Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Attacks/Breaches

Alert Logic Goes After Mid-Tier

Startup gets new funding to develop the on-demand security services market

You're responsible for security in a small or mid-sized company. You don't have a staff, a hardened perimeter, or a big budget for security equipment. And even if you had the money, you don't have the time to implement and monitor sophisticated security tools. So what do you do?

If your first answer was "pray," you may want to take a look at a startup company called Alert Logic Inc. , which offers security services targeted at small and medium business. The fledgling service provider, which received $5 million in second-round venture funding earlier today, has doubled its customer base in the last 12 months and is beginning to get some notice from both users and investors.

Alert Logic's business model is simple: Instead of asking enterprises to buy security gear and install it themselves, the startup deploys its own appliances on the customer premises and then offers monitoring and analysis services to help prevent internal and external attacks. The service starts at less than $1,000 a month -- less than a tenth of what an intrusion detection system can cost.

"There is a lot of great security technology out there, but unfortunately, most of it takes a lot of time and money to deploy and maintain," observes Chris Smith, director of marketing at Alert Logic. "There needs to be something for companies that don't have those resources."

For a monthly fee, Alert Logic installs its own appliances on the customer's network and passively monitors traffic to look for anomalies, malware, or attempted connections with known trouble sites, Smith explains. If the service provider detects a problem, a security analyst will either alert the customer or actively quarantine the threat, depending on what the customer chooses.

"We have some customers that don't want us to get involved in remediation -- they just want our help with monitoring," Smith says. "In other cases, they want us to do as much as possible."

The service-based model is a good one for the mid-tier market, which is underserved by security hardware and software vendors vying to penetrate the largest accounts, observers say.

"We look for companies with a sustainable competitive advantage, as well as a motivated management team, and Alert Logic excels in both areas," says Steve Coffey, managing director of Hunt Ventures, one of the primary investors in Alert Logic's new round of funding. "By successfully delivering IT network security on the software-as-a-service model, Alert Logic is able to protect mid-size companies at a fraction of the deployment time and total cost of traditional solutions."

DFJ Mercury, OCA Ventures, and Access Venture Partners are the other three venture companies investing in Alert Logic.

Alert Logic raised a little more than $2 million in its initial round of funding nine months ago, but business has been growing quickly, from about 50 customers in 2005 to more than 100 today. About half its revenue comes from hosting companies and managed services providers, such as CyrusOne, that bundle Alert Logic's offerings in with their own as an extra service, Smith says.

While Alert Logic will continue to court service provider partners, it also is working on a service that will help mid-sized companies conduct security audits and vulnerability assessment to aid in regulatory compliance efforts, Smith says. A new, compliance-oriented service is slated to be unveiled in about two weeks.

— Tim Wilson, Site Editor, Dark Reading

Tim Wilson is Editor in Chief and co-founder of Dark Reading.com, UBM Tech's online community for information security professionals. He is responsible for managing the site, assigning and editing content, and writing breaking news stories. Wilson has been recognized as one ... View Full Bio
 

Recommended Reading:

Comment  | 
Print  | 
More Insights
Comments
Threaded  |  Newest First  |  Oldest First
COVID-19: Latest Security News & Commentary
Dark Reading Staff 7/9/2020
Omdia Research Launches Page on Dark Reading
Tim Wilson, Editor in Chief, Dark Reading 7/9/2020
Mobile App Fraud Jumped in Q1 as Attackers Pivot from Browsers
Jai Vijayan, Contributing Writer,  7/10/2020
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
Special Report: Computing's New Normal, a Dark Reading Perspective
This special report examines how IT security organizations have adapted to the "new normal" of computing and what the long-term effects will be. Read it and get a unique set of perspectives on issues ranging from new threats & vulnerabilities as a result of remote working to how enterprise security strategy will be affected long term.
Flash Poll
The Threat from the Internetand What Your Organization Can Do About It
The Threat from the Internetand What Your Organization Can Do About It
This report describes some of the latest attacks and threats emanating from the Internet, as well as advice and tips on how your organization can mitigate those threats before they affect your business. Download it today!
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-14174
PUBLISHED: 2020-07-13
Affected versions of Atlassian Jira Server and Data Center allow remote attackers to view titles of a private project via an Insecure Direct Object References (IDOR) vulnerability in the Administration Permission Helper. The affected versions are before version 7.13.6, from version 8.0.0 before 8.5....
CVE-2019-20901
PUBLISHED: 2020-07-13
The login.jsp resource in Jira before version 8.5.2, and from version 8.6.0 before version 8.6.1 allows remote attackers to redirect users to a different website which they may use as part of performing a phishing attack via an open redirect in the os_destination parameter.
CVE-2019-20898
PUBLISHED: 2020-07-13
Affected versions of Atlassian Jira Server and Data Center allow remote attackers to access sensitive information without being authenticated in the Global permissions screen. The affected versions are before version 8.8.0.
CVE-2019-20899
PUBLISHED: 2020-07-13
The Gadget API in Atlassian Jira Server and Data Center in affected versions allows remote attackers to make Jira unresponsive via repeated requests to a certain endpoint in the Gadget API. The affected versions are before version 8.5.4, and from version 8.6.0 before 8.6.1.
CVE-2019-20900
PUBLISHED: 2020-07-13
Affected versions of Atlassian Jira Server and Data Center allow remote attackers to inject arbitrary HTML or JavaScript via a cross site scripting (XSS) vulnerability in the Add Field module. The affected versions are before version 8.7.0.