Blogs
Pragmatic CSO Podcast #20 - The Sales Pitch
This week we talk about the sales pitch. This is the part that most security practitioners hate. Actually having to get in front of folks and ask for money. Although if you've followed the process up to now, then you should be in great shape to put together a compelling story and to deliver that message to the senior team.
In this week's episode (can you believe it's #20 already?), I
go into detail about how to structure the sales pitch and what you
should discuss and why. We are reminded about what the goals are and
also the importance of practice - especially if you are an
inexperienced public speaker.
Running time: 6:52
Intro music is Jungle and since we are talking about making a "pitch"
and it's the middle of summer (in the Northern Hemisphere anyway) I
broke out John Fogerty's classic baseball anthem, "Centerfield."
Enjoy!
Direct Download: 20_Pragmatic_CSO_Podcast_20.mp3
Subscribe
in a reader
Photo Credit: XPLANE
(click on the poster image above, it's awesome - especially if you've
ever been on the other end of sales pitch)
PS: My apologies for some spotty audio quality this week. You can hear everything, but I tried out a new headset and it didn't work out too well. Back to the old gear next week!
Pragmatic CSO review on Slashdot
Nothing like getting a little present on a summer Monday. I wanted to point out that a review of the Pragmatic CSO was posted today on Slashdot. You can check it out:
http://slashdot.org/article.pl?sid=08/07/28/1330215
Overall, Ben Rothke provided a balanced and positive review of the book, which really hits on the key points I try to highlight not only in the process, but also in my weekly newsletters and podcasts.
Pragmatic CSO Podcast now on iTunes
Now you can take the P-CSO on your iPod with you. This is great news, so now I can haunt you in your car, on an airplane, or even when you are running. Although since all of the podcasts are 6-7 minutes, it wouldn't be much of a run I guess.
To get the podcast, click this link and then it should direct you to iTunes to subscribe to the podcast. Screenshot of what you should see is below.
Black Hat 2008 Day 2: Web 2.0 mayhem
As you are reading this, my flight back to ATL should be climbing up through 10,000 feet on my way back home. Another year, another Black Hat, another set of things that are sure to kill us somewhere down the line, another few parties, and another frantic ride back to the airport.
Day 2 was a bit more sedate than Day 1, though that may have more to do with my hangover (that I finally
chased away about 3 PM). I also skipped the keynote, though I heard it was pretty good. Here's a brief rundown of the sessions I did today.
- Satan is on my friends list: This session went deep into some of the tricks you can use on Facebook, MySpace, and LinkedIn to make the application do unexpected things. The most interesting thing is that the attacks were shockingly simple. No wonder these social network sites are such havens for malware, leveraging XSS, CSRF and all sorts of other attack vectors. Shawn Moyer and Nathan Hamiel also ran a little experiment in adding Marcus Ranum (with his permission) to LinkedIn and added about 60 connections within a day. One of the last recommendations was to make sure you had a profile on each of the sites. Not because you plan to use it, but because you should get one out there before the bad guys do. At least the inimitable Ranum now has a profile.
- No More Signatures: Defending Web Apps with ModProfiler: I was pretty disappointed with this session from Breach's Ivan Ristic and Ofar Shezaf. They spent the first 45 minutes explaining what a web application firewall is and some specifics about ModSecurity (the open source version). I was there to hear about ModProfiler, which is a new project focused on more effectively leveraging a positive (if it's not explicitly allowed, then it's not allowed) web application security model. They only spent maybe 30 minutes on that and didn't show the code or a demo or anything. Maybe they did in the last 15 minutes, but I left before then. You shouldn't make people wait for an hour to get to the technology mentioned in the title of the pitch.
- Get Rich or Die Trying: Jeremiah did a great job going over quite a few scams that really leverage web technologies, kind of. Most took advantage of weaknesses in the web application, as opposed to actually security flaws. And to see some of the real simple stuff (like having press releases accessible before they hit the wire by figuring out the naming sequence), and how one woman made about $400,000 by selling merchandise that QVC shipped her even after she canceled the transaction. So, the moral of the story is that company's should probably pay their Q/A people a lot more money (or get new ones) to find this stuff before an application goes live.
