WAN optimisation players scramble for Expand base

Riverbed looks to bring customers and resellers onside but rivals and former partners blast vendor's approach and offer migration packages of their own

Swathes of vendors are racing to catch the customers and partners of fallen vendor Expand Networks in their safety net and have put together some eye-catching offers.

Riverbed, which now owns the intellectual property and certain other assets of Expand, has taken some flak since closing the buyout, as its publication of an FAQ list appeared to offer scant solace to affected resellers and end users.

But Paul O'Farrell, vice president of corporate development and strategy at Riverbed, stressed that his firm is "working as quickly as we can to put together some kind of transition plan" for customers and partners.

A basic support package will be provided to Expand's customers over the next couple of weeks, and they will be offered "significant promotional discounts" to tempt them to migrate to Riverbed technology. The WAN optimisation heavyweight is in the process of talking to Expand's top 20 or so customers to discuss their options, while the wider client base will be addressed over the next couple of weeks.

"The major difference in what Riverbed can do [for Expand customers] versus our competitors is we can offer some form of basic support offering for some period of time, combined with some form of promotional discount," said O'Farrell. "We will also offer them a rebate for any remaining balance on their support contract."

Alternative offer
But rivals are also vying for the business of former Expand customers and have criticised the way Riverbed has handled the situation. Expand distributor Wick Hill today announced it has signed up as a distribution partner for WAN optimisation vendor Silver Peak Systems.

"They have great datacentre technology," said Wick Hill chairman Ian Kilpatrick. "For the high end, it is a particularly attractive solution."

Wick Hill will be providing Expand VARs - even those that did not trade with it - with free support in the short term. With Silver Peak's blessing, the Woking-based VAD has also assembled a technical and sales migration package, which will include discounts of up to about 40 per cent.

Kilpatrick was unimpressed by Riverbed's actions in light of the buyout, claiming that its approach "is not going to endear it to Expand's customers, who are sitting there today with uncertainty". The Wick Hill boss pointed out that Expand's technology is running mission-critical activity for customers who, for the time being, have no support.

"Given the commercial benefits to Riverbed of this asset acquisition, I am really surprised that they have taken such a hard-nosed approach to the considerable and loyal Expand customer base," said Kilpatrick (pictured, right). "It does not appear that they have viewed [customers'] issues as a high priority."

Exinda is another vendor offering a home to former Expand customers and partners, and has also recruited former Expand marketing director Kay Piper. Adam Davison, EMEA vice president of sales at Exinda, claimed his firm has a technical migration offering and a pricing structure that would be "very compelling" for customers.

Partners will also be "welcomed with open arms", and Exinda "believes it can make [the transition] as painless as possible", claimed Davison.

"It is all about helping existing customers protect their investment in WAN optimisation. It is a bespoke programme [taking in factors such as] how long they have owned the product for and what is their write-down period," he added.

"Riverbed is squeezing existing customers and, the way they have done it, they have probably pushed people away. We have done a lot of work in the background and are already engaged in a number of trials."

Davison said he felt Riverbed's acquisition was a primarily defensive move, rather than a play to acquire new intellectual property and routes to market.

"What [Riverbed has] ultimately done is stop other players out there buying their way into WAN optimisation - that is why you are seeing all this negativity," he said. "They have done it as a block and tackle. That speaks volumes about where they feel they are in the market."

Tackling the issue
But Riverbed strategy chief O'Farrell denied it was a calculated attempt to kill off a rival.

"I do not think we have gone out to shut off Expand's business or to play hardball with their customers or partners," he explained. "We found ourselves in a situation where Expand was in difficulty - if they had found a way out of bankruptcy, I think we would have been happy to continue to compete with them."

O'Farrell compared the situation to that of one car manufacturer buying certain engineering talent and intellectual property - but not factories or production lines - from a rival that had entered administration. One would not expect that company to continue making its fallen rivals' cars or fulfilling its customers' warranties, he reasoned.

"We greatly respected Expand as a competitor, there were segments of the market where they were strong," added O'Farrell. "Going forward we can possibly benefit from some of the products that they developed."