Next Gen Threat Protection.

Check this new blog and site from FireEye out. Cool stuff!!!! Last week I wrote about the emerging Next Gen FireWalls, essentially consolidated policy management and compliance products. For next gen threat prevention, interesting to see what FireEye has offered up...

www.modernmalwareexposed.org and blog.modernmalwareexposed.com

Cheers
Ken

Why Checkpoint (and Cisco and Fortinet and PAN) Should Take Notice of McAfee...

(Disclaimer: I previously ran product Marketing for Secure Computing and McAfee Network Security so has some bias, though hold NO market positions in any of the companies in this blog)

In Sept of 2008, days before the market collapse, Secure Computing accepted an all-cash offer from McAfee. In November, the deal closed. Many wondered what the future of Sidewinder, one of the oldest, but arguably most secure and revered product in the market. In less than 2 yrs, we now have the answer, with McAfee Firewall Enterprise V8.0. 8.0 is a BIG release, even if it only does some of what was announced. Application and user awareness, ePO integration and more make this a big product.

Next generation firewalls are coming hard and fast into the market, led by the innovative and disruptive Palo Alto Networks. Fortinet and others also have some level of this capability, and you can bet that network players Cisco and Juniper are not far behind.

With 8.0 , McAfee has fired a broad shot across the bow of the firewall market. Sure, lotsa questions remain, everything from performance to IPS on 8.0 and its impact on the OTHER McAfee IPS product line, to can McAfee win the love of the channel. However, this is a shot to be reckoned with. McAfee has a $500M+ Netsec business and wants more.

A bit more on IPS. The market seems to be saying this...1) IPS is part of the Next Gen FW 2) IPS provides compliance level protection 3) We need more innovation for threat prevention (witness the recent SNORT NRG initiative.) Now, I see this convergence as a leaving a wide open space for Next generation threat prevention at the NW level, a product that protects against today's browser based attacks, not the network probes of the past. Who/What will emerge to fill that gap?? That's a post for another time...

Positioning from Strength

Often I observe that when business is good, positioning gets stale. However, no one cares. As one of my good CFO friends once told me "Top line growth covers a lot of rocks". I think this is a shame, and a real missed opportunity. Positioning from Strength is a HIGHLY leveragable activity, one that has the potential to accelerate both business and valuation.

Take my client Nimsoft, recently acquired by CA for $350M on a very healthy multiple. When I arrived to work with the CEO, Gary Read and his exec team, business was going great. Nimsoft had (and still has) a tremendous product, great sales momentum and was an execution machine. However, to Gary's credit, he was open and receptive to a discussion of positioning, vision and go forward marketing strategy, in a way that was highly unusual for a business going so well.

I think Gary saw that Nimsoft was sitting at the apex of an opportunity to reposition from strength, and to use that strength to build a platform and vision that was forward looking and unique. That's exactly what we did when we launched and implemented the Nimsoft Unified Monitoring strategy, architecture, alliance and .com portal.

The results, well they speak for themselves, great going forward positioning, coupled with continued amazing execution led to continued growth and the CA transaction. But we are not done yet, and this week took the next step with the launch of Nimsoft On Demand, a SaaS delivery of Nimsoft Unified Monitoring. Look for more great things to come from the Nimsoft business now that it is part of CA, this is only the beginning.

So, I think this shows very strongly the value of positioning from strength. CEOs and BODs, don't wait for the crisis, IF YOUR BUSINESS IS GOING GREAT, and you haven't examined your GTM positioning and messaging within the last 12-18 months, there's never been a better time than right now...(Need help, well, I know someone who's pretty good at this :))...

New Google Docs ---Document Nirvana or Document Socialism

So, Google releases a whole new update to google docs today with MUCH fanfare and the requisite sexy blog and youtube video... This ones been in me for a while, and while there are a lot of little reasons I'm not sold (such as dont see biz value of Simultaneous editing, Version control really weak, Change tracking is not so hot, offline access, feature parity to SW) these gaps will are are being closed.)

I think the biggest reason is I want to own my docs!!!

I live my life in a world of docs, spreadsheets and presos, they are the way I create, communicate and distribute intellectual property. Yes, I often do this in teams, and LOVE Box.net for that. But I don't really want you to change that formula or that bullet point and obliterate my content. Do it, save it and call it V2. If I do let you do it to the live one, how do I easily and painlessly see the changes from the one on my hard drive??

