F5 Networks Stock Heading Back Up To $120

F5 Networks manufactures network controllers which are widely used in data centers for bandwidth optimization and speeding up of data. In the meantime, its biggest competitors, which include networking behemoth Cisco Systems, Juniper Networks and other niche players like Brocade Communications and Riverbed Research, are trying to force their way into the niche that F5 has created in the market.

F5′s biggest clients have typically been Fortune 500 companies with financial services and telecommunication service providers leading the pack. The government sector has as well traditionally been a large source of revenue for F5. But, with the current economic slowdown especially in Europe, government spending is slowing which will weigh on F5 as so then.

Many companies are upgrading data centers as they shift to cloud computing, and demand is strong for networking gear that makes computer servers more productive, just as the application delivery controllers that are F5′s strong suit.

The Internet firewall market

F5 has as well entered the Internet firewall market, which is aimed at protecting data centers. By pushing into firewall market, F5 is taking on another networking major Juniper Networks.

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