Security Yearbook 2024 Fifth Edition
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Security Yearbook 2024 A History and Directory of the IT Security Industry
Fifth Edition
RICHARD STIENNON
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Copyright © 2024 by John Wiley & Sons Inc. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada and the United Kingdom. ISBN: 9781394220809 No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at www.wiley.com/go/ permission. Trademarks: Wiley and the Wiley logo are trademarks or registered trademarks of John Wiley & Sons, Inc. and/ or its affiliates in the United States and other countries and may not be used without written permission. All other trademarks are the property of their respective owners. John Wiley & Sons, Inc. is not associated with any product or vendor mentioned in this book. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Further, readers should be aware that websites listed in this work may have changed or disappeared between when this work was written and when it is read. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002. If you believe you’ve found a mistake in this book, please bring it to our attention by emailing our reader support team at wileysupport@wiley.com with the subject line “Possible Book Errata Submission.” Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic formats. For more information about Wiley products, visit our web site at www.wiley.com. Library of Congress Control Number: 2024906902 Cover image: © JuSun/Getty Images Cover design: Wiley
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Contents at a Glance AC KN OW L ED G MEN TS
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1 2023 in Review 1 2 Introduction 5 3 Getting to Know the IT Security Industry 9 4 A Brief History of the IT Security Industry 21 5 The History of Network Security 27 6 DDoS Defense 55 7 Endpoint Protection from AV to EDR 59 8 Identity and Access Management 75 9 Data Security 81 10 Governance, Risk, and Compliance 95 11 Managed Security Services 103 12 Open-Source Security 113 13 Failures 121 14 In Memoriam 125 15 2023 Mergers and Acquisitions 129 16 2023 Funding 143 17 Significant Cyber Incidents in 2023 157 18 Research Methodology 169 19 Directory A–Z 173 20 Directory by Country 257 21 Directory by Category 345
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Contents AC KN OW L ED G MEN TS
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1 2023 in Review 1 The AI Tsunami 1 Silicon Valley Bank Failure 1 2023 Funding 2 Mergers and Acquisitions in 2023 2 Public Cybersecurity Companies 2 The New Guy 3 Updates to the Directory 3 Vendor/Product Selection 3 Investment Thesis Validation 3 Industry Analysis 3 Strategic Evaluation 3 Marketing 3 OEM Relationship Development 3 2 Introduction 5 3 Getting to Know the IT Security Industry 9 Main Categories 10 Network Security 10 Data Security 11 Identity and Access Management 11 GRC 12 Endpoint Security 12 Other Categories 12 Security Operations 12 IoT Security 12 Managed Security Service Providers 13 Application Security 13 API Security 13 Security Analytics 13 Fraud Prevention 14 Threat Intelligence 14 Types of Threat Intelligence Vendors 15 Deep and Dark Web Defined 16
Email Security 16 Training 16 Deception 17 Security Testing 17 Summary 18 4 A Brief History of the IT Security Industry 21 Missed Opportunity 22 Acquisition Replaces R&D in the Security Space 22 Digital Mercantilism 24 5 The History of Network Security 27 The Rise of Intrusion Prevention 28 Internet Security Systems 29 Sourcefire 29 Multifunction to UTM to Next-Gen Firewall 30 Local Internet Breakouts 31 Palo Alto Networks 31 The Other UTM Vendors 32 From Hardware Sales to Subscription Model 33 Mobile Devices Side-Step Firewall Controls 34 The Zscaler Story 34 Story: Chris Blask 36 Story: Gil Shwed 38 Story: Guy Guzner 44 NetGuard: My First Cybersecurity Startup 45 Life at Check Point 45 Browser Isolation and FireGlass 46 Acquisition by Symantec 47 Becoming Savvy 47 Conclusion 49 Story: Martin Roesch 49 Snort Catches Fire 49
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C o n te n t s
Hacking a Business Model 50 Sourcefire Heats Up 51 Capping the Sourcefire Journey Back to Startup Life 53
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6 DDoS Defense 55 Cloud Proxies 55 Prolexic 56 7 Endpoint Protection from AV to EDR 59 Symantec 59 Network Associates 62 Trend Micro 64 Kaspersky Lab 64 Endpoint Detection and Response 65 Story: Eva Chen and Trend Micro 65 The Early Years 65 Never Stop Innovating 66 Culture Is Everything 67 Above and Beyond 67 Story: Kailash Katkar: Quick Heal: Building a Successful Global Cybersecurity Company Out of India 68 The Genesis 68 Quick Heal Was Born 70 Quick Heal, the Most Popular Antivirus in Pune, India 71 Becoming the Largest-Selling Cybersecurity Brand in India 71 Repairing Computers to Securing Computers: Cat Computer Services to Quick Heal Technologies 72 From the Leading Consumer Cybersecurity Brand to Full-Scale Enterprise Security Solutions Provider 72 Going Public 73 Coronavirus Pandemic: The World Quarantines Itself 73 Gearing Up for the Future 74 8 Identity and Access Management It All Began with RACF 75 Story: Barry Schrager 76 Story: Venkat Raghavan 78
