F5 Integrates Google’s Speedier Delivery Protocol To Make Web Faster

FFIV: F5 logo

F5 Networks (NASDAQ:FFIV) is a leading provider of technology which optimizes the delivery of network-based applications and the security, performance and availability of servers, data storage devices and other network resources. At the recently held Interop Las Vegas 2012 conference, the company announced updates to application delivery optimization, a new feature set on its BIG-IP ADC products. It claims that the application delivery optimization makes BIG-IP the first ADC on the market to support Google’s (NASDAQ:GOOG)  SPDY protocol. [1] F5 currently holds roughly half the market, having long overtaken Cisco Systems (NASDAQ:CSCO) as the number one ADC supplier.

See our complete analysis for F5 Networks here

Growing Focus on Mobile Application Delivery

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As the number of remote workers and mobile customers increase, enterprise demand for mobile application delivery is on the rise. Employees now use a variety of mobile devices and applications supported by different browsers, so enterprises need consistent application delivery across all devices, regardless of location or other variables that can interfere with mobile delivery.

Chrome, Amazon Silk and Mozilla Firefox are standards that are becoming especially important for remote users who need a more efficient traffic flow that consumes less bandwidth on their mobile devices. Keeping this in mind, Google has designed its SPDY application-layer protocol which provides minimal latency when transporting content over the Web via the typical HTTP protocol.

With a growing enterprise need to support all of its end users from a device standpoint, mobile application delivery support is the next logical step for many application delivery controller vendors.

F5’s Adaptation of SPDY Protocol to Support End Users Efficiently

F5’s application delivery optimization offering provides a better mobile user experience, optimizing image delivery and rendering of web pages in a much quicker environment. By supporting the SPDY protocol, F5 has reordered content and streamlined image-intensive web sites by 40% on average. Mobile users can reap the lower latency benefits with quicker download times for web sites and web-based applications, and optimized and reordered images for their mobile devices, via the SPDY protocol.

Optimized mobile application delivery can enhance the end user experience without driving up IT infrastructure cost, and the lower latency can bring more traffic to a site that can translate into higher revenues for the enterprise.

F5’s focus on mobile application delivery, keeps it well in line with changing trends and developments. The company currently holds around 28% share in the application delivery network market and we believe it is capable to pull up its share to 38% by the end of our forecast period.

With a robust pipeline of future sale opportunities, the company is well-positioned to take advantage of growth opportunities in the ADC market, thus maintaining its leadership. Our price estimate of $128 for F5 Networks, stands at a premium of 3% to the current market price.

Understand How a Company’s Products Impact its Stock Price at Trefis

  1. Interop 2012: Mobile application delivery improved with SPDY protocol, SearchEnterpriceWAN, May 8, 2012 []