If you want to download a white paper on security issues, get a fix for the latest computer virus, or buy security or help desk software, Network Associates probably has what you need.

Network Associates is one of the world’s largest network security software companies. The security giant provides software that runs the full gamut of network protection for businesses large and small. Among its products and services:

McAfee : Network Associates spun off McAfee into an IPO in December 1999. McAfee still functions as an NAI division, which serves small businesses and consumers. Network Associates owns 85 percent of McAfee. McAfee.com’s virus protection software accounts for more than 90 percent of its sales. It also offers online application hosting, repair, and some subscription-based services. McAfee became a paid service in September 1999. As of January 2000, it reports having more than 200,000 paying customers.

myCIO.com : Network Associates also started myCIO.com (CIO stands for chief Internet officer), calling it “the world’s first infrastructure application service provider (ASP) to deliver network security and availability services via the Internet.” In January 2000, myCIO.com introduced CyberCop ASaP, a Web-based vulnerability assessment and intrusion detection service. CyberCop ASaP provides detailed vulnerability reports. It also proposes fixes to help secure e-business applications.

NAI Labs : Network Associates’ R&D lab, called NAI Labs, provides research and development of advanced network and information systems security technology. Some of its research is funded by DARPA (Defense Advanced Research Projects Agency), National Security Administration, the U.S. Air Force, Department of Defense, and other government agencies. Current research includes advanced applications of cryptography, operating system security, networking, access controls, security for distributed systems, and security services for Internet mail.

Network Associates is expanding its software product base through acquisitions of additional companies. It has 2,700 employees, with headquarters in Santa Clara, CA.

Many of Network Associates’ products have won awards. For example, its PGP VPN product won the “Editor’s Choice” award from Computer Reseller News (CRN) magazine. Also, the company’s Sniffer Pro Portable Analysis Suite won InfoWorld magazine’s “1999 Product of the Year” award.

Network Associates’ products and services, which are used by 60 million-plus customers worldwide, include:

  • McAfee anti-virus
  • McAfee software security and desktop utilities
  • Encryption/authentication software
  • PGP VPN software
  • Gauntlet firewall
  • Magic Help Desk applications, including Magic Solutions, a 100 percent browser-based help desk
  • Sniffer family of network analyzers
  • CyberCop Scanner 5.5, an intrusion protection scanner
  • WebShield 300 E-ppliance, the first security device to combine anti-virus, firewall, and VPN software in a plug-and-play e-business appliance
  • Global professional consulting services, education and product support

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The market
During the first six months of 1999, computer viruses caused more than $7.6 billion in damage, according to Computer Economics. Since corporate victims come in all sizes, the security services and products provided by Network Associates are geared toward small, mid-size, and large companies. Fortune Magazine reports that Network Associates’ business is growing by 15 to 25 percent a year. The company controls 17 percent of the encryption and anti-virus software market.

Strategic advantages
Network Associates’ strategic advantages include its high profile in the industry and the ability to respond quickly to a security crisis. For example, in February 2000, when many prominent Internet businesses suffered denial of service attacks, myCIO.com made available a free online Web service to help users quickly determine if their network computers were being used in the DoS attacks.

Network Associates sells its products through a direct sales force and through Value-Added Resellers (VARs), systems integrators, and other security consultants. Its consumer division, McAfee.com, announced in January 2000 that it had signed a two-year agreement with America Online, Inc., making it the anti-virus and security services provider to AOL customers.

In addition, Network Associates’ fast-growing Web-based help desk, Magic Total Service Desk, was named by an International Data Corporation (IDC) report to be the worldwide market share leader (with 28 percent of the market) in the Windows NT Server problem-management software market. IDC estimates that market will be $2.5 billion by 2003.

Financial information
Network Associates is a publicly held company traded on Nasdaq under the symbol NETA. In January 2000, Network Associates announced 1999 fourth-quarter revenues of $218 million and net earnings of $30 million, or 20 cents per share. In December 1999, Network Associates spun off its consumer Internet division, McAfee.com, into an initial public offering (IPO).

Management team

  • William Larson, chairman and chief executive officer
  • Prabhat Goyal, chief financial officer
  • Peter Watkins, president and chief operating officer
  • Gerri Martin-Flickinger, vice president & chief information officer
  • Zachary Nelson, president and CEO of myCIO.com
  • Srivats Sampath, president and chief executive officer, McAfee.com

3965 Freedom CircleSanta Clara, CA 95054Tel: 408-988-3832Fax: 408-970-9727http://www.nai.com
How this company is making news
“McAfee, a Network Associates, Inc. business, announced that its VIPER (Virus Interface for Protective Early Response) technology has been granted U.S. Pat. No. 6,029,256 by the U.S. Patent and Trademark Office.

“The patent relates to Network Associates’ proprietary method of embedding virus scanning engine technology into e-business applications, Internet appliances and managed service offerings. According to the patented method, an object such as a component object model interface is provided that allows the virus scanning engine features to be easily and flexibly invoked from any calling application, which enables third-party vendors and managed service providers (MSPs) to create high-performance anti-virus solutions for demanding e-business applications, such as scanning Internet e-mail traffic, and Web server downloads for malicious code.”

—”Patent Secures McAfee as Leading Provider of Anti-Virus Technology Designed to ‘Protect the Internet’ from Malicious Code,” Networks Associates Web site, March 1, 2000

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