f5 networks analyst/investor meeting november 2, 2007€¦ · f5 networks analyst/investor meeting...

2

F5 NetworksAnalyst/Investor MeetingNovember 2, 2007


3



John McAdamPresident & Chief Executive Officer

4



Andy ReinlandSVP & Chief Finance Officer

5

Agenda08:00 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

6

Q4 Q1Actuals 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

7



Dan MatteSVP Marketing, Business Development

& Corporate Development

8

We’re in a BIG and Growing MarketU

SD o

f M

illion

s

Sources: Gartner Dataquest (Oct ’07), Forrester (March ‘07), & Infonetics (May ’07)

45%

60%

21%

54%

-.05%

Plus File Virtualization

9

Data Center Without F5 & ADN

EMC

Cell phone

PC - Home

Laptop – coffee shotApp. Server

App. Server

NetAppWeb Server

Web Server

Web Server

App. Server

App. Server

Web Server

Web Server

Web Server

PC - LAN

PC - WAN

MS SQL Server

Oracle

mySQL Server

Windows file storage


10

Data Center Without F5 & ADN

EMC

Cell phone

PC - Home

Laptop – coffee shotApp. Server

App. Server

NetAppWeb Server

Web Server

Web Server

App. Server

App. Server

Web Server

Web Server

Web Server

PC - LAN

PC - WAN

MS SQL Server

Oracle

mySQL Server



11

F5 Abstracts & Insulates

EMC

PC - Home

App. Server

App. Server

Web Server

Web Server

Web Server

App. Server

App. Server

Web Server

Web Server

Web Server

PC - LAN

WLAN



App

licat

ion

Serv

er V

irtua

lizat

ion

(LTM

)

File

Sto

rage

Virt

ualiz

atio

n (A

RX)

NetApp

Cell

Remote - WAN

Web

Ser

ver V

irtua

lizat

ion

(LTM

)

Dat

a C

ente

r & L

ink

Virt

ualiz

atio

n (L

TM)

12

Positioned to Drive Intelligence in the Data Center

13

An Example…

14

Automated Policy Triggered via iControl

Starts 2 new virtual images

to match demand

Starts 2 associated pool

members

VMWare

15

Why Acopia?

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

16

Heterogeneous NAS StorageBuilding Blocks

A Complete Model for Storage Services

Heterogeneous “Virtual” NAS

Global Namespace

Wide-Area Storage Optimization

Any vendor that supports CIFS and/or NFSDell, EMC, HDS, IBM, Linux, HP, NetApp, Sun, Windows,

new players…

Choice ofBest Storage

“Mix and Match”Policy-Driven

NAS

Optimize Remote Access and Replication

Consistent Persistent

Namespace


HighPerf

Tier-1(FC)

Tier-2(SATA)

HighestSecurity

LowestCost/GB

LowestPower

Storage ConsumersApplications and End Users

17

Acopia Positions F5 to Extend Data Center Benefits to the Branch

18

Present WAN Opt Solutions Aspire to LAN-Like Performance

ConsolidatedData Center

RemoteOffice

People

Apps & DataCentralized for control

Trips optimized

…But don’t adequately address control of data

19

Data Control Versus IT Cost SavingsSa

ving

s

Data Control

Remoteaccess

“Virtual” LocalFile Server

WAN Optimization

Local file server and local

administration

20

Data Control Versus IT Cost SavingsSa

ving

s

Data Control

Remoteaccess

“Virtual” LocalFile 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

21

File Storage

File Storage

Policy Driven “Virtual” Local File Server

WANjet

WANjet

ARX

Data Center

Branch

22

File Storage

File Storage


“Active” files are accessed from an existing local file

server via the ARX

WANjet

WANjet

ARX

Data Center

Branch

23

File Storage

File Storage



server via the ARX

“In-active” data is transparently accessed from data center

storage via the ARX

WANjet

WANjet

ARX

Data Center

Branch

24

File Storage

File Storage



server via the ARX

“Active” files are automatically replicated to data center

storage by the ARX


storage via the ARX

WANjet

WANjet

ARX

Data Center

Branch

Authoritative Copy is tracked and delivered as needed based on policy

25

File Storage

File Storage



server via the ARX

“Active” files are automatically replicated to data center

storage by the ARX


storage via the ARX

WANjet

WANjet

ARX

All WAN traffic is

optimized by WANjet

Data Center

Branch

Authoritative Copy is tracked and delivered as needed based on policy

26

Data Management Capabilities

WANjet

ARX

File Storage

Block Storage

WANjet

ARX

File Storage

Block Storage

Data Center #1

DataCenter

#2

Persistent BranchHighPerformanceData

Server-less Branch

“Generic”Data

WA

Nje

t

WA

Nje

tWANjet WANjet

ARX

File Svr

Data ReplicationTraffic

(EMC SRDF)

