F5 Networks F5 Networks Analyst/Investor Meeting Analyst/Investor - - PowerPoint PPT Presentation
2 F5 Networks F5 Networks Analyst/Investor Meeting Analyst/Investor Meeting November 2, 2007 November 2, 2007 3 F5 Networks F5 Networks Analyst/Investor Meeting Analyst/Investor Meeting November 2, 2007 November 2, 2007 John McAdam
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F5 Networks Analyst/Investor Meeting November 2, 2007 F5 Networks Analyst/Investor Meeting November 2, 2007
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F5 Networks Analyst/Investor Meeting November 2, 2007 F5 Networks Analyst/Investor Meeting November 2, 2007
John McAdam
President & Chief Executive Officer
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F5 Networks Analyst/Investor Meeting November 2, 2007 F5 Networks Analyst/Investor Meeting November 2, 2007
Andy Reinland
SVP & Chief Finance Officer
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08:00 Welcome/Introduction (John McAdam, President & CEO) 08:05 Agenda (Andy Reinland, SVP & Chief Finance Officer) 08:10 Market Overview (Dan Matte, SVP Marketing, Corporate Development & Business Development) 08:40 Application Ready Networks (Erik Giesa, VP Product Management) 09:10 Partner Update (Jim Ritchings, VP Business Development) 09:30 BREAK 09:40 Data Solutions (Chris Lynch, SVP Data Solutions) 10:20 Sales Update (Tom Hull, SVP Worldwide Sales) 10:35 Service Update (Julian Eames, SVP Business Operations) 10:50 Technology Update/Road Map (Karl Triebes, SVP Product Development & Chief Technical Officer) 11:25 BREAK 11:30 Q&A 12:00 ADJOURN
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Q4 Q1 Actuals Guidance Net Revenue $145.6M $154.0 - $156.0M Gross Margin 77% 76-77% Operating Expenses $93.3M $94.0 - 97.0M Stock Based Comp $10.2M $15.0M EPS $0.13 $0.20-.21 DSO 57 Days Mid 50’s Cash from Ops $48M $45M+ Tax Rate 57% 38%
Q108 Guidance
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F5 Networks Analyst/Investor Meeting November 2, 2007 F5 Networks Analyst/Investor Meeting November 2, 2007
Dan Matte
SVP Marketing, Business Development & Corporate Development
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USD of Millions Sources: Gartner Dataquest (Oct ’07), Forrester (March ‘07), & Infonetics (May ’07)
45% 60% 21% 54%
Plus File Virtualization
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EMC Cell phone PC - Home Laptop – coffee shot
NetApp Web Server Web Server Web Server
Web Server Web Server Web Server PC - LAN PC - WAN MS SQL Server Oracle mySQL Server Windows file storage Windows file storage
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EMC Cell phone PC - Home Laptop – coffee shot
NetApp Web Server Web Server Web Server
Web Server Web Server Web Server PC - LAN PC - WAN MS SQL Server Oracle mySQL Server Windows file storage Windows file storage
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EMC PC - Home
Web Server Web Server Web Server
Web Server Web Server Web Server PC - LAN WLAN Windows file storage Windows file storage
Application Server Virtualization (LTM) File Storage Virtualization (ARX)
NetApp Cell Remote - WAN
Web Server Virtualization (LTM) Data Center & Link Virtualization (LTM)
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13
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Starts 2 new virtual images to match demand Starts 2 associated pool members
VMWare
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BIG-IP Acopia ARX In Line Proxy Approach Yes Yes Abstracts Apps & Users from Servers & Applications Apps & Users from File Storage Moves Intelligence to Network Yes Yes Insulates Users from Change Yes Yes
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Heterogeneous NAS Storage Building Blocks
Heterogeneous “Virtual” NAS Global Namespace Wide-Area Storage Optimization
Any vendor that supports CIFS and/or NFS
Dell, EMC, HDS, IBM, Linux, HP, NetApp, Sun, Windows, new players…
Choice of Best Storage “Mix and Match” Policy-Driven NAS Optimize Remote Access and Replication Consistent Persistent Namespace
Heterogeneous NAS Storage Building Blocks
High Perf Tier-1 (FC) Tier-2 (SATA) Highest Security Lowest Cost/GB Lowest Power
Storage Consumers Applications and End Users
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Consolidated Data Center Remote Office People Apps & Data Centralized for control Trips optimized …But don’t adequately address control of data
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Savings Data Control
Remote access “Virtual” Local File Server WAN Optimization Local file server and local administration
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Savings Data Control
Remote access “Virtual” Local File Server WAN Optimization Local file server and local administration
