Wednesday, July 11, 2012
Secure Web Gateway Market Heating Up – Websense Version 7.7
Sunday, March 18, 2012
The Meg Whitman Era at Hewlett Packard - Six Months In
March 20 Addendum - Hewlett Packard Meg Whitman plans to combine the computing giant's PC and printing divisions in a major internal overhaul intended to spur combined sales of hardware to customers
The most recent move is intended to reap the synergies of two divisions whose hardware products are often sold side-by-side, said the second source familiar with the plan. (From Reuters)
Sounds like reductions in force ..... No economies of scale in manufacturing. No economies of scale in R&D. Do people need to upgrade their printer when they get the latest and greatest PC or laptop?
Still a B-
Original Post
Meg Whitman has now been CEO of Hewlett-Packard for six months. The scorecard? Probably a B-. It’s virtually impossible to make radical changes in 180 days unless your strategy is slash and burn. And that’s not what HP requires. HP is a $48 billion market cap firm with over 300k employees globally. This will take awhile. Whitman is saying two years.
Threats facing HP Whitman has pointed out include - PC sales are slowing as more people buy smartphones and tablets. The high-profit ink business is slipping as customers store photos on Facebook (or other sites) instead of printing them at home. HP is selling fewer high-end servers after archrival Oracle (ORCL) stopped making software for those systems.
Some immediate decisions needed to be made, quickly, when Whitman accepted the CEO position. She already was on the board. From a perception perspective, Whitman moved top executives out of their offices and into cubicles instead. This rings of the “old HP”, which is a good thing. This wasn’t seen during the Carly Fiorina era!
HP is keeping its $40 billion PC division. However, growth is projected to be in tablets. In this area, Apple has the lead over all other competitors. Tablet sales, driven by sales of Apple’s iPad, grew 274.2% to 63.2 million units last year — most of them iPads, according to tech tracker Canalys. Sales of desktop computers grew 2.3% to 112.4 million units; notebook sales grew 7.5% to 209.6 million units; and netbook sales fell 25.3% to 29.4 million units.
“PCs remain key tools for everything from video editing, music mixing, and spreadsheet crunching to thoughtful missives,” according to James Mouto, general manager for of HP’s personal computer business unit. “And if you’re sending Junior off to college, the first computing product needed for homework is a PC.”
WebOS is going open source in September, when Open WebOS 1.0 is scheduled to be released. 500 WebOS employees were let go last September. 275 of the remaining 600 employees were released in late February.
For the stock quants - the stock price is up a little over 7.4% at $24.49 (March 16) since Whitman took the CEO helm. This is far below the 52 week high of $43.28 in March 2011. Competitor Dell is up 24% and the Dow is up 23% over the same period.
HP also has heavily invested in security. This includes acquiring security management company ArcSight for $1.2 billion in 2010. This is also an area Dell has chosen to invest in. Last week they announced that they were purchasing SonicWALL®, Inc. a provider of intelligent network security and data protection solutions. They are acquiring SonicWall from private equity investor firm Thoma Bravo for an estimated price of $1.2 billion.
http://kensek.blogspot.com/2012/03/dell-to-acquire-sonicwall.html
It should be an interesting next 6 months for Whitman as she works with the rest of management to turn HP around. Her salary? $1. Yes, there are incentives and stock options.
http://www.mercurynews.com/business/ci_20201896/whitman-steadies-hp-but-big-challenges-remain
Tuesday, March 13, 2012
Dell to Acquire SonicWALL
Dell announced today their intention to acquire SonicWALL from equity investor firm Thoma Bravo. Thoma Bravo had take SonicWALL private in 2010. They have also recently had purchased secure web gateway company Blue Coat Systems and taken it private. This acquisition, according to Dell, will enable them to offer customers a broader range of enterprise offerings. SonicWALL revenues for the last 12 months were about $260 million. www.sonicwall.com
“Dell’s distribution, reach, and brand are well-recognized across the industry. This transaction aligns well with Dell’s mid-market design focus and allows us to accelerate growth of our flagship SuperMassive Next-Generation Firewall solutions with Large Enterprise customers,” said Matt Medeiros, president and CEO, SonicWALL. “Additionally, SonicWALL is recognized as a leading security solutions provider for small and medium businesses through our UTM solutions. Dell’s phenomenal breadth and reach into small and midsize companies provides a significant opportunity to expand our customer base.”