Remote Traffic(inactive data

and active datareplication)

Remote Traffic(all data)

27

Data Optimization Continuum

Compression

TCP Optimization

HTTP Optimization

Data Migration Policy DrivenData Management

Tiering/ILMGlobal Namespace

Data Replication

Cisco

BIG-IP & WANJet

“ARX-Jet”

ARXWebAccelerator

Riverbed

Cisco Cisco

Citrix

Cisco

28

F5 Riverbed Cisco Citrix

Data Centers

Network Links Routing protocols

Web Servers

App Servers Partial Partial

File Storage Limited

Inline Proxy Approach Partial Partial

LAN Performance with Data Integrity

WAN Optimization

Unified Platform

F5 Has Most Comprehensive Solution

29



Erik GiesaVP Product Management & Product Marketing

30

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...

31

First Application Delivery Network

32

FQ3’07 FQ1’08 FQ2’07 FQ3’07 FQ4’07

Sep October November December JAN FEB MAR APR MAY JUN J A S

Application Ready Network (ARN) Release Roadmap

F5 Oracle ARN Released

• F5 & E-Business Suite• F5 & 10G• F5 & PeopleSoft

F5 Microsoft ARN

• F5 & Sharepoint 2007• F5 & Exchange 2007

F5 SAP ARN• F5 & SAP Netweaver• F5 & SAP Enterprise SOA

F5 Microsoft ARN

• F5 & MSFT SQL Server• F5 & MSFT Server 2008

F5 Microsoft ARN

• F5 & MSFT OCS 2007

F5 IMS Ready for ServiceProviders

• Real Time Communciation• Multimedia / Video

F5 BEA ARN

• Weblogic• Aqualogic• Unified Communications

F5 Oracle ARN

• Services Delivery

Moving Forward in ‘08

F5 VMWare ARN

• VirtualCenter

33

Innovative ARN Architectures Demonstrate Value

34

Market-Leading Results and DesignOracle E-Business

Suite 11 &12Oracle10G

35

Solutions Include Entire F5 Product Portfolio

36

Traditional F5 Engagement

PointsNew Targets to Engage

Sales & Marketing Focus: Who to Target



37

Additional Route to Market – Storage Extension



STORAGE

StorageArchitect

Infrastructure Engineering

New ‘08 Targets

to Engage

38

Architects – Changing the MindsetApplication Architect Storage Architect

Network Architect

39

Results: Changing the Mindset

10-15% of IT infrastructure teams now are referring to themselves as application networking teams—and are increasingly cross-functional.

FY'06 FY'070

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.”

- Matt Cauthorn, FSE

40

Results: Bigger Deals

$0

$25,000,000

$50,000,000

$75,000,000

$100,000,000

FY'05 FY'06 FY'07

Sales from Deals >$200k

41

Results: More Cross Selling Opportunities

020406080100120140160

FY'05 FY'06 FY'07

# of Accounts >$400k per Year

42

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

43

Results: Improved Strategic Position

0

10

20

30

40

50

FY'05 FY'06 FY'07

# of Accounts >$1M per Year

44

Results: Improved Strategic Position

$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

45

Solution / TechCenter Results

0

50

100

150

FY'06 FY'07

Technology Center Engagements

0

10

20

30

FY'06 FY'07

Technology Center / POC Assisted Revenue

C.I.OC.T.OV.P. of Application ArchitectureV.P. of Application InfrastructureManaging Director, Information SystemsV.P. of Network Infrastructure & OpsV.P. of Network Services & Design

