According to an April 2013 report by Baird Equity Research, “[Riverbed] management has cited a $250 million install base of 20 series product that goes end-of-life early next year. We see this as important product refresh opportunity for the company in its core market.”
Silver Peak also recognizes this as a critical opportunity and has taken charge with a software upgrade program for Riverbed Technology customers facing the impending Steelhead hardware refresh. The upgrade program helps Riverbed Steelhead WAN optimization customers avoid the high cost of Riverbed’s vendor-imposed hardware refresh by upgrading to equivalent Silver Peak VX virtual software at a fraction of the price.
The Riverbed.com website verifies that Steelhead xx20 series products will become end-of-life (EOL) early next year. This means customers of Steelhead models 520, 1020, 1520, 2020, 3020, 3520, 5520, 6020, and 6120 will be forced to upgrade to newer, more expensive Riverbed hardware products…unless they make the switch to software/virtual.
Software-based virtual WAN optimization is really taking off now. According to Dell’Oro Group’s Q4 2012 Data Center Appliance Report, the market for virtual WAN optimization will grow by 100% in 2013, while the overall market is only expected to grow by 6%. Virtual software now performs as well as hardware and it’s becoming more clear that the market has a strong preference for virtual technology because it provides a more cost-effective solution.
Silver Peak offers Riverbed customers immediate and long-term relief by upgrading to Silver Peak VX virtual software products, which can provide up to 86% cost savings. Here are some examples:
Example 1: Upgrade from Riverbed EX-560 Model L to Silver Peak VX-1000 = 86% Savings
|Hardware||License for 4 Mbps||Maintenance||Total Cost – year 1|
|Riverbed EX-560 Model L||$9,000||$995||$1,596/year||$11,591|
|Silver Peak VX-1000||$0||$1,657/year||$0||$1,657|
Example 2: Upgrade from Riverbed EX-1260 Model VH to Silver Peak VX-5000 = 77% Savings
|Hardware||License for 50 Mbps||Maintenance||Total Cost – year 1|
|Riverbed EX-1260 Model VH||$51,700||$15,295||$4,956/year||$71,951|
|Silver Peak VX-5000||$0||$16,597/year||$0||$16,597|
Example 3: Upgrade from Riverbed CX-7055 Model L to Silver Peak VX-8000 = 75% Savings
|Hardware||License for 622 Mbps||Maintenance||Total Cost – year 1|
|Riverbed CX-7055 Model L||$114,995||$15,000||$26,004/year||$155,999|
|Silver Peak VX-8000||$0||$38,731/year||$0||$38,731|
“Riverbed has defined itself as a hardware company and they bank on customer refresh dollars to keep generating revenue,” said Rick Tinsley, CEO of Silver Peak in a press release issued today. “However, WAN optimization customers are increasingly aware of the advantages of software and are fed-up with the vendor-imposed hardware refresh cycle. For the cost of Riverbed maintenance alone, Riverbed customers can own an equivalent Silver Peak software product with more features and higher performance. And with Silver Peak WAN optimization software, you never need to face a forced hardware refresh again.”
In a recent product review conducted by the InfoWorld Test Center, it was concluded that regardless of the link speed and latency, the [Silver Peak] VX optimized WAN traffic as well as or better than a comparable physical chassis from Riverbed. In the same review, Silver Peak software scored a perfect “10” for value.
Riverbed Steelhead customers looking for more information or who are interested in upgrading to Silver Peak VX virtual software should email email@example.com with the subject line “Riverbed Upgrade.”