F5 Networks is starting 2015 on a strong note and has plans to keep the momentum throughout the year.
F5 reported its first quarter fiscal 2015 revenue on January 21, with revenue coming in at $462.8 million for a 14 percent year-over-year gain. Net income was reported at $89.1 million, up from $68 million in the first quarter of 2014.
Looking forward, F5 provided second quarter guidance for revenue to fall between $465 million and $475 million.
There are a number of key drivers for F5's growth.
"The fastest growing area in our software business is our core virtualization ADC," John McAdam, F5 president and CEO, said during his company's earnings call. "Our software growth is being driven by the increasing customer demand for hybrid solutions that allow greater flexibility in the deployment of application services within and across datacenters and into the cloud."
F5 is also continuing to grow as a replacement for the Cisco ACE (Application Control Engine) technology. McAdam said that F5 has created a sales service web portal for ACE migration to help further accelerate migrations. F5 has been talking about its Cisco ACE migration efforts for at least the last two years, as Cisco has scaled down its own efforts.
"Also, we intend to step up our market initiatives on the ACE opportunities starting this quarter, to take advantage of our current momentum and experience in transitioning ACE customers to F5 ADC solutions," McAdam said.
McAdam is also pushing forward on his company's Silverline hybrid application services strategy. Silverline was announced in November 2014, with a Distributed Denial of Service (DDoS) capability.
"We have already seen some excellent orders for both our subscription-based DDoS service and anti-malware solutions," McAdam said. "We are planning to increase the portfolio of cloud-based subscription services starting with the vast AFM (Advanced Firewall Manager) solution in the new few months."
F5 is also planning on expanding its BIG-IQ management platform in 2015 with a new version 4.5 release.
"This release will include significant enhancements to our datacenter security product, AFM, and ASM as well as comprehensive support for our SDN ecosystem to revise application monitoring capabilities with an SDN enabled network," McAdam said. " We will also be adding a new module BIG-IQ ADC. BIG-IQ ADC provides centralized fine-grained application management across cloud-based SDN and traditional network infrastructure."
Sean Michael Kerner is a senior editor at Enterprise Networking Planet and InternetNews.com. Follow him on Twitter @TechJournalist.