Yep… RVBD is living on renewals. Renewals pulled their a$$ out of the fire for every quarter so far….ARR : annual recurring revenue. But it’s not recurring forever. Especially if there are no new innovations. And there aren’t. Also note that a significant bit of renewal $ is actually coming from maintenance contracts on EOA’d products that are not yet EOS. But it’s coming soon…an end date in the next 12-24 months. Big cliff coming…. Oops. But hey… it’s all good, just keep laying the good productive people off, promoting the Dunning Kruger folks and spending on Alluvio IQ. I’m sure it will all be fine.
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@thehardwarefairy Exactly this. So much revenue is tied up in xx70 : maintenance, renewals, etc. Make fun all you want but the Steelhead family was the cash cow and when it’s gone…. NPM products are not enough to make up for that. And CERTAINLY NOT the disaster that was “Effluvio LowIQ”. (Are they still peddling that lemon?)
@lqx+1p3amSo7 When the xx70 support is over, gigantic cliff. Expect that date to keep pushing so that customers will continue to pay renewals. Huge business hit every time there is a forklift upgrade. XX70 is massive. But wait the new hardware is going to save everything....
"So Riverbed will actually be dead in 12-24 months?"
Something will happen once they're done stripping the company of talent. There's no synergy between wanopt and the "opnet" product family, and within the latter there isn't much either. A case where the sum of the parts is less than the whole, so figure wanopt is the big "prize", everything else is up for grabs and parts could be cobbled together inTO various packages, BOGO-style. Buy Aternity/APM get Portal free! Free, you know, like a puppy!
@hwm, probably dead-er with every passing quarter.
VC thought the initial cuts back in June were enough to sustain, but apparently with this latest RIF they're finding out the hard way. Expect more of the same if quarterly #s are in the red.
Not quite. But it’s another straw on the camels back.
In 12-24 months, A large chunk of EOA’d products hit end of support …EOS . That means RVBD will no longer sell maintenance contracts or get renewal contracts on those EOA products. That’s “expiring annual revenue” …..it goes away. It’s a few million every quarter. It adds up. Or doesn’t add up.
There continue to be renewal and maintenance contracts being sold on active non-EOA products ….but the sales of new products is down…and the bulk of those fat “renewal” products peaked five years ago and it’s been declining…. so one assumes renewals and maintenance contracts are going to decline as well. I don’t see them being replaced by new products. I mean seriously….Alluvio IQ ?
Here’s a question. …what brings in more revenue….Steelhead maintenance contracts or a SaaS subscription…. Especially given the discounts handed out on subscriptions.
Also…..letting go of support and PS folks isn’t going to help customer satisfaction and either renewals or new sales.
So Riverbed will actually be dead in 12-24 months?