Example Customers Example Titles

$28M105

46

ManagingScale &

Consolidation

UnifiedSecurity

Enforcement& AccessControl

AppSecurity & Data

Integrity

UserExperience

& AppPerformance

2007 Go-to-Market Engagement Strategy

47

Market Engagement Strategy 2008

BusinessContinuity HA

DisasterRecovery

ManagingScale &

Consolidation

UnifiedSecurity


AppSecurity & Data

Integrity

StorageGrowth

UserExperience

& AppPerformance

People

Data

Apps

48

Account Engagement Strategy 2008

People

Data

Apps


DisasterRecovery

ManagingScale &

Consolidation

UnifiedSecurity


AppSecurity & Data

Integrity

UserExperience

& AppPerformance

StorageGrowth

49


DisasterRecovery

People

Apps Data

FirePassBIG-IP LTM • GTM

ARXBIG-IP GTM

BIG-IP LTM • ASMFirePass

BIG-IP LTM • GTM •LC • WAFirePass • ARX •WJ

• Asymmetric & Symmetric Acceleration

• Server Offload• Load Balancing

• WAN Virtualization• File Virtualization• DC to DC

Acceleration• Virtualized VPN

Access• AAA• Data

Protection• Transaction

Validation

• Virtualized App & Infrastructure

• Server & App Offload

• Load Balancing • Remote, WLAN & LAN Central Policy Enforcement

• End-Point Security• Encryption• AAA

• Virtualization• Migration• Tiering• Load

Balancing

BIG-IP LTM • GTM •WA ARX • WJ

BIG-IP LTM • GTM •LC • WAFirePass • ARX • WJ

Application DeliveryNetwork 2.0

ManagingScale &

Consolidation

UnifiedSecurity


AppSecurity & Data

Integrity

StorageGrowth

UserExperience

& AppPerformance

50

Customer Success Story: Large FinancialWho

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 applicationsAccelerate transactions / minimize latency – “milliseconds mean millions”Business continuity / disaster recovery - ensure all infrastructure and datacenters are availableApplication security / data integrity - support PCI compliance

Outcome: $1.44M (LTM/GTM/ASM/WA)

• Evaluating ARX and soon WANJet for DC to DC

51

Traditional F5 Engagement Points

New Targets to Engage

$1.4Mlonger cycle

$40k shorter cycle

Targeting Application Architects: Results

52

Engaging the Customer Buying Process:Load Balancing – usually $30k-$60k cycle

Leverage from this point of strength to something more

53

Engaging the Customer Buying Process:The ADN & ARN Message

$1.4M initial deal – other datacenters and branches to follow

54

What’s Next in 2008

Double-down on solution executionDouble-down on partnershipsDouble- down on educating field & channelsAnticipated results:

Increased standardization on F5Greater frequency of dealsBigger deals and more of themMore referrals from partners

55



Jim RitchingsVP Business Development

56

What We Will Cover Today

Application Partner Update

Microsoft, SAP, Oracle

The EMC Partnership

57

F5 and MicrosoftPartnership Established 2001

F5 is a Globally Managed ISV PartnerMicrosoft Technology Center Alliance Partner

Solution Portfolio:Application Ready Network

• Exchange 2007, SharePoint 2007, Office Communications Server 2007

Additional Solutions:• BizTalk, Dynamics, SQL Server, IIS, ISA, Windows Based

Hosting, Hosted Messaging & Collaboration, .NET, Windows Terminal Server, Systems Center Ops. Manager…….

Microsoft Tech Centers

58

Market Opportunity

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

59

F5 and MicrosoftGo-to-Market

Marketing/Demand Creation:• Worldwide Shows/Events

- TechEd, Microsoft Mgt Summit- Vertical Industry Events- Application Ready Network (ARN) Roadshow

Field and Channel Enablement• F5 Channel, F5 Sales• Field Engagement with MSFT• MSFT Business Strategy Consulting Group• Joint Solutions with HP Services

60

F5 and SAPPartnership 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-VPNSolution Portfolio:

F5 Solution = Application Ready Network for SAP

Go-to-Market:Marketing/Demand Creation:

• Worldwide Shows/EventsField and Channel Enablement

• SI’s, F5 Channel, F5 Sales

61

1. Customers Using the NetWeaverEnterprise SOA platform

2. R/3 to mySAP/ERP 6.0 upgrades

SAP High-Value Targets

SAP Business One < 100employees

~ $15 billionmarket

SMA

LL

SAP Business ByDesign 100-500employees

NEW BUSINESS~ $15 billion

market

MID

SIZE

SAP Business All-in-One < 2,500employees

~ $15 billionmarket

SAP Business Suiteincluding SAP ERP 6.0

> 2,500employees

~ $30 billionmarketLA

RG

E


~ $15 billionmarket

SMA

LL



market

MID

SIZE


~ $15 billionmarket


> 2,500employees


RG

E

-Source: SAP

62

SAP High-Value Targets

Improved Server Utilization/Cost Reduction:

44% reduction in server CPU utilization20x reduction in server-side connections

Improved WAN Performance

2x improvement in WAN portal login time.4.5x to 177x faster document downloadsReduced bandwidth costs


