---ADDS BROKER COMMENTS AND SHARE PRICE---
Corero Network Security (LON:CNS) has won a significant order for its SmartWall Threat Defense System (TDS) from a US web site hosting company.
Corero said the order, worth more than US$400,000, is the company's largest single hosting provider deployment in its history and follows a successful proof of concept (POC) trial during which the company was able to demonstrate the effectiveness of its technology.
“A key element of the POC was demonstrating the value of Corero’s automatic mitigation, which will enable the customer, a provider of hosting and Cloud computing services, to scale its business while maximising the productivity of network and security operations staff in the daily battle against DDoS [distributed denial of service] attacks targeting hosted customers,” the company said.
The solution order by the hosting company comprises multiple Corero SmartWall TDS products with supporting SecureWatch services for one year.
“This hosting provider customer order is a strong endorsement of Corero’s view of the commercial opportunity in the important and growing hosting provider market. Being able to demonstrate the efficacy, performance and scalability of the Corero SmartWall TDS against the competition, through a successful POC, was critical for this very important contract win for Corero,” said Ashley Stephenson, chief executive of Corero.
“Hosting providers are increasingly seeing the value of using automatic, in-line DDoS mitigation technology as their primary response to the increasingly frequent challenge of DDoS attacks. We believe this is a trend set to continue, with hosting providers welcoming the opportunity to generate revenue from security services such as DDoS-protected hosting for their customers.
“Corero looks forward to strengthening its relationship with this particular customer, and reporting on further successes in the hosting provider vertical in the coming months,” Stephenson added.
Northland Capital Partners said it was a good contract win and opined that momentum is gradually building behind the company’s SmartWall DDoS protection appliance.
“The threat posed by DDoS is well understood by corporates and hosting providers given the large number of high profile attacks and Corero has been able to demonstrate a competitive advantage in the hosting provider market,” noted Northland's David Johnson.
“From the hosting providers’ perspective, DDoS protection represents a potential additional revenue stream as they can offer DDoS-protected hosting. The main issue faced by Corero has been around raising its profile and getting onto tender lists. The contract news flow suggests some success,” Johnson ventured.
House broker finnCap said the growing customer list and order flow serve to demonstrate the suitability of the product set and increasing industry awareness.
Shares in Corero were up 4.7% at 16.75p in afternoon trading.