FFIVF5, Inc.

F5 distributes load between servers and protects applications from attack — the node all the traffic passes through.

The classic product is an appliance sitting in front of the servers, deciding which one gets a request and filtering out malicious traffic along the way. It is embedded in the most sensitive point of the infrastructure of banks, carriers and government systems, and replacing it is an operation that risks an outage.

The move to cloud erodes that position: there the job is done by the platform's own tooling. The company answers by moving functions into software and subscriptions, but growth is slow. Stability comes from service income on the installed base. Risks: a shrinking appliance market and competition from cloud services. The company pays no dividend, directing cash into buybacks.