2 March 2014 Wireless Equipment Signals to Noise (S2N) Next-Gen Security: On the security use cases, our MWC and RSA conference conversations suggest that the "best" solutions bundle - involving F5's BIG IP or Viprion ADC running the Traffic Management, Access Policy Management, and Web Application Security + Network Firewalling Modules - is currently seeing the most sales traction - versus the "good" or the "better" solutions bundle (which do not include the security SW modules). Higher than anticipated IT customer demand for the "best" solutions module - which includes F5's ADC feature-functions and at least 1 security related SW module - suggests to us that interest in F5's Next-Gen Security solutions is clearly on the uptick - the key demand driver, in our view, is Datacenter IT customer's preference for high- performance DDOS mitigation systems (which require 100's of Gbps of traffic processing throughput (offered by F5) - versus peers mostly selling 1 Os of Gbps capable DDOS mitigation appliances). A related demand driver for F5's Application + Network Firewall solutions is the differentiated value proposition of F5's "Full Proxy" architecture - which, in our view, has higher security efficacy (in terms of threat mitigation efficiency, application aware security policies, etc) versus conventional stateful inspection firewalls (which mostly look at ports and protocols versus examine application layer events). Our MWC and RSA conference meetings suggest to us that F5 is likely to introduce a range of subscription services oriented security services - for DDOS mitigation, etc - which could help improve the visibility of the quarterly revenue flow - given inherent lumpiness in box oriented purchases. There are 2 positive catalysts for F5's security business heading into CY15, in our view: 1. Outbound Firewalls: While F5 is adding limited outbound security features to its inbound firewall solution this year, the company is likely to launch a