Google Cloud’s newest data center opens in Salt Lake City

Google Cloud announced today that its new data center in Salt Lake City has opened, making it the 22nd such center the company has opened to date.

This Salt Lake City data center marks the third in the western region, joining LA and The Dalles, Oregon with the goal of providing lower latency compute power across the region.

“We’re committed to building the most secure, high-performance and scalable public cloud, and we continue to make critical infrastructure investments that deliver our cloud services closer to customers that need them the most,” said Jennifer Chason, director of Google Cloud Enterprise for the Western States and Southern California said in a statement.

Cloud vendors in general are trying to open more locations closer to potential customers. This is a similar approach taken by AWS when it announced its LA local zone at AWS re:Invent last year. The idea is to reduce latency by moving compute resources closer to the companies that need them, or to spread workloads across a set of regional resources.

Google also announced that PayPal, a company that was already a customer, has signed a multi-year contract, and will be moving parts of its payment systems into the western region. It’s worth noting that Salt Lake City is also home to a thriving startup scene that could benefit from having a data center located close by.

Google Cloud’s parent company Alphabet recently shared the cloud division’s quarterly earnings for the first time, indicating that it was on a run rate of more than $10 billion. While it still has a long way to go to catch rivals Microsoft and Amazon, as it expands its reach in this fashion, it could help grow that market share.

RSAC 2020 Kicks Off with SentinelOne’s Singularity Platform

It’s RSAC 2020, and as you would expect from a company that puts innovation and customer experience at the heart of everything we do, we are here with a stunning booth that is delighting our visitors. 

image of tweet about SentinellOne being favorite booth at RSAC 2020 conference

The booth at #727 South has a completely digital floor and ceiling, each portraying data entering and leaving our platform; it’s dynamic and changing all the time. In the center, there’s a tree-like structure which symbolizes not only the consolidation of a variety of cybersecurity spaces (EPP, EDR, IoT, CWPP) but also movement of data to and from other solutions into one platform. 

Announcing the Singularity Platform

Did someone mention one platform? Yes, we did! We kicked off the day and the conference with a demonstration of our Singularity platform, an industry-first data lake that seamlessly fuses together the data, access, control and integration planes of EPP, EDR, IoT and CWPP (Cloud Workload Protection) into a singular platform. What this means for our enterprise customers is integrated coverage of every attack surface, offering protection and visibility along with contextualized data right across the enterprise. Our Singularity platform – with one codebase, one deployment model –  provides autonomous protection, automation and threat intelligence from endpoint to cloud.

There’s One Virus That Isn’t Here

With so many AV specialists around, it’s no wonder that the conference is in full-swing, and fears of that other kind of virus, Covid-19, aka the novel Coronavirus, don’t seem to have dampened the enthusiasm of attendees to explore the many fascinating aspects on offer or to explore the offerings from different areas of the world. Among others, Germany, the UK and Israel all hosted national “pavilions” to showcase the capabilities and cyber security solutions of vendors from their regions. 

Sadly, three major vendors including AT&T and IBM did withdraw from the event out of health concerns, but aside from a somewhat quiet China booth, it seems like business as usual for everyone else. 

The Human Element

This year’s conference theme puts the spotlight on ‘the Human Element’ in cybersecurity. With a well-publicised shortage of talent in the industry, it’s more important than ever to recognize the role that good people, not just great technology, play in defending organizations against other people: the bad actors intent on stealing our data, money and intellectual property. 

SentinelOne helps individuals at all levels to grow into and succeed in their role. From giving CISOs peace-of-mind and sparing SOC analysts the evils of alert fatigue, to helping IT staff succeed in defending their networks with a product that does not require complex training or certifications to master, SentinelOne’s easy-to-use console with deep visibility and rapid threat hunting platform is here to help. 

image of mitre indicators

Conclusion

With 500 sessions, and over 700 exhibitor booths at RSAC 2020, it’s practically impossible to take in everything that the RSA Conference has to offer. But if there’s one booth that you are going to want to experience first-hand (the pictures just don’t do it justice), it’s the SentinelOne Singularity booth at #727 South. Come along and say “hi”, snap a selfie under our digital “tree” and learn about what other surprises we’ve got in store for the rest of the week. See you there!