High control and low savings Low control and low savings Some control and WAN savings Hi control, WAN & Storage savings
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File Storage File Storage
WANjet WANjet
ARX
Data Center Branch
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File Storage File Storage
“Active” files are accessed from an existing local file server via the ARX
WANjet WANjet
ARX
Data Center Branch
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File Storage File Storage
“Active” files are accessed from an existing local file server via the ARX “In-active” data is transparently accessed from data center storage via the ARX
WANjet WANjet
ARX
Data Center Branch
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File Storage File Storage
“Active” files are accessed from an existing local file server via the ARX “Active” files are automatically replicated to data center storage by the ARX “In-active” data is transparently accessed from data center storage via the ARX
WANjet WANjet
ARX
Data Center Branch
Authoritative Copy is tracked and delivered as needed based on policy
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File Storage File Storage
“Active” files are accessed from an existing local file server via the ARX “Active” files are automatically replicated to data center storage by the ARX “In-active” data is transparently accessed from data center storage via the ARX
WANjet WANjet
ARX
All WAN traffic is
by WANjet
Data Center Branch
Authoritative Copy is tracked and delivered as needed based on policy
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WANjet
ARX File Storage Block Storage
WANjet
ARX File Storage Block Storage
Data Center #1 Data Center #2 Persistent Branch
High Performance Data
Server-less Branch
“Generic” Data
WANjet WANjet WANjet WANjet
ARX
File Svr
Data Replication Traffic (EMC SRDF) Remote Traffic (inactive data and active data replication) Remote Traffic (all data)
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Compression TCP Optimization HTTP Optimization Data Migration Policy Driven Data Management Tiering/ILM Global Namespace Data Replication
Cisco BIG-IP & WANJet “ARX-Jet” ARX WebAccelerator Riverbed Cisco Cisco Citrix Cisco
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F5 Riverbed Cisco Citrix
Data Centers
protocols
Web Servers
Partial
File Storage
Inline Proxy Approach
Partial
LAN Performance with Data Integrity
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F5 Networks Analyst/Investor Meeting November 2, 2007 F5 Networks Analyst/Investor Meeting November 2, 2007
Erik Giesa
VP Product Management & Product Marketing
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F5 Strategic Objective Accelerate the transition from selling F5 products at the staff level to selling a broader F5 solution at a more strategic level Desired Outcomes
Bigger deals More cross-selling opportunities in an account Additional competitive differentiation (by changing the
customer conversation)
Improved strategic positioning in accounts (how they
view us)
Regarding ADN Solution Strategy & Application Ready Networks In 07 We Said...
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32 FQ3’07 FQ1’08 FQ2’07 FQ3’07 FQ4’07
SepOctober November December
JAN FEB MAR APR MAY JUN J A SApplication Ready Network (ARN) Release Roadmap
F5 Oracle ARN Released
F5 Microsoft ARN
F5 SAP ARN
F5 Microsoft ARN
F5 Microsoft ARN
F5 IMS Ready for Service Providers
F5 BEA ARN
F5 Oracle ARN
Moving Forward in ‘08
F5 VMWare ARN
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Innovative ARN Architectures Demonstrate Value
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Oracle E-Business Suite 11 &12 Oracle10G
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Solutions Include Entire F5 Product Portfolio
36 Traditional F5 Engagement Points New Targets to Engage
Traditional F5 Engagement Points
New Targets to Engage
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Additional Route to Market – Storage Extension
Traditional F5 Engagement Points
New Targets to Engage
STORAGE Storage Architect Infrastructure EngineeringNew ‘08 Targets to Engage
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Application Architect Storage Architect Network Architect
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10-15% of IT infrastructure teams now are referring to themselves as application networking teams—and are increasingly cross-functional.
FY'06 FY'07 20 40 60
Top Tier Analyst Reports on Application Networking Application Networking and Delivery references within press and analyst community has quadrupled in ’07.
“I’ve got the network guys asking me about application delivery. More importantly, they are starting to think like they are application delivery engineers. In all seriousness, I think there’s a sea change afoot.”
