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Alea,
I hear you, but I would not want a CEO to be solely guided by appearance to shareholders.
Because there is a void of any real information, it is impossible to gauge the cost/benefit of the deal.
From a cost perspective, Wave is cash poor so there really is no other means to fund development like this. It is favorable to Wave paying cash (Wave would have sold shares in this scenario as well).
"if you think the equity will increase in value, it's not a very smart way to pay someone." -- Ha, perhaps the other party valued their IP at $5 mm. :)
Alea,
I truly think the Wave team knows it is about closing revenue generating deals. That said, they obviously should not close the doors to future development or product enhancement or extension.
I personally cannot make heads or tales out of the 8k. Wave paid to license software. I am unsure why there is an unnamed party on the other end.
No bitlocker backdoor:
http://mashable.com/2013/09/11/fbi-microsoft-bitlocker-backdoor/
"I was asked multiple times," Biddle told us, confirming that a government agency had inquired about backdoors, though he couldn't remember which one. "And at least once the question was more, 'If we were to officially ask you, what would you say?'"
Alea, I did not declare anything a religion, did I? Asking an opinion is a religion? You posted a lot about the subject, so I assumed you had an opinion. It seems like good logic to me.
How can you say anything for certain that is not in your complete control? Blue can make these sort of declarations (meant in good fun), but us earthly types don't operate with such certainty.
Alea,
can you tell me your position on the TPM? I believe it is based on an open standard without a back door. You?
Alea,
I was hesitant about putting in that line, because I knew it provide an opportunity to throw out the rest of the post and redirect to a political argument.
Let's both throw politics aside. Reread the post. The TCG is an open standard. If there is a backdoor in TCG specs, there is one everywhere. Unless you have evidence that there is a backdoor programmed, this is the type of standard you should trust unless you simply do not trust anything digital.
Alea,
all technology can be implicated as good or bad. The internet can be considered a great innovation or you can write a scathing article saying it spreads viruses and opens the door to spying; same with any technology.
The TPM was designed with enhanced security in mind. If the keys can be exploited, there is a front door. The TCG has over a hundred participating companies and opens the door to anyone to participate in defining the open standard (If there is a back door here, you can just assume there is a backdoor everywhere -- abide by the law and you should be okay). From the TCG:
“The Trusted Computing Group (TCG) believes that open, interoperable, and internationally vetted standards are critical for the success of trusted computing, and that the multilateral approach to creating such standards is most effective.
TCG works within the international standards community, and has liaison and working group relationships with the Internet Engineering Task Force (IETF) and the JTC1 joint committee of the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC). The Trusted Platform Module is defined by an ISO/IEC international standard*. The TCG Certification Program leverages established and recognized security evaluation standards. This program relies on certification by laboratories operating under the supervision of National Schemes of Common Criteria members.
In support of open security standards, TCG encourages all nations to adopt global best practices around standards development and adoption. An open process fully supports worldwide participation from industry, academia, and government with fair and transparent development and decision processes. Specifications must be fully transparent and available to all participants, both during development and for implementation. TCG supports the use of published, peer reviewed standards and cryptographic algorithms.
TCG only supports open standards that are developed through a transparent development process, have undergone rigorous open review, and are compatible with existing global standards. Closed standards hamper both existing and emerging markets, and are detrimental to the security of global ICT infrastructure, representing an obstacle to technology innovation and industry growth.
TCG recognizes international standards in the field of IT security as the most appropriate method to ensure efficacy, interoperability, adoption and user acceptance. TCG takes into consideration international market requirements through international membership and welcomes participation from industry, academia, and governments in a unified, worldwide Trusted Computing standards development process.”
Other GMT holdings and old Claugus interview.
http://www.sec.gov/Archives/edgar/data/1106191/000110619113000005/xslForm13F_X01/edgarfiling13f06302013.xml
http://online.wsj.com/article/SB930955574759083659.djm.html
GMT takes WAVX position.
Did not see this before. Interesting from the perspective that I think Claugus was once a high profile short of Wave.
http://www.nasdaq.com/symbol/wavx/institutional-holdings/increased
Another quick thought,
Money is best raised when it is not presently needed. "I need money" tattooed on your forehead will consistently ensure poor terms. While we may skate by without needing to raise capital, the shelf and anticipated need has obviously been the friend of shorts.
