July 28, 2009
Wide Area Networks Become Top of Mind For Chief Information Officers of Global Organizations
NEW YORK, NY – In a panel discussion about optimizing wide-area network (WAN) investments to support global operations, senior IT executives confirmed that there is growing interest from C-level executives regarding the health of the WAN today and the options for managing this important resource in the future. The panel, recently hosted in San Jose, California by NTT America, a wholly-owned U.S. subsidiary of NTT Communications Corporation, and Riverbed Technology (Nasdaq: RVBD), the IT infrastructure performance company for networks, applications and storage, agreed that, as companies with a global footprint look to improve and expand their operations, increasing importance is placed on WAN performance and optimization. C-level executives are viewing the WAN as a strategic platform from which new business processes and strategies can be generated.
Comprised of senior executives in the high-technology, financial and manufacturing industries, the panel also discussed how key business developments, such as global collaboration and real-time transaction processing, have elevated the importance of the WAN as it both supports current operations and enables new, more innovative and cost-effective revenue-generating business practices.
“Advanced technologies and applications require a strong network to support a successful global business. WAN optimization is a critical factor in enabling speed, increased employee productivity and business continuity and agility,” said Randy Schirman, vice president of Service Provider Sales at Riverbed®. “We’re hearing across the board from CIOs of global organizations that WAN optimization is being recognized as adding value at the strategic, operational, financial and technical level.”
NTT America and Riverbed have worked closely to bring WAN optimization to global organizations as a managed service. NTT America's Managed WPA (WAN Performance Accelerator) service, based on Riverbed WAN optimization, provides multi-national and regional businesses with LAN-like access to data and applications for users in branch offices, regardless of their location. The service performance enables cost savings through reductions in both opex and capex, as enterprises are able to optimize their bandwidth usage while consolidating their IT infrastructure and reducing IT complexity and overhead. In addition, the managed service acceleration helps ensure business continuity through improved backup and replication processes, and it also improves staff productivity and real-time collaboration.
“Our customers view global networks as critical infrastructure in their corporate technology arsenal,” said Stephen Bloom, Vice President of Business Development for NTT America. “Optimizing WAN investments creates a strategic platform for our customers to support their operations in Asia Pacific and beyond, and we provide them with the network, data center, and IP backbone services they need to grow and efficiently run their business.”
Following are additional panel findings regarding the current state of WANs and the emerging best practices to maximize the return-on-investment from those networks:
• Re-establishing WAN Competencies: Many organizations recognize that core competencies in managing the WAN infrastructure are critical for IT organizations, in order to better partner with managed service and outsourcing providers.
• Managing Complexity: There was intense interest in finding ways to manage WAN environments, as well as in finding “prime-contractor” network service providers that can offer a single point of contact when multiple networks are involved.
• Consistency of Quality: The great variance in the quality of networks around the world – particularly in the Asia-Pacific region – has created interest in the role WAN optimization technologies can play in leveling out performance across global and regional infrastructures.
• CAPEX-to-OPEX Shift: Organizations are looking for IT strategies – and particularly WAN solutions – that transfer technology assets from the CAPEX to OPEX side of the balance sheet, helping them preserve capital.
• WAN Optimization: Attendees expressed interest in how to get more out of existing WAN investments through WAN management and optimization.
• Risk-Based Investment Assessments: Organizations are justifying new investments based on the “negative consequences” of ignoring or avoiding the support of existing operations or the launch of new technology initiatives.
• Business Metrics Trump Technical Measures: All investments are being held to business – rather than strictly technical – performance standards, so WAN investments need to be more closely tied to the business benefits delivered to revenue-generating activities.
Technological Areas of Interest
• New Enterprise Technologies: WAN performance plays a critical role as applications increasingly reside in a central location, far from end-users; the issue of latency is increasingly seen as a strategic technical issue that needs to be proactively addressed.
• Managed Services: The growing role of managed services from network providers will require extremely high levels of interaction between services providers and enterprises that see the WAN as a strategic resource.
• WAN Optimization: The role of WAN optimization technologies will emerge as both an investment protection tool and risk mitigation resource; there is significant interest in how advances in compression technologies can interact with application optimization technologies.
Forward Looking Statements
This press release contains forward-looking statements, including statements relating to the expected demand for Riverbed's products and services, statements about the perception of WAN optimization solutions that may suggest trends for our business, statements regarding the growth characteristics of, and customer demand relating to, the WAN optimization market, and statements relating to Riverbed’s ability to meet the needs of distributed organizations. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include our ability to react to trends and challenges in our business and the markets in which we operate; our ability to anticipate market needs or develop new or enhanced products to meet those needs; the adoption rate of our products; our ability to establish and maintain successful relationships with our distribution partners; our ability to compete in our industry; fluctuations in demand, sales cycles and prices for our products and services; shortages or price fluctuations in our supply chain; our ability to protect our intellectual property rights; general political, economic and market conditions and events; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission. More information about these and other risks that may impact Riverbed’s business are set forth in our Form 10-Q filed with the SEC on April 30, 2009. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements. Any future product, feature or related specification that may be referenced in this release are for information purposes only and are not commitments to deliver any technology or enhancement. Riverbed reserves the right to modify future product plans at any time.
Riverbed Technology is the IT infrastructure performance company. The Riverbed family of wide area network (WAN) optimization solutions liberates businesses from common IT constraints by increasing application performance, enabling consolidation, and providing enterprise-wide network and application visibility – all while eliminating the need to increase bandwidth, storage or servers. Thousands of companies with distributed operations use Riverbed to make their IT infrastructure faster, less expensive and more responsive. Additional information about Riverbed (NASDAQ: RVBD) is available at www.riverbed.com.
About NTT America
NTT America is North America's natural gateway to the Asia-Pacific region, with strong capabilities in the U.S. market. NTT America is the U.S. subsidiary of NTT Communications Corporation, the global data and IP services arm of the Fortune Global 500 telecom leader: Nippon Telegraph & Telephone Corporation (NTT). NTT America provides world-class Enterprise Hosting, managed network, and IP networking services for enterprise customers and service providers worldwide. For additional information on NTT America, visit us on the Web at www.nttamerica.com.
About NTT Communications Corporation
NTT Com delivers high-quality voice, data and IP services to customers around the world. The company is renowned for its diverse information and communication services, expertise in managed networks, hosting and IP networking services, and industry leadership in IPv6 transit technology. The company’s extensive global infrastructure includes Arcstar™ private networks and a Tier 1 IP backbone (connected with major ISPs worldwide), both reaching more than 150 countries, as well as secure data centers in Asia, North America and Europe. NTT Com is the wholly owned subsidiary of Nippon Telegraph and Telephone Corporation, one of the world's largest telecoms with listings on the Tokyo, London and New York stock exchanges. Please visit www.ntt.com.
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FD on behalf of NTT America