Summary
-May be enough to finally give Radware a push into profitability; -Nortel (Alteon) clients win; -Radware may increase their market reach. -Competition is already going after existing Nortel clients.
Analysis
In the competitive arena of network application optimization, acceleration and management Radware has been a worthy solutions contributor for many years. However, given the years they have been in this critical enterprise solution for clients we have felt their market share in the L4-L7 application delivery sector should be significantly higher. Citrix with NetScaler 9, Cisco ACNS/WAFS under their ANS push, F5's Big-IP as well as others have challenged and in my opinion frustrated Radware's efforts to profitably grow their business. The addition of Nortel's Alteon products plus the existing Alteon client base may position Radware to increase their revenue as well as their market share. My concern with Radware has never been the quality of the products they have brought to market in the last five years. It has never been their ability to support their clients and solve client network application challenges. Their challenge will be to balance the additional load of new clients, eventually integrate Alteon into the Radware products and solutions and MOST importantly have a go to market strategy that will give them exponential representation in the market. If they can balance the aforementioned scale of challenges, they may finally get to a tipping point of profitability. They need to move quickly and strategically. The competition has already targeted existing Nortel clients with attractive trade-in and support offers.
