Morningstar Rating

Stock Research and Analysis

by Grady Burkett, CFA

Bulls Say

F5's ADCs are widely considered best in class, and we see no sign of this market leadership deteriorating.
F5's operating system, TMOS, allows users to easily create their own traffic management rules. We think this makes the firm's products more difficult to replace within the network.
By allowing outside vendors like Oracle to write specific tasks for its products, F5 has cultivated a powerful sales channel of enterprise software partners. Read more 

Bears Say

Cisco's partnership with Citrix could make Citrix a more formidable competitor over time.
Riverbed's recent acquisition of Zeus gives the firm a strong technology to attack the virtual ADC market. Juniper's recent decision to license and integrate Riverbed's ADC technology could validate Riverbed's ADC technology as a viable alternative to F5.
Technology disruption is an ever-present threat. New methods for steering data traffic, such as software-defined networking technologies, could obviate the need for traditional appliance-based ADCs for certain applications. Read more 

Management

John McAdam, who previously ran IBM's web server division, was brought in as president and CEO in 2000. Senior vice president of worldwide sales Mark Anderson joined the firm in 2004 as North American sales chief; before that he held positions as a   Read more 

Profile

F5 Networks provides products that help manage growing network traffic, application complexity, and security concerns. F5's customer base has evolved from an initial focus   Read more 

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