Newsletter -- Week Ending September 29, 2006
Business School Extra -- Credit or Reality TV? For some time now we've been counseling our clients (haranguing they would probably say) to deal with Microsoft's $2B/an incremental investment in security and its possible impact on the security ecology. As Vista rattles toward release, some of these issues are coming to a more visible head. Taking full advantage of Microsoft's EU anti-trust problems, McAfee published a letter in the Financial Times noting Microsoft's Vista security actions "unfair" and customer harmful (remember that the sine qua non anti-trust issue is whether the customer is harmed). The question is whether Microsoft's deprecation in Vista of the undocumented interfaces used historically to inject security hooks into Windows is good design (Microsoft's view) or a predatory business act that weaken security for the customer (McAfee's view). Right now, only Microsoft is in a position to objectively argue the case. They claim to have ample evidence of the system instability issues caused by kernel patching. The rest of us will just have to wait. If Microsoft achieves anything like their goal of a factor of 10 platform security improvement for Vista over XP SP2, then the facts will probably speak for themselves.
"WAAS Up?" -- That's the title of our latest report focusing on the WAN infrastructure market, now that Cisco has introduced its WAAS (Wide-Area Application Services) product line to the market. This report, 'WAAS Up? Cisco Fleshes out its WAN Offering,' contrasts the different WAN strategies of both Cisco and Microsoft and the directions that customers may choose from. Interested?-- email@example.com.
Exchange 2007 Coming Soon -- Later this week we're taking the wraps off our latest study covering the upcoming launch of Exchange 2007 and its potential impact on the e-mail market. For those of you in the e-mail eco-system, this new product launch can be good news, bad news or both. Interested?-- firstname.lastname@example.org.
Gold Found in the Riverbed: Our hats are off to our friends at Riverbed who pulled off a successful IPO wistfully reminiscent of the go-go days of the dot com period (was that really only six years ago?). In the face of looming competition from the biggest of the big boys (Cisco and Microsoft) the Riverbed team kept their heads down and grew sales at an impressive rate resulting in a successful IPO well short of profitability loading the Riverbed cache coffers with fuel to turn that corner, leaving other investors like Tacit (acquired by Packeteer) quietly wringing their hands wondering if they made the right (albeit sensible) choice to sell out.
Luxury Boxes -- We got our wish. In the last issue we hinted that the best way to get a mention in this newsletter would be through a lavish gift. We suggested a Sharp 1080P 57" LCD HDTV. Akamai took the hint and offered up a trip to Fenway to see the Red Sox during their recent Akamai analyst conference. Back in 2002, many had given up on Akamai -- the icon of the Internet infrastructure bubble hit bottom, their stock had dropped below $10 and investors were running away. Today, that's all changed. The stock is above $50 for the first time in years and their business is booming. What they told us five years ago was basically "wait till broadband connections get above 20%, then everything changes." Well their 20% estimate might have been a little optimistic but now that broadband penetration rates are so high (near or above 50% in many countries) Akamai's sales are greater than $100M per quarter. And they make a good point -- just look at how much content is on the home page of most sites these days. While they still stumble over making their case on the enterprise side, their business seems to grow with the times.
Cisco Wideband / Time to Finally Sell that AT&T Stock? Once again we're impressed by the versatility of the digital cable architecture that Milo Medin and his @Home team created many years ago. While the SP's like Verizon have come to the realization that they have to do something like fiber to the home in order deliver competitive HD TV to the consumer, the cable guys just keep raising the ante. Cisco -- a key supplier that is shamelessly trying to provoke technological war and sell arms to both sides -- just introduced the next incremental step in technology for data services featuring IP and QAM channel bonding. Cutting through all the geek details the net result is that a "cable" provider can now offer businesses "wideband" (as in 250 Mbit/sec!) data services over the good old cable plant. No need to bother granny to sell that AT&T stock quite yet (cable only has about 3% of the $80B US business data market today) but it looks increasingly like that coax the cable guy installs may get the last laugh.
