Network World Blog missing the boat on Packeteer’s decline in revenue


The one thing bad about being a publicly traded company is that you cannot hide from your declining sales, in the following network world blog post and related comments ,the authors make some good points as to where and why they would choose Cisco Wan Optimization over Blue Coat and vice-versa. They also comment on all sorts of reasons why Blue Coat’s revenue in this area is declining , although they neglect one obvious reason.

Prices of bandwidth have fallen quite rapidly over the last 10 years. In some larger metro areas  Internet access runs for as little as $300 per month for 10 megabits. The same link 10 years ago would have run close to $5000 per month or more. Despite falling bandwdith prices,  WAN optimization solutions from the likes Blue Coat, Cisco and Riverbed, remain relatively high.  Many ptential WAN optimization customers will  simply upgrade  their bandwidth rather than invest in new optimization equipment.  You would think that vendors would lower their prices to compete, and they are to some degree; however the complexity of their core solutions requires a mimumum price floor.   The factors that create the price floor on equipment are related to, methodology  of the internal technology, and sales channel costs,  and unfortunately these fixed cost factors cannot keep pace with falling bandwidth prices .

Our prediction is that WAN optimization devices will  slowly become a commodity with automated reduced complexity. One measure of the current complexity is   all the acronyms being tossed around describing WAN optimization. The sales pitches filled with accronyms clearly corrolate that perhaps these devices are just too complicated for the market to continue to use. They will become turn key simple and lower cost or die. No player is bigger than the Market force of cheaper bandwith.

Related articles:

ROI calculation for packet shaping equipment

Does lower cost bandwidth foretell a decline in bandwidth shaper sales?

http://www.networkworld.com/community/comment/reply/46590

Where are the safe tech jobs ?


By Art Reisman, CTO, http://www.netequalizer.com

Art Reisman CTO www.netequalizer.com

Art Reisman

Article Type: Opinion

As the CEO of a small (yet growing) tech company in the current recession I often get calls from former colleagues working at larger corporations. Amidst their companies insincere rhetoric, inaction, and falling revenues, good people wait around wondering who will be next to get the ax.

The underlying problem at most of these companies is that they are continue to push products into a stagnant or declining market. The only way to have any relative security is to get on board with an industry or niche with solid growth potential.

So if your wondering where to turn for potential job security here are some tips that might help

Look for a company that is doing something with real value for society and not just jumping on the latest bandwagon.

1) Renewable energy is hot , and certainly a job in renewable energy is better than selling steam engines running off coal. Renewable energy, although here to stay is being over hyped . Right now the success of renewable energy is dependent on battery technology. Fossil fuels are nothing more than the Suns energy stored up and retrieved at will when needed. For renewable (wind, solar) energy is to compete easily with traditional fossil fuels we must come up with a clean effective battery to store energy. My advice seek out a company that specializes in battery technology and then help them make a difference.

2) Network and Internet Optimization

Internet Infrastructure companies are being forced by their stock holders to turn a profit. The days of free falling bandwidth contracts are slowing down, hence the new hot market will be companies with products that optimize internet bandwidth. Bandwidth control , WAN optimization and compression although not on the front pages, are areas of value and are holding their own in the recession. Some companies to look at , are

APconnection (NetEqualizer)

Packeteer

Allot

RiverBed

Exinda

3) Medical Technology,

From newer and better and MRI machines to prosthetics , Americans will spare no expense for anything that will make their lives more comfortable. So when will this party end and the associated demand for jobs in the Medical Industry flatten out?

Although I do not expect a crash in this field as we might have seen in other boom and bust industries, I do expect a slowdown. Every bubble has its end, and the Medical technology industry is due for a slow down. As consumers push back on medical care pricing, high end technology research will slow down. Still a better prospect than steam engines though.

4) Auto Industry

If you are entering into the field of Mechanical Engineering or electronics controls now would be a good time to focus on the Auto Industry. For the next 5 to 10 years I expect that auto makers will be looking for new innovative ideas in their engineering departments. They will also be looking for new talent. Don’t let the down turn discourage you this is an opportunity.

One Gigabit NetEqualizer Announced Today


Editors Note: We expect to go higher than 1 gigabit and 12,000 users in the near future. This is just a start.

APconnections Announces Fully Equipped One-Gigabit NetEqualizer Traffic Shaper for $8500

LAFAYETTE, Colo., Nov. 7/PRNewswire/ — APconnections, a leading supplier of plug-and-play bandwidth shaping products, today announced a one-gigabit enhancement to their NetEqualizer brand traffic shapers. The initial release will handle 12,000 users and sustained line speeds of one gigabit.

“Prior to this release, our largest model, the NE-3000 was rated for 350 megabits,” said Eli Riles, APconnections vice president of sales. “Many of our current customers liked our technology, but just needed a higher end machine.The other good news is that our current NE-3000 platform will be able to run this new version with just a software upgrade, no forklift required.”

Future releases are in the works for even higher speeds and more users, thus solidifying APConnections as the price-performance leader in the WAN optimization market place.

In its initial release, the one-gigabit model will start at $8,500 USD. For more information, contact APconnections at 1-800-918-2763 or via email at sales@netequalizer.com.

The NetEqualizer is a plug-and-play bandwidth control and WAN/Internet optimization appliance that is flexible and scalable. When the network is congested, NetEqualizer’s unique “behavior shaping” technology
gives priority to latency-sensitive applications, such as VoIP and email. Behavior based shaping is the industry alternative to Deep Packet Inspection (DPI). It does it all dynamically and automatically, improving on other bandwidth shaping technology available.

APconnections is a privately held company founded in 2003 and is based in Lafayette, Colorado.

Contact: APconnections, 1-800-918-2763

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