EULA out, equity in: Why startups are now a part of larger companies’ security budgets
Cybersecurity sales teams often spread the idea that companies with the most sophisticated data protection strategies got that way by spending the most money on the latest and greatest security products. Truthfully, that’s usually not the case. U.S. companies have begun in recent years to enter strategic partnerships with cybersecurity startups, which often offer products at lower rates and more flexible terms than established market leaders. The technique allows companies like insurance giant Aetna health and New Jersey-based telecommunications firm IDT Corp. to more aggressively experiment with the services security startups offer, sometimes even stitching together technology from multiple distinct organizations. “I tend to choose innovators that are developing capabilities that have the potential to be game-changing, whereas leading enterprise security companies have a commitment to serve the broadest needs of the overall market,” said Jim Routh, chief security officer at Aetna. “Those needs don’t look a whole lot like our needs.” […]
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