F5 Channel Chief On 2016: 'Accelerate' HPE Partnership, 'Tighter' Cisco Strategy And Major Channel Investments

What's Next For F5?

F5 Networks has some bullish goals for its channel in 2016 around security along with plans to deepen its key partnerships with Cisco and the new Hewlett Packard Enterprise.

Jim Ritchings, channel chief and senior vice president of Worldwide Channels at F5 Networks, tells CRN how the HP split will accelerate its partnership with HPE, while its Cisco relationship will become more strategic this year.

The Seattle-based application delivery specialist also has some big investments in store for its channel community around security this year. "I couldn't talk about our channel strategy for 2016 without focusing on security. It is an area of significant investment for us," Ritchings said.

Here's what Ritchings had to say about F5's channel initiatives, security, HPE, Cisco and the recent abrupt resignation of its CEO.

With HP now split into two companies, do you expect new competition from HPE in the enterprise or a tighter relationship?

I do see a tighter relationship. This split actually helps us. We're an enterprise play. I expect that HP will be even more tightly focused around their technology and services to go and grow the enterprise business, and that will strengthen our partnership. That's the expectation and that's the messaging we're getting back from HP. We're excited about the future.

When we looked at that split, when these things happen, you want to do a risk assessment and we came out saying, "I think this is really good to our partnership," and we've seen that result so far. We're seeing some acceleration in the partnership.

You don't see F5 overlapping with the new HPE anywhere?

Anytime there's an organization that large, broad and diverse -- from a product portfolio standpoint -- there could be some confusion or maybe even some competitive overlap. We both navigate around that so we can focus on the opportunity that we can to go jointly after.

HP's a multifaceted relationship. HP enterprise services has been a partner of ours for over 10 years. We're doing business on a worldwide basis: managed services, managed security, cloud deployments as well. We have a service provider-based relationship anchored primarily in Europe and Asia/PAC where we are integrated into their network function virtualization [NFV]-based solutions. We partner with HP networking to help them go to the customer with a full Layer 2 through 7 value proposition. So we don’t really see any competition from HP.

What's F5's outlook in 2016 regarding its relatively new partnership with Cisco? Do you see Cisco as more of a competitor this year or a tighter partner?

A tighter partner absolutely -- without a doubt.

Cisco's clearly a partner that's growing in strategic importance with F5 and frankly we're strategic to them as well.

When we work with Cisco, we enable our joint channel partners and we have huge overlap. A lot of their largest channel partners like Dimension Data, WWT and Presidio are large F5 partners. We're seeing our channel working more very closely with the customers to migrate from the Cisco ACE technology, which was end-of-life a few years ago, and that continues to be a good opportunity specifically for our channel.

You initially formed the partnership in 2013 with Cisco around its software-defined networking [SDN] strategy. Where does that stand in 2016?

Cisco's [Application Centric Infrastructure] is where the partnership began. We were the first and now we're the most feature-rich in terms of integrating Layer 4 through 7 services into their APIC controllers. So customers can deploy our Layer 4 through 7 software-defined application services within that construct.

This is where we're truly strategic to Cisco. We give them, through our application portfolio, a full SDN Layer 2 through 7 architecture that really speeds deployment up for applications, while also maximizing the operating expense, which is a key thing customers are looking for when they deploy SDN.

What's another area where you see a tighter relationship with Cisco in 2016?

Bundling F5 with the Nexus 9000 upgrades.

You're seeing customers respond to Cisco's offer to get into the Nexus 9K, and we're working with our channel and distributors to make sure we're capturing our fair share of that business where they can do a broader Layer 2 through 7 architecture play.

Cisco was the dreaded competitor for the first 10 to 12 years I was here. If you stick around long enough, things change.

Any new channel programs on the docket for F5 partners in 2016?

One thing that's new is we launched a couple of performance-based rebates programs. One is at the distribution level and another focused on our Silver and Authorized partner group. There is also a more partner-focused [program] focusing really on them growing their business and reaping the rewards on the back end through performance-based rebates. It's the Finish Strong program.

We will be extending the distribution aspect of it in Q2, which is where we are right now.

Security was on top of mind for F5 partners in 2015. What should the channel expect in 2016?

I couldn't talk about our channel strategy for 2016 without focusing on security. It is an area of significant investment for us. When I think about our security strategy in the channel, I think about explosive growth in terms of year over year -- faster growth than our core. It is an area where we're investing in terms of building the team with specific security acumens. So we're building a team focused on growing the security channel.

Are you doing any partner onboarding around security?

We are looking for net new security partners either in a target sense, meaning directly with business development partners like FireEye, but also to make sure we have good geographic expansion for our security solutions on a global basis.

We're doing very targeted recruitment for security partners, looking at some of our competition and going to the channel with what we think is a better value proposition. We're working closely with some of our security partners like FireEye, recruiting jointly together, because we've got a significant SSL solution with FireEye that is resonating in the marketplace.

What about internally?

We're hiring security channel specialists and focusing them on developing existing partners further and recruiting new partners.

There's definitely an increase and up-leveling of what we're trying to do in security, and it's a very, very key focus for us this year in the channel.

F5's recently hired CEO Manny Rivelo suddenly left the company last month. If I was a partner, what would you do to reassure me that things are stable inside F5?

We've been a rock-solid corporation, a rock-solid partner and a very predictable organization. The channel doesn't like unpredictability. Those are the type of things that frankly help relationships persevere through blips like what we saw with the CEO change. The feedback from the channel has been very good, and they're interested in expanding the business with us.