Gartner has released their Magic Quadrant for Wan Optimization
Controllers ID:G00219270. Only three
companies made it into the Leaders portion of the magic quadrant, Riverbed,
Blue Coat Systems, and Silver Peak.
Gartner. Riverbed led the other
two companies by a great deal from the perspective of Completeness of Visionand Ability to Execute. Silver Peak and Blue Coat were practically on
top of one another with Citrix close by in the Visionary area of the Magic
Quadrant. and Ability To Execute.
Cautions for Blue Coat included stagnant revenue, being late
with features, and management churn.
This makes it sounds as if their acquisition by Thoma Bravo for $1.3
billion in mid February 2012 has yet to payoff.
Cautions for Silver Peak Systems included lacking application specific
optimization and lacking in some capabilities for mobile and home office
workers.
Gartner praised riverbed for having the “broadest set of
capabilities in the industry” and being one of the most innovative companies in
the market.
Riverbed is currently trading at around $16. Far off its high of around $30 in March 2012. It bottomed out around $13.30 in July. Riverbed's financial report published in early February was mixed. Total GAAP revenue for Q4’12 was $237
million, up 9% compared to the third quarter of fiscal year 2012 (Q3’12) for the
full year 2012, GAAP revenue was $837 million, up 15% compared to 2011 GAAP net
income for Q4’12 was $5 million. This compares
with $20 million, in Q4, 2011.
However, Riverbed captured more than 52% share of the worldwide Advanced Platform WAN
optimization market share based on vendor revenue for the third quarter of 2012
per Gartner’s according to Gartner’s report titled “Market Share: Application
Acceleration Equipment, Worldwide 3Q12” December 2012.
So the revenue trends are in the right
direction. Now about that reduction in
net income?
Overall, with respect to their main competitors in the Magic
Quadrant. Their position is golden compared
to Silver Peak. Their growth in 2012
probably has Blue Coat singing the blues.
Riverbed is well positioned for 2013.
How Do You Use A Gartner Magic Quadrant?
The below is from a Research Methodologies piece on
utilizing Magic Quadrants. Too often, a
pic of the quadrant will make its way onto a slide deck with no explanation.
Clients use Magic Quadrants as a first step to understanding
the technology providers they might consider for a specific investment
opportunity. Keep in mind that focusing
on the leaders' quadrant isn't always the best course of action. There are good reasons to consider market
challengers. And a niche player may
support your needs better than a market leader.
It all depends on how the provider aligns with your business goals.
The five other companies in the WAN Optimization Controllers
Magic Quadrant are probably pleased about the above.
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