wan optimization market

Up, Up, Up and to the Right

wan optimization marketThis has been an incredible week for Silver Peak, and I believe we are on an upward trajectory that we haven’t experienced in the history of our company.

Latest market share reports published by the top analyst firms confirm that Silver Peak is the fastest growing WAN optimization company, outpacing the likes of Riverbed ($RVBD), Cisco ($CSCO) and others. This growth is being propelled by a software strategy that gives customers more flexibility, better pricing and increased simplicity for optimizing their networks.

Customers love the software-based approach to WAN optimization, which is radically different from the legacy model of high-priced, custom hardware that customers are forced to refresh at some point. And the proof is in the numbers. So far this fiscal year, 75% of the units Silver Peak has sold to customers have been software units (our VX/VRX virtual appliances). That is up from less than 5% two years ago, representing a significant sea change in our market.

Our traction in the market hasn’t gone unnoticed. Earlier this week we announced that Silver Peak is recognized as a Leader in Gartner’s 2014 Magic Quadrant for WAN Optimization. According to Gartner, “Leaders exhibit an ability to shape the market by introducing additional capabilities in their product offerings and by raising awareness of the importance of these features. Gartner expects a Leader to grow the market as a whole and to have solutions that resonate with an increasing number of enterprises.”

Our vision and execution aligns with this definition. We believe Silver Peak is leading the way into a new era of software-defined WAN optimization. Now more than ever, organizations depend on the wide area network to connect their data centers, branch offices and the cloud. As customers move to more virtualized environments they see that better network performance equals better bottom-line results, and Silver Peak gives them the most flexible and innovative approach to improving the performance of their applications, and ultimately their business.

Then most recently on Tuesday this week, a Delaware jury delivered a verdict in favor of Silver Peak in a trial in which we asserted infringement of two of our patents against Riverbed Technology. We are gratified that the jury weighed the evidence carefully and ruled in Silver Peak’s favor. Silver Peak has always preferred to compete in the marketplace, rather than in the courthouse. But if challenged, we are obviously willing to fight back.

Silver Peak intends to seek a permanent injunction against the features of Riverbed’s RiOS and Steelhead devices covered by the Silver Peak patents – “SDR-Adaptive,” as well as “Enhanced Auto-Discovery” when used in combination with “Full Transparency.” Read our press release on the verdict for more information.

In conclusion, it is clear that Silver Peak’s momentum is continuing to build. Our software strategy is paying off and putting Silver Peak in the driver’s seat for reshaping how customers think about the wide area network and how to optimize their enterprise connectivity.

About the author
David Hughes
David Hughes
David Hughes founded Silver Peak Systems in 2004 after serving a year as an Entrepreneur in Residence at Benchmark Capital. Through 2013 Hughes drove innovation serving as CTO, and then more recently as CEO, leading Silver Peak beyond WAN optimization into the emerging SD-WAN market. Prior to Silver Peak, Hughes served as vice president and general manager at BlueLeaf Networks (2000-2002), where his team developed a unique network switching and transmission system. From 1996 to 2000, Hughes held several positions at Cisco Systems, including director of system architecture for the BPX and MGX product lines, and senior director of product management for the Multi-Service Switching Business Unit. Earlier, Hughes was a key engineering contributor at StrataCom, an early pioneer in frame relay and ATM, which was acquired by Cisco in 1996. Before StrataCom, David worked as an engineer for BNR Japan/Northern Telecom Japan Inc. Hughes has been awarded more than 50 patents in areas including data acceleration, routing and packet switching, control and scheduling algorithms. Hughes earned his PhD in Electrical and Computer Engineering from Wollongong University, Australia, and holds a BE in Electrical Engineering from Auckland University, New Zealand.