A10 Networks (ATEN) is one of the few IT vendors specialized in the application delivery controllers ((ADC)) market.
Due to its smaller scale, the company is not generating any free cash flow. And with the evolution of the traditional on-premise ADC market, the company is expanding into the security area by developing cloud-based solutions.
But the company does not have the scale to compete with established and aggressive security players. Also, the dominant ADC players like F5 (FFIV) have chosen a similar strategy.
Thus, considering the scale disadvantage and