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May 4, 2021
Aryaka Networks, the cloud-based WAN provider, just enhanced its secure access service edge (SASE) posture with the purchase of a cloud-based IT security provider.
Germany-based Secucloud Network GmbH provides firewall as a service, secure web gateway and advanced threat detection all in one platform. According to Aryaka executives, Secucloud will complement existing Aryaka security partnerships while allowing Aryaka to roll out new SASE offerings later in 2021.
Aryaka has already closed the acquisition, making Secucloud a wholly owned subsidiary. The companies did not disclose the financial terms of the agreement.
Shashi Kiran, Aryaka’s chief marketing and product officer, said the acquisition lines up with the post-pandemic world. Many companies are embarking on a “reverse migration” back to the offices and want to adopt products and services that consolidate networking and security.
Aryaka’s Shashi Kiran
“Customers are looking for things that are simple and easy to consume, and yet they don’t want to compromise on security,” Kiran said. “And there seems to be a lot of partner interest to address these needs.”
In addition, Kiran said customers feel more urgency to move away from rigid MPLS networks to more nimble architecture. And thanks to COVID-19, the market is shifting quickly. According to Gartner, the SASE market will go from $4.5 billion this year to $10.9 billion in 2024.
Keep up with the latest channel-impacting mergers and acquisitions in our M&A roundup.
“Some of these things were expected to be about five years, and a more incremental change was what was anticipated. Then we had the pandemic, and that really caused an acceleration to a cloud-first architecture,” Kiran said.
Aryaka has taken a decidedly best-of-breed approach to security, giving customers flexibility to use their cloud-based firewall. Aryaka already partners with several security providers, including Check Point Software, Palo Alto Networks and Zscaler. Kiran said Aryaka will continue to offer those options as virtual network functions (VNFs).
“There is a large swath of customers that want an on-premises deployment and an integrated managed service, so we expect that portfolio and sales motion to continue,” Kiran said.
Customers may choose to roll with Aryaka’s integrated Secucloud firewall, the third-party partners or both.
Kiran said Secucloud’s cloud-based architecture fits very well with Aryaka’s points of presence. Aryaka maintains more than 30 service nodes that provide the backbone of its global private network. Moreover, adding an embedded firewall capability helps Aryaka match pace with SASE rivals Cato Networks and Versa Networks, which both offer a built-in next-gen firewall.
Secucloud’s Dennis Monner
Secucloud Dennis Monner founded the company in 2013, four years after Aryaka came into existence. Monner said both companies have built themselves “from the ground up” to take a cloud-first, as-a-service approach.
“We think this joint solution and Aryaka’s brand reputation of delivering the industry’s best customer experience will create a highly differentiated offering for enterprise customers,” Monner said.
Kiran said channel partners can expand their addressable market with the converged offering. Aryaka’s recent State of the WAN Report found that 56% of organizations plan to deploy SASE architecture in the next one to two years. Small and medium enterprises (SMEs) in particular are expressing demand for SASE.
Thus, partners can meet customer demand while simplifying their own experience.
“They frequently have to work with multiple vendors to get such an architecture done. We offload a lot of the complexity,” he said.
Kiran said Aryaka will get in front of partners later this year with information about product and pricing changes. He said partners will find the pricing overhauls attractive.
Very excited to announce Aryaka’s acquisition of @secucloud_. This allows us to offer the industry’s most flexible managed #SDWAN and #SASE solutions for enterprise customers. Read more: https://t.co/RmFo99SVkD #WAN #IT #EnterpriseIT #enteprisesecurity
— Aryaka Networks (@AryakaNetworks) May 4, 2021
Aryaka recently landed seventh in Vertical System Group’s U.S. Carrier Managed SD-WAN Services leaderboard.
Senior News Editor, Channel Futures
James Anderson is a news editor for Channel Futures. He interned with Informa while working toward his degree in journalism from Arizona State University, then joined the company after graduating. He writes about SD-WAN, telecom and cablecos, technology services distributors and carriers. He has served as a moderator for multiple panels at Channel Partners events.
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