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$0 $25,000,000 $50,000,000 $75,000,000 $100,000,000 FY'05 FY'06 FY'07
Sales from Deals >$200k
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Results: More Cross Selling Opportunities
20 40 60 80 100 120 140 160 FY'05 FY'06 FY'07
# of Accounts >$400k per Year
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Results: More Cross Selling Opportunities
$0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 FY'05 FY'06 FY'07
Sales from Accounts >$400k per Year
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10 20 30 40 50 FY'05 FY'06 FY'07
# of Accounts >$1M per Year
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$0 $25,000,000 $50,000,000 $75,000,000 $100,000,000 FY'05 FY'06 FY'07
Sales from Accounts >$1M per Year
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50 100 150
FY'06 FY'07
Technology Center Engagements
10 20 30
FY'06 FY'07
Technology Center / POC Assisted Revenue
C.I.O C.T.O V.P. of Application Architecture V.P. of Application Infrastructure Managing Director, Information Systems V.P. of Network Infrastructure & Ops V.P. of Network Services & Design
Example Customers Example Titles $28M 105
46 Managing Scale & Consolidation Unified Security Enforcement & Access Control App Security & Data Integrity User Experience & App Performance
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Market Engagement Strategy 2008
Business Continuity HA Disaster Recovery Managing Scale & Consolidation Unified Security Enforcement & Access Control App Security & Data Integrity Storage Growth User Experience & App Performance
People Data Apps
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Account Engagement Strategy 2008
People Data Apps
Business Continuity HA Disaster Recovery Managing Scale & Consolidation Unified Security Enforcement & Access Control App Security & Data Integrity User Experience & App Performance Storage Growth
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Business Continuity HA Disaster Recovery
People Apps Data
FirePass BIG-IP LTM • GTM ARX BIG-IP GTM BIG-IP LTM
FirePass BIG-IP LTM • GTM • LC • WA FirePass • ARX • WJ
Symmetric Acceleration
Acceleration
Access
Protection
Validation
Infrastructure
Offload
Central Policy Enforcement
Balancing BIG-IP LTM • GTM • WA ARX • WJ BIG-IP LTM • GTM • LC • WA FirePass • ARX • WJ
Application Delivery Network 2.0
Managing Scale & Consolidation Unified Security Enforcement & Access Control App Security & Data Integrity Storage Growth User Experience & App Performance
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Customer Success Story: Large Financial
Who
Bank and holding company - capital management, general
banking, wealth management, corporate and investment banking
3,000+ offices
Customer Objective:
Flexible architecture - create services overlay network
architecture to support their SOA for applications
Accelerate transactions / minimize latency – “milliseconds mean
millions”
Business continuity / disaster recovery - ensure all infrastructure
and datacenters are available
Application security / data integrity - support PCI compliance
Outcome:
$1.44M (LTM/GTM/ASM/WA)
51 Traditional F5 Engagement Points New Targets to Engage
$1.4M
l l
n g g e e r r c c y y c c l l e e
$40k
shorter cycle
Targeting Application Architects: Results
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Engaging the Customer Buying Process:
Load Balancing – usually $30k-$60k cycle
Leverage from this point of strength to something more
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Engaging the Customer Buying Process:
The ADN & ARN Message
$1.4M initial deal – other datacenters and branches to follow
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Double-down on solution execution Double-down on partnerships Double- down on educating field & channels Anticipated results:
Increased standardization on F5 Greater frequency of deals Bigger deals and more of them More referrals from partners
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F5 Networks Analyst/Investor Meeting November 2, 2007 F5 Networks Analyst/Investor Meeting November 2, 2007
Jim Ritchings
VP Business Development
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Application Partner Update
Microsoft, SAP, Oracle
The EMC Partnership
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Partnership Established 2001
F5 is a Globally Managed ISV Partner Microsoft Technology Center Alliance Partner
Solution Portfolio:
Application Ready Network
Server 2007
Additional Solutions:
Hosting, Hosted Messaging & Collaboration, .NET, Windows Terminal Server, Systems Center Ops. Manager…….
Microsoft Tech Centers
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Exchange 2007:
“Exchange 2007 volume adoption will begin in earnest in
2008 with the installed base (which comprises approximately 150 million commercial users) reaching 40% in 2010 (0.7 probability).
Gartner
SharePoint 2007:
“80 million licenses sold with over 10,000 customers.
Examples of enterprise-wide deployments like Accenture, Honeywell, and DelMonte are now commonplace.
Kurt DelBene, Corporate Vice President, Office Business Systems Platform, October 2006
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Go-to-Market
Marketing/Demand Creation:
Field and Channel Enablement
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Partnership Details:
F5 Founding member of SAP CO-Innovation Lab
(COIL)
SAP-Certified Products:
BIG-IP Local Traffic Manager with Web
Accelerator
BIG-IP Local Traffic Manager with Application
Security Manager
FirePass SSL-VPN
Solution Portfolio:
F5 Solution = Application Ready Network for SAP
Go-to-Market:
Marketing/Demand Creation:
Field and Channel Enablement
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1.
Customers Using the NetWeaver Enterprise SOA platform
2.
R/3 to mySAP/ERP 6.0 upgrades
SAP Business One
< 100 employees ~ $15 billion market S M A L L
SAP Business ByDesign
100-500 employees NEW BUSINESS ~ $15 billion market M ID S IZ E
SAP Business All-in-One
< 2,500 employees ~ $15 billion market
SAP Business Suite
including SAP ERP 6.0 > 2,500 employees ~ $30 billion market L A R G E
SAP Business One
< 100 employees ~ $15 billion market S M A L L
SAP Business ByDesign
100-500 employees NEW BUSINESS ~ $15 billion market M ID S IZ E
SAP Business All-in-One
< 2,500 employees ~ $15 billion market
SAP Business Suite
including SAP ERP 6.0 > 2,500 employees ~ $30 billion market L A R G E
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Improved Server
Utilization/Cost Reduction:
44% reduction in server
CPU utilization
20x reduction in server-
side connections
Improved WAN
Performance
2x improvement in WAN
portal login time.