And that's all she wrote. Back to a regular publishing schedule next week. Enjoy your weekend.
Black Hat 2008 Day 1: We're Screwed!
Day 1 of Black Hat 2008 is in the books. It's great to see a lot of old friends, and it seems this year (more than the last two) many of the folks I'm talking to are more focused on the networking than on the session. Not me. I'm still fired up about seeing really smart guys discuss what they are up to and give me a lot of food for thought about how we need to continue protecting ourselves.
I ended up hitting almost all the sessions I wanted to, so let me go through some quick observations.
- Keynote: Ian Angell, Professor London School of Economics - Professor Angell is a pretty engaging character and I enjoy his systematic skewering of the common knowledge about risk and what we can really control. Which is basically nothing.
- Bad Sushi: Nitesh Dhanjani and Billy Rios - As mentioned on Tuesday, I was looking forward to this session and it was a lot of fun. Especially when they pulled the RickRolling prank on the phishers and to see how many of them fell for it was great. Sometimes it's nice to strike back, although it doesn't have much of an impact on how we do things.
- Kaminsky's DNS talk: It was packed. I mean PACKED. And Dan delivered the goods. The thing that resonated the most is how dependent we are on DNS for pretty much everything, and if DNS is not trustworthy, we've got a real problem. Lots of innovative ways to comprise stuff assuming the bad guys own DNS and plenty of other goodies. I have some larger thoughts about the DNS topic, which I'll write up for Monday, but the only conclusion you can really draw is that we're screwed. But isn't that what Black Hat is all about? Giving security folks that uneasy feeling of not being able to keep up with all the attacks?
- Hoff's Four Horseman: The Hoff delivered the goods as well. First of all, the slides were very pretty. You should check them out. But aside from the aesthetic beauty of the content, Chris really put into question a lot of the assumptions many folks are making about securing the virtualization layer. Rich did a good write-up of Hoff's pitch and other Black Hat topics.
- Network Monitoring, Bruce Potter: I hadn't seen Bruce speak before and it was very entertaining. But most interesting was the very compelling case he made for why you need to monitor your networks using something like Netflow. He also talked a bit about a new open source tool called Psyche that his team is releasing and it looks pretty cool. It's nice to see the idea of network monitoring being discussed on the big stage. Of course, there are folks like Bejtlich that have been beating that drum for years. But given all the other stuff we're seeing at the show this week (basically we're screwed), the idea of figuring out everything isn't going to happen. So we need to REACT FASTER and monitoring is the way to do that.
The Mogull and I recorded a quick podcast yesterday as well. We talk about Kaminsky and Hoff's pitches and come the conclusion that basically we're screwed. You can check it out at the Network Security Podcast site.
Before I head off to Day 2, I have to relay my latest Vegas star sighting. To wrap up the night Shimmy, Mitchell, Adrian Lane and I are
catching a little late night breakfast at Caesars. Sitting right next to us is Jeff Dye, one of the finalists on this season's Last Comic Standing. You all know what big fans of comedy the Boss and I are, so it was great to see him in person. He's a very nice guy and he really is that pretty. They are announcing the winner of the show tonight, so I told Jeff we'd be pulling for him.
Only in Vegas...
Things not so clear for CLEAR
Interestingly enough, I tried to register for Clear this morning on my way out to Vegas. They are rolling out the service in ATL and given the amount I fly, I figured it would be a good investment. The folks at the desk were kind enough to tell me the computer systems were down and that I'd need to come back later.
Upon arrival, I connected to via my EVDO card (no WiFi in Vegas with all the haXors around) and tried to do the online registration (so I could finish up when I get back to ATL). But the application was being upgraded.