Don't Try to Understand It -- It's Just Magic! Our favorite device in the "Magic" category is the Turntide system that Symantec acquired just after acquiring Brightmail. We had a chance to catch up with Carlin Weigner recently (Symantec's Mr. Spam now that Enrique has been called to even bigger challenges). After some struggles productizing Turntide, Carlin now reports the much sought after market traction. If you don't know what we're talking about, the Turntide box sits in an incoming mail stream and builds a model of the reputability of each mail server sending mail. As a server's reputation diminishes, the Turntide box throttles what they receive from that source. What's really clever about the approach is that since the Turntide box never rejects or quarantines a message (just slows its arrival) it never loses good mail (zero false positives). After the acquisition, Symantec was able to improve the Turntide offering by leveraging all the Brightmail spam detection and reputation capabilities. Prior to that, each Turntide box independently determined the spaminess of senders using only local Bayesian algorithms with the resulting limitation that it took a lot of protected mailboxes to tune up the reputation. Leveraging the Brightmail algorithms and services a Turntide box can be more effective with many fewer mailboxes in back of it. So you turn on the box and after awhile 70% of your incoming mail volume just doesn't show up anymore (magic!). Carlin reports the biggest problem is that when the service renewal comes up some of the customers, noting that they don't get much spam any more, don't renew. Of course with the box off it isn't long before the mail volumes rise dramatically again illuminating the mistake in reasoning (Carlin denies that a Symantec controlled BotNet fed with subscription renewal information had anything to do with it).
The Pen Is Mightier than the Sword -- Here's your Crisis Management 101 Quiz: What was the really stupid mistake that HP made in the pretexting fiasco? Ethics? Questionable legal interpretation? Nope. The really stupid mistake was going after a journalist. Most journalists don't get paid much (Bob Woodward excepted) but they certainly don't like to be thought of as the servants of big business wealth. As HP is now painfully learning the press has unique capabilities to keep the ball in the air just when you hope it can be quietly deflated and buried in the backyard. Don't screw with the press.
Power to the People! The power minimization emphasis continued at Intel's IDF (which otherwise suffered from a pall of the recent 10,000 announced layoffs). In Paul Otellini's keynote (speaking of hotseats!), Google's distinguished engineer Luiz Barroso spoke a little about Google's power reduction goals. One of his most interesting observations was that in a normal data center, 70% of the power is consumed before even getting to the computing equipment because of the various conversions (AC/DC/AC) and voltage step-downs. So if you make a server 50% more power efficient you make a 15% improvement overall. If you want to really save on products you have to consider a much bigger picture. Google also makes its own server power supplies with considerably greater efficiency than those on the open market (see http://services.google.com/blog_resources/PSU_white_paper.pdf ). We suppose that next GM will introduce a laptop that runs on G85 ethanol (with Corvette design).
As The Chip Turns -- Steve Jobs might be strange but he sure isn't stupid. When Apple moved from IBM to Intel for CPU's for the Mac a lot of people wondered whether this was in the best interests of the Mac cultists since Intel iconoclasm was always part of that. Apple understood that since Intel now had the power minimization religion the Intel processors would overtake IBM in power efficiency. It turns out there are other powerful benefits. When Intel brings out a new CPU now it tends to have architectural visibility (e.g. more cores, virtualization capability, …). The pipeline between Intel and the customer on the Windows side is long and hard often requiring some support in Windows and then by the ODM and computer vendor. In contrast, here in Silicon Valley Apple and Intel have a small team of bright engineers and if it is to Apple's benefit they can easily be the first to market with a MAC that leverages a new Intel CPU. Intel loves it because the not-to-price-sensitive MAC purchaser is a great way to take advantage of Intel's newest. So expect to see some share growth for Apple in areas like laptops especially given the fact that you can run Windows virtualized if you want. And speaking of competition, we would guess that AMD is in for a pretty hard time now that the CPU competition has moved to mine-has-more-cores-than-yours (naa, naa, naa!). AMD is better than Intel at many things but getting new processes into volume production is not and is not likely to be one of them. Smaller features and more transistors is the way you get more cores, and Intel seems destined to win those battles for the foreseeable future.
