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Like it or not, economics pulls the strings in any business and, like any other department, IT is affected. The next session of The Tech Herald’s look at IT and the economy includes Stephanie Fohn, CEO of WhiteHat Security. Fohn caught wind of our questions and was kind enough to take the time to answer them.
WhiteHat Security CEO Stephanie Fohn talks to The Tech Herald about IT, the economy, and where her company stands.
You might know of WhiteHat security if you follow IT-related news in the security world. WhiteHat specializes in Web Application security, in both mitigation after an incident and prevention with scanning and testing.
Recently, WhiteHat signed an agreement to partner with Imperva. In relation to the partnership, WhiteHat will couple its Sentinel vulnerability management platform (on-demand and SaaS-based) with Imperva’s SecureSphere Web Application Firewall.
Here at The Tech Herald, WhiteHat has provided insight to a number of Web-based security issues thanks to its founder and chief technology officer, Jeremiah Grossman.
The Tech Herald (TTH): Has the economy and fear concerning the economy impacted your business at all?
Stephanie Fohn (SF): Entrepreneurs today are facing challenges never before seen in our lifetime, and so may be ill-equipped to make the decisions necessary to survive, let alone thrive, in this economy. Crime typically increases in economic downturns, and cybercrime is no exception. As such, security vendors may have it better than most. Indeed, security is slated to grow, in the second half of 2009, according to a SearchFinancialSecurity.com survey among 175 senior security pros at financial services companies including Bank of America, Citi, UBS, Wells Fargo, JP Morgan, AIG and Wachovia.
Nearly half (49%) of the 175 financial institutions in the survey said their security spending will improve in the next six months; 45% said that security projects that were put on hold have been released or re-approved.
Companies need to protect their brand and data more than ever, at the best price possible. Our software-as-a-service (SaaS) subscription model appeals to many organizations in need of a website security solution delivering unlimited assessments at a predictable cost. As a result, we are dedicated to educating our customers and about the most prevalent website threats, and emphasizing the importance of investing in website risk management solutions.
TTH: If it has, what are five initiatives you implemented to help manage the impact?
SF: We actually think there [are] six fundamental ways to help manage the impact of the recession and to position a company to thrive in this difficult environment:
Don’t spend more money than you take in. This may seem obvious, but it is not always easy for emerging technology companies to achieve. In an environment where capital is very difficult to obtain at a reasonable price, it is important to be as cost conscious as possible and to manage your business as if you will never receive another dime of outside investment.
Focus on customer retention – Make sure your current customers are very, very happy. Be flexible – Going that extra mile for the potential buyer can make a big difference in terms of whether you get the sale. It’s all about sales – If you need to fine tune your sales process, now is the time to do it. It is important that the entire organization – from top to bottom - contribute to the sales effort.
Find the hidden gems – The same way that it is a “buyer’s market” on the revenue side, it is also a “buyer’s market” for good talent – more people are out of work, and even the best can get caught in a corporate downsizing. So, for the right company, this could be an opportunity to add strong members to your team. Innovate – Innovation leads to better products, processes and solutions. When applied to varying aspects of your business, innovation can lead directly to cost savings, which is the name of the game today.
TTH: If it has not, why? What are you doing to take advantage of this sudden fortune as others feel the heat?
SF: An increase in cybercrime means more organizations are looking to companies like WhiteHat to help them secure their websites and protect sensitive customer and company data. Although IT budgets are tightened, security and website risk management specifically, is still a top priority for most companies.
WhiteHat employs a SaaS model for its website risk management solutions, which is one way to offer a lower-cost alternative for companies feeling resource-constrained. Not only is SaaS more cost-effective from a payment perspective, it also frees the customer from having to invest in personnel, hardware, software and infrastructure.
All of these things combined make the SaaS offering an incredibly compelling alternative for the security buyer. With the evolving threat landscape, organizations of all sizes and budgets need effective website security to protect their business, brand and reputation.
TTH: Has the economy impacted your vertical markets?
SF: Clearly, financial services have taken a hit, as have many retail organizations. Healthcare, another market in which we play, has stayed strong. However, regardless of the health of the economy, there are government or industry regulations, such as PCI, that must be met. In website security, we are seeing an increased awareness of the problem across vertical markets, and therefore an increase in the companies seeking solutions. So, we are still seeing strong interest, despite the economic downturn.
TTH: How are your customers looking at security or IT purchasing, and what are you doing to help them keep costs low while still offering what they are looking for?
SF: WhiteHat’s customers and prospects are still spending on security products. In fact, as layoffs and budget reductions have affected companies across the board, it has become more important to demonstrate ROI on investments in all technology… In the end, this [SaaS] approach gives customers the freedom to choose exactly what they need without paying for things they don’t.
WhiteHat delivers the tools to get companies on the road to website security: asset discovery, vulnerability assessment, and mitigation. First, customers identify all their websites and rate them by business criticality. Next, they select one of three WhiteHat Sentinel website vulnerability management services to identify the flaws in those sites.
All of WhiteHat’s offerings are SaaS-based, which enables companies to choose the appropriate solution for their needs and also easily upgrade as risk profiles change. Finally, they determine communication and protection strategies. WhiteHat’s free open XML API delivers the means to integrate Sentinel’s website vulnerability information with leading bug-tracking, SIEM and Web application firewall products. This holistic approach to website risk management delivers the ability to distribute vital Web security information across the organization as needed as well as providing quick and effective mitigation.
If you are in IT or are an IT Security vendor and would like to contribute to this topic by answering these questions, feel free to send your answers to security@thetechherald.com with the subject heading 'IT and the Economy'.
[Note: Responses subject to editing and length adjustment. Please avoid product marketing or pitches, no sales or criticism of competition. Submissions for this feature will end on Dec. 31, 2009.]
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