New Wave,
at worst, the news relieves some box-out worry. As it would appear, Wave is not getting blind-sided by any new Windows 8 developments. Given the recent love for Microsoft, it would at least appear those inside of Wave are excited for Windows 8.
Certainly the need for hardened security is not diminishing. The persistence of advanced threats is only increasing. Additionally, given the continued broad commitment of significant players, it seems Wave is obviously playing in a space with tremendous potential. GM, PWC, and BASF are not going to be the last and only enterprises to embrace a change that will radically improve upon current accepted standards.
John
Blog post:
http://blog.wave.com/berger/new-cloud-based-wave-encryption-service-delivers-a-class-of-data-protection-once-available-only-to-large-corporations-2/
New Cloud-Based Wave Encryption Service Delivers a Class of Data Protection Once Available Only to Large Corporations
The risk of data breaches unfortunately brings out the gambler in many organizations. Currently, many companies are praying they won’t get breached or, if they do, that they won’t have to disclose it. Some believe the definite costs of IT security and disclosure of potential risks outweigh the possible costs of data breaches themselves.
Ask anyone who’s suffered a catastrophic breach whether that’s true.
Here’s the thing: The frequency, severity and cost of data breaches worsen every day, resulting in more commercial and government regulations requiring disclosure and penalizing noncompliance. Mobile devices are becoming ubiquitous, creating more potential exposure points for sensitive data beyond traditional IT security perimeters. Ignoring proactive steps to protect data is playing a game of chance with your brand and customer’s trust.
Data breaches pose an even greater risk to small and mid-sized businesses (SMBs). With breaches averaging $214 per compromised record in 2010, according to one report, even relatively small ones can devastate smaller businesses, which must follow all data protection requirements that large enterprises do, but often lack the IT infrastructure, staff and money to fulfill those mandates quickly, easily and cost-effectively. These organizations have lingered in a technological no man’s land, needing enterprise-level protection with consumer-level ease of use but finding few solutions that offer both. Many have had to accept higher risk of data breaches because they couldn’t implement the protection they need.
That changes today. Wave is announcing its new Wave Encryption Service (WES), a Cloud-based subscription service suitable for both the SMB and the enterprise. Designed for frictionless implementation, WES is easy to buy, deploy, manage and enforce. Further, as the first Cloud-based service enabling central management of self-encrypting drives, WES offers top shelf data protection in minutes, and for far lower up-front costs than dedicated solutions.
With WES, businesses can now automatically implement and enforce encryption policies on any corporate Microsoft Windows-based computer from virtually any location, even if the computer is lost or stolen. Thus, it helps level the data security playing field for SMBs by offering a level of protection previously available only to large enterprises.
Main WES features include:
¦A Web-based unified management console that allows businesses to organize their devices into policy groups
¦Support for multiple encryption technologies ranging from Microsoft BitLocker to self-encrypting hard drives (SEDs)
¦Pre-configured policy settings, alerts and reports that show compliance on demand
¦A centralized management log to meet safe harbor requirements
¦An intelligent client agent that:
¦automatically enrolls target devices
¦implements and enforces centralized policy settings even on disconnected devices
¦locks out data based on centrally designated triggers such as hard drive removal
¦Easy one-touch service activation that helps customers achieve IT security policy compliance in minutes rather than days
¦Low-touch deployment that frees organizations to focus on their core business
¦Transparency to end users, with no effects on user actions or system performance
WES is a game changer—delivering cost-effective data security to organizations of any size. Appropriate for the SMB, it also offers tremendous value to large enterprises as well, since its world-class protection easily scales to millions of devices without the need for additional dedicated resources. Plus, it is always up-to-date, which eases the burden of installing service packs and hotfixes on devices scattered across the global enterprise.
In short, WES can help all our customers better protect their critical data, reputations and bottom lines. That’s important to us at Wave, as the more companies we can help put their gambling days behind them, the better
Well said both of you. I am not going to lie, I benefit the most when the gap is the greatest between price/valuation and my perception of value...so thanks to the sellers. Things are happening as they should from my perspective.
So are you telling me you would not employ your father and brother if they were qualified? Again, I hired many people I knew. Investors who do not like it should do what the a poster on this board tried to do...rally investors and change the board. Compensation and executive conflicts of interest are things for a strong board.
I can think of some legitimate reasons to criticize Sprague, a blog entry is not among them.