~ $15 billionmarket

SMA

LL



market

MID

SIZE


~ $15 billionmarket


> 2,500employees


RG

E


~ $15 billionmarket

SMA

LL



market

MID

SIZE


~ $15 billionmarket


> 2,500employees


RG

E

-Source: SAP

F5 Value Proposition

63

F5 and Oracle

Partnership Details:Oracle Certified Partner

• Partners Since 2000• Maximum Availability Architecture• Cooperative Support Agreement

Solution Portfolio:Application Ready Network:

• Oracle Application Server• Oracle e-Business Suite• PeopleSoft• Oracle Infrastructure & Technology

Solutions

Oracle Fusion Middleware Oracle Portal

64

F5 and OracleGo-to-Market

Marketing/Demand Creation:• OOW, Regional User Groups, etc.• Application Ready Network Outreach (Q2)

- Webinars, E-mail Campaigns

• Oracle Enterprise Technology Centers

Field and Channel Enablement• Oracle North American Field Sales Kick-Off• F5 Sales, F5 Channel

- DELL Enterprise Lab – PeopleSoft/f5 Bundles

• Oracle Consulting, Oracle SI Partners

65

The EMC²/F5 Partnership

66

F5 and EMC

EMC is reselling WANJet effective immediately.EMC Select ProgramEMC reps paid commission + quota retirement on WANJet

F5 and EMC have Signed A Cooperative Support Agreement

67

The WANJet + SRDF Solution

EMC E-LabSRDF = EMC Data Center Replication SolutionWANJet tested and approved for SRDF data-center to data-center replication.Tested in varying network conditions (latency, packet loss)Measured BW utilization, host response times, time to complete replication, etc.

Value PropositionWANJet delivers faster replication

• 5-10x Improvement based on Customers and Poc’s

WANJet uses less bandwidth• Up to 90% Less Bandwidth Required

BIGGER

68

Large Government Agency Use Case

CHALLENGES1,000+ 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 WANJet8:1 Optimization/Compression rate achievedSRDF/A replication able to run on 18 Mb/sec link in productionAvoided need for additional bandwidthEMC closed the sale

69

Next Steps

Aggressively pursue EMC sales reps and technical consultants (SE’s)

Technical training, lunch & learns, etc.F5 Field Training UnderwayEMC Customer Outreach:

EMC Forums, EMC World, Webcasts, Email campaigns, etc.EMC field is already introducing opportunities to F5

70



Christopher LynchSVP Data Solutions

71

Data SolutionsData Solutions

72

File Virtualization Market 2006-2010

$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

73

Industry Trends

• Explosion in amount of file data

File-based storage increasing by 50% to 120% annually

• Declining storage costsCost of disk storage systems is declining >30% annuallyIncreasing density

Rising total cost of ownershipCost of managing storage outweighs acquisition costsIncreasing energy and space costs

$/TB Cost$/TB Cost

TB GrowthTB 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

74

The Freedom Effect

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-inThe 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

StorageStreet PriceStorageStreet Price

Storage IndustryCartel PriceStorage IndustryCartel Price

LockLock--inin$30/Gb

$10/Gb

75

What Drives Acopia Customers

Storage Growth is Storage Growth is UNDERMININGUNDERMINING their their businessbusiness

CostCostDisruptionDisruptionInability to ScaleInability to Scale

Their Information Assets Their Information Assets are are AT RISKAT RISK

InaccessibleInaccessibleExposedExposedUnprotectedUnprotected

Source: IDCSource: IDC

$0$0$5$5

$10$10$15$15$20$20$25$25$30$30$35$35

2005

2005

2007

2007

2009

2009

($B)($B)

00

55

1010

1515

2020(EB)(EB)

WW disk system revenueWW disk system revenue

ExabytesExabytes shippedshipped

76

Storage Professionals’ Top Pain Points

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: TheInfoProTheInfoPro Storage Study Q1, 2007Storage Study Q1, 2007

Addressed by Addressed by ACOPIAACOPIA

77

Storage Professionals’ Top Pain Points

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: TheInfoProTheInfoPro Storage Study Q1, 2007Storage Study Q1, 2007

Addressed by Addressed by ACOPIAACOPIA

78

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 UseNow

Overall Implementation Time Frame

More Money

38%

Less Money

15%

About the

Same47%

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

File Virtualization Purchase Intent

TheInfoPro Storage Study Q1, 2007

79

It’s a Simple Story

User / application access tightly User / application access tightly coupled to physical file storage coupled to physical file storage

InflexibleInflexible: change is disruptive: change is disruptiveComplexComplex: multiple mappings to : multiple mappings to heterogeneous storage devicesheterogeneous storage devicesInefficientInefficient: low aggregate utilization: low aggregate utilization

File access decoupled from physical File access decoupled from physical storage locationstorage location

FlexibleFlexible: change is non: change is non--disruptivedisruptiveSimpleSimple: single mapping to unified : single mapping to unified storage pool storage pool EfficientEfficient: maximize utilization: maximize utilization

BEFOREBEFORE AFTERAFTER

80

Why “Intelligent” File Virtualization?

