Riverbed Grows WAN Op Business in 2012 as Performance Management Ramps Up

2012 was a big year for Riverbed in terms of products and revenues.

Riverbed reported its fourth-quarter and full-year fiscal 2012 results late Thursday, showing continued traction for the company’s core WAN optimization business.

For the full year 2012, Riverbed reported revenue of $837 million, which is a 15 percent year-over-year gain. Net income for the year came in at $55 million, which is a decline from the $64 million reported for 2011.

Jerry Kennelly, Co-Founder, Executive Chairman, Chief Executive Officer and President of Riverbed, said during the company’s earnings call that in 2012, his company introduced more new products than in any period in it history.

In Riverbed’s primary WAN optimization business, the company introduced new Steelhead appliances.

Riverbed announced the Steelhead EX WAN optimization hardware in February of 2012. The Steelhead EX includes technology known referred to as Virtual Services Platform (VSP), and was formerly known as the Riverbed Services Platform (RSP). RSP was first introduced by Riverbed back in 2008 as a way to provide additional services to branch locations.

Riverbed has also optimized the EX platform to work with VMware vSphere.

At the same time as the EX launch, Riverbed also announced its Granite technology for consolidating servers, storage, backup and desktop infrastructures to the data center.

Performance Management

2012 was also particularly notable for Riverbed’s performance management business. The company debuted new Cascade appliances during the year and also made a major acquisition. Riverbed acquired OPNET for $1 Billionin October adding new application performance management capabilities.

Kennelly said that Riverbed’s Performance Management (RPM) technology is now the combination of Cascade and OPNET technologies.

“The integration of OPNET and Cascade creates a comprehensive performance management solution much greater than the sum of the two parts,” Kennelly said. “RPM returns visibility control to the operations team as the ability to monitor real-time end-user experience is critical to the success of highly virtualized and hybrid infrastructure evolving today.”

Eric Wolford, President of Products and Marketing at Riverbed said during the earnings call that there is a modest amount of overlap between what Cascade provides and what OPNET offers.

“The center point of OPNET has been around the end-user experience, and the center point of Cascade had been much more around packets and flows,” Wolford said. “You have application consumers and server consumers and networking consumers, and they all want to stitch together one common view of where an application performance problem might be.”


Sean Michael Kerner is a senior editor at InternetNews.com, the news service of the IT Business Edge Network, the network for technology professionals. Follow him on Twitter @TechJournalist

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