Check Point's Gil Shwed: I’m cautious, but not hesitant
“We're studying acquisition targets, but growth through acquisitions is no simple matter, especially in the software business.”
Shlomit Lan 18 Aug 05 14:58
“Growth through acquisitions is no simple matter, especially in the software business. The most important thing is to find what suits the company’s strategy. It’s not easy finding the right deals,” Check Point Software Technologies Ltd. (Nasdaq:CHKP) CEO Gil Shwed told “Globes”.
Shed does not rule out acquisitions. “We’re constantly considering companies, and when we find the right things, we’ll buy them.” Shwed’s comment implies that acquisitions are not Check Point’s priority as a means to enhance growth.
In response to a question whether perfect information security was possible in the wake of the Trojan Horse Affair, he said, “Perfection is a matter of philosophy. As for the Trojan Horse, we sell fairly simple software tools to deal with it. The problem is people’s awareness and caution.
“It’s like a person crossing the road. He can cross without looking, or he can take 15 minutes looking both ways before crossing. The weak link is the human factor. Wherever people are involved, maximum caution should be used.”
“It’s possible to achieve a good understanding, and companies can obtain fairly good security at a reasonable investment. The cost of installing a Trojan Horse in a well-protected company could cost more than stealing documents, both in terms of money and in terms of the complications and risk involved.”
Commenting on competition with Cisco Systems (Nasdaq:CSCO), which has become mutually vituperative, Shwed said, “As far as security products are concerned, we have much better products that work better. Check Point’s existence is based on having better products than Cisco.
“99% of our customers are also customers of Cisco, and most of Cisco’s big customers are also our customers. They apparently have a reason. It seems that not only do we have better products, but we also have products that people need.”
As for depictions of Shwed as a cautious and conservative manager, he said, “I’m very cautious, but I’m not hesitant. My job as manager is to take risks and gamble on the future. But the moment I identify risks and gambles, it’s my job to minimize them. I think I have a broad view of the picture, and the experience to find the brave things to do, while balancing the risks.”
Published by Globes [online], Israel business news - www.globes.co.il - on August 18, 2005
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