Before being taken private by Thoma Bravo, SonicWall’s strengths were in serving the SMB marketplace with advanced network security and data protection solutions. They have expanded their portfolio to include Next-Generation Firewalls (NGFW), providing these in a form factors scalable to the enterprise.
SonicWALL and Palo Alto Networks were the top performers in a recent NSS Labs analysis, the “2012 Next Generation Firewall Security Value Map™” (NGFW). The value map illustrates Block Rate versus Price per Protected Mbps. The SonicWall SuperMassive E10800 and the Palo Alto Networks PA-5020 NGFWs were the “winners”.
http://kensek.blogspot.com/2012/03/sonicwall-palo-alto-networks-top.html
Effect on Product Development for SonicWALL - To the extent Dell leaves the development team intact to do their own thing, disruptions should be minimal.
Effect on the SonicWALL brand - No one has said whether the company name SonicWALL will be going away, yet. . Nothing has been said as to whether Dell will use the McAfee/Intel model of having the company be a wholly owned subsidiary of Dell.
Other products SonicWALL brings to Dell - Besides firewalls, NGFWs, and Unified Threat Management (UTM) solutions, secure remote access, email security, backup and recovery, and policy, and management and reporting. Dell is acquiring a nice set of security solutions.
Effect on the SonicWALL channels - SonicWALL has 15,000 resellers providing global coverage. Dell plans to “take the very best of the SonicWALL channel programs” (sounds like a reduction…..) and combine it with Dell’s PartnerDirect program. Dell’s existing PartnerDirect members will be able to sell SonicWALL solutions.
SonicWALL was a public company until 2010, when Thoma Bravo acquired it for $717 million. Investors and analysts are estimating the purchase price to be between $1 billion and $1.5 billion. Healthy return by Thoma Bravo for a 2-year investment! Dell will be funding the deal with cash.
It would be interesting to hear what they’re saying about this at Palo Alto Networks, Check Point Software Technology, Barracuda Networks, and Juniper Networks. IMHO, the Palo Alto Networks IPO (Initial Public Offering) valuation may drop by a bit.
http://content.dell.com/us/en/corp/d/secure/2012-03-13-dell-sonicwall-acquisition.aspx
Friday, February 17, 2012
Blue Coat Systems to Operate as a Privately Held Company under Thoma Bravo
“This marks our fifth platform investment in the security technology sector and our fourth in networking,” said Seth Boro, partner at Thoma Bravo. “We’re confident our approach and experience in identifying strategic opportunities, coupled with Blue Coat’s innovative solutions and proven leadership in Web security and WAN optimization, establishes a platform for the company’s continued success.”
Thoma Bravo (www.thomabravo.com) has a nice stable of technology companies. These include Blue Coat Systems, SonicWall, Attachmate Corporation Embarcadero Technologies, Inc., Entrust, Inc., Hyland Software, Inc., LANDesk Software, Inc., Roadnet Technologies, Inc., Sirius Computer Solutions, Inc., SonicWALL, Inc., Tripwire Inc., Vision Solutions, Inc.
The nice thing about being private is you can literally say as much or as little as you want to the public (incidents such as equipment ending up in Syria notwithstanding (a rogue reseller)) Missing earnings targets may involve the management team being given a talking to, but it won’t result in dramatic swings in stock price/market capitalization, because there is no stock. No Henry Vanderbilt like quotes, "The public be damned! I am working for my stockholders." will be issued.
Blue Coat has remained in the Leaders portion of the Gartner Secure Web and WAN Optimization Magic Quadrants over the last several years. However, companies like Zscaler, a cloud based web security solution (www.zscaler.com) “providing a high performance solution at low TCO” and Riverbed Technology (www.riverbedtechnology.com) have gotten a good share of buzz and market share recently. Riverbed Technology pulled away slightly from others in the most recent Magic Quadrant for WAN Optimization Controllers.
http://kensek.blogspot.com/2012/02/riverbed-technology-leader-in-2012.html .
Riverbed Technology (and who doesn’t) has an announcement planned with a partner during RSA San Francisco later this month. Something to do with best-of-breed wide area network (WAN) optimization and public Internet optimization.
"We were under a microscope, and when you are a public company you invest and have to know what the impact is going to be three or four quarters later," said Steve Daheb, Blue Coat's chief marketing officer and senior vice president of corporate and business development. "Now we have the kind of freedom to move quickly and invest where we need to.”