Like the Phoenix -- As part of its July quarterly revenue results Websense happened to mention that it had licensed the Inktomi Traffic Server proxy and caching technology and intended to use this code base as part of future security solutions. Holy Cow, we haven't seen that code base since Yahoo! acquired Inktomi at the end of 2002. It sure looked like it was put out to pasture years ago. Apparently the Inktomi code is a magic bullet that Websense is using to quickly grow its security product line. They've already announced the WebBlazer Web Threat Management System (proxy and cache system on the Crossbeam UTM platform) and an agreement to OEM the PortAuthority content analysis software which we assume will sit on this code base. When CEO Gene Hodges left McAfee to take over at Websense he promised to fill out the company's security offerings and the Inktomi code base is apparently one of the tricks up his sleeve. What's not known is whether or not the Inktomi code base is up to the task -- after all, it's been a few years.
Wikipedia Entry Needed -- Compliance Fatigue -- Too many vendors making the same claims to cure corporate compliance problems without a regard for what they're talking about.
Peeling the EMC Onion: In our last issue we mentioned an interesting EMC product called Infoscape targeting content discovery. Last week, EMC held a briefing to introduce the NLayers offering within the context of the evolving SMARTS product line. Anyone who is not impressed with what can be done using network information should take a look at this offering. NLayers' market success was based on what the product could do by just lurking and looking at network traffic. Big companies like GE under compliance pressures found great value in a system that could quickly create an "as built" model of the existing software infrastructure without getting buy-in from the 100 or so different department that would be needed with more explicit approaches (ones that required suitable access permissions). In this mode of operation NLayers sniffs network traffic and builds the software configuration model based on what is seen. The product offering can do more if given permission to access file data or if agents are placed on servers, but even in lurking mode the reaction from many is probably "How the f*& did it do that?" The question they should probably be asking is "What else can you do with that data?"
Thanksgiving at the Melvins -- We caught up with Network Intelligence's EVP of Marketing and Business Development Jim Melvin shortly after EMC acquired the company at the end of last month. Jim was instrumental in assisting Network Intelligence in turning the corner from a second tier SIM player into a contender which eventually caught EMC's interest as EMC expanded its enterprise security portfolio. Jim was too polite to comment on the fate of the remaining independent SIM companies (it's our belief that with Cisco hitting on all cylinders with its MARS product -- as of August Cisco brought on 2200 new MARS customers -- it's going to be difficult for the independent startups still left in the space) but there still may be a few large systems companies that view SIM as an interesting form of product line extension. Jim's view of the acquisition is "right time, right company" -- EMC came along as Network Intelligence was reaping the benefits of its new strategy. If you're counting, the latest scorecard for SIM acquisitions is below. Jim's brother Jeff is the VP sales at Network Intelligence so it's Thanksgiving dinner at their house this year!
An Old Friend in the Hotseat: Maybe it's not as challenging as being HP's Chief Ethics Officer, but it's got to be close. We heard from our old friend Doug Cavit that he's now Microsoft's Chief Security Strategist. When we first met Doug he was at McAfee.com and responsible for their very elegant and transparent Windows XP virus control software. He's been with Microsoft for some time allegedly working on things like consumer security services. We wish Doug the best and think Microsoft got one of the best. We can't wait to see whether in practice the job is more like a Buddhist monk in robes dispatching wisdom or the cyberspace version of Peter Sellers' Dr. Strangelove. If a virus tries to attack Vista and fails does it make a sound?
Funding News -- Thirteen infrastructure startup investments raised over $150M during the past couple of weeks.
Going Public -- Riverbed Technology, announced an initial public offering of 8.7 million shares of its common stock at a price of $9.75 per share and has also granted the underwriters a 30-day option to purchase up to approximately 1.3 million additional shares. Acme Packet Inc. has set the terms of the company's pending initial public offering at 11.47 million shares with an estimated price range of $6.50 to $7.50 a share.
