Kalil said the company is evaluating its Channel Pro Program, which mandates the $100,000 deal threshold for channel delivery. Business managers work with the channel on deals, and lines are drawn to avoid conflict with the direct sales force. The program will be reviewed over the next several years to consider whether larger deals are sent through the pipeline, Kalil said.
"We need to clearly have the direct sales force to go hunt the big game and drive multimillion dollar deals and have our channel become trained and enabled to drive the smaller deals," Kalil said.
Fortify, TippingPoint and Arcsight are in areas projected to see growth in the mid-market, say industry analysts. HP executives tell CRN that they are tapping managed service providers for the company's Fortify on Demand product, a managed version of its static and dynamic application analysis platform. HP Fortify continues to battle with IBM in the application security market, according to 451 Research, the market analysis division of The 451 Group. The on-demand model for code scanning is becoming broadly adopted in the application security market, said Wendy Nather, a research director within 451 Research's Enterprise Security Program. Vendors deliver the results through a portal and add value by removing false positives common with static source code scanners.
"The addition of humans on the backend to help validate the results is the biggest additional value that Fortify has brought in," Nather said.
Another big part of HP's channel executives say is the company's TippingPoint intrusion prevention system. HP competes in a market dominated by Cisco in a big way, especially with its acquisition of Sourcefire. Palo Alto Networks and FireEye are also getting attention with features and services that claim to identify zero-day exploits and custom malware. Much of the attention is due to heavy marketing spending, said John Kindervag, vice president and principal analyst at Forrester Research Inc.
"FireEye is one piece of data that needs to be analyzed in context to other pieces of data," Kindervag said.
Kindervag said the company has been slow to make Arcsight line easy enough to use forcing firms evaluating the technology to look at LogRhythm, Q1 Labs and RSA's security analytics platform. Meanwhile the market is facing major changes as big data Hadoop projects add on more powerful security analytics capabilities.
The channel can also play a role with Arcsight, according to HP executives, who say they have simplified the deployment and management of the security information event management platform. An Express version is also aimed at midsize businesses.
ArcSight remains a leader in the security information event management market against IBM (Q1 Labs), McAfee (Nitro Security), according to 451 Research. LogRhythm has a strong customer base. Meanwhile, Splunk is increasingly making inroads with security among large enterprise customers. The market is being somewhat disrupted by the layering of Hadoop data analytics platforms, a trend that is limited to large enterprises that can afford to buy complimentary technologies, Nather said.
PUBLISHED JUNE 6, 2014