Actually no, the TSA has put the kibosh on Clear while they mop up the mess of a lost laptop. Thanks Breach Blog, now I know what is going on. How about that laptop encryption? I can see the commercial now:
- Cost of laptop encryption: $100 per agent
- Lost revenue from a data breach: $zillions
- Reality that the TSA is putting you in the penalty box for years for violating their trust: Priceless
And for those already in the Clear. You've been pwned! Now the bad guys have your retinal scans and fingerprints. They don't even need to chop your fingers off anymore to beat the biometrics. Actually, I'm kidding, I'm not sure what data was stolen.
It never ends.
The Daily Incite - August 5, 2008
August 5, 2008 - Volume 3, #67
Good Morning:
I'm glad kids are so adaptable. Yesterday, the twins started at their
4th pre-school. In 4 years. And they are not even 5 yet. It's kind of
wacky. The first was exclusively an 18-month program. It was a good
program, but a 15-20 minute ride from the house, which became a drag.
The second was right around the corner and was great, but didn't offer
a full day program - which we needed when the twins turned 4. So last
year we sent them to yet another program, and they really liked it. We
figured they'd be in the same program again this year, and that was
that.

But the best laid plans... It seems the director of the school decided
(in her infinite wisdom) that it was OK to have 41 kids, split across 2
classrooms with only one teacher and two assistants. Yeah, not so much.
For what I was paying for the privilege of sending my kids to the
school, we deserve better than double the teacher:student ratio they
get in public school.
The Boss was a teacher before the kids were born, so she realized how
untenable the situation was. A lot of other parents had real
reservations as well. So much that a simple meeting turned into a 2
hour bludgeoning of the Director. After a while, she relented and said
she'd hire another teacher.
Cool, problem averted. Back to our regularly scheduled program. But I
have taught the Boss well, and she immediately went into contingency
planning. What if they don't get another teacher? What do we do then?
Well, the Boss didn't leave anything to chance. She scouted about
another (well regarded) school in the area. So when we heard the
Director had "changed her mind" and wasn't hiring another teacher - it
was right down to the other school to get our kids a spot.
We decided to vote with our wallets. We knew going back to the Director
was going to be fruitless. So we didn't even bother. We didn't complain
about it, we took action. Too many folks just accept their lot in life,
with nary a whimper. That ain't me or the Boss. If we don't like it, we
change it. It's as simple as that.
Thus, the 4th school in 4 years. The boy cried a bit today, but he'll
be fine. He's not as good with change as the others. It's a great
program and they will be super ready for kindergarten next year. This
new school has up to 36 kids in the class, but 3 REAL teachers. The
kids are broken up into 3 groups, and no more than 2 groups are ever in
the class at any one time. There is a school store (where the kids can
practice) and it's very rigorous from an academic standpoint.
We aren't those crazy parents that are trying to push the kids ahead.
Drilling them in multiplication tables before they are even in
kindergarten. Yes, there are parents that do that. We have them in a
full-day program so the Boss
can
work. But while they are there, they may as well get a good
education.
Have a great day.
PS: I'll be at Black Hat this week. Check out my thoughts on the show.
Photo: "Empty"
originally uploaded
by -Mandie-
Technorati: Information
Security, CSO,
Security
Mike, Internet
Security
![]() The Pragmatic CSO: Available Now! Read the Intro and Get "5 Tips to be a Better CSO" www.pragmaticcso.com |
Get Your Special Report: 6 Easy Steps to Protect Your Identity and get access to Security Mike's Portal today www.securitymike.com ![]() |
Top Security News
Penny wise and pound foolish - laptop
encryption style
So what? -
Andreas from Nemertes (run by my former colleague and all around brain
surgeon Johna Johnson) makes an impassioned plea for laptop encryption
in his recent NetworkWorld column. His main point is that there really
is no excuse not to encrypt the laptops. Given the reality that a bunch
of devices will be lost, quite a few stolen, and still others
compromised due to
the general idiocy of the owners, why not do it? Especially given the
availability of "free" open source solutions like TrueCrypt. This is
where he loses me. I'll admit to not having played around with
TrueCrypt (Apple's FileVault works fine for me), but the idea of any
mid-market or enterprise technology manager rolling out open source
technology to the masses scares the hell out of me. And not for why
you'd think. The technology is more than likely solid. It's the
manageability that I worry about. Does TrueCrypt come with a management
console to deploy the software to 100 devices, or 1,000 devices, or
10,0000, or
100,000? Does it handle exceptions and create a failsafe so the CEO can
access his/her laptop when they forget the password and not require you
to FedEx a recovery disk to them. Can it recover if they lose the
tip of their index finger in a freak private plane accident and can't
use the fingerprint reader? If the
answer is yes, then I'm cool. If it's no, I'd point technology managers
to not forget that whatever they deploy - they actually have to manage.