So what is the future for Blue Coat? They brought aboard Gregory Clark as their CEO in September, replacing Michael Borman. In November, they announced that total net revenue for the second quarter of fiscal 2012 was $114.1 million compared with net revenue of $109.5 million in the first quarter of fiscal 2012 and $121.0 million in the second quarter of fiscal 2011. Blue Coat Systems fiscal year isn’t the normal calendar year.
There could be another earnings announcement any day, now. The Thoma Bravo press release trumped an anticipated earnings announcement this week, it appears.
http://www.bluecoat.com/company/press-releases/blue-coat-operate-privately-held-company-and-aggressively-advance-its
Monday, February 06, 2012
Riverbed Technology Leader in 2012 Gartner Magic Quadrant for WAN Optimization Controllers
Only three companies are in the Leaders portion of the magic quadrant- Riverbed Technology, Blue Coat Systems, and Silver Peak Systems. Riverbed Technology was rated both the highest in Ability to Execute, and Completeness of Vision. Silver Peak Systems and Blue Coat Systems are adjacent to each other and (noticeably) further down in the leaders quadrant. Kudos for being in the leaders section for all three! Eight products total are in the quadrant.
Cautions that may have cost Blue Coat Systems according to Gartner include – late features, management turnover, declining market share, weak softWOC.
Note - Private equity firm Thoma Bravo is acquiring Blue Coat Systems for $1.3 billion. This deal was announced in December. Thoma Bravo also owns SonicWall. http://dealbook.nytimes.com/2011/12/09/thoma-bravo-acquires-blue-coat-systems-for-1-3-billion/
Cautions that may have cost Silver Peak Systems include - No softWOC, lacks some application-specific optimization, some video on demand limitations for remote-office caching streaming.
Strengths for Riverbed Technology mentioned by Gartner – Broadest set of capabilities in the industry, overall innovations, broad solution for dynamic browser-based applications like SharePoint.
How Do You Use Gartner Magic Quadrants?
The below is from a great Gartner piece in utilizing their Magic Quadrant.
Clients use Magic Quadrants as a first step to understanding the technology providers they might consider for a specific investment opportunity.
Keep in mind that focusing on the leaders' quadrant isn't always the best course of action. There are good reasons to consider market challengers. And a niche player may support your needs better than a market leader. It all depends on how the provider aligns with your business goals
http://www.gartner.com/technology/research/methodologies/research_mq.jsp
Thursday, January 05, 2012
Security Acquisitions 2011
Dell purchasing SecureWorks, Thoma Bravo acquiring TripWire and Blue Coat Systems (the guys at Thomas Bravo were busy with these two and also have SonicWall), Symantec buying Clearwell, IBM acquiring Q1, McAfee buying Nitro Security and Sentrigo, Sophos buying Astaro, Wave Systems buying Safend, and GFI buying Monitis.
http://www.channelinsider.com/c/a/Security/Top-10-Security-Acquisitions-of-2011-742914/
SC Magazine had their own list in the Reboot 2011 December issue. Ones they had that didn’t overlap with Channel Insider – Check Point acquiring Dynasec, EMC acquiring Netwitness, HP and Autonomy (now that got a lot of news!), IBM with Platform Computing, Algorithmics, and i2 (big companies have to do something with all that cash). Imation purchasing IronKey, Oracle acquiring RightNow and Endeca Technologies (what’s a couple of billion $ here and there), redhat purchasing Gluster, and VMware acquiring Shavlik Technologies.
You can pick your reasons for the acquisitions.
• Broadening a security product portfolio.
• Buying over making.
• Innovation coming from smaller companies.
• Seeing good technologies being poorly managed.
• Perceived synergy.
• Buying share.
• Having a lot of money in the bank.
There were also smaller acquisitions by other security vendors in 2011 but the above seem to be the larger ones. Look for more of the above to occur in 2012. Discussions on the 2011 initial public offering (IPO) market will be a separate blog. 2011 was not a stellar year for IPO’s.
It’s a new year. The RSA Conference 2012 is coming up in late February. Scoping out companies and intercompany bonding to take place over drinks at the W Hotel across from Moscone Center. This is the place to hang. For a bit more discretion, the Clift.
http://www.rsaconference.com/events/2012/usa/