# Astaro / Sophos merger – my personal view on that

- Link: https://www.kuechenserver.org/2011/05/08/astaro-sophos-merger-my-personal-view-on-that/
- Published: 2011-05-08T20:40:27+02:00
- Author: Christian Krakau-Louis

Prelude:

I wanted to blog more in my native language, but this blog post will be written 
in English. Inconsequent? Rather audience-oriented 😉 Also, I almost never blog 
about things that have to do with my job, but since this is a rather big thing and
there are a few voices out there claiming that this was a bad thing happening to
Astaro employees, I wanted to give an insight perspective (+ a view from somebody
who has also worked for a system integrator in the past).

So, what happened? Well, Friday was a big day for everybody involved in the Astaro
microcosmos (partners, resellers and the like) and medium-important day for the 
whole IT Security industry. At that day, Sophos and Astaro announced publicly that
Sophos is planning to acquire Astaro in the very near future. Bottomline: Astaro
as a company will not officially exist anymore, but everybody working for Astaro
today will turn into a Sophos employee and also every asset in the company will 
turn into Sophos property.

This at first might be a bit frightening, but if you have had a bit more time to
think about it (we Astaronians had a small heads-up), this seems to be a good thing.
So, nobody who has heard about this should be frightened or feel somewhat sorry 
for me / us. Rather the opposite is true.

Astaro has been the 4th largest vendor – by sellout – in our space (UTM, basically
a „Firewall + many other cool things“), privately owned, has ~ 220 employees and
has been profitable since a couple of years.

So, it is nice to work for this rather small and cozy company. You could feel that
we didn’t realize only a 0,3% – 1% profit from the money that we earned (such as
my former employer did) and the overall feeling was very relaxed. Many people have
been with the company since the very beginning, many people in key positions haven’t
had another job before. The company is still rather young (11 years old) and we’ve
recently moved to new, shiny offices in Karlsruhe.

It feels like your word and your opinions are valued, the founders know everybody
working for them by name and greet them on the floors and there is an overall open
door / everybody talks to everybody mentality that I didn’t feel in larger organization.

And suddenly, the acquisition was announced.

This was rather a shock for people outside of Astaro; they fear that the product
will be let down, that support will suffer and that this will have some negative
consequences.

I don’t think that those people are right. There are a few good reasons why I personally
do believe strongly in the merger and those I’d like to share with you (and also
do calm down my friends and family and convince them that I’ll be alright):

In fact, I wished to be bought by Sophos if that had to happen one day. I personally
like them technologically very much and I think that their way of doing business
is very similar to ours.

