001-ARXConfig history - ARX Configuration Updated: 2024
|killexams.com 001-ARXConfig Brain Dumps with Real Questions
Exam Code: 001-ARXConfig ARX Configuration history January 2024 by Killexams.com team
001-ARXConfig ARX Configuration
Exam: 001-ARXConfig ARX Configuration
- Number of Questions: The exam consists of approximately 60 multiple-choice questions.
- Time: Candidates are given 90 minutes to complete the exam.
The ARX Configuration course is designed to provide professionals with the knowledge and skills required to configure and manage ARX storage solutions effectively. The course covers the following topics:
1. Introduction to ARX
- Overview of ARX technology and its benefits
- Understanding the components and architecture of ARX
- ARX deployment models and use cases
- Navigating ARX management interfaces
2. ARX Configuration and Deployment
- Pre-configuration planning and assessment
- Initial configuration of ARX appliances
- Integration with storage systems and protocols
- Configuring network connectivity and routing
3. ARX Policy Configuration
- Understanding ARX policies and rule sets
- Configuring file virtualization policies
- Managing file migrations and tiering
- Configuring data access control and permissions
4. ARX Performance Optimization
- Monitoring and troubleshooting ARX performance
- Configuring caching and acceleration features
- Optimizing data access and response times
- Capacity planning and scalability considerations
5. ARX High Availability and Disaster Recovery
- Configuring redundancy and failover mechanisms
- Implementing disaster recovery strategies
- Backup and restore procedures for ARX configuration
- Testing and validating high availability configurations
The exam aims to assess candidates' understanding and proficiency in the following areas:
1. Knowledge of ARX technology and its benefits
2. Understanding of ARX components and architecture
3. Competence in configuring and deploying ARX appliances
4. Proficiency in configuring ARX policies for file virtualization and data management
5. Familiarity with performance optimization techniques and high availability configurations
The exam syllabus covers the following topics:
- Introduction to ARX
- ARX technology overview and benefits
- Components and architecture of ARX
- Deployment models and use cases
- ARX Configuration and Deployment
- Planning and assessment
- Initial configuration of ARX appliances
- Integration with storage systems and protocols
- Network connectivity and routing configuration
- ARX Policy Configuration
- ARX policies and rule sets
- File virtualization policies
- Data migration and tiering
- Data access control and permissions
- ARX Performance Optimization
- Performance monitoring and troubleshooting
- Caching and acceleration configuration
- Data access and response time optimization
- Capacity planning and scalability considerations
- ARX High Availability and Disaster Recovery
- Redundancy and failover configuration
- Disaster recovery strategies
- Backup and restore procedures
- Testing and validation of high availability configurations
F5-Networks Configuration history
Other F5-Networks exams101 Application Delivery Fundamentals 2023
201 BIG-IP Administrator
301 LTM Specialist
001-ARXConfig ARX Configuration
301b BIG-IP Local Traffic Manager (LTM) Specialist : Maintain & Troubleshoot
F50-522 F5 BIG-IP Local Traffic Management Advanced v9.4
F50-528 F5 ARX Configuring 5.x
F50-532 BIG-IP v10.x LTM Advanced subjects V10.x
F50-536 BIG-IP ASM v10.x (F50-536)
|We offer updated 001-ARXConfig 001-ARXConfig real mock test that are required for Passing 001-ARXConfig test. We empower people to Excellerate their knowledge about 001-ARXConfig exam subjects and get Excellent Marks in real 001-ARXConfig exam. It is a best choice to accelerate your career as a specialist in the Industry.
To upgrade ARX, which of the following are true? (Choose two.)
A. An admin must arm the upgrade image on the ARX and reload.
B. Upgrades can be performed online using F5 ? software upgrade web site.
C. Software images used for upgrades must be loaded onto the ARX using FTP.
D. Software images used for upgrades may be loaded on the ARX using the CIFS
E. All major version upgrades (from 4.x to 5.x for example) must be performed by F5
Answer: A, D
ARX filersubshares allow which of the following?
A. They enable two Managed Volumes to share the same backend filer share.
B. They allow Direct Volumes to include other Direct Volumes as one of its shares.
C. They allow ARX admins to assign two separate share names to the same exported
D. They permit separate Access Control Lists to be applied to NFS and CIFS in a
E. They enable client requests to be routed through nested backend filer shares so share
level ACLs can be utilized.
