Secure Computing Says Securify the Right Fit

Moving to strengthen its position as a vendor of secure enterprise communications
solutions, Secure Computing (NASDAQ: SCUR) announced Wednesday the acquisition of
Securify, which provides identity-based monitoring solutions tying user behavior on the
network to business systems.

The combination of the two companies’ technologies will let users detect unauthorized
behavior on corporate networks in real time and shut it down automatically. “The Securify
piece tells you what people are doing; our piece lets you do something about it,” Secure
Computing vice president of global technical strategy Scott Montgomery told

Secure Computing will pay about $15 million for the purchase. If Securify meets its
revenue goals for the fourth quarter of 2008 and for 2009, Secure Computing will pay out
another $5 million, Montgomery said.

The acquisition is expected to close in the fourth quarter of this year subject to
certain conditions. Securify brings the capability of real time monitoring and logging
“in addition to its immediately profitable business,” Secure Computing president and
chief executive officer Dan Ryan said in a conference call after announcing the

News of the purchase at 4 p.m. ET sent Secure Computing’s share prices, which had
fallen to below $4.40 earlier in the day, up to close at $4.53. That was a one-cent gain
over the opening price, but a far cry from the 52-week maximum of $10.54.

Secure Computing’s purchase of Securify follows the sale of its Secure SafeWord
authentication product line to information security company Aladdin Knowledge Systems
(NASDAQ: ALDN) in July. The transaction will be completed this month.

By selling Secure SafeWord and buying Securify, Secure Computing said it’s focusing on
its core competencies. “Our core business is protecting communications, and this strong
authentication device was not a fit,” Montgomery said about the sale to Aladdin. “We had
to do additional training, train channel partners, and it was never core to our

Buying Securify lets Secure Computing keep up with changes in the business and
technology environments. “As people extend their networks into IPv6 (define),
and with the use of wireless, through the use of offsite contracting or outsourced
employees, or by partnering with third party organizations with extranets, we have to
evolve what we offer to meet their needs,” Montgomery said.

Tapping business policies in Microsoft’s Active Directory

That evolution moves away from static policies governing security to dynamic ones
created by tapping business policies already in Microsoft (NASDAQ: MSFT) Active
Directory, Montgomery added.

The connection to Active Directory is where Securify’s strength lies. Enterprises
store their business rules in directories, and many use Active Directory.
Securify leverages the business rules to drive security policies, instead of making
corporate IT create security policies from scratch based on business rules. Then, when a
breach is discovered, it immediately notifies one of Secure Computing’s firewall
products, which automatically will shut down the affected system.

This will strengthen protection against insider breaches, which are increasingly
becoming a source of concern. “If a guy in sales is banging on customer data and sales
information that doesn’t belong to him, I want to shut him down,” Montgomery said. “I
don’t care if he’s been spear phished; do your forensics after he’s been shut down.”

Spear phishing is a targeted form of phishing, which is an attempt to get sensitive
information by using someone else’s identity. was hit by a wave of spear phishing
in November.

“Enterprise companies have spent billions of dollars in fleshing out, testing, rolling
out, propagating, syncing their Active Directories,” said Montgomery. “We help
organizations map their security to their business through Active Directory.”

Article courtesy of

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