Corporate News -- Netuitive real-time analysis software for business service management (BSM), was awarded its 8th U.S. Patent No. 7,099,799 for its seasonality technology, a key component of Netuitive's real-time analysis software. Xirrus, high capacity, long range Wi-Fi products, was issued United States Patent Number US D526,973 S. The United States Design Patent covers the physical housing of the Wi-Fi Array. And, Application Security, database security, opened its first regional sales and operations center in the UK.
Mergers & Acquisitions -- Sun will acquire Neogent, an identity management services automation company. Siemens Building Technologies intends to acquire VistaScape Security Systems, automated video analytic technology. Network Appliance, advanced networked storage solutions, completed the sale of a substantial portion of its NetCache assets to Blue Coat Systems.
Partnerships -- Websense, web security and web filtering productivity software, signed an agreement with PortAuthority Technologies, Information Leak Prevention, to use its technology as part of the new Websense product line. Websense also partnered with Crossbeam Systems, unified threat management (UTM), launched the WebBlazer Web Threat Management System that offers organizations a comprehensive security solution that defends against internet attacks while offering accelerated web content and caching delivery, enterprise class web security. Sega Amusements USA Inc. and New Edge Networks have reached a national agreement for using high-speed broadband connections for powering network connected coin-operated games. Protegrity Corporation, Data Security Management solutions, expanded the Protegrity Alliance Network with the signing of a reseller agreement with Integra SpA, security company. EMC, Intec Telecom Systems and SenSage have pooled resources to provide a comprehensive, cost effective solution to answer mandate of the EU Data Retention Directive. Telkonet, powerline carrier (PLC) networking solutions using existing electrical wiring, partnered with Ameren Energy Communications and River City Internet Group to deliver broadband Internet access to multi-dwelling unit facilities (MDUs) in the Ameren utility companies' Missouri and Illinois service territories. Critical Links, networking technology, added nine new channel partners to meet the market demand for edgeBox. Ultimaco, Data Security Company and the mobile voice security company GSMK are launching the first PDA and smart phone security solution capable of simultaneously encrypting both voice and data. WildPackets Inc., advanced network analysis, and A10 Networks, identity-aware network solutions, integrated the WildPackets OmniAnalysis Platform and the A10 Networks IDsentrie appliance for identity management providing instant identity resolution for network. LastMile Communications, secure, edge-of-network wireless content delivery solutions, has signed a strategic partnering agreement with J4 MediSmart, Inc., a subsidiary of J4 Technologies, Inc.
Product News -- Stratacache announced a breakthrough in file distribution performance with OmniCast Performance Edition, a new product that slashes the cost of rapidly and reliably transporting massive data or video files from one to many sites. Ipanema Technologies, application traffic management systems for wide area networks, launched its new dedicated branch office appliance: IPE 5. ForeScout Technologies, network access control (NAC) for enterprises, released CounterACT 6.0 and the addition of two new products to the CounterACT family. Insightix, real-time and agentless network discovery and network access control solutions, released its Insightix Management Center enabling an enterprise with multiple networks across geographically distributed locations to achieve a unified view of its IT inventory and enforce a unified network access control policy. Crescendo Networks, high performance Application Front End (AFE) products, is working with application vendors to optimize and accelerate Web 2.0 and Rich Internet Applications. Netuitive Software, real-time analysis software, real-time analysis software analyzed and correlated over 22,900 live data streams in less than one minute using a single CPU machine validating the unmatched speed, scalability and power of Netuitive's technology.
Netli, global service provider for accelerating applications and content over the Internet, released NetliOne, unified managed services platform that optimizes dynamic Web applications, content, and Web services. Stampede Technologies, enterprise acceleration solutions, released its latest innovation in client technology, Acceleration On-Demand. Foundry Networks, end-to-end switching and routing, announced a new family of entry-level ServerIron application and content management switches with an integrated Web firewall security suite for secure and optimized delivery of Web and triple-play services in small- and mid-sized enterprise data centers. Netcordia, network analysis tools, announced new Configuration Command Scripts (CCS) for its NetMRI network appliance. Exinda Networks, integrated application acceleration, wide-area-network (WAN) optimization and network management solutions, expanded its European distribution and reseller channel, doubling its European market coverage during the last four months. Solana Networks has introduced an IP network diagnostic and troubleshooting appliance that provides full route path visibility to any network running the Border Gateway Protocol (BGP).
