By David Gross
The load balancer, I mean layer 4-7 switching, or "application delivery controller" market has gotten extremely competitive with F5 (FFIV), Citrix (CTXS), Cisco (CSCO), Radware (RDWR), and Coyote Point all fighting to expand their presence in data centers, regardless of what new names their marketing departments create for the product category. Radware stepped up its presence in this sector earlier this year when it bought Nortel's Alteon division for $18 million, a company Nortel itself bought in 2000 for $6 billion. Yes, that's three/tenths of a penny on the dollar. Recession and bankruptcy are good at producing opportunities like this.
Radware is continuing to invest in the Alteon line, and just released a new version of the software that supports the platform, OS 27. Just in case you're keeping score, F5 is on version 10 with its TMOS software, and Citrix is on 9 with its Netscaler O/S. Radware claims the new software will decrease response times for key applications like SharePoint, Siebel, and PeopleSoft by up to 350%. The company also sees the software improving performance of virtualized apps, and is already a member of VMWare's (VMW) Technology Alliance Program.
Radware stock has been holding steady in the mid-30s since last week's Equinix sell-off on relatively light volumes. The company reports earnings October 27th.