Fortinet’s FTNT Secure Software-Defined Wide Area Network (SD-WAN) was recently adopted by New Zealand-based telecommunications and digital services company, Spark NZ, to improve application experience and automate network security operations cost-efficiently.
This collaboration will help Fortinet expand its foothold in New Zealand by reaching Spark NZ’s corporate, enterprise and government customers.
Fortinet’s Secure SD-WAN will simplify and secure the process of changing networks to ensure business continuity for Spark customers with minimal IT support for remote employees.
Fortinet, Inc. Revenue (TTM)
Fortinet, Inc. revenue-ttm | Fortinet, Inc. Quote
Growing Adoption of Secure SD-WAN Bodes Well
Growing adoption of its SD-WAN solutions is proving to be a key growth driver, even in a year as challenging as 2020. Moreover, Gartner predicts that 50% of new firewall purchases in the distributed network will utilize SD-WAN features by 2024, up from 20% in 2019. Being the only vendor to offer both security and SD-WAN solutions, the company is well positioned to capitalize on the increasing opportunities in the market.
In the first quarter of 2020, Fortinet’s Product revenues increased 18.2% year over year to $192.3 million. Notably, this growth was driven by the continued adoption of the FortiGate-based secure SD-WAN solution.
Fortinet’s SD-WAN business began the year with the announcement that Burger King Brazil, head franchisee of the Burger King and Popeyes Louisiana Kitchen restaurants, adopted this solution to acquire high-performance networking capabilities to simplify operations and strengthen security across corporate and restaurant locations.
Moreover, in May, the company announced that consumer and commercial services company, Rollins Inc., selected Fortinet Secure SD-WAN to reduce network outages, and improve user experience and application performance. Additionally, its Secure SD-WAN and SD-Branch solutions were chosen by the Nippon Telegraph and Telephone West Corporation to enhance the "FLET’S SDx" subscription service.
The news of the collaboration with Spark NZ comes days after Fortinet announced that it is witnessing continued momentum with network service providers who are leveraging its Secure SD-WAN. These partners include Alestra, FluidOne and Hydro One Telecom.
Zacks Rank & Other Stocks to Consider
Fortinet currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader technology sector are Dropbox, Inc. DBX, Semtech Corporation SMTC and SYNNEX Corporation SNX, each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Dropbox, Semtechand SYNNEX is currently pegged at 32.51%, 12.50% and 9.37%, respectively.
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