During an import, the ARX detects that two files within a managed volume have the
same name and path. Which of the following will the ARX do once the detection has
occurred? (Choose two.)
A. Rename one of the files only if the modify option is set
B. Report the file collision and flag it as an error on import
C. Not allow virtualization under any condition until the name collision is fixed
D. Allow multiple files with the same name and manage file placement accordingly
Answer: A, B
if a critical route fails, what action may be taken by ARX?
A. Fail over to the peer ARX
B. Use OSPF to determine a secondary route
C. Reroute all traffic through a secondary interface
D. Consult the quorum disk to determine the active ARX
E. Use a DHCP address to configure the inband
ARX management interface
if an ARX has three critical routes, then
A. the quorum disk is used to determine the optimum route.
B. the ARX may stay active if any of the three routes are available.
C. each route must be available before the ARX can become active.
D. the ARX may dynamically load balance all traffic through each possible route.
When a file name collision occurs, what may the administrator do to find the collision?
A. Check the report generated during import.
B. Watch the target filer for the creation of a .lck file
C. This cannot be determined by information on ARX
D. Nothing. File collisions must be resolved prior to import.
For More exams visit https://killexams.com/vendors-exam-list
Kill your exam at First Attempt....Guaranteed!
The largest acquisition in F5 Networks’ 23-year history will combine Shape Security’s fraud and abuse prevention capabilities with F5’s expertise in protecting applications across multi-cloud environments.
F5 Networks has agreed to purchase rising application security star Shape Security for $1 billion to protect customers from automated attacks, botnets, and targeted fraud.
Seattle-based F5 said the proposed acquisition will bring together its expertise in protecting applications across multi-cloud environments with Santa Clara, Calif.-based Shape Security’s fraud and abuse prevention capabilities. The deal is the largest in F5’s 23-year history, and will more than double the company’s addressable market in security.
“With Shape, we will deliver end-to-end application protection, which means revenue generating, brand-anchoring applications are protected from the point at which they are created through to the point where consumers interact with them – from code to customer,” F5 Networks President and CEO Francois Locoh-Donou said in a statement.
F5’s stock remains unchanged at $143.69 in after-hours trading Thursday. The company expects to achieve breakeven non-GAAP earnings per share within 24 hours of closing the Shape Security acquisition, and expects the transaction will accelerate F5’s product and total revenue growth. The deal is expected to close in the first calendar quarter of 2020.
Shape Security was founded in 2011, employs more than 370 people, and has raised $183 million in six rounds of outside equity. Shape will remain located in the current Silicon Valley headquarters after the transaction closes, with co-founder and CEO Derek Smith as well as other members of Shape’s leadership team joining F5 in key management roles.
“We look forward to the opportunity to deeply integrate into F5’s platform for application delivery and security – F5 provides the optimum traffic flow insertion point for Shape’s industry-leading online fraud and abuse prevention solutions,” Smith said in a statement.
Shape’s platform is supported by cloud-based analytics and uses artificial intelligence and machine learning to defend against attacks that bypass other security and fraud controls, according to F5. The company is particularly focused on rebuffing credential stuffing attacks, F5 said, which use stolen passwords from third-party data breaches to take over other online accounts.
The company’s application platform evaluates the data flow from the user into the application, leveraging cloud-based analytics to discern good traffic from bad, according to F5. Combining Shape with F5’s location in the data flow is expected to dramatically reduce the time and resources needed for businesses to deploy online fraud and abuse protection.
“We knew from the companies we work with that applications are critical to running their business,” Locoh-Donou said in a statement. “To drive maximum business value and the best experiences for their customers, these apps need to perform flawlessly while protecting data security and user privacy.”
Some of the world’s largest banks, airlines, retailers and government agencies rely on Shape to provide sophisticated bot, fraud and abuse defense, according to F5. Joining with F5 means that Shape will be able to protect significantly more users and applications from sophisticated attacks and malicious traffic going forward, Smith said in the statement.
In the long-term, integrated F5’s products with Shape’s large-scale telemetry and analytics capabilities will significantly advance F5’s plans to offer AI-enhanced services to customers that provide better visibility, management and orchestration across their applications, Locoh-Donou said in a letter to the company’s employees.
The Shape Security deal comes just seven months after F5 closed its $670 million purchase of NGINX to help companies deliver faster, more compelling digital experiences. Locoh-Donou said in the letter that F5 has been taking deliberate and disciplined steps to become the leader in multi-cloud application services since first laying out the vision in 2017.
“We know what it takes to win,” Locoh-Donou told employees, “and make no mistake, we are playing offense.”
F5 networks this week traded up 12% higher following reports that the company retained Goldman Sachs to represent the company in the wake of apparent buyout offers. In the past, F5 has surfaced as a potential acquisition target among the tech giants such as IBM , Cisco and Juniper . As is generally the case, neither Goldman nor F5 would comment. Although no deal has arisen from any previous such talks, here are reasons as to why F5 Networks might well consider a sell-off this time. Consider the following:
For information, please refer to our complete analysis for F5 Networks
View Interactive Institutional Research (Powered by Trefis):
Like our charts? Embed them in your own posts using the Trefis WordPress Plugin.
Given its better prospects, we believe Ciena stock (NYSE: CIEN), a network hardware, software, and services provider, is a better pick than its sector peer, F5 Networks stock (NASDAQ NDAQ : FFIV), an application security and cloud networking company. Investors have assigned a higher valuation multiple of 3.7x revenues for FFIV compared to 1.5x revenues for CIEN due to F5’s superior revenue growth and profitability. The decision to invest often comes down to finding the best stocks within the parameters of certain characteristics that suit an investment style. The size of profits can matter, as larger profits can imply greater market power. In the sections below, we discuss why we believe that CIEN will offer better returns than FFIV in the next three years. We compare a slew of factors, such as historical revenue growth, stock returns, and valuation, in an interactive dashboard analysis of F5 vs. Ciena CIEN : Which Stock Is A Better Bet? Parts of the analysis are summarized below.
FFIV stock has seen little change, moving slightly from levels of $175 in early January 2021 to around $175 now, while CIEN stock has seen a decline of 20% from levels of $55 to around $45 over the same period. In comparison, the S&P500 index saw an increase of about 25% over this roughly three-year period.
Overall, the performance of FFIV stock with respect to the index has been lackluster. Returns for the stock were 39% in 2021, -41% in 2022, and 21% in 2023. Similarly, however, the decrease in CIEN stock has been far from consistent. Returns for the stock were 46% in 2021, -34% in 2022, and -13% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 23% in 2023 - indicating that FFIV and CIEN underperformed the S&P in 2022 and 2023.
In fact, consistently beating the S&P 500 - in good times and bad - has been difficult over accurate years for individual stocks; for heavyweights in the Information Technology sector, including AAPL, MSFT, and NVDA, and even for the megacap stars GOOG, TSLA, and AMZN. In contrast, the Trefis High Quality Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index, less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could FFIV and CIEN face a similar situation as they did in 2022 and 2023 and underperform the S&P over the next 12 months - or will they see a strong jump? While we expect both stocks to move higher in the next three years, we think CIEN will fare better.
1. F5’s Revenue Growth Is Better
2. F5 Is More Profitable
3. The Net of It All
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
F5's FFIV shares jumped 21.2% post fourth-quarter fiscal 2023 earnings release, buoyed by strong performance. The surge showcases investors' trust in F5's solid finances and its strategic position in application delivery, networking and security solutions.
FFIV's earnings has outpaced estimates in each of the trailing four quarters, delivering an average surprise of 7.76%. This indicates an impressive track record of exceeding earnings estimates. Moreover, the company has a long-term earnings growth expectation of 5.4%.
The stock carries a Zacks Rank #2 (Buy) and has a Growth Score of B at present. The Growth Style Score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or #2 and a Growth Score of A or B offer solid investment opportunities.
With healthy fundamentals, the stock appears to be a solid investment option at the moment.
F5, Inc. Price and Consensus
F5, Inc. price-consensus-chart | F5, Inc. Quote
F5’s stronger-than-expected fourth-quarter fiscal 2023 results have boosted investors’ confidence. F5 Networks stands out to benefit from the booming application networking market. With a strong hold in Layer 4-7 content switching and a solid position in data centers, the company is poised to expand market share, especially given the increasing demands for capacity and security in next-gen applications.
F5 is one of the major players in the application delivery controller (ADC) market, offering vital products for data center consolidation, virtualization and cloud services. Additionally, F5 has gained significant market share due to Cisco's shift away from the core ADC market. It is also a major developer and provider of software-defined application services, ensuring secure, speedy and accessible applications across IP networks on any device and at any time.
FFIV collaborated with industry leaders, including Microsoft, Oracle, VMware, Cisco Systems and HP, to offer integrated application services for their Software Defined Networking offerings. It has also partnered with Amazon Web Services, Microsoft Azure, VMware vCloud Air, Cisco ACI and others for cloud-based application services. These partnerships increase access to new tech, aid product innovation, strengthen F5's cybersecurity suite, support joint sales and marketing efforts, and enhance its competitive edge.
The company is altering its business model by focusing on subscription-based services, which generate steady revenues and increase profits. The company has also made cost-saving moves like reducing staff, trimming facility space and cutting travel. These initiatives are aimed at lowering operating expenses and improving margins in the short run. Moreover, F5 boasts a strong balance sheet, ample liquidity and reduced debt, making it lucrative to investors.
Other Key Picks
Logitech LOGI, carrying a Zacks Rank #2 at present, is capitalizing on the surge of hybrid work patterns, which are expected to increase the need for its video collaboration tools, keyboards, combos and pointing devices. The thriving cloud-based video conferencing services remain a primary driving force behind this. You can see the complete list of today’s Zacks #1 Rank stocks here.
The growing adoption of new mobile platforms in both mature and emerging markets is driving Logitech's peripherals and accessories demand. Additionally, the company has been able to leverage its software and go-to-market capabilities to increase its market share.
The consensus mark for fiscal 2024 earnings has moved north 11 cents to $3.43 per share over the past 60 days, indicating a 6.52% increase from the fiscal 2023 level. LOGI has a Growth Score of A.
NVIDIA Corporation NVDA, carrying a Zacks Rank #2 at present, is reaping the rewards of increased investments in generative AI. The surge in generative AI technology is poised to create substantial demand for its next-gen high-performance computing chips. With rising investments in AI across the data center sector, NVDA anticipates its fourth-quarter fiscal 2024 revenues to soar to $20 billion from $6.05 billion in the previous year’s quarter.
NVIDIA maintains a dominant position in the AI chip market, with its GPUs already integrated into AI models. This expansion of NVDA’s reach is extending into previously untapped sectors, such as automotive, healthcare and manufacturing. Collaborations with Mercedes-Benz and Audi are poised to further bolster NVIDIA's presence in autonomous vehicles and other automotive electronics domains.
The consensus mark for fiscal 2024 earnings has been revised upward by 12 cents to $12.29 per share over the past 30 days, indicating a whopping 268% increase from fiscal 2023. The stock has a Growth Score of A and has a long-term earnings growth expectation of 13.5%.
CrowdStrike CRWD carries a Zacks Rank #2 and has a Growth Score of A. CRWD is capitalizing on heightened demand for cyber-security solutions, driven by numerous data breaches and the growing necessity for security and networking products amid the rise of hybrid work practices.
Ongoing digital transformations and the migration to cloud services within organizations serve as pivotal factors driving growth. The company's robust portfolio, including the Falcon platform's 10 cloud modules, fortifies its competitive advantage and attracts new users. Furthermore, strategic acquisitions like Bionic and Reposify are anticipated to propel further growth.
The Zacks Consensus Estimate for CrowdStrike’s fiscal 2024 earnings has moved north 12 cents in the past 30 days to $2.94 per share, indicating growth of 90.9% on a year-over-year basis. The long-term expected earnings growth rate for CRWD is pegged at 36.1%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
New Leader, New Focus
F5 Networks' new CEO Manny Rivelo tells CRN about his plans to reorganize the structure of the company to better empower the organization to Excellerate its innovation and execution. Seattle-based F5 recently reported revenue jumped 10 percent to $483 million year over year for its third-quarter fiscal year 2015, with a 15 percent increase in service revenue.
Rivelo, who replaced F5's longtime leader John McAdam in July, has aspirations to grow the company "much larger" than its nearly $2 billion annual revenue mark through new initiatives on the application, security and services front.
Rivelo also talks to CRN about the leadership differences between himself and McAdams and his view of Cisco after working 19 years at the company, saying, "You'd be foolish not to want to integrate with Cisco."
How are you changing F5?
We're approaching the $2 billion mark here with aspirations to grow much larger than that. We have to continue to grow the culture inside the company, empower the organization more and increase the accountability. It can't be done by a subset of executives anymore -- we have to begin to push some of that through the organization.
Part of what I'll be doing is changing the organizational structures a little bit, as well as the empowerment that’s required to drive greater cadence of innovation and a greater cadence of execution through the company. John would have probably done that if he would have stayed here.
What are the leadership differences between you and John?
I tend to be more technically oriented than John (pictured) was. Part of that is maybe because I haven't been in the seat as long as John was and maybe some of that gets lost over time, but I understand the market and the technology. I'll be a lot more hands-on is what you'll see from a technology perspective -- helping us drive our strategy. I'm going to be taking more of an active role in that as we shape that forward.
As you steer the company into the future, what will F5 look like in a few years?
At the core we're not changing our fundamental principle of what we started out to do over a decade ago, which was to really focus around the applications and the delivery of applications. But today it requires a lot more. It requires us to secure those applications, as well as increase the performance of those applications and how they're delivered across mobile devices and across 4G, 3G networks.
The concept of hybrid networking, a hybrid-application delivery is something very relevant to the market. Our view is to continue to enhance our service portfolio, create a series of proxies that create a better user application experience no matter where that application resides or where the user tries to access the application from. We'll continue to build our portfolio around that.
You worked at Cisco for 19 years. In what ways do the two companies differ?
The major difference is our focus on applications. We sit a little higher in the OSI stack; we sit a lot closer to the applications, and the conversation is very application-centric versus when I was at Cisco the conversation we tended to have was network connectivity. The nice part of where we sit inside the OSI stack is we can have conversations with both the applications teams and the network team, so our job is to bridge those together as best as possible to create the best experience.
There's also a lot of similarities. That's why I think it was an easy transition into F5 for me. I can leverage some of those leanings over my 19 years at Cisco to apply to F5 to try to continue to propel F5 to the next level.
Do you see Cisco as a 'locked-in' vendor?
When I was at Cisco I never looked at it as a company that tried to lock people in. [Former CEO John] Chambers drove a culture being No.1 or No.2 in the markets they competed in, and, as a result, they had a large presence in those markets, whether it be security, switching, routing or wireless. Yes, the business units looked to work together to expose more value, which is sometimes easier to bring through a protocol that they developed. So Cisco had a culture of innovate quickly, get it to market quickly, then try to bring it through open standards. That sometimes might have gotten confused as it being proprietary, but that was never the intent. The intent was just about exposing value at a quicker pace.
As a company who has a partnership with Cisco, do you see Cisco adapting well to an open-standards world?
Cisco understands it's a software world. [CEO] Chuck Robbins (pictured) is taking them down that path. They're moving quickly to new licensing models, openness and things of that nature. I think that's a natural shift for Cisco, which I think they'll easily do. They're bringing their pieces of the technology stack to the table and have those well-integrated. I mean they're a key component -- you'd be foolish not to want to integrate with Cisco.
Do you see vendors, even competing vendors, partnering with each other more than ever before?
Yes, we're seeing that. In the old days, customers bought a lot of equipment -- they stacked and racked it themselves. It took them months, and they configured their networks and data center and brought up their applications. Today, everybody wants the easy button. They want to be able to deliver their services by pressing a button. That requires the partnerships that weren't there before because the market is expecting a series of vendors to come together through a set of open standards and not locked-in proprietary technology to offer those services, and that’s forcing the levels of partnerships we're now seeing out there.
Customers want integration, but they want to be able to piecemeal that integration and change vendors and companies if they're not meeting their needs.
Where is F5 making strategic partnerships?
We're partnering on many fronts. When we look at our strategy of why we have to partner with the cloud providers, why we partner with all the major SDN providers, why we partner with all the major service providers, it's because we want to be part of those integrative solutions.
Then if our technology is the best piece of that whole value proposition of the total solution, we will get chosen from that. But it's not going to be just about being the best technology -- you need to drive the total cost of ownership down and agility up.
What does the F5 software division look like compared to its hardware division?
We're predominately a software company. If you look at the innovation and engineering of our R&D team, 90 percent of it is really all about building software. We have a small team of individuals that build hardware, and that’s so we can instantiate our software and run it. What drives our margins is really the richness of our software, and that will be the same moving forward.
What is F5 doing to capitalize on the hot security market?
There's a couple of footprints we're very interested in. We're trying to leverage our proxy technology. What we want is a set of services on the user side that secure the user perimeter.
We're also going after the other side of the proxy -- the side that services the applications. There, we don’t only want to make applications highly available, but we want to make sure the application is fully defended -- everything from a DDoS vulnerability, all the way to the firewall rules sets, all the way to the signatures to protect an Apache server, for example. You're also seeing us making a lot of progress in our SSL technology.