Link to this
Vista is more secure the XP - uh
huh!
So what? -
Since I'm looking forward to seeing Jeff Jones and some other
Microsoftians at this week's Black Hat conference, I'll just take a
moment to poke fun at this continuing myth that one operating system is
more secure than another. It's
like saying one gun is more deadly than another. The
folks that watch Microsoft continue to perpetuate this fallacy.
Of course, based on Microsoft's own subjective assessment of the
patches "criticality." The reality of the situation is that it doesn't
matter which operating system is "more secure." In the hands of a stupid user,
either of the operating systems is a deadly weapon. I
understand that the Microsoft watchers have a vested interest in making
sure Microsoft sells more Microsoft stuff, so they have more actions at
Microsoft to watch and write about, but still. The fact is Microsoft
makes it hard to continue using XP. It's hard to buy. You should have
seen the hoops my father-in-law had to jump through to get XP on his
new laptop (since I couldn't in good conscience tell him to actually
use Vista). Within a few years it will be hard to get support on XP. So
Vista
is the future, whether we like it or not. And whether it's secure or
not is besides the point. How many bugs each one has is also besides
the point. Everything is vulnerable (even my beloved Mac) and we need
to plan for those eventualities. But tracking this stuff is certainly
an interesting use case for Excel.
Link to this
The world remains neither black
nor white
So what? -
I'm not known for my love of gray. In fact I hate it. If I could reduce
every decision to a clear, black or white, left or right, up or down
analysis - I'd be a happy guy. Of course, the world isn't like that,
since without black there can be no white. Without up? That's right, no
down. OK, enough of abstract philosophy. I'm reminded of these issues
when I see the whitelisting vs. blacklisting argument
resurface. It's like when I saw Andy Jaquith go through his
provocative "AV sucks" pitch at Source Boston earlier this year. Of
course, Andy was poking fun at the AV engine that drives security, but
he only told one half of the story. His story is about the inabilities
of
the blacklist (signature-matching) techniques to scale to keep up with
the new attacks. On that point he's exactly right. That's where
whitelisting comes in and pretty much
every big AV product has some kind of whitelisting capabilities. Some
more formal than others, some that try to get you to pay extra for it.
But it's all the same. You need the black list to make sure you don't
make
the same mistake twice. You need a white list to allow the things you
know need to be allowed. And you also need some kind of "gray list,"
which more heavily scrutinizes the stuff not on either the white list
or the black list to make sure it doesn't kill you. But religion
continues to drive page views, so I
figure we'll continue having more of the same for a long time to come.
Link to this
The Laundry
List
- OK firefighters, you can go home now. It seems FIRE has extinguished the burning embers of their first two quarters as a public company. They should send a thank you note to the outgoing US Federal regime, who is evidently set on helping lots of security companies make their quarters. - Sourcefire earnings release
- Core introduces a pen tester "lite" version of Impact, called Impact Essential at a cheaper price point. This is good stuff, since the more folks that learn to "hack themselves," the better. - Core Security release
- Talk about weird timing. Two companies emerging from the rubble of CipherTrust attack the same market, web security in the cloud. Jay Chaudhry's is Zscaler, the other group is Purewire. Which came first, the cart or the horse? - 451 Group blog
- Everyone jumps on the PCI bandwagon. Even an application configuration management play called mValent. If it wasn't so sad, I'd actually laugh a bit. - mValent release
Top Blog Postings
More numerical idiocy
First of all, hats off to Dancho for using Count von Count's picture in
a blog post. The Count is by far my favorite Sesame Street character.
