Growing Security Concerns Make F5 Networks a Good Investment

Author's Avatar
Aug 31, 2014
Article's Main Image

F5 Networks (

FFIV, Financial) is on a sweet run this year. Shares of the systems administration gear producer have soared more than 12%, outperforming the more extensive market and opponent Cisco (CSCO). The organization as of late turned out with solid second-quarter results that surpassed expectations, resulting in several value target upgrades. Considering the problems that Cisco has been confronting, F5's performance could enhance further as it is making some great moves that are worth viewing.

Solid performance and strategies

F5 has lined up various strategies to improve. One of them is its valuing and tiering strategy, wherein it classifies products as great, better, and best. This move has gotten positive criticism from customers, especially the best class. In the previous quarter, product sales incorporated under this tiering strategy were up 83% quarter-on-quarter.

Looking ahead, the security segment should end up being a key development driver for F5. The organization is making great progress here with two multi-million dollar sales deals in the second quarter. As indicated by administration, F5's solutions supplanted existing solutions from its rivals. F5 has an impressive portfolio of security solutions. These products are known as Access Policy Manager, Application Security Manager, and Advanced Firewall Manager.

The progressed firewalls business is picking up footing as F5 saw a Tier 1 service supplier purchase its AFM firewalls to supplant existing conventional server farm firewalls. F5 now possesses a couple of cutting edge security facilities in Tel Aviv and Seattle to support its new online security service that it picked up after its Versafe acquisition. The organization has started seeing contract wins of its Versafe services such as Internet hostile to misrepresentation, against phishing, and hostile to malware solutions.

A critical partnership

F5 is also working with Vmware. This will improve its portfolio of security products. The two companies are chipping away at giving a secure mobile workforce experience to users, with the capacity to securely access applications irrespective of area. Also, F5 and Vmware are focusing on bringing down cost and making arrangement easy through their partnership. F5 has also presented virtual additions of BIG-IP Access Policy Manager. These are perfectly customized for Vmware's Horizon the earth.

Since Vmware is an important player in cloud administration, mechanization, and virtualization, F5 has made a decent move by banding together with it. Vmware's bookings in cloud administration and mechanization were up 40% in the final quarter as software-characterized networks are picking up steam. So, alongside Vmware, even F5 may see an increase in bookings going ahead as a result of this partnership.

F5 is making aggressive moves to focus on the virtualization market. It as of late released its new TMOS version 11.5, which is the most late version of F5's virtual orchestration motor BIG-IQ. This new version has been outfitted with new usefulness for unified administration solutions. Coupled with its aggressive evaluating, this new item can help F5 pick up more customers going ahead.

Besting Cisco

F5 can also pick up as a result of the problems at Cisco. First, Cisco is confronting a certainty crisis in the developing markets after the spying scandal that surfaced last year. Furthermore, Cisco's credentials were harmed further when it was uncovered that the Heartbleed bug is influencing its products and services. Recently, Cisco announced that two services and 11 products were susceptible to Heartbleed.


F5 looks very strong. The organization is winning new contracts, its item advancement is top-indent, and it is attempting to capitalize on its rival's woes. Determined by such factors, F5 can keep rising going ahead, making it a decent investment.

4 / 5 (1 votes)