Computer security company, Agnitum Ltd., launched Outpost Firewall Pro 4.0. Savant Protection, preemptive malware spread mitigation and containment technology, launched its enterprise security product Savant. Clearswift launched new versions of its internal email solutions: MIMEsweeper for Exchange and MIMEsweeper for Domino. Network Chemistry, wireless security, announced a major new release of RFprotect Distributed for securing facilities and endpoints against wireless threats. Berkeley Varitronics Systems, Wi-Fi test equipment, releases a new wideband BumbleBee-EX for handheld and rugged Wi-MAX spectrum analysis. Lantronix announced the newest version of its WiBox wireless Device Server to serve the growing demand for WiFi technology that allows companies to remotely manage and control their appliances and machines over the network or the Internet. Infoblox Inc., essential infrastructure for identity-driven networks, introduced the new Infoblox Network Services for VoIP package. ADTRAN, networking and communications equipment, introduced the NetVanta 3400 Series of Multiservice Access Routers. ClearSight Networks, real-time application and network analysis and specializing in VoIP monitoring and analysis, enhanced the newest version of its ClearSight Network Analyzer to provide first-to-market Triple Play support in real-time. Internet Security Systems, preemptive, enterprise security, introduced the Proventia Network Mail Security System, security appliance dedicated solely to protecting an organization's messaging infrastructure.
VMware, virtualized desktops and servers, announced broad industry support for VMware Consolidated Backup, a software product part of VMware Infrastructure 3 Enterprise edition that leverages virtualization technology to enable quick and easy backup and recovery. Network Chemistry, wireless security, announced a major new release of RFprotect Distributed for securing facilities and endpoints against wireless threats. AEP Networks, Policy Networking solutions, introduced the latest version of its AEP Netilla Security Platform (NSP) Secure Sockets Layer (SSL) Virtual Private Network (VPN). Connect123.net, a provider of Local Line VOIP services, will offer the Perimeter Unified Threat Management (UTM) suite of managed security services including Intrusion Defense, Email Defense and User Defense to their small-to-medium-sized business (SMB) customers.
Force10 Networks' TeraScale E-Series deployed in some of the world's largest grid networks. Lockdown Networks customers will be eligible for a high-availability upgrade for every Lockdown Enforcer or Lockdown Commander.
Customer Wins -- OSRAM has deployed Radware's application front end (AFE) and application access solutions. Allot Communications, IP service optimization solutions based on deep packet inspection (DPI), announced that Southwest Telecommunications Cooperative (SWTC) is using the NetEnforcer AC-402 to monitor and manage network traffic for 36 school districts across southwestern Minnesota. Brutélé, cable television services to more than 300,000 households in Brussels and Wallonia, selected and deployed Infoblox network identity appliances. SNL Financial, multi-sector-focused news, selected Blue Coat SG appliances to accelerate its full range of business applications in their branch offices. Chengdu Telecom, China Construction Bank and Sichuan Telecom have purchased and successfully deployed the A10 Networks IDsentrie platform to provide identity management and security tools for their finance and telecommunication service provider networks. DePaul University, Catholic University, has selected and deployed Aventail's SSL VPN solution to provide secure remote access to the university's campus-wide wireless network. Jupiter Telecommunications, Japan's largest cable TV Multiple System Operator (MSO) with over 2.2 million subscribers, selected LongBoard, Inc. to conduct a trial in October leading to an early commercial launch of a Fixed Mobile Convergence (FMC) service.
Netuitive, real-time analysis software for business service management announced that its software is being used as the core technology in a $7.4 million U.S. Air Force contract. Microchip Technology, microcontroller and analog semiconductors, deployed Netli's NetLightning and NetliOffload services to accelerate application and content delivery to customers in 55 markets and countries around the world. Department of Computer Science at Purdue University has deployed Force10 Networks' TeraScale E-Series family of switch/routers and the S50 data center switch in its new $20 million state-of-the-art facility.
