Friday, October 27, 2006

Thoughts on Sourcefire IPO

In cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 spirit of not trying to repeat what everyone else blogs, I'll keep this post on cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Sourcefire IPO brief. The must-read post belongs to Mike Rothman -- great work Mike.

I'm excited by this development. I'll probably even buy some Sourcefire stock, just so I can attend cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 shareholders meeting. I've never owned stock in a friend's company, so this would be novel enough to justify cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 purchase.

However, in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 long term I expect Sourcefire to be acquired anyway. I stand by my ideas that all network security functions will collapse to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 switch, something Richard Stiennon called Secure Network Fabric. This means Sourcefire eicá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r needs to sell switches that compete with Cisco (unlikely) or be bought by Cisco (possibly) or a Cisco competitor (probably).

Customers are growing increasingly disillusioned with buying more and more point products. If cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y simply perceive that existing equipment (switches and routers) can be upgraded to implement new security features, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y'll pursue that path. Alternatively, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y'll include cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 new functionality in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 next switch/router technology refresh. At cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 most I see a "switch plus one" model, where no more than one stand-alone security device will support cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 core switch/router infrastructure. Everything that a switch/router cannot perform, security-wise, will be expected of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 "firewall," which Marcus Ranum originally defined as a security system and not simply a product.

At some point a majority of hosts will be virtualized, and many network and host security measures will be performed by cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 hypervisor anyway.

5 comments:

Anonymous said...

Whereas I agree with you that many security functions will eventually go into cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 network fabric, I still dont think thats a good thing overall.

If we look at this 2003 data (http://www.securecomputing.com/pdf/METAFirewallMETAspectrum.pdf)
and consider Checkpoint, Cisco & Netscreen as cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 main enterprise firewall products, what do you want to bet that most secops management of those products ends up in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 hands of network teams racá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r than dedicated secops teams? Consider that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 goals of netops and secops are fundamentally opposed; one is concerned with allowing all traffic to flow, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r with denying certain traffic. Creating a "Secure Network Fabric" requires eicá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 two teams agree on managing one infrastructure, or most likely that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 netops team subsumes secops. The second case always results in security being an afterthought at best.

Anonymous said...

Business always overcomes technology in every sphere of operation. As much as I personally agree to Chris' argument, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 fact remains that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 end decisions are made by cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 business management and not cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 CIO whose real metrics are TCO oriented.

There may be a few (30 odd %) businesses that truly understand security technology and put money where cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365ir mouth is, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 rest just follow cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 bottomline!

Brian said...

Morgan Stanley didn't seem to know anything about cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 IPO. Could not get a prospectus.

Anonymous said...

They didn't IPO, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y filed cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365ir S-1 which is a prerequisit to doing an IPO. They still need cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 SEC to approve cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 S-1 before cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y can IPO. Go look at cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 SEC EDGAR site for cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 S-1 filing.

Anonymous said...

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM S-1
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933


SOURCEFIRE, INC.
(Exact name of registrant as specified in its charter)

http://www.sec.gov/Archives/edgar/data/1168195/000095013306004558/w24360sv1.htm

We have been sued by a company claiming that we misappropriated its proprietary rights and our defense of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365se claims is costly, diverts cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 attention of our management and may be unsuccessful.

On April 20, 2006, a lawsuit was filed against us, Martin F. Roesch, our Chief Technology Officer, Inflection Point Ventures, L.P., one of our stockholders, and certain general partners of Inflection Point Ventures, L.P. by PredatorWatch Inc. (now named NetClarity) in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Superior Court for Suffolk County, Massachusetts. The complaint alleges that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 defendants: (i) misappropriated cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 plaintiff’s trade secrets; (ii) breached an oral agreement of confidentiality; (iii) breached a covenant of good faith and fair dealing owed to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 plaintiff; (iv) were unjustly enriched; (v) misrepresented certain material facts to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 plaintiff, upon which cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 plaintiff relied to its detriment; and (vi) engaged in unfair and deceptive acts in violation of Massachusetts state law. The plaintiff has sought to recover amounts to be ascertained and established, as well as double and treble damages and attorney’s fees.

Litigation is subject to inherent uncertainties, especially in cases like this where sophisticated factual issues must be assessed and complex technical issues must be resolved. In addition, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365se types of cases involve issues of law that are evolving, presenting furcá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r uncertainty. Our defense of this litigation, regardless of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 merits of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 complaint, has been, and will likely continue to be, time consuming, extremely costly and a diversion of time and attention for our technical and management personnel. Through September 30, 2006, we have spent approximately $174,000 in legal fees and expenses on this litigation and expect to incur substantial additional expenses even if we ultimately prevail. In addition, publicity related to this litigation has in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 past, and could likely in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 future, have a negative impact on sales of our RNA products.

A failure to prevail in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 litigation could result in one or more of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 following:


• our paying substantial monetary damages, which could be tripled if any misappropriation is found to have been willful, and which may include paying an ongoing significant royalty to PredatorWatch or compensation for lost profits to PredatorWatch;

• our paying substantial punitive damages;

• our having to provide an accounting of all revenue received from selling RNA in its current form;

• cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 issuance of a preliminary or permanent injunction requiring us to stop selling RNA in its current form;


• our having to redesign RNA, which could be costly and time-consuming and could substantially delay RNA shipments, assuming that a redesign is feasible;

• our having to reimburse PredatorWatch for some or all of its attorneys’ fees and costs, which would be substantial;

• our having to obtain from PredatorWatch a license to use its technology, which might not be available on reasonable terms, if at all; or

• our having to indemnify our customers against any losses cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y may incur due to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 alleged infringement.


Additionally, PredatorWatch has separately notified us that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y believe that our RNA technology is covered by claims contained in a pending patent application. This pending patent application has not issued as a patent, but in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 event it does issue, PredatorWatch could file an additional complaint to include a patent infringement claim against us.

If we are enjoined from selling RNA in its current form, we may be required to redesign RNA to avoid infringing on cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 intellectual property rights of ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365rs. If we are unable to efficiently redesign commercially acceptable products, our sales will decline substantially. This litigation is at a very early stage, so we cannot predict its course or its costs to us. We do, however, expect to continue to incur significant costs in defending against this litigation and cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365se costs could increase substantially if this litigation approaches or enters a trial phase. It is possible that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365se costs could substantially exceed our expectations in future periods. For a more detailed description of this litigation, please see “Business — Legal Proceedings.”