Are you interested in firewalls?
We're not that interested in providing next-generation firewall technology today. That's not an area we have built out. We have our cloud-based SaaS services that come out of our Silverline platform -- things like anti-DDoS -- where we can offer those as subscription models to customers in case they don’t want to run them themselves. We'll continue to build out that portfolio.
How will you drive partner profitability?
We're better defining the businesses that we need our channel to move forward with. So security being an example, we'll be retooling our security partnerships around the solutions we offer -- same thing for the cloud.
What we're going to have to do is continue to do channel development, channel incentives around those technology areas, so that our value proposition is clear in the market and that partners themselves are creating demand versus us creating a demand, then partners coming in as part of the transition. As we move forward, it's really enabling our channel around our new businesses we move forward, and together we will prosper in the coming years.
Despite the stock performing well over the past five months, F5, Inc.'s (NASDAQ:FFIV) returns in 2023 are still only in line with broader indices. This is counter to my expectation of poor performance due to:
While system sales are expected to drop sharply going forward and F5's new businesses have so far demonstrated limited traction, margins have rebounded sharply due to F5's focus on expenses. This, along with a modest valuation, has helped F5's stock perform strongly in the second half of 2023.
F5 stated on its fourth quarter earnings call that the demand environment has shown signs of stabilization, particularly amongst enterprise customers. F5's hardware orders reportedly rebounded in the fourth quarter, supporting this view. In terms of verticals, technology and financial services customers were areas of strength, offset by service provider weakness. Service providers are delaying asset purchases and prioritizing spending.
F5 expects continued growth in FY2024, driven by automation and generative AI. F5 also believes that customers will be forced to begin investing in application infrastructure again. Given the boom in hardware spending over the past three years it is not obvious that this will be the case though. Some customers have obviously delayed purchases due to financial pressure, but I would be surprised if this represents a majority, or even a significant minority of customers.
F5 provides a range of solutions that help to deliver, secure and optimize applications and APIs across any environment. It has both hardware and software offerings, many of which have come through acquisitions. F5 is still in the process of integrating these solutions into a converged solution though.
This is change that has been necessitated by the growing importance of the cloud and edge computing, which has changed how applications are developed and deployed. While F5 has positioned itself to remain relevant, there is a large amount of uncertainty regarding what extent acquisitions will offset structural headwinds to F5's legacy business.
F5's Distributed Cloud Services offering now has over 500 customers, more than a 200% increase YoY. Penetration has predominantly been within F5's existing customer base so far though, with only 29% of Distributed Cloud customers new to F5. WAF and multi-cloud networking are F5's first two distributed cloud solutions. CDN capabilities were also recently added through the acquisitions of Lilac, and F5 has a backlog of other services it wants to add to the platform.
F5 is seeing continued adoption of NGINX amongst larger enterprises for their cloud and Kubernetes workloads. Customers are also leveraging NGINX for app layer security for containers. NGINX serves modern, container-native and microservices-based applications and APIs.
While F5's ADC business will continue to face headwinds, the company continues to invest in it, and as a result, expects to take a share in both hardware and software form factors. F5 aims to provide on-prem deployments with the benefits of the cloud (multi-tenancy, rapid upgrades, etc.) while lowering total cost of ownership. F5's rSeries and VELOS platforms represented more than 80% of Q4 systems bookings. rSeries is designed on a new microservices-based platform layer and an API-first architecture. It supports BIG-IP app delivery and security services and aims to lower costs through consolidation. VELOS is a next-generation chassis system that aims to provide performance and scalability in a single ADC. Customers can scale capacity by adding modular blades in a chassis, without disrupting users or applications.
Security is an important part of F5's business, contributing approximately 1.1 billion USD revenue in FY2023. F5 was disappointed with the performance of its most advanced anti-bot and anti-fraud managed service solutions this year, which it attributed to customer spending caution and budget scrutiny. F5 has reportedly seen good traction with its lower-end Distributed Cloud anti-bot offering though, as well as from security on NGINX.
Like most edge computing companies, F5 is counting on AI inference workloads to provide a tailwind. Organizations will need to support inference across datacenters, public clouds and the network edge, which F5 believes it is positioned to support. While inference could begin to create incremental demand in 2024, I think it is still too early for this to be material for companies like F5.