•• ““Global NamespaceGlobal Namespace”” view of the data view of the data –– a federation a federation of the underlying file systems of the underlying file systems

•• Masks changes to underlying storage systems from Masks changes to underlying storage systems from users and applicationsusers and applications

•• Automates common storage management tasksAutomates common storage management tasks–– Migration, Migration, TieringTiering, Dynamic Load Balancing, , Dynamic Load Balancing,

ReplicationReplication•• These tasks now take place without affecting access These tasks now take place without affecting access

to the file data or requiring client reto the file data or requiring client re--configurationconfiguration

81

Sample of Current Acopia CustomersFinancial Financial ServicesServices

HealthcareHealthcare

ManufacturingManufacturing

Media & Media & EntertainmentEntertainment

Business Business ServicesServices

OtherOther

82

F5 Acopia solves the challenges of managing storage growth

Disruptive Operations become transparentManual Operations become automatedResulting in huge cost savings

The only enterprise-class, intelligent file virtualization solution

Performance, scale, availability, and accessibility Multi-protocol, multi-vendor, multi-location

• Storage Capacity Costs Cut by 50 - 80%• Back up Costs Cut by 50 - 80%• Migrations Times Cut by 90%

The Economic Impact of Acopia

83

Acopia Customers Speak OutImproves 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, MesseDusseldorf

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

84

Acopia EMC / Rainfinity

Brocade / NuView Attune

Scale >2B files <50M files Small Small

Heterogeneity Limited Limited Limited

Global Namespace X

Migration File Level Share Level Share Level File Level

Tiering / ILM Limited Limited Limited

Replication File Level Share Level Share Level X

Dynamic Load Balancing X X X

Competitive Approaches vs Acopia

85

Why F5 + Acopia Makes Sense

Extends ADN value Extends ADN value propositionpropositionNew entry point into New entry point into enterprise accountsenterprise accountsLeverages existing Leverages existing F5 F5 technolgytechnolgy into into new marketsnew markets

86



Mark AndersonSVP Worldwide Sales

87

F5 Networks Global Coverage ‘07

EMEA

APAC

Seattle

North America

Japan

Latin America

520 F5 Salespeople Worldwide F5 Sales Offices in 31 Countries1375 Channel Partners Worldwide F5 Products Sold in over 60 Countries

International HQRegional HQ / Support CenterR&DF5 Regional Office

88

Revenue Trends by Geography

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 %

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

150

160

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07

Japan

APAC

EMEA

Americas

89

Channel Partner Overview1375+ Partners Worldwide

700 in North America675 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 DistributorsAvnet (formerly GE Access)Ingram MicroTech DataTokyo Electric DeviceNTT – Advanced Technology CorporationDigital ChinaEquipComputerlinks

90

Partner Sales Training On-line

91

Action Plan – Improve ProductivityFACT: >33% of WW Sales have been on board < 4 qtrs

Rolling out Solutions Selling (Selling to App Architects)

225 people trained in NA300 people trained in APAC, EMEA, JapanNew Hire session – 2 days300 NA Partner Personnel trained at 2007 Partner Summit

Mentors assigned to provide guidance during first yearHiring profile has evolved

Cisco, Symantec, Mercury Interactive, IBMSubtle differences between MAM’s & TAM’s

92

Productivity– N A TheaterEarly results:

Attach rate on training, consulting up Deals sizes have increased

Advanced feature attach rate upExamples:

Web 2.0 – Bay Area (legacy Netscaler customer)• $1.4M bookings in past 2 qtrs

Giant Southwestern US Insurance Co• Turnkey migration $1.9m

Top 5 Investment Bank – Wall St.• $3M GTM/LTM deployment in NA & APAC

Top 10 Retail Bank – Southeast• $1.4M LTM in Q4 – “CTXS evals still in lab”

Big 5 Consulting Firm• $1M initial deal, global rollout continues in 2008

93

Productivity outside NAMajor Account Focus in EMEA

‘Sniper’ – subject matter expert MAM’s and SE’s to assist Partners in NA-like model

• Yielding promising results in Finance and Telco verticalsInside sales centralization

• NA Leader moved to UK to head upAggressive, surgical partner activities

• Training on Application Ready methodology• Identifying new partners with whom to grow

Vertical focus on Telco’s in EMEA, Japan, APAC returning solid investments

Leverage of solution sets that resonated with NA SP’sNew exciting ones being createdGood blend of OEM Partner success (e.g. Ericsson, Nokia, Alcatel-Lucent etc.) and organic business with Operators/Carriers/Cable.