Actually, the highlight of a recent Orlando trip with the kids was
getting a picture with the Count himself, all the way in from
Transylvania. But I digress. Dancho skewers the recent one-upsmanship
from the AV vendors about who has more thingys to detect other thingys.
His point is that none of this matters because today's brand of malware
is sufficiently evolved to actually morph and obscure on the fly. So
how many you have doesn't really matter, as long as you have the one
the script kiddie is using against you right now. Or have some kind of
white/black/gray list approach (as mentioned above), or better yet -
just wait in your office for someone to do something stupid, then you
clean up the mess. Which is what we normally have to do anyway, right?
http://ddanchev.blogspot.com/2008/07/counting-bullets-on-malware-front.html/
Link
to this
I'm too disillusioned to CAER
Actually I'm not, but it was a nice play on words based upon the latest
wisdom to emerge from the Tao Master himself. Bejtlich introduces a new
acronym (since we haven't had a new acronym in a while, sorry Rich ADMP
doesn't cut it) that really sums up the operational roles of the
security professional pretty effectively. Collection, Analysis,
Escalation, and Resolution are what CAER represent and there is a lot
of
logic here. Especially as Richard laments the fact that most folks just
collect data and don't really do much with it. Besides maybe generate
some reports for an auditor every six months or so. They figure the
audit is the end goal, not a checkpoint on the way to figure out if
you've wandered off the reservation. Another point also rings true:
"the goal of every
mature security operation is to reduce the mean time
to resolution." Ain't that the truth! Unfortunately it's
not clear to
me what most security professionals believe the goal is. They generate
some great reports about how quickly they patch and what wonderful AV
coverage they have on the devices. Bah humbug. Maybe set about trying
to CAER a bit more for the rest of the year. Everyone will appreciate
you efforts.
http://taosecurity.blogspot.com/2008/07/security-operations-do-you-caer.html
Link
to this
Your demo still sucks
Doing what I do, I'm subjected to a lot of demos. Though I try my best
to get out it them. I'll use all sorts of excuses. Like the dog ate my
Internet router (I don't have a dog). Or your WebEx works like crap on
my Mac (it works good enough). Or my coffee shop blocks access to your
crummy demo (actually I could surf pr0n there if I wanted to). Despite
my best efforts the demos still suck. Why? Because most demos still
focus on what the product DOES, not what PROBLEM IT SOLVES. If you have
anything to do with demos, please read Mitchell's rants on doing demos,
and listen. Do scenarios. Help
the prospect (or analyst) understand how your tool is going to impact
their job. Make the issues real for them. What can they do better with
your stuff, saving them time or money or protecting information more
effectively? And I love the idea of
packaged demos. Even if you (or your best SE) are great at doing the
demo, I'm sure other folks in field suck. So take the variability of
crappy Internet connections and the like out of the equation. A
recorded demo also makes sure your folks stay on point and highlight
the issues/problems/capabilities that really matter. Not what the
product manager thinks is a cool feature or a nicely colored box.
http://www.theconvergingnetwork.com/2008/08/product-bistro.html
Link
to this
Black Hat 2008 Preview: Paranoia and Learning
Hard to believe, it's time for another Black Hat conference. This is my third, and as I sit in the airport waiting to head out to Vegas, I'm eagerly anticipating the show. For lots of reasons, but mostly because it's the only show I attend to actually learn something. It's not like RSA or CSI are big on "education." I certainly know that I don't know it all, but Black Hat is a place where I can hang out with guys a lot smarter than me. And that's a good thing.
Even if the show has gotten a bit corporate.
As others have mentioned, Black Hat/DEFCON are not the places to be careless about your computer security. Now that BH is doing the Wall of Sheep as well, no one is safe. I was at Rob Graham's session last year where he pulled up some poor saps Gmail through his sidejacking attack. That ain't going to be me.
