Monday Morning Impact – April 27

By Ken Presti, Senior Consultant, Channel Impact

Verizon 2015 Data Breach Report Finds Increasingly Complex Cyber Threats

Verizon’s “2015 Data Breach Investigations Report,” presents new evidence that cyberattacks are becoming increasingly sophisticated, despite leveraging well-established techniques such as phishing and hacking. According to this year’s report, 70 percent of the cyberattacks use a combination of phishing and hacking.

The report also claims that many existing vulnerabilities continue to pose threats due to the non-installation of readily available security patches. In some cases, the vulnerabilities can be traced as far back as 2007.

“We continue to see sizable gaps in how organizations defend themselves,” said Mike Denning, vice president of global security for Verizon Enterprise Solutions. “While there is no guarantee against being breached, organizations can greatly manage their risk by becoming more vigilant in covering their bases. This continues to be a main theme, based on more than 10 years of data from our ‘Data Breach Investigations Report’ series.”

On a more positive note, the report also suggests that threats to mobile devices, across all platforms, tend to be far less prevalent than many people believe.

Security around the Internet of Things has also been addressed for the first time by the Verizon Report. The document examines the use of IoT-enabled devices to serve as a gateway to higher-value devices on the network that can be targeted for botnet attacks and similar exploits.

As to the cost of breaches, Verizon security analysts have implemented a new assessment model that weighs the relative value of the stolen data combined with the volume of compromised records. Under this new model, a breach involving 10 million records will likely cost between $2.1 million and $5.2 million, and depending on circumstances could range up to as much as $73.9 million.

The most common attack patterns include miscellaneous errors, such as sending an email to the wrong person; crimeware (various malware aimed at gaining control of systems); insider/privilege misuse; physical theft/loss; Web app attacks; denial-of-service attacks, cyberespionage; point-of-sale intrusions and payment card skimmers.

Channel Impact
The constant threat against information technology raises the bar for channel partners.  It is critically important to remain up-to-date on the various threats, as well as the most effective solution to those threats. Prompt deployment of security patches, encryption of sensitive data, two-factor authentication, and a renewed emphasis on physical security are all highly recommended.

Partners Await Impacts of Nokia’s $16.6 Billion Acquisition of Alcatel-Lucent

Channel partners are considering the potential effects of Nokia’s acquisition of Alcatel-Lucent.

The two companies announced a deal on April 15th wherein Nokia will make an offer for all of the equity securities issued by Alcatel-Lucent, through a public exchange offer in France and in the United States, on the basis of 0.55 of a new Nokia share for every Alcatel-Lucent share. The transaction is expected to close during the first half of 2016, subject to approval by Nokia’s shareholders and the required regulatory approvals.

The combination of R&D capabilities has been positioned as one of the strong benefits of the deal. In addition, the two companies claim highly complementary portfolios and geographies, with particular strength in the United States, China, Europe and Asia-Pacific. The forthcoming emphasis will be on fixed and mobile broadband, IP routing, core networks, cloud applications and services.

Based on Nokia estimates, the addressable market of the combined company in 2014 was approximately 50% larger than the current addressable networks market for Nokia alone. Similarly, operating cost synergies are expected to create a long-term structural cost advantage.

The combined company is expected to operate under the Nokia brand and would be headquartered in Finland, with strategic business locations and major R&D centers in France, and many other countries including Germany, the United States and China. The Bell Labs brand is expected to be retained.

Risto Siilasmaa is planned to serve as chairman, and Rajeev Suri as CEO. The combined company’s board of directors is planned to have nine or ten members, including three members from Alcatel-Lucent, one of whom would serve as vice chairman.

Channel Impact
As is typically the case in corporate acquisitions of great scale, the impact of the deal on channel partners remains to be seen. Partners will be watching closely as the overall strategy is more tightly defined, at which point the preferred go-to-market strategy will emerge.

Pure Storage Taps New Channel Chief

Pure Storage, a Mountain View, Calif.-based solid-state array vendor, today announced the addition of two channel veterans to its leadership team, as well as the launch of the company’s new partner-centric Customer Success organization.

Michael Sotnick, joins Pure Storage as vice president of global channels and alliances.  The 20 year industry veteran will focus on the GSI, ISV, OEM, VAR and Distribution ecosystem while ensuring cross-functional business alignment within the company. Sotnick held previous executive positions at Moovweb, Quest Software, SAP and Veritas.

Alex Hesterberg, formerly of Riverbed and Symantec, joins as vice president of customer and partner success and technology services. This newly-launched organization is tasked to develop and scale the channel enablement and education functions. As part of that effort, a network of trained experts will define and share architectural recommendations, advanced implementation guidance, templates and third party integration methodologies, which partners can deploy and monetize within their own services organizations.

Before joining Pure Storage, Hesterberg built and scaled customer success initiatives at Sailthru, Inc., and also launched the Riverbed Professional Services organization.

As part of the same announcement, Pure Storage also announced establishment of a dual distribution model in all international markets — composed of two distributors per country, one local based and one pan-regional distributor.

Channel Impact
Channel enablement becomes increasingly important, as storage technologies continue to advance in technical complexity and value.