Don’t panic – the Verspective analytics product has disappeared from Verimatrix’s portfolio but the newly merged vendor assures us this is under no circumstances a precursor to another division sale.
Now with Inside Secure pulling the strings, Verspective has been imaginatively renamed Verimatrix Analytics for unknown reasons, as Faultline Online Reporter learned while sitting down with Verimatrix President and COO Steve Oetegenn at this year’s IBC. “Of course, it’s always a question of price but we can say we’re absolutely not looking to sell Verspective,” declared Oetegenn, naturally protective of a business Verimatrix built through in-house R&D as well as acquisitions of two smaller businesses in video QoE analytics – the analytics parts of the UK’s Genius Digital and Concurrent.
Okay, so while selling the Silicon IP and Secure Protocols (SIP) business to Rambus in a $65 million deal a couple of weeks back wasn’t a massive surprise given sliding revenues and Inside Secure’s focus on global security, a sale of Verspective would be nonsensical. The company has consistently told us (pre-merger) that Verspective was going rapidly up the volume curve, on tens of millions of devices and processing north of 1 billion transactions. Our qualms however are perhaps a little justified given the expansion of Verimatrix into fintech and IoT fields.
“SIP needed to be made separate. It is a highly focused division but only accounted for about 20% of total business and prior to the merger Verimatrix was constrained by investors not willing to invest in the future,” added Oetegenn. “We are not a shell of our former selves at all but a company highly energetic in global security and analytics – formerly operating 100% in media and entertainment but now expanding horizontally.”
Reasoning for the SIP sale was all about accelerating revenue growth through investments in new products, citing the ProtectMyApp service launched in July this year. Oetegenn elaborated on this a little in Amsterdam, addressing our concerns about innovation under new ownership and adapting not only to a browser-delivered video world but also to uncharted territories.
“We’re not just talking about innovation but doing it. We have accelerated the VCAS cloud service, with one telco customer migrating from an on-premise system to a pure SaaS VCAS environment – a feat some said could never be done,” said Oetegenn, going on to talk vaguely about the next push being analytics version 2.0 – in cloud native, cloud-only environments.
Verspective’s most recent win came at Japanese telco Jupiter Telecommunications (J:COM) in January this year, to process powerful business intelligence capabilities. Verspective’s dashboards and visualization tools enable J:COM to make informed decisions about audiences, content, consumption and overall service performance. This came shortly after Verimatrix made a push into single sign-on, acquiring and rebranding venerable technology from Akamai as nTitleMe.
Meanwhile, our reservations remain about the ability of the new ProtectMyApp service to actually make any money even it starts gaining traction. This was the company’s first product launch since being acquired by smaller rival Inside Secure, equipping developers directly with mobile application security services in a bid to protect against rampant reverse engineering and tampering activities.
Verimatrix told us at IBC that ProtectMyApp has since picked up a few major customers in media and entertainment as well as online banks, although unfortunately it cannot name any names for now. ProtectMyApp draws from the Inside Secure code base – automatically setting protection points and using intelligent optimization to harmonize the field between security and performance. Foundations for ProtectMyApp were in development long before the acquisition of Verimatrix, based on technology worlds away from CAS and DRM security, which is why we don’t view ProtectMyApp as a Verimatrix product and have our concerns about future innovation in the media and entertainment segment.
Ultimately, ProtectMyApp detects potential vulnerabilities through a mix of client security and cloud-based analytics to deliver alerts, allowing developers to terminate application execution when an imminent threat is detected. It says developers can deny access to services for applications running on emulators or debuggers and block cloned or repackaged applications from accessing the service.
Nevertheless, Oetegenn reassured us that Verimatrix is hiring in R&D and cloud infrastructure departments – although the overall company has declined by about 80 employees to around 400 since the merger completed.
Verimatrix was however celebrating a more typical Verimatrix-type win at IBC, with Austrian operator LIWest Kabelmedien rolling out IPTV technology from local software firm Ocilion, integrated with Verimatrix security. The on-prem deployment uses Ocilion’s new P400 family of 4K set tops supporting hybrid FTTH and OTT delivery models.