July 6, 2000

CyberSafe

CyberSafe WHO: A privately held electronic security company founded in 1991. WHAT: Provides consulting and management services plus proprietary software. WHERE: Issaquah.

Fast Fact #1: The electronic security market is "white hot."

Comment: That's how Rick Fox, executive vice president and chief financial officer, describes the demand for CyberSafe's services. "People are very, very worried about security," he says. And they're likely to stay worried because "there's a smart group out there" constantly trying to figure out new ways to hack computer systems, says Fox.

Fast Fact #2: CyberSafe is a "restartup."

Comment: "We're a 2-year-old company in the body of a 9-year-old," says Fox. No, CyberSafe didn't discover the fountain of youth. It hired a new chairman and chief executive officer -- and discovered a hole in the Web.

Fast Fact #3: CEO Jim Cannavino has used CyberSafe's established network security savvy as a springboard.

Comment: "Jim came here with a strong sense that transactional security was one of the key areas that hadn't been properly addressed [on the Internet]," says Fox. Specifically, no one was prepared for the volume of financial transactions e-commerce would generate, he says. Closing the gap between the risk and opportunity presented by e-commerce requires both enterprise security to protect internal operations and transactional security to safeguard interactions between a company and its customers, says Fox.

Fast Fact #4: CyberSafe now provides both components.

Comment: Offered in collaboration with several partners, the company's new package of transaction services prevents credit card fraud, identity theft and privacy violations. Those services currently are being piloted by three clients and will be fully launched in early 2001, says Fox. CyberSafe was the catalyst for developing the transaction services package and provided the essential technology.

Fast Fact #5: Cannavino came to CyberSafe after serving as CEO of Perot Systems.

Comment: Before that, he worked for 32 years at IBM. With a background in strategic planning, Cannavino was recruited specifically to review the company's resources and plot a new course, says Fox.

Fast Fact #6: CyberSafe originally was called Open Computer Security Group.

Comment: It began as a division of Financial Data Systems. In 1994, it spun away and morphed into CyberSafe. It originally acted as a consultant to companies seeking security for their internal computer networks, then developed its own line of network security software, including its flagship brand, ActiveTRUST.

Fast Fact #7: CyberSafe has plenty of competition.

Comment: It also has plenty of partners -- some of whom also are competitors. That's because companies often rely on multiple security providers, says Fox, picking and choosing various features from each to create a comprehensive system.

Fast Fact #8: CyberSafe is backed by venture capital funds.

Comment: They include Accel Partners, Deutsche Bank London, Financial Technology Ventures, Oak Investment Partners and Polaris Venture Partners.

Fast Fact #9: CyberSafe has 240 employees.

Comments: Most work in the company's Issaquah headquarters, but CyberSafe developers also work in San Diego, Austin, Texas, and Ottawa, Canada. Plus CyberSafe has sales and support offices in Chicago and London.

Fast Fact #10: Senior executives recently returned from a globe-trotting road trip.

Comment: Since CyberSafe is a restartup, the company decided to reintroduce itself to industry analysts and media representatives in the Bay Area, Washington, D.C., Boston, New York, London and Paris.

Previous columns:

• Ten Fast Facts, 06-29-2000
• Ten Fast Facts, 06-22-2000
• Ten Fast Facts, 06-15-2000
• Ten Fast Facts, 06-08-2000
• Ten Fast Facts, 06-01-2000
• Ten Fast Facts, 05-11-2000
• Ten Fast Facts, 05-04-2000
• Ten Fast Facts, 04-27-2000