Needham & Company on Security Software: Observations from RSA Conference
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Needham & Company on Security Software: Observations from RSA Conference
Analyst, Scott Zeller, said, "We attended the RSA Security Conference in San Francisco this week, and met with several companies in attendance. Based on our management meetings as well as conversations from walking the convention floor, we observed the following: (a) Compliance pressure continues to drive spending; (b) Overall spending tone for network security remains strong; (c) Service provider offerings could drive our names; and (d) Government/federal color is positive."
"We continue to believe IT security companies offering compliance technologies are finding budget dollars. Important themes we heard about at the show include: scanning of endpoints or databases for security holes; management of access/identity/privileges; and the compliance recording of access and actions made by users for accessing data and applications. We noticed especially large crowds around Qualys (Private), a security scanning provider that identifies “security holes” in physical endpoints (router, server) as well as in applications. Other private companies we spoke to in this area that we found interesting: Cyber-Ark, Forescout, and Solera Networks. Impact to public coverage: We believe Sourcefire (Nasdaq: FIRE)(BUY) is benefiting from IT compliance spending projects. Beyond our public coverage, we noted that Imperva (Nasdaq: IMPV)(N/R), a recent IPO, appears to have become a leader in database security and monitoring solutions, based on discussions we’ve had with private company competitors and our channel discussions."
"We believe Service Providers (AT&T (NYSE: T), Verizon (NYSE: VZ), BT, others) are becoming more active in providing managed and/or hosted security solutions in the cloud; it is our view that service providers want to offer such services because they are high-margin. When speaking with the service provider community, we heard the following services are in demand among end customers: firewall, traffic behavior monitoring (denial of service), and authentication for cloud applications. Impact to public coverage: We have spoken at length with investors regarding how Fortinet (Nasdaq: FTNT)(BUY) has benefited from purchases of its carrier-grade solutions (either for in-house use by service provider, or to “host” cloud services for end customers)."
Analyst, Scott Zeller, said, "We attended the RSA Security Conference in San Francisco this week, and met with several companies in attendance. Based on our management meetings as well as conversations from walking the convention floor, we observed the following: (a) Compliance pressure continues to drive spending; (b) Overall spending tone for network security remains strong; (c) Service provider offerings could drive our names; and (d) Government/federal color is positive."
"We continue to believe IT security companies offering compliance technologies are finding budget dollars. Important themes we heard about at the show include: scanning of endpoints or databases for security holes; management of access/identity/privileges; and the compliance recording of access and actions made by users for accessing data and applications. We noticed especially large crowds around Qualys (Private), a security scanning provider that identifies “security holes” in physical endpoints (router, server) as well as in applications. Other private companies we spoke to in this area that we found interesting: Cyber-Ark, Forescout, and Solera Networks. Impact to public coverage: We believe Sourcefire (Nasdaq: FIRE)(BUY) is benefiting from IT compliance spending projects. Beyond our public coverage, we noted that Imperva (Nasdaq: IMPV)(N/R), a recent IPO, appears to have become a leader in database security and monitoring solutions, based on discussions we’ve had with private company competitors and our channel discussions."
"We believe Service Providers (AT&T (NYSE: T), Verizon (NYSE: VZ), BT, others) are becoming more active in providing managed and/or hosted security solutions in the cloud; it is our view that service providers want to offer such services because they are high-margin. When speaking with the service provider community, we heard the following services are in demand among end customers: firewall, traffic behavior monitoring (denial of service), and authentication for cloud applications. Impact to public coverage: We have spoken at length with investors regarding how Fortinet (Nasdaq: FTNT)(BUY) has benefited from purchases of its carrier-grade solutions (either for in-house use by service provider, or to “host” cloud services for end customers)."
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