94

Vertical Focus – successSERVICE PROVIDER

Q1/07 Telco/Service Provider Teams createdTargeting Tier 1 Fixed and Mobile Service Providers:

• Moving them from being a customer to becoming Resellers/Partners

• Co-ordinated Global effort• Use cases for BigIP expanding

US FEDERAL (DoD, Civilian) Key Q4 Sales wins:

NA Mobile Operator - $970K• On-going competitive migration

APAC Mobile Operator - $2.6M• Largest deployment for F5

NA Cable Provider - $750K• New revenue generating applications

DoD Programs – locked and loadedCivilian Agencies catching up

95

Leverage Product Sales Cycles

Coordinated Focus:Leverage product introductions• WanJet on TMOS

• Strong support of EMC Sales force• 4.x migration to 9.x

• Surgical focus to get customers to our full proxy architecture

• Acopia (Data Solutions Team)• Leverage BigIP’s dominating market position

• FirePass on TMOS

96

Sales Investments FY07 & FY08Increasing Sales headcount

We will continue to invest in growthSales & 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 PlanInternal Online Learning Modules (ARN, SF.com, Acopia, Storage Basics)

Continued Leverage of Salesforce.comLaunched Automated Product Configurator – Instantly Available in Partner Portal

97

SE Community Portal launched earlier this year

Technical blogs

Great uptake

98

Online Learning Modules

101

Acopia – Data Solutions

Data Solutions SalesNorth America and EMEA

• Dedicated separate sales and SE teamsAPAC, Japan and LATAM

• Integrated sales and SE teams

Sales Engagement Guiding PrinciplesMaintain Core ADN FocusAvoid Swamping Acopia Field Sales with Unqualified LeadsFocus on Major Accounts (Target 250)

• Leverage f5’s relevance in EnterpriseCommissions for F5 Core Sales TeamsContinue to Drive Solution Approach with Acopia ProductsInvolve and Motivate Channel Right from Start

102



Julian EamesSVP Business Operations

103

PS 2007 Plans

Invest in ConsultingEmployeesTrainingISO AccreditationNew Services:

IBMiRules On DemandInstallation Services

104

Achievements

37%$12,894k$ 9,397kTraining/Install/Consulting*NB Training flat

54%$70,077k$45,480kRenewal Maintenance

43%$49,205k$34,316kInitial Maintenance

% Y/Y20072006

105

Renewal GrowthTempered by the installed base refresh of v.9 capable platforms replacing v.4 platforms

4x platform peak under support 21,032 on Nov 2005

50.81k2.81k33.75k14.25k4Q

46.87k2.77k28.9k15.2k3Q

43.6k2.58k23.76k17.27k2Q

40.8k2.42k19.98k18.39k1Q

TotalOtherv.9v.4

End of life of 4.x support 18 months away

106

Other Factors Affecting Initial and Renewal Maintenance Growth

Revenue is deferred so initial is more a reflection of the previous years product growth than the currentOutsourced Service renewals in EMEA to ServiceSourceImproved reporting from Oracle has allowed us to target specific territories and countries for improvementSmall field sales teamAdditional 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

Service Maintenance Revenue

Q4 consulting bookings surpassed $3M for the first time

108

PS Vital Few 2007

HeadcountNow at 320 globally37% increase in 2006Support Center attrition 15%10% went to roles in F55% true attrition: this is a world class number71 new NSEs in 2007Escalation Managers in all geographies

109

PS Vital Few (2)

Invest in TrainingIn addition to ENE release training4 full time internal trainersClassroom deliveryCBT deliverySpin offs to SE, channel, end-users• CBTs available

110

PS Vital Few (3)

ISO 9001 Accreditation Achieved

All 5 regional support centers auditedAll passed9 month project work

“Say What You Do, Do What You Say, Prove It and Improve it”

111

PS Vital Few (4)

Askf5 ReplacementA little late but just inside 2007

• Better search capabilities• Better feedback information• Less touches to publish a solution

Results are amazingTwice the number of hits already: 5k/per day before never broke 2.5k

