Check Point Software Technologies Ltd.
) recently announced a partnership with
) to provide cloud-based security services. With this
partnership, Check Point will enrich its virtualization,
automation and cloud-based portfolios.
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Through this collaboration, Check Point will combine its security
solution Virtual Edition (VE) with VMware's vSphere or the new
VMware NSX network virtualization platform that provides private
cloud-based service to make the cloud-computing environment more
secure, simple, flexible and efficient.
The partnership will better equip organizations to handle private
cloud technology and control business applications securely. As
VMware remains one of the leading companies in the virtualization
and cloud computing space, we believe Check Point will gain
significantly from this collaboration.
Due to the rapid adoption of cloud computing technologies,
security and prevention of data loss have become the top
priorities for enterprises in recent times. According to Gartner,
the cloud-based security services market will rise from $2.1
billion in 2013 to $3.1 billion in 2015.
Check Point's innovative product portfolio is well positioned to
benefit from this significant growth going forward. We believe
the interoperability of Check Point VE and the VMware vCloud
Suite will help customers accelerate their transition to the
Furthermore, Check Point has teamed up with the largest online
) and its security offering can be easily downloaded through
Amazon Web Services. We believe this integration will enable
secure connectivity in dynamic cloud computing environments,
which in turn would help Check Point to spur growth in the
competitive market and accelerate product adoption.
However, competition from
Cisco Systems Inc.
) and Juniper Networks Inc., an uncertain economic environment,
competitive pressures, currency headwinds and Check Point's
significant European exposure are concerns.
Currently, Check Point carries a Zacks Rank #3 (Hold).