Apr. 14, 2014, 7:07 PM
- An April Barclays survey of 100 U.S. and European CIOs found 46% expecting their company's IT spending to rise in 1H14, 20% expecting it to drop, and 34% expecting no change. Those figures compare with September survey levels of 43%, 27%, and 30%.
- Moreover, IT spending growth is seen accelerating in 2H in both the U.S. and Europe. Barclays thinks larger budgets, macro stabilization, and a need for equipment refreshes (due to high utilization rates) could be helping out.
- At the same time, the firm cautions the spending growth is uneven: Software, networking, security, and cloud services demand is healthy, but servers, storage, and IT services remain soft. Interest in the concept of a software-defined data center is gaining traction, but big data (hyped considerably last year) is losing it for now.
- Gartner has forecast IT spending will rise 3.2% this year to $3.77T after growing just 0.4% in 2013. Enterprise software (+6.9% to $320B) is expected to lead the way.
- Barclays thinks its survey bodes well for H-P (HPQ), Juniper (JNPR), F5 (FFIV), Aruba (ARUN), Ingram Micro (IM), and CDW, each of which is rated Overweight.
- Others that might take heart in the survey results: CSCO, ORCL, SAP, CA, SWI, VMW, CHKP, BRCD, ARW, AVT
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Dec. 18, 2013, 7:13 PM
- Compared with servers and storage systems, demand for security hardware remains quite healthy. IDC estimates security appliance sales rose 6.5% Y/Y in Q3 to $2.2B, even as units only rose 0.3% (indicates higher ASPs). Sales had risen 6.1% in Q2 in spite of a 1.5% shipment drop.
- IDC thinks Cisco (CSCO), which just acquired leading intrusion prevention system (IPS) vendor SourceFire, had a 15.9% industry share, down fractionally Y/Y. #2 Check Point (CHKP) is given a 12.4% share (-30 bps), and #3 Fortinet (FTNT) a 6.4% share (+50 bps).
- #4 Juniper (JNPR), whose security unit has been a weak spot and is now under new management, saw its share fall 170 bps to 6.2%. Meanwhile, fast-growing next-gen firewall vendor Palo Alto Networks (PANW) saw its share rise 140 bps to 5.3%.
- In spite of healthy industry growth, the firewall market (21% of industry revenue), which Cisco, Juniper, and Check Point are well-exposed to, saw a 15% Y/Y sales drop. On the other hand, the unified threat management (UTM) market, which Fortinet is a leader in, grew 29%, and the IPS market grew 8%.
Nov. 12, 2013, 3:14 PM
- Check Point (CHKP +2.8%) has struck a deal with the Israeli government to pay NIS500M ($142M) in taxes on NIS1.7B ($482M) in profits that were deemed "trapped" (incapable of being distributed without a tax hit).
- Check Point had over $3.6B in cash/investments at the end of Q3, and no debt. The firewall vendor spent $128.3M of its cash on buybacks during the quarter.
Nov. 6, 2013, 10:28 AM
- After pricing its 4.14M-share IPO at $18 (the low end of an $18-$21 range), Barracuda Networks (CUDA) opened at $22 and is currently trading at $22.86, up 27%. That gives the security hardware vendor a market cap of $1.14B, or 5.7x FY13 (ended Feb. '13) sales.
- Peers Check Point (CHKP +1.6%) and FireEye (FEYE +1.9%) are up slightly, FireEye delivered a scorching IPO in September.
- S-1, IPO filing/recent results, IPO preview
Oct. 21, 2013, 11:18 AM
- Check Point (CHKP +3.7%) has guided on its Q3 call for Q4 revenue of $365M-$395M and EPS of $0.90-$0.98, in-line with a consensus of $385.2M and $0.96.
- Shares are rallying thanks to the guidance and Check Point's Q3 beat, which was aided by improving European macro trends (Check Point depends heavily on European sales) and $128M in buybacks. Investors are likely also pleased with a 12% Y/Y increase in the company's deferred revenue balance to $566.8M (exceeded rev. growth of 4%).
- Security hardware peer Fortinet (FTNT +1.7%) is also higher. While Check Point's top-line growth has been better than that posted by the security units of firewall rivals Cisco and Juniper, it has trailed that of smaller upstarts such as Fortinet, Palo Alto Networks, and FireEye. "We have a lot of competition and we need to grow faster," said CEO Gil Shwed on the CC.
Oct. 21, 2013, 6:11 AM
Oct. 21, 2013, 12:05 AM
Oct. 20, 2013, 5:30 PM
Sep. 20, 2013, 11:23 AM
- FireEye's (FEYE) IPO is even stronger than Rocket Fuel's. Shares opened at $40.30 and are currently at $40.61, up 103.1% from an elevated IPO price of $20.
- The cybersecurity hardware/software firm has a market cap of $4.77B, or a whopping 57x 2012 revenue.
- A couple of industry peers are rallying in sympathy: PANW +3.9%. CHKP +1.6%.
- S-1, IPO preview, 1H results
Sep. 17, 2013, 2:06 PM
- Looking to challenge Cisco (CSCO +0.3%), Check Point (CHKP +0.9%), and market leader Palo Alto Networks (PANW +1.1%) in the growing next-gen firewall (NGFW) hardware market, H-P (HPQ -0.4%) has launched its TippingPoint NGFW line. (PR)
- Five models are being offered, the most powerful of which offers 10Gbps of throughput. Palo Alto's high-end PA-5060 firewall offers 20Gbps of throughput. Though H-P plans to continue selling TippingPoint intrusion prevention (IPS) appliances, the functionality of its new hardware leads Gartner's Greg Young to view the latter as a replacement for the former.
- Young estimates NGFWs have grown to make up 15% of the $8B firewall market.
- H-P is also launching Threat Central, a cloud-based service that analyzes potential threats detected by the company's ArcSight security software.
- Consider the moves an escalation of H-P's rivalry with Cisco. Cisco is set to acquire IPS leader Sourcefire, which has also rolled out hardware that combines NGFW and IPS features, and recently formed a managed security services unit.
- Meanwhile, F5 (FFIV +0.8%) has acquired Versafe, a developer of online fraud protection software and a cloud-based monitoring service, for an undisclosed sum. F5 declares Versafe's products will complement its firewall and access/policy management hardware, as well as its mobile app management software.
- Versafe can already be integrated with F5's mainstay application delivery controllers. In a blog post discussing the deal, F5 argues the ongoing rise of remote/mobile file access increases Versafe's value.
- H-P and F5's moves comes amid growing corporate interest in cybersecurity, following well-publicized hacking events.
Jul. 18, 2013, 5:52 AM
Jul. 18, 2013, 12:05 AM
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