4.5x to 177x faster
document downloads
Reduced bandwidth
costs
SAP Business One
< 100 employees ~ $15 billion market S M A L L
SAP Business ByDesign
100-500 employees NEW BUSINESS ~ $15 billion market M ID S IZ E
SAP Business All-in-One
< 2,500 employees ~ $15 billion market
SAP Business Suite
including SAP ERP 6.0 > 2,500 employees ~ $30 billion market L A R G E
SAP Business One
< 100 employees ~ $15 billion market S M A L L
SAP Business ByDesign
100-500 employees NEW BUSINESS ~ $15 billion market M ID S IZ E
SAP Business All-in-One
< 2,500 employees ~ $15 billion market
SAP Business Suite
including SAP ERP 6.0 > 2,500 employees ~ $30 billion market L A R G E
F5 Value Proposition
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Partnership Details:
Oracle Certified Partner
Solution Portfolio:
Application Ready Network:
Solutions
Oracle Fusion Middleware Oracle Portal
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Go-to-Market Marketing/Demand Creation:
Field and Channel Enablement
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EMC is reselling WANJet effective immediately.
EMC Select Program EMC reps paid commission + quota retirement on WANJet
F5 and EMC have Signed A Cooperative Support
Agreement
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EMC E-Lab
center replication.
replication, etc.
Value Proposition
BIGGER
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CHALLENGES
1,000+ miles between DC’s. 18 Mb/sec of bandwidth provided, but over 90
Mb/sec needed to run replication
Government not willing to lease more BW. Unable to sustain replication beyond 2 hours. Deal stalled in POC. EMC unable to close.
RESULTS with F5 WANJet
8:1 Optimization/Compression rate achieved SRDF/A replication able to run on 18 Mb/sec link
in production
Avoided need for additional bandwidth EMC closed the sale
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Aggressively pursue EMC sales reps and technical consultants
(SE’s)
Technical training, lunch & learns, etc.
F5 Field Training Underway EMC Customer Outreach:
EMC Forums, EMC World, Webcasts, Email campaigns, etc.
EMC field is already introducing opportunities to F5
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F5 Networks Analyst/Investor Meeting November 2, 2007 F5 Networks Analyst/Investor Meeting November 2, 2007
Christopher Lynch
SVP Data Solutions
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$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2006 2007 2008 2009 2010
Sources: Gartner Dataquest (Oct ’07), Forrester (March ‘07), IDC & Infonetics (May ’07)
CAGR 124% $M
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data
by 50% to 120% annually
is declining >30% annually
costs $/TB Cost $/TB Cost TB Growth TB Growth
“Network-based file virtualization is a key technology for more effectively managing file-based information.” - IDC “Network-based file virtualization is a key technology for more effectively managing file-based information.” - IDC
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Raw storage device
prices continue to fall dramatically
Two large vendors
largely control end- user storage pricing
Consumer switching
costs are high due to proprietary vendor lock-in
The problem is getting
worse not better
“File virtualization solutions offer a compelling alternative…”
Brad O’Neill, Taneja Group
“File virtualization solutions offer a compelling alternative…”
Brad O’Neill, Taneja Group
Storage Street Price Storage Street Price Storage Industry Cartel Price Storage Industry Cartel Price
Lock Lock-
in
$30/Gb $10/Gb
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Storage Growth is UNDERMINING UNDERMINING their their business business
Cost
Disruption
Inability to Scale
Their Information Assets are are AT RISK AT RISK
Inaccessible
Exposed
Unprotected
Source: IDC Source: IDC
$0 $0 $5 $5 $10 $10 $15 $15 $20 $20 $25 $25 $30 $30 $35 $35 2 5 2 5 2 7 2 7 2 9 2 9 ($B) ($B) 5 5 10 10 15 15 20 20 (EB) (EB)
WW disk system revenue WW disk system revenue Exabytes Exabytes shipped shipped
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0% 10% 20% 30% 40% 50% Vendor Management Power Management Regulatory Compliance Lack of Integrated Tools Data Mobility Dealing with Performance Problems Archiving and Archive Management Storage Provisioning Managing Complexity Managing Costs Backup Administration & Management Proper Capacity Forecasting & Storage Reporting Managing Storage Growth
Source: Source: TheInfoPro TheInfoPro Storage Study Q1, 2007 Storage Study Q1, 2007
Addressed by Addressed by ACOPIA ACOPIA
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0% 10% 20% 30% 40% 50% Vendor Management Power Management Regulatory Compliance Lack of Integrated Tools Data Mobility Dealing with Performance Problems Archiving and Archive Management Storage Provisioning Managing Complexity Managing Costs Backup Administration & Management Proper Capacity Forecasting & Storage Reporting Managing Storage Growth
Source: Source: TheInfoPro TheInfoPro Storage Study Q1, 2007 Storage Study Q1, 2007
Addressed by Addressed by ACOPIA ACOPIA
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0% 10% 20% 30% 40% 50% Kazeon ONStor Brocade Compellent Sun Symantec Cisco HP NeoPath HDS IBM Microsoft Acopia NetApp EMC
16% 7% 48% 17% 13%
Not in Plan In Long- term Plan In Near- term Plan In Pilot / Evaluation In Use Now
Overall Implementation Time Frame More Money 38% Less Money 15% About the Same 47%
2007 Spending and 2007 Spending Compared to 2006 for Users with the Technology In Use
No Spending Under $100K $100K - $499K $500K - $999K $1M - $4.99M 0% 20% 40% 60% 80% 100% 2007 Spending Ranges
TheInfoPro Storage Study Q1, 2007