Executives On The Move -- Pillar Data Systems, enterprise network storage systems, appointed Edward "Ned" Hayes as chief financial officer. Pure Networks, a maker of home networking software and services, has named Jeff Erwin as chief executive. Egenera Inc., datacenter visualization architecture, has appointed Michael Thompson president and chief executive. VitalStream announced the appointment of its newest CTO, Patrick Ritto. Revivio Inc., continuous data protection appliances, appointed Christopher Rocca as vice president of engineering.
See links below for the complete text of those items mentioned above plus other news.
The InternetAcceleration newsletter and www.internetacceleration.com are produced by Internet Research Group. For more information or to keep us updated, contact John Katsaros at email@example.com.
Outpost Firewall Pro 4.0
Force10 Networks Sees
High Performance Security Essential To Promote Adoption Of Grid Networks
BVS Releases Rugged Wi-MAX
VMware Announces Broad
Lantronix Announces it
New 802.11 Wireless Device Server
Ipanema Launches WAN
Optimization Branch Office Appliance
enterprise grade NAC
Unprecedented Level Of File Delivery Performance
Insightix Announces the
Release of Insightix Management Center
A10 and WildPackets
integrate Identity with Network Analysis
content security for internal email
New Infoblox Network
Services for VoIP Solution
Connect123 Partners with
Perimeter to Secure SMBs
Solana Networks Adds Bgp
Introduces RFprotect Solutions
Facilitates The Growth Of Web 2.0 And Rich Internet Applications
Netuitive Software Sets
New Industry Benchmark
AEP Announces Latest
Generation SSL VPN Product
Availability & First Installations of Acceleration On-Demand
ADTRAN Expands NetVanta
Netli Delivers First
Foundry Launches New
Entry-Level Application And Content Management Switches
Savant Protection Negates
Malware Threat Launch
ClearSight Networks First
Real-Time Triple Play Analyzer
Netcordia expands network
Exinda Networks Expands
European Distribution Channel
Signs Five-Year Strategic Channel Agreement
Internet Security Systems
Enhances Protection Platform
Corporate News -- Funding News
Twisted Pair Solutions,
Inc. Secures $9 Million In Series A Funding
Undisclosed Series A Funding
Completes Equity Financing
GuardID Systems Secures
$5 Million Funding
Technologies Raises Additional Round Of Funding
ARIO Closes A-1 With $8M
BPL Global Announces $25M
in Series C Round Funding
Series "C" Funding
Aristos Logic Secures $15
Million Funding Round
PeakStream secures $17
million in funding
OpSource Acquires $20
Million in Investment
Enure Networks Closes $8
Million Round A
Netuitive Secures 8th
Xirrus Awarded First
Patent for Wi-Fi Array
AppSecInc Opens UK Ctr
Announces Initial Public Offering
Acme Packet Set to Go
Corporate News -- Mergers & Acquisitions
Sun to Acquire Neogent
Technologies Signs Agreement to Acquire VistaScape Security Systems
NetApp Completes Sale of
NetCache Assets to Blue Coat Systems, Inc.
Corporate News -- Partnerships
Websense to Deliver New
Sega, New Edge Networks
Integra Spa Is Newest
Member Of Protegrity's Alliance Network
the EU Data Retention challenge
Telkonet Partners with
Ameren Energy Communications
Critical Links Adds 9 New
Websense and Crossbeam
Systems Launch WebBlazer Web Threat Management System
Ultimaco and GSMK Launch
A10 and WildPackets
integrate Identity with Network Analysis
Signs Five-Year Strategic Channel Agreement
OSRAM Shines Bright With
Radware Application Delivery Solutions
Allot and STC Support
Brutélé Expands Network
with Infoblox Appliances
SNL FINANCIAL SELECTS
A10 Networks Wins Key
Identity Mgt. and Security Deals
Aventail's SSL VPN Helps
Telecommunications Selects LongBoard
Netuitive Provides Core
Technology for Air Force
Microchip Technology Uses
Netli Application Acceleration And Content Delivery Services
Purdue Department Of
Computer Science Builds State-Of-The-Art High Performance Network With Force10
Corporate News -- Executives on the Move