I think content ownership IS a big deal ESPECIALLY when working with teams. To me, Google Doc paradigm is Content socialism, and I guess I want private property, even when I let you onto the property and even move the furniture! I've always found pass the baton editing (Sharing sites like box.net fill the bill well for this) more effective than group gropes, which I love on the whiteboard but find incredibly frustrating when dealing with constrained content like Docs, spreadsheet and presos...

Am I a dinosaur?? What do you think???

For IT Technology Vendor Go to Market plans, the 4th C=Cloud!

This ones bursting out like a rainstorm (pun intended) exciting stuff...

Eucalyptus, according to GigaMon, appears to be on the verge of raising a round with a post valuation of $100M on best I can tell revenues in the $0M range! (Granted, a big name CEO joined, but still, 100M valuation??) When I saw this, it really got me thinking of 1) are we entering a cloud bubble and 2) why, even if we are, how the cloud is changing the business that I and my clients are in. I'll leave topic 1 for another day, but let's take a look at #2.

4Ps and 3Cs - A Cloudy View
Let's pull out the trusty old standard and QUICKLY examine how these change or might change because of the cloud....

Product - The cloud opens up new delivery options for just about any hardware or software offering or capability. IT vendors MUST rethink their product plans and at a minimum better have good reasons NOT to be in the cloud.

Pricing and Cost- In IT mind, cloud = subscription, but does cloud = cheap? That's one of many open questions. The move from perpetual to subscription business is a very tricky one the bigger you get, but the cloud is accelerating an already present trend. Services = subscription. IT products = services...get it...How do you price cloud offerings relative to your traditional on premise/package ones...

And on the cost side, the good news, it's really cheap to get into business, no more hardware, no more datacenters, no more test labs, no more power bills. Ahhh, that works great for new start-ups. But aren't you ISVs used to zero marginal costs on sales. Sorry!, get ready for COGS, more users = more COGS. A great example of a business model issue that helps new entrants move faster than existing ones.

Worried about margin cannabilization, well, guess what, the yCombinator start up down the street built hosting COGs into the model from day 1. They don't expect 95% margins, but you do, oh, no wonder their offering is cheaper. Oh, and by they way, they've been built for low cost scaling too, while it's going to take you a year to get there. Price for scale now and take a margin hit??? Oh so many great marketing problems to solve!

Place - How do you spell "disinter-mediation?" C-L-O-U-D. As product become services, product providers become service providers. Distribution is "free" and
market friction goes away. New geos open without friction. At least that's the theory, but the reality is much more complex and the channel will not go away without a fight and transforming itself...

Promotion - Try and buy, freemium, SEO, Social Media, Viral spread. The Cloud accelerates ALL of these trends. Time to learn some new tricks???

Customer - Who's your customer, where are they, what do they expect. What are they thinking, what are their habits, who cares about you? How do they find you (see P=Promotion) and how do they expect to be found. As more customers can easily try your product is it right for them, are you missing new growth segments that you just aren't looking for???

Company - Is the company ready for change? Is the executive team engaged or scared. How high is the sponsorship of cloud inititatives? Is it genuine of lip service. Do you understand the business model barriers to transformation? Sales quota and incentives, rev rec, HR policies? This type of change can hit every corner of the business, you've got to be ready.

Competition - New competitors, more cloud ready, new substitute products, new pricing models to compete with and on and on. What Hosting provider or Telco would have ever predicted Amazon as a competitor???

OK, have I convinced you or is the cloud all hype? I'm ready to add the 4th C to the old model, CLOUD! Are You????

Great Day for Nimsoft! Nice day for KJR...Positioning matters

Yesterday, my first and still active client Nimsoft got acquired by CA for an OUTSTANDING valuation of $350M. You can read ALL about it a here.

Just a great result for Nimsoft customers, employees and shareholders, as CEO Gary Read said here, a "Triple Play!".