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User / application access tightly coupled to physical file storage coupled to physical file storage
Inflexible: change is disruptive : change is disruptive
Complex: multiple mappings to : multiple mappings to heterogeneous storage devices heterogeneous storage devices
Inefficient: low aggregate utilization : low aggregate utilization
File access decoupled from physical storage location storage location
Flexible: change is non : change is non-
disruptive
Simple: single mapping to unified : single mapping to unified storage pool storage pool
Efficient: maximize utilization : maximize utilization
BEFORE BEFORE AFTER AFTER
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“Global Namespace Global Namespace” ” view of the data view of the data – – a federation a federation
Masks changes to underlying storage systems from users and applications users and applications
Automates common storage management tasks – – Migration, Migration, Tiering Tiering, Dynamic Load Balancing, , Dynamic Load Balancing, Replication Replication
These tasks now take place without affecting access to the file data or requiring client re to the file data or requiring client re-
configuration
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Financial Financial Services Services Healthcare Healthcare Manufacturing Manufacturing Media & Media & Entertainment Entertainment Business Business Services Services Other Other
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F5 Acopia solves the challenges of managing
storage growth
Disruptive Operations become transparent Manual Operations become automated Resulting in huge cost savings
The only enterprise-class, intelligent file
virtualization solution
Performance, scale, availability, and accessibility Multi-protocol, multi-vendor, multi-location
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Improves Storage Utilization ~20% increase in capacity utilization on average
“Acopia's virtualization switches provided real-time balancing of load across our NAS
infrastructure…effectively utilizing all of our available file storage capacity.” – Cliff Dutton, CTO, Ibis (Pitney Bowes)
Reduces Storage Costs
~50% CAPEX savings on average through tiering
“Instead of needing to purchase Fibre Channel storage, we were able to invest in less expensive
SATA drives at a cost savings of almost 50%.“ – Reinhard Frum, Director Distributed IS, Messe Dusseldorf
Reduces Backup Costs
~70% reduction in active backup dataset and backup windows
“Acopia reduced the size of backups by 98%, which lowered our media costs by 90%.” – James Sample, Director of IT Infrastructure, Wiley Publishing
Reduces Operational Costs
~50% reduction in OPEX on average
“As a result of the Acopia implementation, we have…reduced our overhead associated with storage management by 50%.” – Mike Streb, VP of Global Infrastructure, Warner Music Group
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Acopia EMC / Rainfinity Brocade / NuView Attune
Scale
>2B files <50M files Small Small
Heterogeneity
Limited Limited
Global Namespace
File Level Share Level Share Level File Level
Tiering / ILM
Limited Limited
Replication
File Level Share Level Share Level X
Dynamic Load Balancing
X X
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Extends ADN value proposition proposition
New entry point into enterprise accounts enterprise accounts
Leverages existing F5 F5 technolgy technolgy into into new markets new markets
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F5 Networks Analyst/Investor Meeting November 2, 2007 F5 Networks Analyst/Investor Meeting November 2, 2007
Mark Anderson
SVP Worldwide Sales
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EMEA APAC Seattle North America Japan Latin America
520 F5 Salespeople Worldwide F5 Sales Offices in 31 Countries 1375 Channel Partners Worldwide F5 Products Sold in over 60 Countries
International HQ Regional HQ / Support Center R&D F5 Regional Office
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57% 59 % 6 6 % 55% 6 3 % 59 % 59 % 55% 6 4 % 59 % 56 % 57% 6 0 % 58 % 58 % 58 % 17% 15% 13 % 16 % 15% 18 % 16 % 18 % 16 % 18 % 2 0 % 17% 17% 17% 18 % 18 % 11% 10 % 8 % 10 % 10 % 8 % 9 % 11% 11% 11% 13 % 12 % 11% 13 % 12 % 11%1 13 % 12 % 13 % 12 % 2 2 % 11% 18 % 14 % 18 % 8 % 14 % 16 % 10 % 14 % 12 % 12 % 1 20 30 40 50 60 70 80 90 1 00 1 1 1 20 1 30 1 40 1 50 1 60 1 Q04 2Q04 3Q04 4Q04 1 Q05 2Q05 3Q05 4Q05 1 Q06 2Q06 3Q06 4Q06 1 Q07 2Q07 3Q07 4Q07
Japan APAC EMEA Americas
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1375+ Partners Worldwide
700 in North America 675 internationally
Partner Tiers based on revenue, evaluation equipment, and
technical certifications
Gold (290 partners) Premier (145 partners) Authorized (870 partners) Distributors (70 partners)
Top 5 Global Distributors
Avnet (formerly GE Access) Ingram Micro Tech Data Tokyo Electric Device NTT – Advanced Technology Corporation Digital China Equip Computerlinks
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Action Plan – Improve Productivity
FACT: >33% of WW Sales have been on board < 4 qtrs
Rolling out Solutions Selling (Selling to App
Architects)
225 people trained in NA 300 people trained in APAC, EMEA, Japan New Hire session – 2 days 300 NA Partner Personnel trained at 2007 Partner Summit
Mentors assigned to provide guidance during first
year
Hiring profile has evolved
Cisco, Symantec, Mercury Interactive, IBM Subtle differences between MAM’s & TAM’s
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Productivity– N A Theater
Early results:
Attach rate on training, consulting up Deals sizes have increased
Advanced feature attach rate up
Examples:
Web 2.0 – Bay Area (legacy Netscaler customer)
Giant Southwestern US Insurance Co
Top 5 Investment Bank – Wall St.
