Global Internet 'Early Warning System' on the Way - Page 3

 By Jacqueline Emigh
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The Future Looks Bright for Matrix...for the Most Part

Meanwhile, Matrix is at work on a variety of other future Internet management services as well. The new deal with netVmg, just inked in February, is quite different from the joint venture for the warning system. According to Ohlsson, "At this point, the relationship with netVmg is still more like a reciprocal agency agreement. We're sharing our leads with netVmg, and they're sharing their leads with us."

More pacts are in the planning stages, too. "I'm happily surprised by what Matrix has got going for the near term with the joint-venture partnerships they're pursuing," states Dan Keldsen, an analyst at DelphiGroup. "Some very interesting potential is cooking."

Moreover, Matrix has already nailed down 16 paying customers, with 12 more now in the pipeline, according to Ohlsson. The early adopters include NASA, SAP, Verisign, and several New York financial brokers.

For the most part, Matrix's services will not come cheap. Customers will pay anywhere from $20,000 to $250,000 per year, with most falling into the $50,000 to $70,000 bracket.

A few offerings, however, are available from Matrix free of charge. These include an ISP rating service -- which provides some but not all of the results given to paying customers -- and an e-mail report on major Internet security events.

Matrix could face some obstacles ahead. "Company budgets and the will to address potential security problems -- these are still ponderables," says Yankee's Kerravala.

Analysts also cite a number of other vendors hovering around the same market space, ranging from KeyNote Systems to Quantiva. "Matrix seems to be coming at measurement from more of an operations/troubleshooting point of view -- as compared to the 'ensuring customer satisfaction' or 'quality user experience' perspective that a Keynote Systems might have," advises Delphi's Keldsen. "Is one better than the other? It depends on who the buyers/users of the information are, what they want to do with it, etc."

Keldsen is impressed, too, with Matrix's comprehensive approach to Internet security management. "There are still a lot of point solutions out there. I've been trying, anyway, to get vendors to look at rolling together disparate pieces of information."

By and large, though, analysts anticipate success for Matrix. "If anybody can do this, it's Matrix. The company's competitors are smaller than Matrix. Matrix has expended a lot of resources on building up an infrastructure -- and they're already 'there' with the necessary knowledge," states Kerravala.

» See All Articles by Columnist Jacqueline Emigh

This article was originally published on Mar 4, 2003
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