Additionally, clearly the chap is not hoping for a cyber-attack. He is merely pointing out it will likely happen.
Cheers to a rewarding 2012!
FYI on the Wave blog:
http://blog.wave.com/sprague/2011-made-history-let%e2%80%99s-learn-from-it-in-2012/
Steven Sprague
December 28, 2011
2011 Made History; Let’s Learn From It in 2012
Historians will label 2011 as the year when our IT security infrastructure failed us. The RSA and Sony breaches, attacks by Anonymous and LulzSec, even WikiLeaks drove home to the broad marketplace that when it comes to data security, cyber attackers can take down systems and steal data at will.
The worst thing is, we all saw it coming. We’re trapped in a reverse “Groundhog Day” scenario where things keep repeating but get worse instead of better. It brings to mind Winston Churchill’s adage, “Those that fail to learn from history are doomed to repeat it.”
I’m also reminded of the Maginot Line, France’s answer to World War I trench warfare that German tanks blitzed past on their way through Belgium in World War II. With both the Maginot Line and software-based IT security over the past several years, the establishment continued pouring resources into better, more expensive solutions for fighting the last war, instead of preparing for the next one. The difference, of course, is that the French abandoned the Maginot Line after it failed.
We’ve been fighting a new war with old weapons for a while now and our enemies – cybercriminals and Advanced Persistent Threats (APTs) – are breezing past our defenses and occupying our systems. We need a new strategy. We know what works – device-based security that ensures only known devices and users access networks and data. Protecting identity-authenticating encryption keys in hardware keeps the bad guys out.
Then as now, the problem isn’t technology, it’s the will to mobilize. Many vendors care more about quarterly profits and selling their entrenched (pun definitely intended) products instead of collaborating on new approaches to address a common mortal threat.
Eventually, the IT security industry will drop its myopic refusal to consider proven hardware-based security practices from other industries, such as telecommunications and cable. When was the last time you heard about cloned cell phones or stolen cable accounts?
Despite all the bad news this year, I’m still hopeful for 2012. Here are some of my thoughts on what we can expect in the coming year:
1. We will see a significant cyber attack on a major public utility or power grid of significant scope and size.
2. The actual “physicality” (size, type, etc.) of the mobile device will no longer define the device’s functionality. To explain further, whether you have a tablet, smartphone or laptop, the barriers to categorizing a device will blur.
3. Along the same lines, the BYOD phenomenon will continue to flourish and will put tremendous pressure on the software security model.
4. Other government agencies will follow the lead of NSA and DoD in promoting change as it relates to touting and deploying hardware-based security.
5. Major technology players will jump in with Intel (DeepSafe) and Microsoft (Windows smiley?) in embracing embedded security solutions and best practices.
6. Apple’s IT security model will gain more recognition as a model worth emulating. Surprised? Most people are so absorbed with Apple’s aesthetics and user interfaces that they miss how Apple has created a perfect example of identity-centric security for enterprise networks. As one of the biggest suppliers of consumer IT devices, Apple wants people to access networks securely. So they allow only known users and devices, only five devices per user, every device must run whitelisted applications on an approved OS, and they require DRM for content. Managing one endpoint on their device-centered security model costs a tenth of what many enterprises pay for ineffective network-based security systems. I’d love to see more organizations copy that.
Anyway, let’s hope in 2012 we see large-scale implementation of lessons learned from history’s mistakes and today’s good examples. We’re at a tipping point; it’s our choice now how history will label us.
Wavxmaster,
the volume #s you are quoting are unlikely in a mass cover scenario. Happy Holidays to all. Things are happening as they should.
Cheers!
Kaleid,
it sounds like this chap thinks it is time to stuff stockings with Wave shares ;) Happy Holidays to all. From my perspective, things are happening as they should.
jakes dad,
I don't know that I would label this doc as a plan: "A primary objective of the Federal cybersecurity R&D strategic plan is to express a vision for the research necessary..."
A plan usually expresses explicit takeaways and to dos.
Jakes dad,
apparently there is a secret world some of us do not know about:
https://scrambls.com/
Maynard,
I would guess today's rise in price was exclusively the result of general market sentiments. I think Wave investors are in a wait and see mode and if they wait too long they will be seeing higher prices.
