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Technology Stocks : NENG: Network Engines, Inc.

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To: JakeStraw who wrote (88)12/11/2003 10:50:20 PM
From: Gus  Read Replies (1) of 186
 
<font color=blue>The Network Engines Firewall for Microsoft Exchange, which is based upon Microsoft Internet Security and Acceleration (ISA) Server 2000, utilizes the features of Microsoft ISA Server 2000 to provide increased protection for customers using Microsoft Exchange 2000 and Exchange 2003 -- while being cost-effective, easy to install and simple to use.
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This should be a very strong unit seller for NENG. In terms of deployed seats, Microsoft has 55%-60% of the corporate email market followed by IBM/Lotus (20%) and some other vendors.

The main criticism of MSFT's ISA server technology, which was introduced in 2000, was that it was a software-only solution running on a general purpose operating system with all the unnecessary baggage that it entails. This was the same criticism leveled against MSFT's initial NAS product in 1999/2000.

This NENG firewall appliance directly rebuts that criticism and should allow Microsoft to post at least the same unit success that they had with NAS where they captured 41% of the market (in terms of units) less than 3 years from a standing start. In this case, Microsoft Exchange is the de facto standard for corporate email so NENG would appear to be already selling into a very receptive and a very large installed base.

Here is the progression of Gartner's comments on Microsoft's ISA server technology since 2000.

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2001
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......Microsoft quietly introduced the Internet Security Acceleration (ISA) Server for Windows 2000 this year. Challengers usually dominate a market by sitting out the early fray and entering the market when a clear direction is apparent, using their superior brand and marketing
muscle to become a leader. Cisco accomplished this at the right time. Microsoft is late to the game. The market is shifting away from cumbersome enterprise software running on full-service operating systems. The number of features in ISA Server will lead to never-ending bugs and
vulnerabilities. Gartner considers ISA Server to be a logical evolution to Microsoft Proxy Server.

The 2001 Gartner Firewall
Market Magic Quadrant
gartner.com
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2002
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.......Microsoft offers the Internet Security Accelerator (ISA) Server, which has been in the market for more than a year. It still is viewed as the follow-on product to replace Microsoft Proxy Server. ISA Server, because it is a software-only product that runs on a single platform (Windows 2000), will not address all of an enterprise’s needs for low cost, low maintenance, high availability and reliability that can be delivered on an appliance platform.

The Gartner Firewall Magic Quadrant for 2H02
modcomp.co.uk
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2003
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........Microsoft's Internet Security Acceleration Server is a powerful software proxy and is evolving into Microsoft's lead security product, with built-in application defense and access controls. Although the Internet Security Acceleration Server is good technology, it is trailing market expectations because most enterprises look for hardware gateway devices, not software running on general-purpose operating systems.

Magic Quadrant for Enterprise Firewalls, 1H03
gartner.com
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