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Microsoft Acquires CyberX Labs and Enters the IoT/OT network Security Market

6/22/2020

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Microsoft acquired Israeli startup, CyberX Labs today in a move that gets Microsoft Azure into the IoT security market.  We have been tracking CyberX for a couple years and have generally categorized it as an emerging player in the Operational Technology Access Control (OTAC) market.  More recently, it has smartly repositioned itself as an IoT network discovery, posture assessment and management company.  We see OTAC as an adjacent market to an existing, more IT-oriented security market called Enhanced Network Access Control (ENAC).  Microsoft explains that CyberX will extend its Azure IoT security capabilities towards devices used in industrial IoT, Operational Technology and infrastructure scenarios, and that, it will allow customers to discover their existing IoT assets, manage and improve security posture of these devices. 

We see this move by Microsoft as encroaching into the network security space a bit further than it had before.  And, it is using IoT and industrial operations as a means to enter.  We sill see the CyberX portfolio as an OTAC company, but since many IoT devices are just Internet Protocol (IP) connected devices, the CyberX portfolio can perform many of the tasks of that of an ENAC system.  And so, this puts Microsoft quite closely in competition with the existing leaders in the much-larger ENAC market, namely, Cisco, HPE Aruba, Forescout and Fortinet (listed as a partner on the CyberX Labs website).  Cisco and Forescout have announced OTAC products recently, as well.  HPE Aruba, a big player in ENAC, had integrated CyberX into its Clearpass ENAC product in 2019 and featured CyberX at its user conference in 2019.

So, given Microsoft is acquisitive these days and clearly has an interest in beefing up its Azure IoT capabilities, and given that Forescout is in the midst of a failed merger bid from investor Advent, perhaps it is time for Microsoft to take a closer look at Forescout.
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Aerohive A3 - Enhanced Network Access Control (ENAC) System Hitting the Market

5/9/2018

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Earlier this year, Aerohive issued a press release about its A3 software system.  A3 is what we categorize as an Enhanced Network Access Control (ENAC) system; we calculate market share statistics on this market in our Security report series.  The company is now getting ready to bring the product to market and is blitzing the media, so to speak.  We were briefed and learned more about the product. To summarize, it checks the boxes necessary for us to include it in our ENAC report and we like that it has a common user interface to allow customers to perform device profiling, authentication / registration, compliance / remediation, device management, billing integration and network access control.

Our outlook for ENAC is positive and, today, three main vendors consist of the majority of share: Cisco (with ICE), Aruba (with Clearpass) and ForeScout.  We learned that company has more aggressive pricing than these market leaders.  If you look at why a product like A3 is important to Aerohive, recall that back when Aruba introduced Clearpass back in 2012/2013, it used it as a selling tool to get into its competitors' accounts (it also got high margin sales from Clearpass, too).  Aerohive's A3 is positioned similarly - it operates with its competitors' equipment (including those from Cisco, Ruckus, Extreme and others).  So, Aerohive has developed another means of selling to customers, by offering A3 to customers using non-Aerohive equipment.  
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    CHRIS DePUY
    &
    Alan weckel

    Technology Analysts

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