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May 25, 1998, TechWeb News
Packaging To Sell Security -- No Web server stands without a firewall. But vendors and VARs are finding ways to package firewalls with services By William Terdoslavich
Web firewalls today are as common as the bricks that make up their real-life counterparts. And they are just as necessary. It is unthinkable for a Web server to go up without one. So it is no surprise that Web firewalls have become a commodity product.
Commodity status implies high supply and low margins, much like monitors or 56K modems. But vendors and VARs alike are not allowing such a fate to befall Web firewalls.
"There is definitely a marketing war on who is getting the best distribution," said Larry Dietz, vice president at Zona Research Inc., Redwood City, Calif.
The firewall represents a bundling opportunity as well as a channel opportunity, Dietz said. "[Resellers] are looking to take the firewall and allied security pieces . . . to promote a total high-value package for targeted verticals," he said. "If a VAR is astute, he can pick the pieces and make money as an integrator."
Check Point Software Technologies Ltd., Redwood City, commands the lead in the firewall market with a 19 percent share, according to Zona's research. Trusted Information Systems, Glenwood, Md., has 16 percent of the market, followed by Cisco Systems Inc., San Jose, Calif., with a 13 percent share. But other players include Raptor Systems, Waltham, Mass.; IBM Corp., Armonk, N.Y.; Digital Equipment Corp., Maynard, Mass.; CyberGuard Corp., Fort Lauderdale, Fla.; Lucent Technologies, Murray Hill, N.J.; Newbridge Networks Corp., Herndon, Va.; and NetGuard Inc., Fairfax, Va.
The burden is on the vendors to differentiate themselves from each other when offering firewalls in a commodity market. That differentiation can take place at the feature level or at the channel program level.
Check Point does both. At the feature level, its FireWall 1 relies on "stateful inspection" to provide Web security. This involves analyzing traffic flows and discarding data patterns typical of an attack on the Web site.
"Because we are stateful, we can track what is sufficient for a security decision," said Robert Ma, director of product marketing at Check Point. Alternative approaches include packet flow, which does not examine the threat above the packet level, and proxy. "[Proxy] only protects [the system] if it is spoken to," Ma said. "Therefore, it is slow and not transparent."
Check Point moves all of its product through the channel, said Karen Howard, channel marketing manager with the company. "Every lead we get becomes a lead for our partners," she said.
Check Point's reach into the market is extended by its OPSEC program. OPSEC stands for open platform for secure enterprise connectivity. It is an API that partners and vendors can use to integrate their own products and services with Check Point's product line, said Ma. Check Point has more than 130 partners supporting its OPSEC program, and another 30 to 40 vendors crafting products to work with the Check Point platform.
Firewall 1 is priced at $2,995 but can reach as high as $18,000 for an enterprisewide implementation.
IBM currently offers a comprehensive firewall solution wrapped up in its service unit, which is sold directly to clients. But change is in the air.
IBM recently announced it is offering service packages encompassing 19 solutions, from planning and assessment, to architecture and design, to implementation and systems management, said Cal Slemp, global offering executive for security services. "Most clients are not security experts, nor do they want to be," Slemp said.
The IBM Firewall is priced from $4,499 to $16,500. "We made this a channel-ready product," Slemp said. IBM has 175 resellers that are certified to install the IBM firewall upon referral.
About 70 percent of the business opportunity in Web security is service, Slemp stressed. While IBM provides those services, resellers are eager to either resell IBM services or provide those services on behalf of IBM, Slemp said. A reseller program is being considered to that end, but many details need to be worked out, he added.
Digital is also in the Web security field, with its AltaVista Firewall 98 as well as its AltaVista Tunnel for VPN. Prices range from $2,495 for 25 users to $14,995 for an unlimited license.
Digital sees the firewall market breaking into two segments. One is a fairly commodity-type market with a basic firewall and basic service, said Ray Suarez, Internet marketing manager. The higher end is where companies rely on the Internet to provide their mission-critical communications infrastructure, he said.
To that end, Digital crafted its AltaVista products to offer separate firewall and VPN servers, but with fail-over from one to the other if the firewall software is mounted on Digital hardware, Suarez said.
But the company is also aggressively backing its VARs with joint seminars, joint sales calls, lead generation and a technical support program, Suarez added. "As we invest in new features, we become more aggressive in the business programs," he said.
CyberGuard tries to cover its bases with firewalls for Unix and Windows NT. CyberGuard Firewall for Unix 4.0 does packet filtering and proxy and is priced at less than $5,000. CyberGuard Firewall for Windows NT 4.0 has a starting price of $1,500.
CyberGuard's VAR program is designed to strengthen the product line. VAR training gives resellers the ability to architect Web security systems or the knowledge to sell CyberGuard's services to do the same, said Katherine Hutchison, vice president for strategic operations with the company.
CyberGuard provides certification for E-commerce solution providers, basically resellers that can build E-commerce solutions using CyberGuard's product line, Hutchison said.
Opting for simplicity, NetGuard jumps into the market with its Guardian firewall, a Windows NT-based solution priced from $3,980 to $8,980.
Guardian's selling point is that it was crafted from the ground up to be a Windows NT-based solution, operating at the machine level behind the NIC, said Pete Jacobs, vice president of marketing and strategic planning at NetGuard. "Many [firewalls] start as Unix and then get ported. NT-from-Unix firewalls are already cludgey," he said.
Guardian was built with simplicity in mind, with configuration limited to a series of yes-no questions, Jacobs added.
NetGuard is busy building up its VAR program. "We don't want 10,000 resellers out there. We are looking for 50 qualified VARs. We have 22 right now," Jacobs said.
Copyright r 1998 CMP Media Inc.
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