F5 also expects the use of AI to accelerate growth in the number of applications and APIs, which would naturally be a tailwind for F5's business. The number of applications is likely to be limited by demand rather than supply though. Applications require users and organizations must acquire these users, the real bottleneck to growth in most cases.
F5's fourth quarter revenue was 707 million USD, a 1% increase YoY, with 54% of revenue coming from services and 46% from product. Services revenue grew 9% on the back of high maintenance renewals and price increases. Service revenue is likely to moderate going forward as F5 laps price increases and spending on upgrades versus maintenance normalizes. Product revenue increased 7% YoY, with systems revenue down 25% due to lower backlog related shipments.
Backlog has now returned to normal levels, which will present roughly a 180 million USD revenue headwind in FY2024.
BIG-IP and NGINX term subscriptions were up 9% in FY23. SaaS (includes Distributed Cloud) and managed services only increased 2% though. F5 has stated that it is seeing solid momentum from its Distributed Cloud business, but this isn't apparent in public data. Some of this is the result of planned revenue churn. Managed services include F5's legacy Silverline offering as well as some legacy SaaS solutions. F5 is currently in the process of migrating customers from its Silverline solution to the Distributed Cloud offering, which is creating headwinds. The company is also abandoning some legacy SaaS offerings from the companies it acquired. This process involves 65 million USD ARR in total, half of which is from offerings that F5 is retiring completely. The process is expected to be completed over the next year. F5's perpetual license software revenue was also down in FY2023, although the company attributed this to an unusually strong prior year.
F5 expects customer caution to continue in FY2024 but also believes that customers will need to begin replacing assets again in the next year. Software is expected to provide flat to modest revenue growth due to headwinds from the transition of SaaS and managed service offerings. Global services revenue is expected to return to low-single-digit growth as F5 laps price increases. As a result, FY2024 revenue is expected to be flat to down low-single-digits YoY. F5 expects to return to mid-single-digit revenue growth in FY2025 though.
While F5 has suggested that supply chain issues have largely resolved and delivery times normalized, F5's product margins remain depressed. How much if this is due to revenue mix, versus declining system or software margins is unclear though. This is an important trend to watch as F5 needs to maintain high gross profit margins to support investment in its security and distributed cloud businesses.
While gross profit margins remain under pressure, F5's operating profit margins have rebounded sharply in accurate quarters, with much of the change driven by improved sales and marketing efficiency.
F5 has been focused on reducing its operating expenses, but given the company's ambitions, it still needs to invest in product development and customer acquisition. How these dynamics play out in coming quarters will have a large impact on F5's share price going forward.
Despite the stock moving around 20% higher over the past two months, F5 still appears reasonably valued, with the company's EV/S multiple towards the lower end of its historical range. Investors need to weigh its valuation against uncertain growth prospects and the potential for margin compression as the company invests in growth initiatives. The fact that software revenue has been fairly flat over the past 15 months and is expected to remain fairly flat over the next 12 months is hardly comforting. The accurate drop in sales and marketing expenses also isn't suggestive of a company capitalizing on a large growth opportunity. F5's internal expectations are for long-term software growth in excess of 20%, offset by high to mid-single digit systems revenue decline. If F5's distributed cloud business struggles, the stock could still prove expensive at current levels.
F5 Networks, Inc. is a provider of multi-cloud application services which enable its customers to develop, deploy, operate, secure, and govern applications in any architecture, from on-premises to the public cloud. The Company's enterprise-grade application services are available as cloud-based, software-as-a-service, and software-only solutions optimized for multi-cloud environments, with modules that can run independently, or as part of an integrated solution on its appliances. In connection with its solutions, the Company offers a range of professional services, including consulting, training, installation, maintenance, and other technical support services. The Company's customers include large enterprise businesses, public sector institutions, Governments, and service providers. It conducts its business globally and manage its business by geography. Its business is organized into three geographic regions: Americas; Europe, Middle East, and Africa; and the Asia Pacific region.
001-ARXConfig resources | 001-ARXConfig approach | 001-ARXConfig Free PDF | 001-ARXConfig information source | 001-ARXConfig information search | 001-ARXConfig syllabus | 001-ARXConfig information source | 001-ARXConfig thinking | 001-ARXConfig guide | 001-ARXConfig information |
Killexams exam Simulator
Killexams Questions and Answers
Killexams Exams List