 * No direct competitor:
    Sophos is not a direct competitor to Astaro. They are 
   not the No.1 UTM vendor out there and they don’t have similar products. So they
   don’t buy Astaro just to get rid of competition, letting the product and the 
   people involved with it die afterwards. This is not only good for our customers
   and partners that can be sure that the product line will continue to be developed
   and sold, but also for us, since our jobs are pretty safe.
 * European company, focussed on the professional market:
    Just as Astaro, Sophos
   is a European company. This reflects I think on their way of doing business, 
   on their view on the world, on their ethics and ideas about how to do business.
   And most importantly: The network division of Sophos (which Astaro will turn 
   into) will not be far away in another continent, having little influence on the
   overall company.
 * Great products
    The Sophos guys have built clever products and are in my opinion
   close to McAfee when it comes to cool Endpoint security products. If you’ve followed
   my bio a bit, you will know that I have good reason to call myself an expert 
   in that field, and I think that they are No. 2 worldwide when it comes to technology(
   unfortunately not yet sellout).
 *  Astaro complements their portfolio:
    The product range that Astaro stands for(
   Gateway security products) is something that Sophos lacked over the last years.
   Rumor has it that they also launched their own Mail- and Web Gateways, but they
   are not industry-widely known for these kind of products. So, similar to what
   McAfee did with the Secure Computing acquisition they seemed to have checked 
   the market for a solution that fits and stumbled upon Astaro. Fortunate for everybody!
 * Expertise that is unique within Sophos:
    Given the fact that Sophos has little
   to no knowledge in this particular security area, our expertise and our understanding
   in how to sell and run the gateway business is needed by them. They saw that 
   the business is done a bit differently and are planning to let Astaro as a sub
   division act rather  than integrating them directly.
 * No direct changes
    This will also result in business not changing directly. The
   Astaro partner model, the margins, the criteria to classify as an Astaro partner
   will remain unchanged. There won’t be 100s of new partners overnight that will
   kill our established partners‘ business.
 * Higher visibility
    Mid-term however, the visibility and status that Sophos has
   will bring a completely new group of partners and customers to us. Very large
   system integrators who have focussed on bigger companies will be interested in
   looking at us and consider to include us actively in their portfolio rather than
   just sell us if the customer explicitly asks for it.
 * We’re No.1 UTM now
    No need to explain who Astaro is anymore. The brand name „
   Sophos“ will give our business a huge boost outside the German-speaking regions.
   Sophos is known in the IT industry, Astaro is still somewhat unknown as a brand.
   So, doors will open for us that wouldn’t have opened before. And immediately 
   we are one of the big 10 players in Security. Cisco, Symantec, Juniper, Mc Afee,
   Check Point, Trend Micro and F5 (probably a few more) are bigger than the merged
   Sophos/Astaro team, but the joint company is bigger than better known players
   such as Fortinet (largest UTM-only vendor in regards to sell out) or Kaspersky.
 *  Focus on Network Security
    Astaro or the new Network Security division of Sophos
   or however you’ll call us now, can focus on Network Security again. We have presented
   this great Security Wall vision a couple of months ago that basically covers 
   all security aspects out there. But, we don’t have to build everything on our
   own anymore. We don’t have to deliver an endpoint security product, there already
   exists one in the company (and a pretty good one, BTW). Whether we will continue
   these product lines or not however is something that I’m not aware of. And some
   other aspects of the product that we were lacking are now covered as well.
 * Cool OEM components to integrate in our product
    Astaro has always either built(
   own technology), borrowed (open source technology to which we actively commit
   code to drive it further) or bought (OEM components) technology for our product.
   Now that Sophos e.g. offers some great Antivirus components that run under Linux
   and has some offerings when it comes to Threat or Spam databases, the number 
   of OEM components that we have to license from 3rd parties will be reduced in
   mid-term. This means that we’ll have better control over the product and will
   be able to fix bugs even faster than before.
 * Being back in known waters
    Last but not least: I’ve worked in the endpoint security
   part of the IT Security industry for 5 years before I joined Astaro. So, for 
   me this merger is perfect: I’ll still continue to work in the Network branch 
   of Sophos, but the knowledge about the other side of the company and their products
   will hopefully be beneficial in many ways.
 * Many new trips and challenges
    Though nothing will change immediately the additional
   sales personnel within Sophos and the existing Sophos channel will probably bring
   some boost to the things I have to do: give trainings, give Pre-Sales presentations,
   teach the Sophos colleagues about our products.
 * Strong presence in Germany
    I love working in a multinational company. But I 
   also love communicating in German, as it speeds up things. And luckily, Sophos
   has a very large presence in Germany now + many product parts are developed here(
   the SafeGuard product line done by Ex-Utimaco and also our network security products).
   So I’ll be able to communicate with many new and old German colleagues.

So now that I predicted the Sophos thingy properly 2 weeks before at InfoSec, it’s
time to have a look into my crystal ball once again and predict what products Sophos
is going to buy next. If you compare the McAfee offering, including Vulnerability
Management and Patch solutions and maybe what Symantec has (managed Mail filtering),
some SaaS providers and something in the VM / patch management space sound like 
a good fit.

Qualys fits perfectly from its size into the company, Secunia might also be an option.
For the SaaS part, Webroot would be a nice addition. And, just to mess with McAfee’s
mind, Bit9 would be nice to have in the portfolio….

For all of you security geeks out there: what do you think about the acquisition?
And, more importantly, which company do you think will / should be bought by Sophos
next?

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