So what do I do? WiFi is OFF. Period. Until I get back to ATL on Friday, WiFi is off. I'll just rely on my Verizon card for the few times I'm in my room and connected. I don't carry my laptop at the show, rather relying on good old fashion paper and pen to take notes. I may do a quick post or two from my iPhone (3G, I upgraded over the weekend), but for the most part I'll be mostly disconnected.
Speaking of my iPhone, WiFi is off on that as well. I'm also turning off Bluetooth. That means I'll be the silly one with the wired headset. But I'm not sure what new attacks have emerged, so I'll suffer the wired life for a few days. I'm also turning off the GPS. It's not like I'm going to get lost in Vegas, and again although I haven't heard of specific GPS attacks, why risk it?
Yes, clearly it's paranoia in full effect. But better to be safe (if a bit disconnected) than sorry. That's for sure.
In terms of sessions, a few caught my eye:
- Bad Sushi: Beating Phishers at their Own Game (Wednesday, 10 AM): I'm going to see my friend Nitesh Dhanjani and Billy Rios do their anti-phishing talk. Clearly there are both process and technical defenses against the phishermen.
- DNS Goodness (Wednesday, 11:15) - Obviously Kaminsky's session is going to be a circus. They should probably move it into the keynote room to accomodate everyone. Not sure I want to fight the masses to attend, but I'm sure it will be interesting.
- The Four Horsement of the Virtualization Security Apocolypse (Wednesday, 1:45) - I've got to be there to support my boy Hoff and I'm actually interested in how he's evolved his pitch. I also heard (from the horses mouth) that the slides are real pretty, so I'll probably take a few presentation pointers from the Rational one.
- Malware Detection through Network Flow Analysis (Wednesday, 3:15) - Since part of my schtick is REACT FASTER, Bruce Potter will be previewing a new version of his flow analysis tool, and that may fit the bill. Lord knows a lot of the NBA tools are way to heavy and high end for the mass market, so an open source alternative could be interesting.
- Exploiting Google Gadgets (Wednesday, 3:15) - I'll also try to swing by RSnake's pitch, where he and Tom Stracener will be exploiting Google Toolbar and discussing a zero day. Woo Hoo.
- Satan is on my Friends list (Thursday, 10) - I'm fascinated with this social networking thing and figuring out how to exploit it is pretty interesting. There is a lot of cutting edge research happening around this area.
- No More Signatures: Defending Web Applications from Zero Day Attacks (Thursday, 11:15) - Yes, I plan to go see Sir Ivan and Ofar Shezaf discuss how profiling traffic can help defend web apps. This sounds like a positive security model and I think that's a pretty important aspect of defending the web apps.
- Get Rich or Die Trying (Thursday, 3:15) - I'm also going to see Jeremiah do his logic flaws pitch. These are very interesting attack vectors and I'm looking forward to seeing how Jeremiah and Arian go through an pwn applications via the developers own mistakes.
I'm sure there are others, or maybe not. I tend to like to keep my schedule pretty fluid at Black Hat. I'll be hitting the party scene as well, so I hope to see at least some of you in Vegas.
Safe Travels.
Revisiting Big is the New Small
It's been quite a while since I penned the original "Big is the New Small" piece back in February of 2006. Obviously a lot has changed and happened in the security space since then. So I figure on the first Monday in August, I'd revisit that position and figure out if it was still relevant.
To refresh everyone's memory, Big is the New Small was the moniker I came up with to describe why consolidation was happening in security and why it was going to continue. Customers were increasingly fed up with the idea of having to manage multiple products from multiple vendors to handle mature, somewhat commodity functions. And all things being equal, they want to buy these solutions from "Big Security," the large publicly held companies that have staying power.
Much of this has come to pass. The Big have gotten bigger by continuing to acquire technologies to fill out their product families. Large companies have always acquired smaller companies, that's nothing new. And the original concept behind Big is the New Small is that customers were tired of dealing with crappy little vendors. They'd much rather deal with bloated, unresponsive, lumbering vendors.
There are many that cling to the "best of breed" myth. It's even funnier when you think about folks positioning their offerings as "integrated best of breed," whether it happens on the perimeter or on the devices. Or even in security management. Integration/unification and best of breed are opposites. Oil and water. You get the picture. It just doesn't happen.