Top 10 Retail Bank – Southeast
Big 5 Consulting Firm
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Major Account Focus in EMEA
‘Sniper’ – subject matter expert MAM’s and SE’s to assist Partners
in NA-like model
Inside sales centralization
Aggressive, surgical partner activities
Vertical focus on Telco’s in EMEA, Japan, APAC returning solid
investments
Leverage of solution sets that resonated with NA SP’s New exciting ones being created Good blend of OEM Partner success (e.g. Ericsson, Nokia, Alcatel-
Lucent etc.) and organic business with Operators/Carriers/Cable.
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SERVICE PROVIDER
Q1/07 Telco/Service Provider Teams created
Targeting Tier 1 Fixed and Mobile Service Providers:
Resellers/Partners
US FEDERAL (DoD, Civilian)
Key Q4 Sales wins:
NA Mobile Operator - $970K
APAC Mobile Operator - $2.6M
NA Cable Provider - $750K
DoD Programs – locked and loaded Civilian Agencies catching up
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Coordinated Focus:
Leverage product introductions
architecture
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Increasing Sales headcount
We will continue to invest in growth
Sales & Channel Partner Readiness
Re-launched F5 University: Partner Solution
Selling (Live October 16, 2007)
International Sales Conference (ISC) Implementing 30-60-90 Day New Hire Ramp Plan Internal Online Learning Modules (ARN, SF.com,
Acopia, Storage Basics)
Continued Leverage of Salesforce.com
Launched Automated Product Configurator – Instantly
Available in Partner Portal
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SE Community
Portal launched earlier this year
Technical blogs Great uptake
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Online Learning Modules
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100
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Data Solutions Sales
North America and EMEA
APAC, Japan and LATAM
Sales Engagement Guiding Principles
Unqualified Leads
Acopia Products
Start
102
F5 Networks Analyst/Investor Meeting November 2, 2007 F5 Networks Analyst/Investor Meeting November 2, 2007
Julian Eames
SVP Business Operations
103
Invest in Consulting Employees Training ISO Accreditation New Services:
IBM iRules On Demand Installation Services
104
37% $12,894k $ 9,397k Training/Install/Consulting *NB Training flat 54% $70,077k $45,480k Renewal Maintenance 43% $49,205k $34,316k Initial Maintenance % Y/Y 2007 2006
105
Tempered by the installed base refresh of v.9 capable platforms replacing v.4 platforms 4x platform peak under support 21,032 on Nov 2005
50.81k 2.81k 33.75k 14.25k 4Q 46.87k 2.77k 28.9k 15.2k 3Q 43.6k 2.58k 23.76k 17.27k 2Q 40.8k 2.42k 19.98k 18.39k 1Q Total Other v.9 v.4
End of life of 4.x support 18 months away
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Revenue is deferred so initial is more a reflection of
the previous years product growth than the current
Outsourced Service renewals in EMEA to
ServiceSource
Improved reporting from Oracle has allowed us to
target specific territories and countries for improvement
Small field sales team Additional RMA services in North America, APAC,
and EMEA
107
25.8 27.0 30.8 35.5 37.3 41.5 46.3 52.2 58.0 65.6 73.1 80.8 95.9 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07
Quarterly Deferred Maintenance Revenue
6% 5% 14% 15% 5% 11% 11% 13% 11% 13% 11% 11% 19% 6% 5% 14% 15% 5% 11% 11% 13% 11% 13% 11% 11% 19% 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07
Deferred Maintenance Revenue Growth
Q4 consulting bookings surpassed $3M for the first time
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Headcount
Now at 320 globally 37% increase in 2006 Support Center attrition 15% 10% went to roles in F5 5% true attrition: this is a world class
number
71 new NSEs in 2007 Escalation Managers in all geographies
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Invest in Training
In addition to ENE release training 4 full time internal trainers Classroom delivery CBT delivery Spin offs to SE, channel, end-users
110
ISO 9001 Accreditation Achieved
All 5 regional support centers audited All passed 9 month project work
111
Askf5 Replacement
A little late but just inside 2007
Results are amazing Twice the number of hits already:
5k/per day before never broke 2.5k
Success rate from 40% to 70%
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0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0
Q2 FY05 Q3 FY05 Q4 FY05 Q1 FY06 Q2 FY06 Q3 FY06 Q4 FY06 Q1 FY07 Q2FY07 Q3FY07 Q4FY07
7.1 7.0 7.7 7.7 8.1 8.1 8.1 8.0 8.2 8.6 8.7
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Q4 Customer Satisfaction Survey Results
