Boardroom
SafeNet

In the Boardroom With...
Mr. Ian Edward Dix
Chief Marketing Officer
SafeNet (NYSE: SFNT)


SecurityStockWatch.com: Thanks for joining us today, Ian. You’ve had interesting experience with several multinational companies prior to joining SafeNet. Please give our audience an overview of your background and your role at SafeNet.

Ian Dix: Well, I've been a marketing person my entire career, starting at MCI way back in the
1980's, I was there for 10 years, then moved on to be Senior Vice President of Marketing at LCI, which was acquired by Qwest in 1997. I moved into the role of Senior VP of Marketing and Product Management at Qwest, then on to be Chief Marketing Officer of Cincinnati Bell, which morphed into Broadwing. Interspersed throughout those jobs I was in a couple of small companies and startups, all Internet technology related.

My role at SafeNet as CMO is a new one for the company, so I am working diligently with my group to pull together the SafeNet marketing assets from around the world into a coordinated machine that can support global initiatives yet maintain regional support and independence.

Because we're multi-dimensional - multiple divisions in the U.S, Europe, the Middle East, Asia, etc. there is one global SafeNet but there are also 9 different smaller SafeNet's, depending on what geography and what business unit you're referring to.

For example, a multinational bank in France looking for identity theft solutions doesn't care about our U.S. federal classified products and the DOD doesn't care about what our products are for Asian software companies. They want SafeNet to address their needs specifically...since we serve all of those markets - and many more - it's a cool marketing challenge for a truly 21st century company.

SecurityStockWatch.com: Many people have never heard of SafeNet and are surprised when they hear your story. Can you give us a brief backgrounder?

Ian Dix: Sure. SafeNet is a 23 year old security company founded by former engineers of the National Security Administration. We are one of the "Big 3" providers of classified encryption technology to the Department of Defense, and products are also used by over 80% of the Global 2000. We have offices in 18 countries around the globe and do production and manufacturing on 5 continents. We were named the Fastest Growing Security Technology company in the U.S. by Network World magazine in 2005.

We have 5 major lines of business:

    1. Our network encryptors for Ethernet, SONET, ATM, etc. which also include data at 
         rest disk and database encryption. That's the newly renamed, Infrastructure
         business unit.
    2. Our Borderless Security business unit is our complete suite of products for
         identity management and network access control: identity tokens, SSL remote
         access devices, and a very hot product line, Hardware Security Modules, or
         HSM's.
    3. Our Rights Management division has protection and licensing technologies for
        software and digital media companies.
    4. Our OEM business supplies much of the world's commercial network devices
        with encryption chips. They do a great business in selling
        intellectual property and toolkits, as well.
    5. And, last but not least, is our Type 1, or classified government business. This is
        our top secret encryption business for the government.

We have a saying at SafeNet. "If you protect money and government secrets, everything else is easy." That's our main bragging point: we protect more classified information for more governments in the world, and we protect more of the world's money by encrypting financial transactions, than any company in the world.

Those aren't the only two markets we serve, but the "so what" here is this: there's security and then there's security. We protect the information that - if it were compromised - then lives would be lost, trillions of dollars would be at risk, or media and software companies would have lost millions in pirated products. It's that simple.

 




SecurityStockWatch.com: One will read on SafeNet’s website, “No other competitor has an offering that protects all government networks – private, public, and classified.” Without divulging any confidential or sensitive information please tell us about SafeNet’s Government business?

Ian Dix: Gladly. As I mentioned, we serve nearly every government of the Top 12 industrialized nations, but the U.S. government is our biggest single customer. We do both classified top secret, called Type 1, work as well as Sensitive But Unclassified and unclassified. Our technology is utilized by nearly every agency, but our real Government core is the protection of classified information. We do a whole host of products from our Type 1 division for the DOD. Network encryptors, satellite encryptors, we even do the voice encryptors used by the White House and others. It's impressive, and I love to talk about it, but as you said, we have to be a little careful about what we say. Let's just say we're proud to protect the lives of Americans every day through our products.

SecurityStockWatch.com: Is there a specific success story with the Department of Homeland Security that you can tell us about?

Ian Dix: Well, the real story for us lately has been the award of a $150 million, IDIQ contract from the National Security Agency for a new version our marquee Type 1 product, the KIV-7 encryptor. This is a point-to-point link encryptor that is used extensively throughout the military, on nearly every transport and fighting vehicle, etc. Our latest version was shipped in December, and now we will be coming out with a Type 1 IP version for the government's secure IP network, called HAIPE. Our KIV-7 MIP will incorporate both point-to-point and secure IP network connections in a small device that can even be used in transport vehicles.

This win reinforces our role, we believe, as the world's leading provider of encryption technology, since no-one does as much classified and unclassified encryption as we do. We have over 300 encryption engineers and that technology is the heart of our business.

SecurityStockWatch.com: SafeNet has had impressive “wins” in the enterprise sector as well, in the financial vertical with Bank Of America and with companies such as Adobe, Samsung and Texas Instruments. May we have an overview of SafeNet’s solutions at these enterprises.

Ian Dix: Sure. Many of the world's largest banks, such as Fifth Third, J.P. Morgan, and others, utilize our SONET, Ethernet, or other network encryptors to protect their SANS and BPO networks. . Our digital identity products, the Borderless Security products, are today used by Merck, Hitachi, Nokia, ING, and others. In fact, the majority of the world's financial transactions that are encrypted are done so with the help of our HSM's and security tokens, which are used by nearly every bank, central bank, and clearing house in the world.

Our software licensing and protection is used not only by well known software vendors, but more and more by companies who write their own application code. A very well known networking equipment company, in fact, has recently selected our software licensing solution for their general use.

On the entertainment content side, nearly every major Hollywood studio, as well as the major cable channels , the record industry association, etc. are our customers through our piracy monitoring service, called Media Sentry. Recently, our Software protection service created a new platform - called Unified Software Protection - that combines the piracy monitoring service with our software protection products. What we can do is walk into the software vendor's office with a report showing who and how often, their software is being pirated on the peer-to-peer networks. It blows them away, and, needless to say, we have been doing very well with it.

SecurityStockWatch.com: What resources; such as webinars, case studies, and white papers, are available at www.safenet-inc.com for end-users?

Ian Dix: We love to write as much as I love to talk, so there is a plethora of materials - white papers, case studies, even independent studies that back up our claims about superior performance, etc. They can all be had at our website, www.safenet-inc.com.

SecurityStockWatch.com: Thank you very much for your time today, Ian.

Ian Dix: Thank you for having me.

 









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