revenue, Riverbed’s 28,000+ customers include 97% of the Fortune 100 and 98% of the Forbes Global 100. Learn more at www.riverbed.com.
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