This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Qualys Chief Talks Network Security

Stocks in this article: QLYS IMPV PFPT PANW FEYE SYMC FTNT FB


While security companies have grown swiftly, they have invested much of their cash in technology to stay ahead of their competitors and ahead of hackers. Margins will remain tight as companies fight to gain business.

"It is going to be a race of these new companies," Courtot said of the emerging generation of security providers.

Research and data company IHS projected recently that enterprises will spend $175 million in cloud infrastructure and services this year. The company said it expects the number to grow to $235 billion in 2017.

The increase in cloud computing and use of mobile devices presents a conundrum for security. "Where does my network start and finish?" Courtot asked.

"I have apps on Amazon. I have a lot of endpoints. I have mobile devices. I have to do business with a lot of people," he said. "I have to exchange data between partners."

News that hackers used credentials issued to a heating and air conditioning contractor to break into Target Inc.'s systems underscores the difficulty of plugging every gap in a network's defenses.

"Now you realize that my AC system is connected to my network because it was very convenient to de-provision or provision users and now the bad guys use that as an entry door and that's how it started at Target," Courtot said.

The Qualys chief acknowledged that there will be more consolidation, but declined to comment on the likelihood that Qualys would become a target.

The shift to the cloud and the narrow field of cloud security companies could make the company appealing to a larger security company such as Symantec Corp.  (SYMC) Checkpoint Software Technologies or Fortinet (FTNT).

Nonetheless, Courtot said Qualys could be a buyer. The first criterion for a target, he said, would be the quality of the management team and the ability to keep talent at the company after an acquisition. Second, the target would have to have a cloud architecture, rather than a legacy enterprise network security model.

Courtot pointed to the winners and losers in social media to illustrate the importance of architecture. Friendster preceded Facebook (FB) but it developed an architecture that did not scale well. MySpace.com took over, but kept its architecture closed. Facebook opened its infrastructure to developers, and supplanted MySpace.

The third criterion, Courtot said, is "of course you don't want to overpay."

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs