A10 Networks: Cloud model not favoring providers
By Khoo Boo Leong 17-Apr-2012
"Although cloud computing may be gradually catching on, service providers are already paying for the equipment today and they have to think of a model where they can earn [a profit on] what they have invested," said Hayato Koeda, the president and CEO of A10 KK as well as vice president of South Asia at A10 Networks. "From a business model perspective, cloud computing is not there yet. Probably, no one's making money in cloud services."
The price is not right
"Although cloud computing may be gradually catching on, service providers are already paying for the equipment today and they have to think of a model where they can earn [a profit on] what they have invested."
-- Hayato Koeda,
"We're still monitoring where the market is growing," Koeda added. "For example, we may charge service providers on [a pay-as-you-grow] basis. We have a list price for our solutions but we just don't know whether that's going to work. We're considering a stepped fee [or] some kind of model where everyone can make money."
For now, the vendor will tout its virtualization, application networking and IPv6 migration solutions to help cloud service providers realize cloud economics and reduce costs per transaction.
Ways to reduce the pain
"IT trends such as cloud computing, multi-layer security and high compute per rack unit are essential to ensure applications can keep pace with rapidly expanding user demand," said Joe Skorupa, research vice president for Data Center Convergence at Gartner. "Application networking vendors are enabling these trends with scalable, compact application delivery controllers that help customers create scalable, high-performance application deployments."
A10 Networks also offers the software-based SoftAX virtual appliance for application delivery and server load balancing. It runs on VMware and works with Microsoft Exchange 2010 and Lync 2010. While targeting data centers and cloud providers with high-bandwidth requirements or unexpected bandwidth spikes, an entry-level version of SoftAX can be upgraded on a pay-as-you-grow model.
Riding on the cloud
"As hypervisor companies continue to innovate and organizations mature their virtualization environments, the number of virtual machines per server will rapidly increase. This trend puts more pressure on administrators to ensure that their infrastructure runs smoothly," said Bob Laliberte, senior analyst for ESG.
These challenges have presented A10 Networks with opportunities for growth. "Worldwide, we grew 5 times in the last two years," said Koeda. "Japan grew 6 times. In South Asia, we grew 2.5 times in 10 months and we're expecting at least 3 times growth this year. In Asia, we see higher growth in the Philippines, India, Singapore and Thailand."
The company recently opened its South Asia regional office in Singapore, which also serves customers in Malaysia, Thailand, India, Philippines, Pakistan, Vietnam, Sri Lanka and Indonesia.