Back to top

Analyst Blog

Renowned provider of application delivery controllers (ADCs), F5 Networks Inc. (FFIV - Snapshot Report) recently unveiled a virtual edition of its flagship Big-IP product suite for’s (AMZN - Analyst Report) web services aka AWS. The web-based version of Big-IP will have similar features as its physical version.

The BIG-IP product suite helps in application delivery services through equal load balancing and service offloading. The BIG-IP system (physical or virtual) runs on the Linux operating system and acts as a network appliance, which is placed in a data center between a firewall and application servers ensuring prompt and secure delivery across IT systems.

Amazon Web Services (AWS) provides access to technology infrastructure that developers can use to enable various types of virtual businesses. The platform will now be able to offer F5’s latest Big-IP suite to meet the growing demand for data center solutions across the enterprise sector.

Through AWS, F5 Big-IP will provide customers with options to choose from various solutions such as traffic management, global server load balancing, application firewall, web application acceleration and other advanced application delivery functions.

We believe that the pact between the two could create a win-win situation for both the companies. More customers would prefer to join AWS to get the Big-IP solution easily. On the other hand, F5 will get wide coverage for its products.

F5 happens to be a key player in the ADC market, thanks to the popularity of its Big-IP and VIPRION product suites. Recently, IT market research firm Gartner Inc. (IT - Snapshot Report) named the company a leader in the ADC market.

The research firm also stated that Citrix Systems Inc. (CTXS - Analyst Report) and Radware (RDWR - Snapshot Report) could become strong contenders for the leading position, which would be a potential challenge for F5 Networks.

However, we hope that strategic tie-ups with leading enterprise software vendors, such as Microsoft Corp. (MSFT - Analyst Report), Oracle Corp. (ORCL - Analyst Report) and VMware Inc. (VMW - Snapshot Report), as well as Cisco Systems Corp.’s exit from the ADC market will mitigate the risk.

Despite a prospective growth story, F5 Networks has a Zacks 4# Rank (short term Sell rating) on the basis of a lackluster guidance for the coming quarter, which resulted from macro uncertainties and expected budget cuts by telecom customers.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
BANCO DO BR… BDORY 16.78 +8.05%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%