At the Check Point Experience (CXP) 2006, held at Bangkok, the company had
little reason to announce any drastic changes in its business plans. So, Bill
Shwed, founder, chairman and chief executive officer, Check Point Software
Technologies went ahead and claimed the obvious: Check Point was one of the few
remaining pure-play security vendors left in the world. Shwed insists, “We
believe security is a layer in itself. It is not just something that can be
dumped in the network, or in the router or a switch.”
With security strategy getting integrated into the plans of most networking
equipment vendors; and Check Point grossing only about half a billion dollars in
FY 2005, the company's claim may not sound impressive. But even with its
relatively meager revenue, the company had profits in the range of 55% for FY
2005 ($579 mn in gross revenue and $319 mn in net profit). But pure-play tag
labels the company in more ways than one, in some cases much to the disdain of
the company. The company sometimes faces a steep challenge in breaking out of
the mould of a firewall-only company. So, Shwed was keen to point out,
“Everything we sell is VPN. It may have firewall capabilities, but it is VPN.
The main client is called VPN 1. I believe that of the new product sales, it is
about 70%, in revenue terms.”
|
|
| Ashish Sud, business
manager, Security Services, HCL Comnet, receiving the award for 'Fastest
growing partner in India' from Jerry Ungerman, president and director on
Board; and Gil Shwed, founder, chairman of the Board and chief executive
officer of Check Point Software Technologies during Checkpoint Experience
2006 at Bangkok. More than 500 delegates from about 25 countries were
present at the function. |
The growing importance of India, in Check Point's plan is also not a new
thing. Check Point India is ahead of its Chinese counterpart in terms of new
sales, as well as installed base. The growth is also reflected in its growing
India team, from one to six persons in about a year, “With potential for
more,” according to Jerry Ungerman, vice-chairman, Check Point. Scott
Ferguson, regional vice-president, ANZ and South Asia added that companies like
“Bharti and BSNL pushing out their ADSL strategies, rolling broadband to the
business and the home” their data business would grow, obviously expanding the
market for Check Points products. On a global level too, “The growth is
getting some good traction in the medium business market. The challenge for the
future is to perform well that is where the growth will come from,” said
Ferguson.
| The largest
participation in CXP 2006 was from Indian delegates, and Shwed confirmed
that India was the company's second biggest market in the region, after
Australia |
However, not everything went as per the plan of the company. Having realized
that IPS/IDP was the missing piece in its security offerings, the company last
year was on the verge of acquiring Sourcefire. US regulators, which did not want
the company's 'critical' technology in 'foreign' hands, scuttled the
deal. Despite that, Shwed said they were open to a licensing deal with
Sourcefire. However, Sourcefire has recently teamed up with Nokia to provide
intrusion prevention. Nokia has had a long relationship with Check Point, and
the deal could effectively put a question mark on the company's plans of a
licensing deal with Sourcefire.
Shwed, however, says that despite the Sourcefire imbroglio, the company is
committed to acquire the IPS capabilities by OEMing or even by acquiring other
companies. The conclusion is simple. Check Point is on the prowl again, and
depending on their inclination, small security vendors either need to watch out,
or make sure that they are watched.
Alok Singh
The author was hosted in Bangkok by Check Point
aloksi@cybermedia.co.in
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