Radware once was a top-tier player in application-traffic management, back in the late 1990s when the first wave of Internet prosperity flooded technology-industry coffers.
Like F5 Networks and other load-balancing startups of the era — including Alteon WebSystems and Arrowpoint Communications, which were bought for multibillion-dollar amounts by Nortel and Cisco, respectively — Radware was reaping revenue rewards by providing high-availability solutions for busy web-based storefronts.
Radware, though, neither kept pace with F5 nor experienced a spectacular acquisition-based exit, as did Alteon and Arrowpoint. Instead, Radware muddled along, with poor marketing, hit-and-miss channel programs, and weak technology partnerships.
Radware muddles along to this day, as its latest quarterly results attest. The company missed analysts’ revenue and earning expectations, and its revenue growth lags far behind that of F5 and the other major players in what has evolved into the application-delivery space. While F5’s market capitalization is about $2.7 billion, Radware’s sits at less than $277 million. The fortunes of the two companies have diverged sharply.
So, what will happen to Radware? Not much will change. It will continue to shuffle forward, failing to capitalize fully on the markets it enters and only partly seizing the opportunities that come its way.