Riverbed Technology (RVBD)

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Industry Achievement – Riverbed Steelhead^® products continued to be recognized for excellence by many well-respected trade publications in 2008, including InfoWorld (Best WAN Accelerator of 2005, 2006, 2007, 2008 and 2009), Storage Magazine (Silver Award in network equipment category) and Network World (“Best of the Tests” designation for best WAN optimization solution). In addition, two Riverbed customers were named to the InfoWorld 100 for their implementation of Riverbed’s Steelhead appliances. The InfoWorld 100 honors IT projects that demonstrate the most creative use of cutting edge technologies to further their business goals.

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Product Innovation – Riverbed began shipping 13 new Steelhead appliances that provide simpler, more flexible upgrade paths and greater investment protection to customers. The company also launched enhanced versions of its Central Management Console, Riverbed Optimization System (RiOS^®), Steelhead Mobile and Riverbed Services Platform (RSP). VMware software is embedded as the virtualization platform for the enhanced RSP, allowing a company to run almost any software solution they choose on the platform.

Customer Wins – Riverbed added over 2,000 customers in 2008, and by the end of the year had over 5,500 cumulative customers across a wide range of verticals and markets. Announced customers included HBOS Australia Banks, Nelson/Nygard, Psomas, Raiffeisen Banks, Secunet, Sutter Health, VINCI PLC, Ware Malcomb, and Willis. Riverbed boasts 49% of the Forbes Global 100 as customers.

Global Expansion and Distribution – Riverbed expanded globally in 2008 and now has a presence in 29 countries. The company increased its distribution capacity by adding more than 200 channel partners in 2008. Riverbed now counts more than 800 VARs, Systems Integrators, and Service Providers as partners worldwide. The company has also teamed with more than a dozen of its Service Provider partners to deliver managed WAN optimization services to joint customers, including British Telecom, Digital Hands, NTT America, Pacnet, and SingTel.

Technology Alliances – Riverbed expanded its technology alliances with important partners, including HP, Compellent, NetApp, Netscout, OPNET, VMware and others during 2008. More than 30 technology companies joined the Riverbed Technology Alliance Program year.

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Industry Achievement – Riverbed’s Steelhead^® Appliance product family continued to be recognized for its excellence by many well-respected trade publications in 2007, including InfoWorld (Best WAN Accelerator of 2005, 2006, 2007, and 2008) Network World (Clear Choice Award for WAN Acceleration), Infonetics Research (Market Leader in WAN Optimization) and Gartner (Market Share Leader, five consecutive quarters). In addition, for the second consecutive year Gartner positioned the company in the Leaders quadrant in the “WAN Optimization Controller Magic Quadrant” published in December 2007 and authored by Andy Rolfe and Joe Skorupa. This report positions vendors in one of four quadrants based on the companies’ vision and ability to execute on that vision. In addition, multiple Riverbed customers were named to the InfoWorld 100 for their implementation of Riverbed’s Steelhead appliances. The InfoWorld 100 honors IT projects that demonstrate the most creative use of cutting edge technologies to further their business goals.

Product Innovation – Riverbed began shipping the next generation of the Riverbed Optimization System (RiOS™), version 4.1, which is enhanced with disaster recovery intelligence and encryption capability for organizations that require high levels of security or face compliance requirements. The company introduced a new Steelhead appliance model 6120 optimized for disaster recovery, introduced optimizations for Oracle11i applications, and a patent-pending new approach to accelerating encrypted web traffic, furthering its leadership in providing customers with the best performance for the applications most important to their businesses. The company also began shipping the Steelhead Mobile laptop client, which delivers LAN-like application performance for the mobile workforce.

Customer Wins – Riverbed added over 1,800 customers in 2007 and by end-of-year had over 3,500 cumulative customers across a wide range of verticals and markets. Announced customers included GeoEngineers, Bank of Korea, Cubist Pharmaceutical Firm, U.S. Defense Contract Management Agency, New Zealand Department of Conservation, Hyundai Hysco, Mitsubishi Motors, and Family Health International.

Global Expansion and Distribution – Riverbed dramatically expanded its global presence in 2007, expanding in nine additional countries. New offices were added in Latin America, Eastern Europe, Scandinavia and a number of countries in Asia. The company also ramped up its distribution capacity by almost doubling its sales and marketing organization in 2007 to meet the growing global demand for its products and building our channel relationships to more than 500 partners.

Initial public offering—Riverbed successfully completed its initial public offering, raising $87.5 million, net of underwriting discounts and other transaction expenses. Riverbed’s IPO was the best performing IPO of 2006 as reported in the Wall Street Journal.

Industry recognition—Riverbed’s Steelhead^® Appliance product family was recognized for its excellence by many well-respected trade publications in 2006, including InfoWorld (the Best WAN Accelerator of 2006 and 2007), Byte and Switch (Best WAN Accelerator), Network Computing (Well-Connected Award, Remote Office Solution), and eWeek (Excellence Award, Top Products of 2006, and Top Five Storage Developments of the Year). In addition, Gartner positioned the company in the Leaders quadrant in the “WAN Optimization Controller Magic Quadrant” published in October 2006 and authored by Andy Rolfe and Joe Skorupa. This report positions vendors in one of four quadrants based on the companies’ vision and ability to execute on that vision.

Product innovation—Riverbed expanded its product line both at the high- and low-ends of the market, providing customers with the speed, scale and simplicity needed to meet the demands of a decentralized workforce and centralized data. The company began shipping the next generation of the Riverbed Optimization System (RiOS™), version 3.0, as well as the Interceptor™ appliance and eight new Steelhead appliances that deliver high scalability and acceleration for up to one million simultaneous connections at 4 Gbps throughput. In addition, the company introduced two new smaller-scale Steelhead appliances that meet the needs of small remote offices and large-scale deployments.

Expanded patent portfolio—Riverbed was awarded a patent on its core WDS technology. This system patent is the foundation for Riverbed’s proven technology for speeding application performance by 5x to 50x and in some cases up to 100x and addresses the limitations of geography for global businesses.

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New customer growth—Riverbed rapidly grew its customer base in 2006. In January, the company announced its 500^th customer and by end of year had over 1,600 customers.

Customer Wins—Riverbed expanded its success with customers to global brands, announcing Liz Claiborne, Hilton Grand Vacations, Asiana Airlines, the UK Royal Navy and LG Electronics.

Global Expansion—Riverbed expanded its presence in 2006, establishing additional offices worldwide.