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Subject:  Re: Allot Communications (ALLT) Date:  4/13/2012  8:40 AM
Author:  TMFJazzysav Number:  7898 of 7921

Hello again guys.

I’ve grappled with the sizing question too: how far are they and how much is left? I’m afraid on this I can only offer you a spectator’s analyses, insofar as I have no hard data relating to percentage of networks using Allot’s DPI.

In Europe, I know as fact that that one major network has deployed Allot solutions across their portfolio, however, the majority of the countries where they're deployed are not yet monetising the power of traffic shaping. This however is inevitable; targeted advertising, ‘lawful intercept’ and QoS – Quality of Service – are all empowered by deep packet inspection. About 2 years ago Vodafone Spain launched a Gold/Silver/Bronze mobile broadband offering that has reasonable success, but like many first-to-markets, were a little early in the curve for absorption.

First mover in this space counts for a lot as it's tricky, to put it mildly, to swap from one vendor to another (but not impossible). While there are many competitors in the DPI field, mostly privately owned enterprises, it’s is notoriously difficult to break into the list of approved vendors for a telecom operator. A friend of mine who managed to sell his business to a telco, described life selling services into operators, as one very long string of disappointments with the occasional unexpected success. Allot are already wired into many core networks, which in my books counts for something.

A real worry I have about Allot however, comes from a friend who has dealt with the company extensively. His view is entirely subjective and second hand, but one I heed as I know the guy since we graduated. To quote him, in relation to Allot: "there is no company I hate more". He cites reasons that I will sensitively summarise as cultural differences between Israeli sales engineers and Irish-customer engineers charged with integrating ALLT hardware and dashboards. I asked if his counterparts in other networks felt similarly and he suspects they do. Again, suspects.

My investment in Allot comes down to one simplistic fact: without traffic management technologies, in which Allot have a lead, mobile and fixed broadband providers are toast. If Cisco put their energy into the area in a serious way, I'll start to worry, but so far so good.



PS: What does fat pitch mean? I googled it and have deduced it’s to do with baseball – a sport I regrettably have zero exposure to.
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