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Salesforce grabs Vlocity for $1.33B, a startup with $1B valuation

It’s been a big news day for Salesforce . It announced that co-CEO Keith Block would be stepping down, and that it had acquired Vlocity for $1.33 billion in an all-cash deal.

It’s no coincidence that Salesforce targeted this startup. It’s a firm that builds six industry-specific CRMs on top of Salesforce — communications, media and entertainment, insurance and financial services, health, energy and utilities and government and nonprofits — and Salesforce Ventures was also an investor. This would appear to have been a deal waiting to happen.

Brent Leary, founder and principal analyst at CRM Essentials, says Salesforce saw this as an important target to keep building the business. “Salesforce has been beefing up their abilities to provide industry-specific solutions by cultivating strategic ISV partnerships with companies like Vlocity and Veeva (which is focused on life sciences). But this move signals the importance of making these industry capabilities even more a part of the platform offerings,” Leary told TechCrunch.

Ray Wang, founder and principal analyst at Constellation Research, also liked the deal for Salesforce. “It’s a great deal. Vlocity gives them the industries platform they need. More importantly, it keeps Google from buying them and [could generate] $10 billion in additional industries revenue growth over next four years,” he said.

Vlocity had raised about $163 million on a valuation of around $1 billion as of its most recent round, a $60 million Series C last March. If $1.33 billion seems a little light, given what Vlocity is providing the company, Wang says it’s because Vlocity needed Salesforce more than the other way around.

“Vlocity on its own doesn’t have as big a future without Salesforce. They have to be together. So Salesforce doesn’t need to buy them. They could keep building out, but it’s better for them to buy them now,” Wang said.

Still, the company was valued at $1 billion just under a year ago, and sold for $1.33 billion after raising $163 million. That means it received 8.2x total invested capital ($1.33 billion/ $163 million invested capital), which isn’t a bad return.

In a blog post on the Vlocity website, founder and CEO David Schmaier put a positive spin on the deal. “Upon the close of the transaction, Vlocity — this wonderful company that we, as a team, have created, built, and grown into a transformational solution for six of the most important industries in the enterprise — will become part of Salesforce,” he wrote.

Per usual, the deal will be predicated on regulatory approval and close some time during Salesforce’s second quarter in fiscal 2021.

Twilio 2010 board deck gives peek at now-public company’s early days

Twilio is best known for its communications API, which allows developers to add messaging, voice or video to their apps with just a small slice of code. The company’s tools are used by customers like Lyft, Airbnb, Salesforce, Box and Duke University.

The former startup went public in 2016 at $15 a share. Yesterday Twilio’s stock closed at $113.90, giving the company a market cap of about $15.6 billion (after a horrendous week on Wall Street). It’s easy to look at its value (among other measures) and declare Twilio a successful public company. But just like every former startup out there, its ascent wasn’t always so certain.

Founded in 2008, Twilio was once a tentative early-stage company feeling its way forward in the market with an unproven product and more future potential than actual results. Recently, the company’s CEO Jeff Lawson shared a Twilio board deck from March 2010.

Naturally, we read through it — how could we not? — but we also decided to analyze it for you, pulling out what we learned and using the snapshot of Twilio’s history to illustrate how far the company has come in the last decade.

The presentation’s original time stamp lands after Twilio’s Series A and just before its Series B, allowing us to see a company molting from a hatchling to something more sturdy that could stand on its own two feet. The company raised $12 million six months after the deck was presented.

To get everyone on the same page, we’ll start with a little history, and then get into the deck itself. Let’s go!

Where Twilio came from

Stonly grabs $3.5 million to make customer support more interactive

Stonly is building a service for customer support teams so that they can share step-by-step guides to solve the most common issues users have. The startup just raised a $3.5 million funding round led by Accel with business angels also participating, such as Eventbrite CTO Renaud Visage and PeopleDoc founders Jonathan Benhamou and Clément Buyse.

The startup isn’t building a chatbot for customer support — chatbots usually don’t understand what you mean and you end up contacting customer support anyway. Stonly believes that scripted guides with multiple questions work much better than both chatbots and intimidating knowledge bases.

But the company is well aware that it isn’t going to replace Zendesk or Intercom overnight. That’s why a Stonly guide is a module that you can embed in your existing tools. The startup currently supports Intercom, Zendesk, Freshdesk and Front.

