Fortinet | Leading in Cyber Security and Software | SKYY
Fortinet Offering
Fortinet Inc. provides network security solutions and is a leader
in cybersecurity applications and software.
Offering network security appliances, related software, and subscription
service, Fortinet systems integrate the industry's broadest suite of security
technologies, including firewall, VPN, antivirus, intrusion prevention (IPS),
web filtering, antispam, and traffic shaping [1].
More recently,
Fortinet has been active in the Cloud space. The company have rapidly expanded
their partner-focused Security-as-a-Service (SaaS) cloud offerings with
additional FortiCloud solutions, providing the industry’s most extensive
collection of Management-as-a-Service (MaaS) and SaaS services [2].
The breadth
of services available provides Fortinet partners and customers the opportunity
to select cloud security and management offerings that are easy-to-implement
and scalable as their business grows. Their broad FortiCloud Services portfolio
enables customers to consolidate their number of security vendors to streamline
threat correlation [3].
FortiCloud
Services currently includes 10 MaaS and SaaS offerings, including FortiGate
Cloud Service, Fortinet’s cloud-based firewall management tool, which is
experiencing rapid growth and already has over 550,000 subscriptions.
Similarly, FortiSandbox Cloud has a high adoption rate – reaching 125,000
licensed users [4].
In addition
to Fortinet's strong revenue growth in recent years, its expense management
efforts have shown impressive operating margins and earnings-per-share (EPS)
growth [5].
Security Breaches Benefit Fortinet
As security breaches become a more regular occurrence, along with
threats becoming more sophisticated affecting millions of people around the
world, Fortinet is at an advantage as its solutions are being adopted by organisations
globally.
Further, Gartner research expects that cyber security will generate
more than $200 billion in revenue by 2021. This, coupled with the growth
of Cloud means that Fortinet is well positioned as these two areas benefit from
increased corporate spending [6].
Fortinet was
the first cyber security company named as a founding partner of the World Economic
Forum’s Centre for cyber security, as it is seen as a leader in responding to
the growing global cyber security threat [7].
Additionally, Gartner has ranked Fortinet within the top three companies
in its Magic Quadrant for enterprise network firewalls, which measures market
trends and direction.
And in January 2017, Fortinet worked closely with Interpol, conducting an
investigation into web security in several Southeast Asian
countries. Fortinet discovered a spyware
that scammed victims by impersonating the US IRS. In 2018, Fortinet entered into an
information-sharing agreement with Interpol [8].
Analysts are 'Bullish'
A key reason
why analysts are bullish on Fortinet is because it is a subscription and
service sales model. It costs far less to service existing customers than
relying solely on generating new sales.
With the growth of the Internet of Things (IoT), cloud, and
infrastructure markets continuing to skyrocket, Fortinet is well placed.
Find out more about the HAN-GINS Cloud Technology UCITS ETF (SKYY).
As of 31st July 2019, the HAN-GINS Cloud Technology UCITS ETF (SKYY) held 1.93% of its weight in Fortinet.
Read our SKYY Whitepaper "Ahead in the Clouds" here.
Article Date: 1st August 2019.