The importance of security in Windows 8 (note -- I know of no Wave connection to Windows 8):
"A lot of those worries—myths in Intel’s view—have links to Windows 8. Here’s what Otellini said about Windows 8:
We are very excited about Windows 8. I think it’s one of the best things that’s ever happened to our Company. And it’s a very good operating system, not just for PCs, but we think also will allow tablets to really get a legitimacy into mainstream computing, particularly in enterprises that they don’t have today. A lot of the enterprise managers are worried about security, they’re worried about the difficulty affording their legacy applications over to an Android tablet or to an iPad.
What Microsoft is doing is making that seamless for them. And they have a new experience, which they call Metro, that’s the interface up there. But for Intel-based machines, there is also one button that basically takes you back to your classic Windows experience and that’s a software button essentially.
So you’re just running one manifestation of the operating system with two different GUIs, if you will, it’s not running on virtual machines, it’s one manifestation. So this gives us, x86, in particular, I think a unique advantage as Windows 8 comes to market, because we can take advantage of all the legacy that was ever written, and all of the fact that all the drivers for the mice and for printers and every other USB device in the world. For example, getting photos off your camera and onto a tablet.
Try that if you don’t have a driver, doesn’t work. On the other hand, if that tablet is running [an extension] of Windows, it’s going to work just like it works with the PC today. So there is a huge advantage built in that we think we have as the Windows 8 products start launching."
Alea,
the best returns are earned by understanding something better than everyone else. From my perspective, things are happening as they should and I am seeing data points that I would expect considering the general path of this co.
Zen and Alea,
nice thoughts. I think it is up to anyone investing to weigh the pros and cons of an investment. Risk free exists in minds only.
Alea,
agreed, this is another significant milestone for many reasons. Things are happening as they should if one expects Wave to make a meaninful impact on trusted computing.
Sureudo,
I agree -- nice thoughts dig.
Taxi,
I am not Alea, but considering the timing of the deal, it leads me to believe it is with an exisiting customer or close partner.
Weby,
nice thoughts. I thought it was a solid call. Thanks to the transcriber. Things are happening as they should. Steady growth, expansion of partner base, expansion of product offering, FTE growth, and expanded market awareness of TC capabilities. The outlook is very encouraging. Results and price will follow.
Lugan,
nice summary. I did not get the opportunity to listen to the call, so thanks for summarizing. Things are happening as they should. Did anyone ask about the increase in head count?
Currently, there are 18 open positions at Wave:
http://www.wave.com/about/employment.asp
The rate of hiring is continuing at a rapid rate. Why? Not specific to you dig -- was not meant as a reply.
Doma,
they forgot to add the, "You can never sell your shares" clause. They should have enticed them with dividends and demanded the shares be held eternally. Doma, attempted humor aside, is this what you are suggesting?
Maynard,
as I and others have stated on FTE growth -- there are one of two possibilities: 1.) Current and expected growth require us to grow the base 2.) Someone in Lee has lost it. Given the company we keep, one is a good bet. This is very meaningful and telling and largely ignored.
Alea,
well stated. It is not necessary to dangle to create excitement. Steven has not yet figured out how to generate excitement without dangling.
Barge,
Steven has obviously done something right. At the same time, it is a matter of fact that it is not healthy in any relationship when words cannot be trusted. I can assure you his miscommunications are not limited to investors. This poses a risk whether you believe it or not. Hopefully he has positive compensating factors in other areas.
Alea,
it is damaging to the shareholders when the CEO's words cannot be trusted. Steven is a wild card.
As an FYI,
on the planet I am from, you only hire for one reason. Hopefully, they are from the same planet.
Alea,
investors own the company and should be seeking as much information as can be disclosed. Steven is obviously very poor at setting expectations. There is a way to generate excitement and be realistic at the same time. The FTE growth is staggering for a company which has not announced a meaningful deal in 6 months. It portends movement behind the scenes. I inquired with leadership and mum is the word.
At present, current share price is obviously not their top concern. I know as a matter of fact there is a better way to expectation set resulting in a more stable share price. However, I will take the negative of poor communications if more important skills at this stage compensate for the weakness in communication. Share price is only meaningful for exit, entry and peace of mind. There are enough data points to paint a fair picture of what is happening, but it is always more helpful to not have to infer the connection points. As usual, I am sure very disjointed thoughts above, but I have some odds and ends time available to post today.
Root,
well stated.
Escrow,
I believe there are over 10+ positions they are still looking to fill. Something is fueling the need to add to the employee base.