Lot's of commentators have lauded this deal, one particular comment stuck out for me from the Register here:


Specifically, the quote I'd point out (with the emphasis mine) is....
"Last October, the company rolled out a new integrated suite of products called Unified Monitoring, the main reason why CA is interested in Nimsoft. The Unified Monitoring suite doesn't just babysit all the physical and virtual stuff humming away in the data center, but also Amazon EC2 and Rackspace Cloud compute and storage utilities, Salesforce.com CRM software and Google Apps for Business...."

I am proud to have played a role in helping Gary and the team position and align both the communications and the product roadmap to this new vision last year. It's proven to be the right product at the right time, and the team has done an a great job of articulating and then acting on a vision with the speed and delivery of a great company. It's one thing to talk the talk, it's another to really embrace it. Yesterday, connecting vision, positioning AND execution really paid off. Congrats!!! Well done, and thanks for having me be part of it.

Gary talks alot about Cloud being a discontinuity in the market, and that new winners and leaders will emerge. Gary has both vision and execution, and CA is lucky to get the team, and in my opinion, got a bargain!

Keep up the great delivery and lead the CA team into the brave new future of Unified Monitoring....

The Chicken, The Ostrich and the Wiseman; A Holiday Tale of Caution and Opportunity

(Authors note: I have Cloud Computing on the brain. My client, Nimsoft, is changing the landscape of IT Monitoring with their recent Unified Monitoring Launch. I penned this little parable in honor of the Nimsoft customers who have the courage to challenge the status quo...For my non-tech friends, well, the puns will probably be lost on you, sorry...)

Once upon a time, not so long ago, in a not so faraway land called eSPee land, there lived 3 great friends, the Chicken, the Ostrich and the Wiseman. Not only were they great friends, but they were also fierce business rivals. For many years, they had competed with each other and had all built strong and thriving enterprises.

While it was their custom to avoid business conversations almost entirely, once a year, on the Friday after Thanksgiving, they would meet for breakfast to talk turkey (though that term somewhat offended 2 of them!). At one rather ominous meeting, the conversation went something like this…

The Chicken said, “My friends, though business is good, I fear the worst. Clouds have been gathering over eSPee land and I am quite scared. The waters of the mighty Amazon , EverChanging 2day, threaten to flood us all out of business. I am paralyzed and fear that all the work we have done is doomed.”

The Wiseman nodded, and showed great empathy to the Chicken’s concerns, then turned to the Ostrich.

The Ostrich stretched out his neck and said, “ Mr Chicken, as always you worry too much. These Clouds are yet another passing fancy. My customers are a bit confused, but my key vendors, Harold & Penny and Ida’s Big Machines assure me that they are ready. I’ll stick to them and keep focused on my customers, you can’t lose when you work with the best”

The Wiseman smiled, and as he was in the habit of doing, thought before he spoke. He sipped his coffee, rubbed his beard and said, “My dear friends, I share many of your concerns. Mr. Chicken, I believe you are right to see the clouds as a threat to what we have built, yet does this mean we are doomed? Mr Ostrich, I agree we must focus on our customers, but really, you’ve been with those old vendors for decades, are they really ready?”

With that the Chicken balked and left in a hurry, still panicked, and the Ostrich called his rep who sent the call to a reseller, who finally called the Ostrich back in a few weeks and told him everything would be OK.

A few years later, the three friends met for a farewell dinner for the Chicken and the Ostrich, who were both retiring. The Wiseman rose to give a speech;

“My dear friends, it is with mixed emotions that I bid you both farewell. Mr Chicken, I was sad to see your business close. I wish you well in your retirement in Miami. I warned you not to panic at the Clouds and to invest, but you were too scared to act. Mr. Ostrich, your customers did love you, but those old vendors loved you more, in fact, they loved you to death. I warned you to change, but, well, I hate to state the obvious, but you just had your head in the sand. I am glad we were able to buy your remaining business, and I wish I could have paid more, but many of your customers had already came my way. Had you just listened to me and followed my moves to the new vendors, those who were built for the Cloud and the sun, you might have survived. I am thrilled that you will be enjoying your retirement too.”

The Wiseman really meant what he had said. He had adjusted and invested, without losing sight of his customers needs. He had aligned with new vendors, those who had both vision and execution, but were not tied to the past. He realized that he lived in a Cloudy place (think Seattle!) but knew that this never stopped Bill Gates, so why should it stop him. He business thrived in this new Cloudy world, though he truly did miss his friends…

The End