Posted by Andre Kindness on November 13, 2012
After Hurricane Sandy forced the closure of the NYSE, the market opened up a week ago Wednesday morning with Riverbed’s stock price plunging 20%, while some financial analysts downgraded the company from “hold” to “underperform.” The financial institutions felt that Riverbed’s WAN optimization market was commoditizing and viewed its acquisition of OpNet for $1 billion as a company looking to enhance its monitoring revenue stream, Cascade (Mazu), and Shark (CACE) products. That might be true, but it’s an insignificant variable in Riverbed’s strategy. What they missed, and what many in the industry have continued to disregard, is the value of monitoring, one of the three components needed for a closed loop system (AKA cloud). Public or private clouds require a system that can automatically interweave an abstracted set of resources as needed and bill per use.
One of the main areas inhibiting the cloud has been the network and its inability to act like a virtual network infrastructure. Forrester defines VNI as: