SOURCE: Riverbed Technology

Riverbed Technology

June 14, 2010 09:00 ET

Medi-Clinic Deploys Riverbed to Support Private Cloud Computing Strategy

Private Hospital Group in South Africa Increases Application Performance While Avoiding Costly Bandwidth Upgrades; Employee Productivity Increases as a Result

SAN FRANCISCO, CA--(Marketwire - June 14, 2010) -  Riverbed Technology (NASDAQ: RVBD), the IT performance company, today announced that Medi-Clinic, one of the largest private hospital groups in the world, has deployed 58 Riverbed® Steelhead® appliances and the Central Management Console (CMC) at its Southern African operations. The wide area network (WAN) optimization deployment will support Medi-Clinic's existing private cloud computing strategy and allow Medi-Clinic to avoid a bandwidth upgrade, which would have cost an additional R5m ($653,000) per year. The company recovered the initial capital investment within 11 months and has seen an 80% improvement in file download speeds, which has resulted in a dramatic improvement in employee productivity.

Medi-Clinic Southern Africa is an established leader in the private hospital industry, with 93 sites across South Africa and Namibia. These sites consist of hospitals, practice management units, nursing recruitment agencies, a hospital equipment manufacturing site and regional offices. Medi-Clinic Southern Africa employees rely heavily on SQL applications, including systems such as patient and pharmaceutical administration, hospital events management, infection control and emergency center administration. Other systems include practice management, human resources management and financial systems.

Medi-Clinic implemented a private cloud computing initiative and centralized certain critical IT systems to its central data center. While this strategy reduced management overhead costs, it also led to user complaints about the length of time it was taking to access critical applications and the intranet. Deon Myburgh, group information communications technology (ICT) operations manager for Medi-Clinic Southern Africa, calculated that the company would need to double its current bandwidth to improve application performance, which would cost an additional R5m ($648,000) per year, and still this option would not completely address performance issues. "We needed to find a solution that was cost-effective, would support our private cloud environment, and would improve employee productivity," said Myburgh.

Having ruled out a bandwidth upgrade, Medi-Clinic Southern Africa tested WAN optimization products from a number of vendors. "While some other alternatives looked fantastic in terms of statistics provided to the IT department, our users saw no improvement in file access times," noted Myburgh. "In contrast, users saw a real difference when we tested the Riverbed Steelhead appliances. In one test, accessing the intranet was reduced from 80 seconds to nine seconds. Our users were extremely impressed."

With Steelhead appliances installed in 58 locations, Medi-Clinic Southern Africa has experienced a 3x reduction in bandwidth utilization and an average 80% improvement in file download speeds. The reduction in the time taken to access files and applications has resulted in a dramatic increase in employee productivity. Selecting a Riverbed WAN optimization solution has enabled Medi-Clinic Southern Africa to reap the efficiency gains from its cloud computing initiative without sacrificing user productivity. "Taking into account hardware costs, improved user productivity, and better management of our network, we are extremely satisfied with the Riverbed implementation," explained Myburgh. "Riverbed is now a critical component of our organization. Our decision to use Riverbed has delivered significant returns."

Forward Looking Statements
This press release contains forward-looking statements, including statements relating to the expected demand for Riverbed's products and services, statements regarding performance results of Riverbed solutions, customer payback following implementation of Riverbed solutions, and customer cost savings resulting from implementation of Riverbed solutions that may suggest likely or certain outcomes, and statements relating to Riverbed's ability to meet the needs of distributed organizations. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include our ability to react to trends and challenges in our business and the markets in which we operate; our ability to anticipate market needs or develop new or enhanced products to meet those needs; the adoption rate of our products; our ability to establish and maintain successful relationships with our distribution partners; our ability to compete in our industry; fluctuations in demand, sales cycles and prices for our products and services; shortages or price fluctuations in our supply chain; our ability to protect our intellectual property rights; general political, economic and market conditions and events; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission. More information about these and other risks that may impact Riverbed's business are set forth in our Form 10-Q filed with the SEC on April 30, 2010. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements. Any future product, feature or related specification that may be referenced in this release are for information purposes only and are not commitments to deliver any technology or enhancement. Riverbed reserves the right to modify future product plans at any time.

About Riverbed

Riverbed Technology is the IT performance company. The Riverbed family of wide area network (WAN) optimization solutions liberates businesses from common IT constraints by increasing application performance, enabling consolidation, and providing enterprise-wide network and application visibility -- all while eliminating the need to increase bandwidth, storage or servers. Thousands of companies with distributed operations use Riverbed to make their IT infrastructure faster, less expensive and more responsive. Additional information about Riverbed (NASDAQ: RVBD) is available at

Riverbed Technology, Riverbed, Steelhead, RiOS, Interceptor, Think Fast, the Riverbed logo, Mazu, Profiler and Cascade are trademarks or registered trademarks of Riverbed Technology, Inc. All other trademarks used or mentioned herein belong to their respective owners.

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