Barracuda Eyes Bigger Bite Of Cybersecurity Market
When a large corporation is hit with a major cybersecurity breach, the news travels fast, far and wide. When a small or midsize business suffers the same fate, the news may not make it past the front door.
Yet these businesses are just as susceptible to cyberattack as their larger peers, and just as in need of security software and solutions to protect them from cybercriminals.
This is where Barracuda Networks (NYSE:CUDA) comes in.
It provides content security, application/network security and storage appliances to small and midsize enterprises (SMEs).
The company offers cloud-connected technologies that help its customers address security threats, enhance network performances and protect and store data.
On the storage side, Barracuda offers products designed to simplify network backup processes, compress stored data and let customers securely access, share and sync files from any device.
Safety For Small Business
Barracuda’s security solutions include firewalls to protect email and Web servers from data breaches, viruses, malware and other threats.
The company also offers products that give remote users secure access to internal network resources from any Web browser.
Security products are in heavy demand these days as more companies look to avoid the kinds of high-profile security breaches that have hit the likes of Sony (NYSE:SNE), Target (NYSE:TGT), JPMorgan Chase (NYSE:JPM) and Home Depot (NYSE:HD) .
That need for more and better security extends to small and midsize businesses that used to ignore the threat of cyberattack.
“A lot of the traditional SMEs have underinvested in security even though we’re seeing more breaches in the SME space as well as in large enterprise space,” said Erik Suppiger, an analyst at JMP Securities.
Many of these SMEs had “kind of gone under the assumption they are under the radar, but it’s become more apparent that even smaller enterprises are at considerable risk,” he told IBD. “The cybersecurity threat landscape has evolved dramatically over the last few years and created threats for SMEs as well larger enterprises.”
JPMorgan analyst Sterling Auty estimates the application/network security market in which Barracuda competes is worth $ 8.6 billion.
He expects market growth to be in the mid- to-high single digits.
Refining The Firewall
Barracuda should outperform that overall market because of its “exposure to higher-growth sub-segments in the market like next-generation firewall and Web application firewall, ” Auty noted in a research report.
The company has spent the last year developing and refining a next-generation firewall technology designed to provide customers with better security and more efficiency than other firewall solutions.