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9 Data Security 81 Digital Certificates 82 Other Data Security Categories 83 Story: David Cowan 84 Story: Sandra Toms 90 Story: Deborah Taylor Moore 92 10 Governance, Risk, and Compliance Risk Management 95 Frameworks 98 Other GRC Solutions 98 Story: Renaud Deraison 98 11 Managed Security Services 103 Story: Amit Yoran 104 Riptech 104 Symantec 107 Department of Homeland Security NetWitness 109 Tenable 111
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12 Open-Source Security 113 Snort 113 Nmap 113 Kali Linux 114 Nessus 114 Metasploit 114 Osquery 114 eBPF 115 Ruff 115 The Top 100 Open-Source Security Projects 115 13 Failures 121 2020 Failures 122 2021 Failures 122 2022 Failures 123 2023 Failures 123 14 In Memoriam 125 Zohar Zisapel 125 Kevin Mitnick 125 Vittorio Luigi Bertocci 126 Steve Katz 126 French Caldwell 127
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15 2023 Mergers and Acquisitions First Quarter M&A 129 Second Quarter M&A 129 Third Quarter M&A 130 Fourth Quarter M&A 130 Year Summary 130 16 2023 Funding
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July 2023 163 August 2023 164 September 2023 165 October 2023 167 November 2023 167 December 2023 168
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17 Significant Cyber Incidents in 2023 January 2023 158 February 2023 159 March 2023 160 April 2023 160 May 2023 162 June 2023 162
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18 Research Methodology 169 What Is a Security Vendor? 169 How to Find Vendors? 169 19 Directory A–Z
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20 Directory by Country
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21 Directory by Category
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Acknowledgments Creating the directory in Security Yearbook 2024 was made possible through the dedicated efforts of several individuals. Sambath Ramesh and his team in India played a pivotal role in collecting the foundational data. They meticulously reviewed and updated vendor records each month throughout much of 2023, feeding this crucial information into the Analyst Dashboard. While automation has begun to simplify this process, the contributions of Sambath and his team remain invaluable. Maximillian Schweizer was instrumental in shaping this data for publication. His expertise in no-code development, spanning multiple database platforms like Xano, front-end technologies like Bubble, and a variety of APIs, was crucial. His integration with OpenAI’s large language models and the creation of APIs for real-time data access are critical to our success. Erika Jones also deserves special recognition for her diligent
input of more than 1,000 new entries into our database, a testament to her commitment and precision. I extend my gratitude to Salaar Aamir Jan for his exceptional work in identifying new vendors through global conference listings and adding this information to the Analyst Dashboard, providing our subscribers with valuable insights into industry events. A special thanks goes to Louis Bedigian for his outstanding contribution to authoring Chapter 14 and compiling both the open-source solutions and a comprehensive list of significant cyber incidents. Lastly, I am profoundly grateful to the community of security industry leaders and pioneers. Their unwavering support for the concept of this historical compendium and their generous allocation of time and expertise have been a cornerstone of this project.
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CHAPTER 1
2023 in Review
S
ecurity Yearbook 2024 is the fifth edition of the annual Security Yearbook series, a desktop reference for the entire cybersecurity industry. In this edition, there are completely updated sections on funding rounds, mergers and acquisitions, and cyberattacks. There is a chapter dedicated to the industry pioneers who left us. In addition, the book’s directory contains 3,240 vendors arranged alphabetically, by country/state, and by category. Each entry gives the headquarters location, number of employees at the end of the year, and percent change in head count for 2023. The world has come to live with the constant threat of surges in new strains of SARS-CoV-2. Though many companies are pushing back on remote work and mandating a return to office, the lasting impact of COVID has seen an increase in remote connectivity security and the rapid adoption of secure access service edge (SASE) solutions for extending headquarter protections to everyone regardless of where they are located. This chapter sums up 2023.
language models to interpret data and provide analysis. Microsoft announced Security Copilot, using its ownership/partnership with OpenAI to “summarize vast data signals into key insights to cut through the noise, detect cyberthreats before they cause harm, and reinforce your security posture.” Dozens of vendors that already had threat- hunting and data-intensive threat detection solutions added a layer of natural language communication by incorporating API access to GPT- 3.5 and GPT-4. In the meantime, startups introduced protections for AI models as well as solutions that could protect an organization from data leaks as employees uploaded confidential information for analysis by LLMs. The year 2024 will see many more companies come out of stealth that have been working on leveraging LLMs to improve threat hunting, defense, and automated response. It will also see attackers leveraging AI to automate their campaigns.