8.2 8.3 8.4 8.5 8.6 8.7 8.8 NA EMEA APAC JAPAN 8.8 8.7 8.8 8.4
By Region
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Create a global ARX data support
Support Center ENEs Consultants
Maintain customer satisfaction above 8.5 Maintain & expand ISO 9001 Accreditation Maintain the reactive performance but
improve the proactive:
1st Time Fix Problem Avoidance Major Account Sponsorship
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Improve our leverage of the sales
environment:
i-Rules Consulting with everything Whitepapers Knowledge transfer
116
Revenue growth
Channel Health Consulting
Renewal Review Direct Sales 4 Hour RMA price drop and Channel
Incentive Program
117
F5 Networks Analyst/Investor Meeting November 2, 2007 F5 Networks Analyst/Investor Meeting November 2, 2007
Karl Triebes
SVP Product Development & Chief Technical Officer
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EMC PC - Home
Web Server Web Server Web Server
Web Server Web Server Web Server PC - LAN WLAN Windows file storage Windows file storage
Application Server Virtualization (LTM) File Storage Virtualization (ARX)
NetApp Remote - WAN
Web Server Virtualization (LTM) Data Center & Link Virtualization (LTM)
119
Datacenter Today–Limited Virtualization
Tomorrow . . .
“Greater than 17% of servers will be virtualized by 2010.” IDC, 2007
Today . . .
Fewer than 10% of servers that use Intel and AMD's x86 chips—the fastest-growing part of the server market—use virtual machines, leaving lots of room for growth.” David Goulden, CFO, EMC, February 2007
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Storage Hosted
121
Storage in the cloud
122
Discreet application services connected to storage in the cloud
123
Security Availability Optimization Data, Network, Server Virtualization Dynamic Resource Management Service Virtualization
124
Common High Performance Hardware Design TMOS + Plug-ins iRules ADN and DC Solutions Common Management Framework
Client ADN Services (client s/w) Branch ADN Services Core-Edge ADN & DC Services Core ADN & DC Services
ADN & DC Management (EM & ControlPoint) GTM LTM LC WJ WA FP ASM ARX
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Applications & Storage Users
International Data Center
Enterprise Manager / ControlPoint TMOS iControl BIG-IP Global Traffic Manager WANJet FirePass SSL VPN BIG-IP Local Traffic Manager BIG-IP Application Security Manager BIG-IP Web Accelerator BIG-IP Link Controller ARX File/Data Virtualization
Integrated Application Delivery Networking Architecture
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SSL Compression
Client Side Server Side
GTM Server TCP Express Caching Microkernel
High Performance Scalability Fully Integrated Stack from L2 – L7+
Dedicated High Performance HW – NICS / SSL/ Compression / Other
iRules
Client
MCPd
TCP Proxy OneConnect XML Rate Shaping TrafficShield Web Accel 3rd Party
L4/L3 Routing HTTP FirePass
iControl API
Pluggable architecture allows new functionality to be rapidly integrated
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2H CY05 1H CY06 2H CY06 1H CY07 Global Traffic Manager (GTM) Link Controller (LC)
TMOS
Web Accelerator MSM
TMOS
WANJet XML Firewall
TMOS
2H CY07
COMPLETE COMPLETE IN PROCESS COMPLETE
FirePass
TMOS
1H CY08
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Control Point and Enterprise Manager
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Stand-alone F5 appliance Partnered with Microsoft
Leveraging MS System Center
Operations Manager 2007
Visibility into app delivery
network
Provide F5 device insights
130
Bandwidth/traffic utilization
Top talkers Top applications Top servers Optimized vs un-optimized traffic Most latent connections Before/after F5 device (ROI tool)
Web Analytics
Top N page views Types of browsers Average session length Referring URLs
End user experience
Slowest applications Response-time reports Slowest end users/locations Before/after implementation
Device Performance
Historical & real-time device
metrics
BIG-IP monitor response times # of connections consolidated CPU consumption by iRule
131
Discovered F5 BIG-IP LTM and all network objects
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ARX Solutions (Acopia)
133
Heterogeneous “Virtual” NAS Global Namespace Wide-Area Storage Communication Optimization
Choice of Best Storage Mix and Match Policy-Driven NAS Optimize Remote Access and Replication Consistent Persistent Reliable Namespace
Heterogeneous NAS Storage Building Blocks
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Applications
Intelligent File Virtualization Switch
Vendor A FC Vendor B SATA
Virtual Namespace Physical Namespace
fc1:/vol/vol2/photos/house.jpg vfiler1:/photos/house.jpg
ILM
Vendor C Archive The virtual name is independent of the physical path
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WANJet and Web Accelerator
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Symmetric Remote Office
New York
Asymmetric
Large/Medium Remote Office
Beijing
Small Remote Office
Internet or WAN
London Warsaw
Home Office
Xiamen
Home Office
BIG-IP WebAccelerator
Data Center and Remote Office Acceleration
Without Acceleration Asymmetric Acceleration Symmetric Acceleration
Response time Sydney
Remote Office
WebAccelerator
Only product that does both simultaneously
137
F5 Symmetric ECDN Reference Architecture
Munich
Sydney Paris London Tokyo
Enterprise Manager WANJet
FirewallsBIG-IP GTM
Database Servers Blade ServersInternet or WAN
Los Angeles Singapore
New York
BIG-IP LTM WebAccelerator
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BIG-IP WebAccelerator Prime Performance
Performance gain: 417% Performance gain: 413% Bandwidth Reduction: 87.7% Performance gain: 289% Performance gain: 329%
Major Sports League Mobile Handset Manufacturer Pension Guarantee Institution
Performance gain: 723%
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1800% Performance Boost - WebAccelerator
Due to Advanced TMOS integration
WAM Performance: SmartCache -vs- HotCache - 2007/09 WA (232) - cache - no Comp - no CA - multNodes - VS - 10RPC Throughput
500,000,000 1,000,000,000 1,500,000,000 2,000,000,000 2,500,000,000 128B 2KB 8KB 64KB 512KB
Requested File Size Layer 7 Bits per Second
d68 - v942b228.8 - SmartCache d68 - v942b170.1 - HotCache d68 - v942b175.0 - HotCache d68 - v942b228.8 - HotCache
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Most pages now load in under five seconds (at 56kb),
an improvement of 35 – 95% per page
Dramatically improved code, optimized copy, and usage of
BIG-IP Web Accelerators are the primary drivers for improvement
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Integrate WANjet with Web Accelerator proxy
Best of breed HTTP acceleration + WoC functionality
Native iRules support
support for arbitrary protocol acceleration and optimization
More protocol proxy support (NFS, MAPI, etc…) Further integration with BIG-IP/TMOS
GTM for multi-site, LC for link redundancy/optimization, SSL acceleration,
LTM features for DC availability/failover, etc… Integration with ARX
best of breed acceleration + file/storage optimization Supports file acceleration and remote content management
New high end appliances (WJ600/800) for multi-Gigabit
performance
Expanded footprint with SoftWoC – leverages FP technology Performance, performance, performance
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FirePass and ASM
143
ASM/TrafficShield Highlights
New release with BIG-IP DryCreek release
Full XML Firewall Added new security model – negative security
Protocol firewall (ftp, SIP, SMTP, etc…)
FirePass Highlights
New major features with 6.0.2
improvements with application interoperability
Medusa for beta in Q1 (FirePass on TMOS, 10x performance)
144
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Data Center Virtualization Support
Multi-tenancy (SP oriented) Native VM support (VMware, MS Virtual Server, etc…) Management – EM, Control Point, and 3rd Party
Continued Integration with other products
FirePass (Auth Proxy), WANJet, and ARX (future) 3rd Party Plugin support
Service Provider specific Features (SIP, RTSP, etc…) XML gateway/routing New platforms, blades, chassis types Performance, performance, performance
Expand ADN Footprint in Data Center
146
BIG-IP Platform Roadmap
Puma Blade
> 30G L4 > 24G L7 > 24G SSL
Montreal
Performance
BIG-IP 8800
RELEASED!
New family of V9 Platforms
Puma II Blade for Montreal
Next Generation
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Unmatched Performance
Massive scalability Processing architecture common with 8800
Intelligent Clustering
SuperVIP (Virtuals can seamlessly span blades) N+M redundancy for all features in cluster
High Availability
Automatic failover within cluster Chassis-to-chassis redundancy
Full Modular Chassis
4 blade slots w/1 blade type 1 blade type Any blade can be chassis master
Common central management console
Single point of Management Same user interface as BIG-IP appliances
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20,000 22,000 31,000 48,000 192,000
50,000 100,000 150,000
6800 8400 8400 CMP 8800 CMP Montreal4
SSL Transactions per Second
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L7 Traffic (HTTP TPS)
400,000 800,000 1,200,000 1,600,000 2,000,000 6400 6800 8400 8800 Montreal
> 2M TPS w/Puma
150