It's hard to believe that a company could burn through $225 MILLION dollars in 11 months, but it looks like that may have been exactly what AirWatch did. According to data released by AirWatch and written by financial analysts (links to all data sources at bottom of post), AirWatch likely had burned through nearly all of its available cash in record time. Based on an assumption of $120K burn per employee (fully loaded) per year and an assumed removal of $50M in equity at the time of the venture round, AirWatch would have had somewhere between 5 and 6 months of runway left as of January 2014. These assumptions are corroborated by the fact that VMware has contractually extended AirWatch an offer to provide a bridge loan if the acquisition deal does not close in the next 6 months.
What did AirWatch do wrong? It sounds like they may have made some over-assumptions with regards to their growth rates for 2013. It could have possibly been the adoption rates in countries outside of North America. It may have just been bad luck. Or it could even be a cooling off of interest in mobile device management technologies based on containerization. We won't know exactly why they were getting near the end of the runway, but what we can say is that VMware may have overpaid in multiple. Based on the data provided by VMware of AirWatch bookings for 2013, VMware paid somewhere around 16x bookings for AirWatch. Man, that's a lot of bread!
On January 22, 2014, a new mobile security player was born. This is the date that VMware announced its intention to purchase the mobile device management (MDM) firm AirWatch. With a price tag of $1.5 billion, this acquisition confirms that the mobile security market is scorchingly hot. This news comes on the heels of the November acquisition of Fiberlink by IBM. I expect additional mobile security market consolidation to occur throughout the remainder of 2014. This acquisition is a shot across the bow of any other major vendor looking to play in the mobile security market. If you don't step up and spend now, you might just be left holding the bag.
Does your organization still have a significant number of endpoints still running Windows XP? Don’t worry, you’re not alone: Forrester's Forrsights Hardware Survey, Q3 2013 shows that the average organization still has 20% of their employee endpoints running XP. Considering that most organizations spend 18 to 32 months when migrating to newer versions of Windows, many organizations will likely find themselves scrambling to batten down the hatches before Microsoft’s April 8, 2014 end-of-life deadline.
After this date, Microsoft will stop releasing security patches for the 13-year-old operating system, a terrifying situation for organizations still relying on XP. What can you do as an organization if you still have a substantial XP presence within your environment? You can:
Migrate to Windows 7 or 8 posthaste. Microsoft has come a long way in preventing certain classes of attacks, such as bootkit and rootkit attacks. In fact, Microsoft has told us that Windows XP is 21 times more likely to get infected with malware than Windows 8.1. To help our clients understand the pros and cons of Windows 8.1 security, I recently published a guide on this very topic.
Buy some extra time. For those that can afford it, Microsoft will offer “custom support” in the form of XP security patches past the April 8 deadline. I’ve spoken with a number of organizations that determined that it would be cheaper to pay this premium than to migrate away from XP. Of course, this is just prolonging the inevitable; custom support will not be available forever.
Understanding the terms and technologies in the mobile security market can be a daunting and difficult task. The mobile ecosystem is changing at a very rapid pace, causing vendors to pivot their product direction to meet the needs of the enterprise. These changes in direction are creating a merging and twisting of technology descriptions being used by sales and marketing of the vendor offerings. What we considered “Mobile Device Management” yesterday has taken on shades of containerization and virtualization today.
Mobile antivirus used to be a standalone vision but has rapidly become a piece of the mobile endpoint security market. Where do we draw the lines, and how do we clearly define the market and products that the enterprise requires to secure their mobile environment?
In an attempt to help the enterprise S&R professional understand the overlapping descriptions of mobile security products, I am working on new research that will help organize and quantify the market. Understanding the detailed state of each of the technology offerings in the market, and their potential impact on a five- to 10-year horizon, will help enterprises make more-educated purchasing decisions.
To begin the process of covering all of the technologies being offered today, I’ve divided the solutions in the space by technology type. Not only am I analyzing technologies that are available now, but I’m also researching any additional products, services, and vendors in the mobile security space that have innovative new concepts that they are bringing to bear. These new-age offerings will help shape the future of mobile security, and we need to get ahead of the concepts now if we wish to have a better understanding of the impact of the innovation.
You are now no doubt aware that Boston-based security firm Bit9 suffered an alarming compromise, which resulted in attackers gaining access to code-signing certificates that were then used to sign malicious software. See Brian Kreb’s article for more details. (Symantec breathes a quiet sigh of relief to see a different security vendor in the headlines.)
The embarrassing breach comes at a time when the company has been seen as one of the security vendor landscape’s rising stars. Bit9 has actually been around for more than a decade, but the rise of targeted attacks and advanced malware has resulted in significant interest in Bit9’s technology. In late July, Bit9 secured $34.5 million in funding from Sequoia Capital. Bit9’s future was bright.
On Friday afternoon, Bit9 CEO Patrick Morley published a blog providing some initial details on the breach. A few of his comments stood out: “Due to an operational oversight within Bit9, we failed to install our own product on a handful of computers within our network … We simply did not follow the best practices we recommend to our customers by making certain our product was on all physical and virtual machines within Bit9."
Traditional antivirus techniques have been fighting a losing battle for years. Popular hacker exploit kits pounce on new vulnerabilities quickly while advanced tools such as polymorphic viruses propagate their malicious intents. As a result, signature databases (known as “blacklists”) have ballooned in size, causing strain on a company’s infrastructure and endpoint performance. Combined with the fact that antivirus vendors miss a significant number of the unknown or zero-day threats, many security professionals are left questioning their antivirus-centric approach to endpoint protection. As the number of malware samples rise, this traditional "Whack-A-Mole" blacklist strategy of signature-based antivirus protection is simply unscalable.
Last month, Ed and I spent a couple days in Paris with Orange's management team for their annual analyst event. Overall I was impressed with Orange’s innovation in business service offerings as well as their extensive global reach. Many of the large telecoms (Verizon, AT&T, Sprint, etc.) have had to and very much want to expand their business offerings. The telecoms clearly see platform-as-a-service as the natural extension of their core telecom business. Just selling bandwidth is no longer sufficient for these companies, which is in fact now a commodity business. Orange is no exception. This evolution in the telecom business model has been successful due to the industry’s ability to:
Offer endpoint and network security optimization solutions coherent with their existing bandwidth business. With their unique vantage point over the network, the telecoms are ideally placed to deliver “clean pipe” Internet service by stopping outside network threats before they reach their customers’ endpoints. For instance, Orange’s DDoS protection service can leverage their large global footprint and control over the infrastructure to gather intelligence and exercise defensive measures farther up the stack than most of their non-telecom competitors.