Success rate from 40% to 70%

112

Customer Satisfaction Survey Results

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

7.17.0

7.7 7.78.1 8.1 8.1 8.0 8.2 8.6 8.7

113

Q4 Customer Satisfaction Survey Results

8.2

8.3

8.4

8.5

8.6

8.7

8.8

NAEMEA

APACJAPAN

8.8

8.7

8.8

8.4

By Region

114

2008: Services Vital FewCreate a global ARX data support organisation

Support CenterENEsConsultants

Maintain customer satisfaction above 8.5Maintain & expand ISO 9001 AccreditationMaintain the reactive performance but improve the proactive:

1st Time FixProblem AvoidanceMajor Account Sponsorship

115

2008: Services Vital Few (2)

Improve our leverage of the sales environment:

i-RulesConsulting with everythingWhitepapersKnowledge transfer

116

2008: Services Vital Few (3)Revenue growth

Channel HealthConsulting

• Packages• Acopia• More People

Renewal ReviewDirect Sales4 Hour RMA price drop and Channel Incentive Program

117



Karl TriebesSVP Product Development& Chief Technical Officer

118

F5: Integrated ADN for the Datacenter

EMC

PC - Home

App. Server

App. Server

Web Server

Web Server

Web Server

App. Server

App. Server

Web Server

Web Server

Web Server

PC - LAN

WLAN



App

licat

ion

Serv

er V

irtua

lizat

ion

(LTM

)

File

Sto

rage

Virt

ualiz

atio

n (A

RX)

NetApp

Remote - WAN

Web

Ser

ver V

irtua

lizat

ion

(LTM

)

Dat

a C

ente

r & L

ink

Virt

ualiz

atio

n (L

TM)

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

120

Service-Based Application Architectures

Storage Hosted on Site

121

Storage in the cloud


122

Discreet application services connected to storage in the cloud


123

F5 Virtualization

Security Availability Optimization

Data, Network, Server Virtualization

Dynamic Resource Management

Service Virtualization

124

Building Blocks to ADN 2.0

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 LTMLC WJ WA FP ASM ARX

125

Applications& Storage

Users

InternationalData Center

ADN 2.0

Enterprise Manager /ControlPoint

TMOS

iControl

BIG-IP Global Traffic

ManagerWANJet

FirePassSSL VPN

BIG-IP LocalTraffic

ManagerBIG-IP

ApplicationSecurityManagerBIG-IP Web

Accelerator

BIG-IP Link

Controller ARXFile/Data

Virtualization

Integrated Application Delivery Networking Architecture

126

SSL

Com

pres

sion

ClientSide

ServerSide G

TM

ServerTCP

Expr

ess

Cac

hing

Microkernel

High Performance Scalability Fully Integrated Stack from L2 – L7+

Dedicated High Performance HW – NICS / SSL/ Compression / Other

iRules

Client

MCPd

TCP Proxy

One

Con

nect

XML

Rat

e Sh

apin

g Traf

ficSh

ield

Web

Acc

el

3rd

Part

y

TMOS ArchitectureL4

/L3

Rou

ting

HTT

P

Fire

Pass

iControl API

Pluggable architecture allows new functionality to be rapidly integrated

127

TMOS Integration Roadmap

2H CY05 1H CY06 2H CY06 1H CY07

Global TrafficManager (GTM)

Link Controller(LC)

TMOS

Web Accelerator

MSM

TMOS

WANJet

XML Firewall

TMOS

2H CY07

COMPLETE

COMPLETE

IN PROCESS

COMPLETE

FirePass

TMOS

1H CY08

128

Management Solutions

Control Point and Enterprise Manager

129

Control Point Overview

Stand-alone F5 appliance

Partnered with Microsoft

Leveraging MS System Center Operations Manager 2007

Visibility into app delivery network

Provide F5 device insights

130

Sample Control Point Reports

Bandwidth/traffic utilizationTop talkers Top applications

Top servers Optimized vs un-optimized traffic

Most latent connections Before/after F5 device (ROI tool)

Web AnalyticsTop N page views Types of browsers

Average session length Referring URLs

End user experienceSlowest applications Response-time reports

Slowest end users/locations Before/after implementation

Device PerformanceHistorical & real-time device metrics

BIG-IP monitor response times

# of connections consolidated CPU consumption by iRule

131

Network diagram for BIG-IP

Discovered F5 BIG-IP LTM and all network objects

132

File Virtualization

ARX Solutions (Acopia)

