The last time we checked in with Alert Logic, a Houston, Texas-based security SaaS provider, the company was just entering into a partnership with Tenzing Management IT Services. The theory? That cloud service providers would choose a managed SaaS security option over a managed security services provider (MSSP). Alert Logic Chairman, President and CEO Gray Hall even went as far as calling the MSSP model a business model in decline. Whether you agree or disagree with the statement, one thing is clear: Alert Logic itself remains in growth mode.
Alert Logic says its 2010 revenue grew 42 percent compared to 2009 -- the largest single-year jump since the company's 2002 launch, notes Alert Logic VP of Marketing Urvish Vashi (pictured, left).
Eager to maintain that growth, Alert Logic has expanded its Houston headquarters – where the majority of its marketing, development and operations team is housed – by 6,400 square feet in order to make space for 20 to 30 more security research developers soon to be hired. According to Vashi, the hiring process has already begun, and the new team members can come from just about anywhere.
“We recently hired a security research analyst from Microsoft,” said Vashi, who attributes the company’s revenue growth to its easy-to-integrate, 24/7 monitoring service, a high customer demand for S.O.C. and a more fundamental factor: Cost. “We have put together a fast-paced security solution that is cheaper than what can be done in-house.”
Alert Logic’s key goals for 2011 include increasing engagement with its North American channel – through which the majority of the company’s business is done – and accelerating product development. To that end, Alert Logic requires its security research team to obtain GIAC Certification – a program designed in 1999 to validate the computer, network and software security awareness of IT security professionals. Members must be re-certified every two years.
Last year, the company’s research team members participated in Net Wars – a yearly cyber challenge during which hackers try to infiltrate a server and security researchers try to prevent them. An Alert Logic security analyst won the 2010 competition. The runner-up was soon hired by Alert Logic.
The company’s recently developed C.O.R.E. research team consists of 18 members that are constantly digging for new threat detection and network security capabilities. And when they’re found, the researchers let clients know first-hand by posting on the Alert Logic Blog.
Reality CheckThe situation sure sounds promising at Alert Logic. But MSPmentor reminds readers: Alert Logic is privately held so it's difficult to pinpoint how much "profitable" growth the company has managed to deliver. Plus, the security as a service market is extremely competitive and extremely crowded. Most of the major security software providers are introducing threat management systems, and dozens of log management software solutions are on the market.
All that said, anecdotal evidence suggests Alert Logic remains in hyper growth mode.
Additional insights by Joe Panettieri. Sign up for MSPmentor’s Weekly Enewsletter, Webcasts and Resource Center. Follow us via RSS, Facebook, Identi.ca and Twitter. Check out more MSP voices at www.MSPtweet.com. Read our editorial disclosure here.