Cato Networks, founded in January 2015, provides a software platform for simplifying network security. The company’s products aim to meet the challenge of containing and managing network perimeters caused by the cloud infrastructure, Internet of Things, and mobility. In order to provide security for businesses with data on different devices, in different locations, and in the Cloud, Cato ties all of the client’s data into Cato points of presence over encrypted links. The Cato cloud is connected to the general Internet, while traffic from the Internet is run through Cato’s security before being delivered to customers.
Business & Marketing Strategy: Within the small team at Cato Networks, there is a Head of Sales and Director of Sales. Head of Sales, Glenn Esposito has held numerous senior sales positions in the last 10 years. Previous to Cato Networks, he worked at Barracuda, which is a cloud connected storage solutions company, where he held numerous senior Sales positions including SVP Sales and VP Sales, Americas. His extensive experience working in sales and in cyber security indicates that Cato Networks is investing in recruiting talented employees and that the company is focused on sales and business development. In the last 12 months, the website has received 408,378 visits. In the last 6 months, the website has experienced an average of 57,176 visits per month. This compares to the previous 6 months, which saw 10,877, which indicates a significant MoM increase. The company offers a free webinar and e-books, and users can also download an industry report that Cato Networks commissioned as well as read their blog. The company has a Twitter page, which has over 5,000 followers. In September 2016, Shlomo, Co-Founder & CEO said the new round of funding will allow Cato Networks to invest further in the channel, including investments in channel marketing, enablement, field marketing, events and international expansion. He said Cato Networks is focusing on recruitment of quality, strategic partners, with “tens” of partners already signed up.
Competitive Position: Cato Networks is in a unique market position, as its approach to cloud based cyber security is bold and innovative. Cato Networks’ radical method make the company extremely disruptive, this is what puts Cato in competition with the majority of the Cyber Security market however they do have any direct competitors as such. In fact, some claim that the CIO in a company is the biggest challenge to Cato Networks, as they are a gatekeeper of a system which could in turn be redundant in case of Cato Networks’ adoption. Cato Networks is political as well, as it encourages a CIO to cut ties with many giants, such as IBM, EMC or Symantec at once. It is worth noting that Cato Networks does have indirect competitors including Check Point, Palo Alto Networks and Symantech. Interestingly Shlomo Kramer, Co-Founder & CEO founded Check Point in 1993 with Gil Shwed and Marius Nacht. Shlomo left the company in 2003. Check Point developed one of the world first VPN products, VPN-1.The company went public in 1996 and acquired 11 companies. Palo Alto Networks went public in 2012, and has acquired 3 companies. Symantech went public in 1989 and has acquired 60 companies.
Market Forecast & Exit Indicators: According to Modor Intelligence, the global cyber security market has been estimated at USD 75 billion and is projected to reach USD 170 billion by 2020, at a compound annual growth rate (CAGR) of 17.67% from 2015 to 2020. This indicates significant opportunity for Cato Networks. Taking into consideration Shlomo success in building successful cyber security companies, it will be interesting to track the growth of Cato Networks and its exit potential in the next 5 years.
Professional & Customer Reviews: The company’s website does not include names of clients or client testimonials. An industry insider has told Zirra that Cato Networks is working with Blender, which is a P2P lending platform. In a press article published in September, Shlomo, Co-Founder and CEO said Cato Networks is focusing on recruitment of quality, strategic partners, with “tens” of partners already signed up. It will be interesting to see who these strategic partners are in the near future.
Inside Scoops: According to an industry expert, Cato Networks is a part of a trend to bring IT infrastructure into the cloud as a managed service. This means that organizations can renounce all the heavy and non-functioning physical infrastructure and move it into the cloud. Cato Networks’ approach will benefit the industry, as businesses will be able to throw away servers, on premise appliances, switches and firewalls. That is an inseparable part of the migration of IT to the cloud. Our experts say that organizations can now finally feel safe, enough to migrate their web application to SSL and feel secure enough to migrate their network to the cloud, if the supplier is considered reliable. Shlomo has been branded as an innovative and reliable entrepreneur to take this challenge forward.