These ideas also are NOT an indictment of innovation, as many of the small vendors called it. It was a pragmatic view of how the industry is working now. Some choose to fight it, until Big Security swings by with a bag of money. Then they get religion pretty quickly. But even that isn't the point.
The point is that over the last 2 years, customers are looking for security that is "good enough." The main issue is that without anything that is truly innovative (and it's been quite a while since we've seen true innovation in the security space), customers have no choice but to go with good enough. Most of the new companies out there are focused on "better, faster, cheaper" models of improving the way things are already done.
Since security remains an expense and an overhead item, the natural inclination is to minimize cost, and that means to buy solutions that aren't the most expensive, but meet the needs in the most cost effective mechanism. That's this entire drive to doing security in the cloud. Since it's good enough, we may as well have someone else deal with it.
By no means am I saying that our protection is good enough, it's not. But I don't think it's because we have a lack of tools or knowledge. We collectively suck at protecting information not because we don't know what to do. We suck because we just don't do it. If we would actually use half the crap we've bought, and build a strong and credible security program - things would be a lot better.
Not perfect, but better.
But we don't, so it's not. Thus, good enough is here to stay. And as long as good enough is the primary criteria for most product/service purchases, it favors Big Security. They aren't much, but they are usually good enough.
Photo credit: "Good enough" originally uploaded by russelldavies
Deal: McAfee acquires Reconnex
As predicted, the DLP market continues to consolidate on it's way to eventually disappearing. McAfee announced as part of their earnings release that they are acquiring Reconnex for $46 million in cash. This is a good deal for McAfee for lots of reasons. I don't think they are going be "redefining the data protection market" as stated in their press release - but there are positives.

- All the cool kids have one - McAfee needed to bolster their DLP position because their benchmarks, Symantec, Trend, EMC/RSA, and Websense, already acquired assets in this space. They also realized the endpoint centric product they've brought to market (based on the Onigma acquisition) wasn't going to get them there. Reconnex is one of the last independents standing, so it's not a surprise they got taken out.
- DLP is a feature - As I've mentioned, DLP is not a market category that is going to stand alone. These capabilities need to be built into bigger security, and eventually general IT infrastructure. McAfee now has some more technology to foster that kind of integration and value add.
Of course, all that glitters is never gold, so there are some things to watch for, especially around channel mismatch. McAfee doesn't really have a high end services/implementation business to drive big DLP implementations. And their channel tends to focus more on mid-sized companies. Sure they do some big deals (around endpoint security and some IPS), but there could be a bit of an impedance mismatch when the reality of DLP deployment cycles sets in.
How about that price?
But any potential issues with the deal are offset by the price. $46 million in cash. Wow! That is really a fire sale price for a company with seemingly a lot of momentum. I guess seemingly is with a capital SEEMINGLY.
Reconnex had raised $37 million in VC funding. So the VCs get their money out, the management team (mostly executives) maybe gets a little carve out, and the rank and file get screwed. Of course, that is speculation on my part, but having seen enough of these deals - I'm probably not too far off.
This is just yet another example of the reality that you cannot believe all your read. Check out the momentum release from TWO WEEKS ago. If you take the words on the surface, things are going great. Lots of growth, named a leader in that quadrant thingy, yada yada. The print isn't even dry on that release and they sell for not much more than DeWalt's expense account.
I'm sure there is some kind of back story here, and I'm sure it's not real pretty. But at the end of the day, they got a deal done. Bully for them. And once again, McAfee shows it's one of the shrewdest buyers in the space. They won't have to turn many Reconnex lemons into lemonade to make the deal pay big time.
Photo credit: "Cheap Store" originally uploaded by ZannaLyon




Recent comments
17 hours 24 min ago
1 day 19 min ago
2 days 3 hours ago
3 days 3 hours ago
1 week 1 hour ago
2 weeks 2 days ago
2 weeks 2 days ago
4 weeks 22 hours ago
5 weeks 2 days ago
5 weeks 4 days ago