Packeteer, Inc. (PKTR)
2003 Interview with: Dave Cote, President and CEO
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and Information on their application traffic management systems that enable businesses to gain visibility and control of networked applications, extend network resources and align application performance with business priorities.

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IT departments of global corporations and small to medium enterprises are implementing Packeteer's application traffic management systems



Enterprises
Service Providers
(PKTR - NASD)

Packeteer, Inc.




Dave Cote
President and
Chief Executive Officer

Interview conducted by:
Walter Banks
Co-Publisher

CEOCFOinterviews.com
September 2003

Packeteer, Inc (NSDQ: PKTR) is a leading provider of application traffic management systems that enable businesses to gain visibility and control of networked applications, extend network resources and align application performance with business priorities. For service providers, Packeteer systems provide a platform for delivering application-intelligent network services that control quality of service, expand revenue opportunities and offer compelling differentiation. The company’s products are sold through more than 100 resellers, distributors and system integrators in more than 50 countries. “What differentiates us is primarily in our very deep classification at Layer 7.” Offers Mr. Dave Cote, President and CEO of Packeteer, “Our ability to literally classify an operation is somewhere in the order of 400 different applications that give our customers great insight of what is running on their network, and the specific technology that we use in setting policies for controlling those applications, which is patented technology called TCP Rate Control. We do not let data depart until we know it can land and that ability to provide granular rate control across the network gives our customers a predictability in being able to prioritize or block or minimize unwanted traffic, and that is different than our competition.” Continuing his thought on what competition the Company faces Mr. Cote says, “Interestingly, our primary competition is people looking to add bandwidth. The notion that if there are congestion problems in the network, all you have to do is double your bandwidth is the primary competition against our technology. We not only have different traffic types, or different applications, but we have different traffic types that have different characteristics of how they operate on the network. Often you will get web-oriented types of operations that are very versatile; they will take up as much bandwidth as is available. The ability to go in and manage these different types of traffic is important.”

“Our core benefit is that we give people visibility into the applications that are running on their network.” Mr. Cote shares that, “Surprisingly, many IT folks do not know what applications are running on their networks. They may know the important business applications, but as they use the Internet as a vehicle for delivering the network outside of their own buildings, they are subject to a lot of different traffic types that they may not be aware of. By giving people the visibility into applications running over their network, and following that with our control technology, they can now apply policies to prioritize or protect the important applications and minimize or block the unimportant ones. Companies with the most interest in this technology are those with large networks that stretch from one end of the globe to another. We think that in some respects the market is coming towards us, or we are heading towards it. People need to know what is running on their network and get control over it and we have a unique ability to do that in our product.” When asked where growth will come from for Packeteer, Mr. Cote says, “We are a new products business and a new product company. We will continue to provide additional capabilities to our existing products as well as look at new products that compliment what we do and add value to what our customers are looking for. However, we have by no means penetrated the marketplace with our core value proposition. We are still a relatively small company and I think that there is tremendous opportunity in the existing system of products that we offer today. Our growth is based on a combination of the two and we will not stand still with respect to R& D. We will continue to invest in the range of 18 to 20 percent of our revenue.”

Packeteer’s application traffic management solutions offer customers control over networked applications, extend network resources and align application performance with business priorities. Packeteer also provides application traffic management solutions designed to enable delivery of differentiated services and guarantee service levels while extending WAN resources.

PacketShaper^® is an application traffic management appliance that ensures business applications perform efficiently and reliably over the WAN and Internet. PacketShaper provides Layer 7 visibility and several levels of policy-based control to actively manage network and application performance. PacketShaper^® Xpress™ is an optional upgrade for the PacketShaper that offers universal traffic acceleration to increase available bandwidth and accelerate the performance of networked applications. PacketSeeker™ is an application traffic monitoring appliance that provides visibility into network and application performance. Transparent to network infrastructure, PacketSeeker automatically identifies applications, tracks bandwidth utilization, network efficiency, application health, application response times and service levels, and can be configured to proactively notify you of changes in performance.

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