133

A Simple FAN Model

Heterogeneous “Virtual” NAS

Global Namespace

Wide-Area StorageCommunication Optimization

Choice ofBest Storage

Mix and MatchPolicy-Driven

NAS

Optimize Remote Access and Replication

ConsistentPersistentReliable

Namespace


134

File-Level Decoupling

Applications

Intelligent File VirtualizationSwitch

Vendor AFC

Vendor BSATA

Virtual NamespacePhysical

Namespacefc1:/vol/vol2/photos/house.jpg

vfiler1:/photos/house.jpg

ILM operations

Vendor CArchive

The virtual name is independent of the

physical path

135

Acceleration Solutions

WANJet and Web Accelerator

136

Symmetric Remote Office

New York

Asymmetric

Large/MediumRemote Office

BeijingSmall

Remote Office

Internet or WAN

London

WarsawHome Office

XiamenHome Office

BIG-IP WebAccelerator

BIG-IP WebAcceleratorData Center and Remote Office Acceleration

Without AccelerationAsymmetric Acceleration

Symmetric Acceleration

Response time

SydneyRemote Office

WebAcceleratorOnly product that does

both simultaneously

137

F5 Symmetric ECDN Reference Architecture

Munich

Sydney

Paris

London

Tokyo

Enterprise Manager

WANJet

FirewallsBIG-IP GTM

DatabaseServers

BladeServers

Internet or WAN

Los AngelesSingapore

New York

BIG-IP LTMWebAccelerator

138

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%

139

Performance gain due to TMOS

1800% Performance Boost - WebAcceleratorDue to Advanced TMOS integration

WAM Performance: SmartCache -vs- HotCache - 2007/09WA (232) - cache - no Comp - no CA - multNodes - VS - 10RPC

Throughput

0

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

Laye

r 7 B

its p

er S

econ

d

d68 - v942b228.8 - SmartCache

d68 - v942b170.1 - HotCache



140

www.f5.comMost 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

141

Acceleration Products StrategyIntegrate 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 optimizationSupports file acceleration and remote content management

New high end appliances (WJ600/800) for multi-Gigabit performanceExpanded footprint with SoftWoC – leverages FP technologyPerformance, performance, performance

142

Security Products

FirePass and ASM

143

ASM and FirePass UpdateASM/TrafficShield Highlights

New release with BIG-IP DryCreek release • 3x improvement in performance with new TMOS plug-in

Full XML FirewallAdded new security model – negative security

• Can now “learn” based on traffic • Signature based w/subscription service

Protocol firewall (ftp, SIP, SMTP, etc…)FirePass Highlights

New major features with 6.0.2 • New Reverse proxy (Project FireMonkey) – Significant

improvements with application interoperability• Enhanced client support (Windows Mobile5&6, Smartphone)

Medusa for beta in Q1 (FirePass on TMOS, 10x performance)

144

BIG-IP and Montreal

145

BIG-IP StrategyData 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 productsFirePass (Auth Proxy), WANJet, and ARX (future)3rd Party Plugin support

Service Provider specific Features (SIP, RTSP, etc…)XML gateway/routingNew platforms, blades, chassis typesPerformance, performance, performance

Expand ADN Footprint in Data Center

146

BIG-IP Platform Roadmap

Puma BladePerf. Targets:> 30G L4> 24G L7> 24G SSL

Montreal

Performance• 10G L4• 8G L7• 6G SSL• 6G Compression

BIG-IP 8800

RELEASED!

New family of V9 Platforms• Mercury• Gemini • Apollo

Puma II Blade for Montreal

Next Generation

147

Montreal OverviewUnmatched Performance

Massive scalabilityProcessing architecture common with 8800

Intelligent ClusteringSuperVIP (Virtuals can seamlessly span blades)N+M redundancy for all features in cluster

High AvailabilityAutomatic failover within clusterChassis-to-chassis redundancy

Full Modular Chassis4 blade slots w/1 blade type1 blade typeAny blade can be chassis master

Common central management consoleSingle point of ManagementSame user interface as BIG-IP appliances

148

Montreal Enables SSL Everywhere

20,000 22,00031,000

48,000

192,000

0

50,000

100,000

150,000

6800 8400 8400 CMP 8800 CMP Montreal4

SSL Transactions per Second

149

Driving Performance & ScalabilityL7

Tra

ffic

(HTT

P TP

S)

0

400,000

800,000

1,200,000

1,600,000

2,000,000

6400 6800 8400 8800 Montreal

> 2M TPS w/Puma

150

Montreal

f5 networks analyst/investor meeting november 2, 2007€¦ · f5 networks analyst/investor meeting...

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