BAE Systems to buy US Cloud security provider SilverSky for $232.5M

Breaking News: Commercial Cloud security judged significant growth opportunity by Europe’s largest defense organization.

BAE Systems, Europe’s largest defense firm, has announced today that it intends to buy SilverSky, the provider of Cloud-based managed security services headquartered in Milford, Connecticut, for $232.5 million. BAE Systems said in a statement today that the acquisition, which it will fund from existing cash resources, will be accretive to earnings in the third year following closing.

SilverSky is the trading name of Perimeter Internetworking Corp, BAE Systems said, adding that the deal would boost its own Applied Intelligence business which focuses on commercial cybersecurity.

SilverSky ‘TAP’ solution to APTs and zero-day attacks

In February, SilverSky announced the launch of its Targeted Attack Prevention (TAP) solution, designed to help customers better prepare for and prevent today’s more sophisticated threats, including targeted attacks, zero-day attacks, and advanced persistent threats (APTs). The company’s technology breaks new ground by “leveraging leading-edge statistical analysis techniques, static and dynamic analysis, machine learning and innovative sandbox techniques that analyze unknown objects with malware engines while applying advanced techniques to detect and prevent attacks, even without signatures.” [Source: SilverSky press release].

“It’s no secret that the bad guys are smarter, better funded and more organized than ever before,” said John Viega, executive vice president of products, strategy and services, SilverSky. “Yesterday’s signature-based approaches and simple content filtering, while still necessary, aren’t enough. Further, they are often deployed out-of-band and, as a result, are detective and not preventative. Our TAP service is deployed in-line with customer email, allowing for a preventative approach.”

Microsoft tells thought leaders: Cloud market is “red hot”

On Monday, Microsoft announced   a number of new Cloud products and services at a small gathering in San Francisco for reporters and analysts. In the briefing, it was revealed that eighty percent of Fortune 500 companies now use Microsoft’s Cloud. Scott Guthrie, executive vice president of Microsoft’s Cloud and Enterprise division, also said that the company is adding 10,000 customers a week to Azure, the Microsoft Cloud platform. Revenue from Microsoft’s Cloud offerings has more than doubled in the last fiscal year, with the annual revenue run rate now reaching $4.4 billion.

Microsoft CEO Satya Nadella is continuing to place the cloud at the center of his vision for the software company. The refrain is “mobile first, cloud first”, backed by a strategy that centers on providing Cloud services to mobile users on a global basis.

Since Nadella took over as CEO, there’s been a new openness at Microsoft to partnering with previously bitter rivals or offering Microsoft’s services on rival platforms. Nadella emphasized that spirit at Monday’s event when he said, “We are not building our hyperscale cloud on Azure in isolation,” but rather, they are building Azure to work with Salesforce’s, Amazon’s and other competitors’ offerings. [Source: Microsoft’s expanding cloud platform shines brightly, The Seattle Times, Monday October 20, 2014.]

The market for public Cloud services generated $45.7 billion in revenue last year, according to IDC, as reported by Bloomberg. By 2020, the market could be worth $191 billion, the Bloomberg report said, citing research firm Forrester.

“The cloud market is obviously red hot right now,” Guthrie said at Monday’s event.

We will bring more news on the SilverSky story as it breaks. Follow this blog!

Cloud computing is fraught with security risks. Due diligence demands that you ask tough questions and consider getting a security assessment from a neutral third party before committing to a cloud vendor.

Assessing the security risks of the cloud is best done with experts on hand, although if you need a little help to understand the issues, why not buy a copy of our Pocket Guide, Cloud Security and Governance.

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