Silicon Valley Bank ChatGPT was launched in November 2022. The Failure The AI Tsunami
year 2023 was one of rapid adaptation to what is possibly the biggest technology evolution to occur since the introduction of the Internet. Existing security solutions quickly harnessed large
The failure of the biggest bank serving the startup world had a devastating impact in March 2023. Silicon Valley Bank had to recognize a loss on the 1
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C H A PT E R 1
2023 in Review
long-term bonds it held and seek additional capital even though it was technically solvent. Regulators shut it down on Friday, March 10. Luckily, the doors opened on Monday, and depositors had full access to their funds. The experience spooked many investors and slowed their activity for the rest of 2023. Vendors were also frightened and have sought protections against such an event recurring, opening accounts at multiple banks. There were more than 500 cybersecurity companies that banked with Silicon Valley Bank.
2023 Funding
entire vendor number. That compares to 332 in 2022, a drop of 25%. If valuations were dropping because of the much talked about economic headwinds, you would think that there would be more acquisitions at bargain prices. But the economic uncertainty also led to a smaller appetite for acquiring companies. As certainty returns to the market, look for an increase in acquisitions in 2024, as acquirers gain confidence ahead of investors. The biggest deal of 2022, Broadcom acquiring VMware, finally closed in 2023. This was a $68 billion deal if you include the acquired debt. By far the biggest deal of 2023, and the biggest in cybersecurity industry history, was the announcement that Cisco was acquiring publicly traded Splunk for $28 billion in cash. In some ways, these two companies are similar. They deal in machine-generated data (packets for Cisco, logs for Splunk), with primarily command-line interfaces. There were a total of six take-private deals as the number of public companies diminished.
There were 315 companies (6% of total) that had funding rounds in 2023. The total invested came to $10.05 billion, matching the amount in 2020 ($10.7 billion) but well below the $17 billion in 2022 and the record $26 billion in 2021. Last year, there were 452 vendors to receive funding, so 2023 saw a 30% drop in number of investments. There were 22 investment rounds that exceeded $100 million, down from 36 last year. There were 23 that raised between $50 and $100 million. The biggest investment of 2023 was $500 million put into Google spin-out SandboxAQ for post- quantum readiness. Wiz took in an additional $300 million valuing it at $10 billion, the larg- January 6, 2023, was the bottom of the market est valuation for a private cybersecurity vendor for the major cybersecurity companies tracked on record. by IT-Harvest. Most of them, including CrowdStrike, Palo Alto Networks, Zscaler, and Fortinet, had fallen 50–60% from their all-time highs in November 2021. All of these companies were up significantly in 2023, with CrowdStrike up 200%. At the time of writing, Palo Alto Networks is up 147% and became the first cybersecurity pure play to surpass a $100 billion market cap. Zscaler There were 250 acquisitions of cybersecurity is up 117% but still well below its all-time high. vendors in 2023, according to data provided by Even stock market laggards Check Point Software investment bank AGC Partners. That is 6% of the and Trend Micro are up 25% for the year.
Public Cybersecurity Companies
Mergers and Acquisitions in 2023
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Updates to the Directory
The New Guy The story of Guy Guzner has been added to the growing list of pioneers in Security Yearbook 2024. He founded Fireglass and sold it to Symantec, and he is currently the founder and CEO of Savvy, which uses identity to secure SaaS applications. Guy is the youngest founder to add his story.
Updates to the Directory In this fifth edition of Security Yearbook, we return to listing all of the vendors in the directory by country and category as well as alphabetically. The data is extracted from the IT-Harvest Analyst Dashboard, the only platform that collects and curates data on all the vendors in cybersecurity. Vendors are put in one of the primary categories and further cataloged by subcategory and tags. Head count changes are recorded every month. Data from multiple sources are used to enhance each vendor’s page. As we go to print, we are ingesting product data for every cybersecurity product in the market. There are several use cases for a data-driven approach to the cybersecurity industry.
Vendor/Product Selection Many chief information security officers (CISOs) already refer to Security Yearbook when they are searching for a replacement vendor or interested in adding to their security stack. With the IT-Harvest Analyst Dashboard, they will be able to generate short lists by filtering by category, size, funding, and location. They will be able to evaluate vendor health based on head count growth and investment. Assisted by OpenAI, we have ingested thousands of product names and features from the dashboard. Instead of relying on analyst reports that just include the top 10 or 12 vendors in a category,
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CISOs and their teams will be able to review the entire list of available products to find the right fit.
Investment Thesis Validation Investors looking for acquisitions or equity opportunities will be able to take advantage of the extensive directory of vendors in their target segment. They can quickly sort by size, growth, location, and category and download the data to their own tools.
Industry Analysis The dashboard was created to assist IT-Harvest in its research. Information about which industry segments are growing the fastest and which are shrinking, as well as the leaders in each space, from quarter to quarter, is invaluable. Creating market reports on a segment is easy when all the vendors are already being tracked. All cybersecurity industry analysts can benefit from having access to the same data.
Strategic Evaluation Corporate development teams can quickly find and evaluate targets for acquisition or partnership.
Marketing Event organizers, public relations/analyst relations teams, and companies that sell their own technology to cybersecurity vendors can find partners and customers quickly and easily.
OEM Relationship Development Many cybersecurity vendors sell their enhanced data to other vendors. The dashboard has become
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