This way, if somebody contacts you on Front or Intercom, you can reply with a Stonly guide to help your users solve their own issues (at least if it’s a common issue). Stonly is also launching its own more traditional knowledge base powered by Stonly guides so that your client can access common questions through a chat widget.

Putting together a Stonly guide doesn’t require any technical skills. After defining the steps, you can write text, add images, videos and buttons in a web interface. Stonly also supports translations.

And it’s been working well for the startup’s first clients. For instance, Dashlane noticed a 25% decrease in opened tickets for their most frequent issues after using Stonly. Other clients include Devialet, Happn and Calendly.

With today’s funding round, the startup is expanding to the U.S. with a new office in New York and David Rostan, VP of Sales and Marketing at Calendly, is joining as head of revenue.

Freshworks acquires AnsweriQ

Customer engagement platform Freshworks today announced that it has acquired AnsweriQ, a startup that provides AI tools for self-service solutions and agent-assisted use cases where the ultimate goal is to quickly provide customers with answers and make agents more efficient.

The companies did not disclose the acquisition price. AnsweriQ last raised a funding round in 2017, when it received $5 million in a Series A round from Madrona Venture Group.

Freshworks founder and CEO Girish Mathrubootham tells me that he was introduced to the company through a friend, but that he had also previously come across AnsweriQ as a player in the customer service automation space for large clients in high-volume call centers.

“We really liked the team and the product and their ability to go up-market and win larger deals,” Mathrubootham said. “In terms of using the AI/ML customer service, the technology that they’ve built was perfectly complementary to everything else that we were building.”

He also noted the client base, which doesn’t overlap with Freshworks’, and the talent at AnsweriQ, including the leadership team, made this a no-brainer.

AnsweriQ, which has customers that use Freshworks and competing products, will continue to operate its existing products for the time being. Over time, Freshworks, of course, hopes to convert many of these users into Freshworks users as well. The company also plans to integrate AnsweriQ’s technology into its Freddy AI engine. The exact branding for these new capabilities remains unclear, but Mathrubootham suggested FreshiQ as an option.

As for the AnsweriQ leadership team, CEO Pradeep Rathinam will be joining Freshworks as chief customer officer.

Rathinam told me that the company was at the point where he was looking to raise the next round of funding. “As we were going to raise the next round of funding, our choices were to go out and raise the next round and go down this path, or look for a complementary platform on which we can vet our products and then get faster customer acquisition and really scale this to hundreds or thousands of customers,” he said.

He also noted that as a pure AI player, AnsweriQ had to deal with lots of complex data privacy and residency issues, so a more comprehensive platform like Freshworks made a lot of sense.

Freshworks has always been relatively acquisitive. Last year, the company acquired the customer success service Natero, for example. With the $150 million Series H round it announced last November, the company now also has the cash on hand to acquire even more customers. Freshworks is currently valued at about $3.5 billion and has 2,7000 employees in 13 offices. With the acquisition of AnsweriQ, it now also has a foothold in Seattle, which it plans to use to attract local talent to the company.

As Block exits, Salesforce forecasts it will surpass $20B in revenue in FY2021

When Keith Block joined Salesforce from Oracle in 2013, the CRM giant was already a successful SaaS vendor on a billion dollar quarterly revenue cadence. When the co-CEO announced he was stepping down yesterday, the company reported revenue of $4.9 billion for the quarter.

During his tenure, the company’s revenue more than quadrupled, earning an impressive $17.1 billion last year, and as Block announced at the earnings call, the company he was leaving was forecasting revenue of $21 billion for FY2021.

Consider that it was not that long ago in May 2017 that we wrote about the company reaching the $10 billion mark. It’s perilously easy to get lost in these numbers, to take them for granted and think they don’t mean as much as they do. It’s hard work to build a billion SaaS business, never mind $10 billion or $20 billion.

Yet Salesforce is embarking on unchartered territory for a SaaS company. It’s approaching $20 billion in revenue for a single year.

Growth through acquisition

Granted the company keeps growing revenue by making big deals like buying Mulesoft for $6.5 billion in 2018 or Tableau for $15.7 billion in 2019, or just this week buying Vlocity for a mere $1.33 billion. That means the company spent more than $25 billion over a couple of years to buy substantial companies that help them build their business.

Block took a moment to brag a bit about his accomplishments including how some of those purchases performed during his swan song call with Salesforce, calling it a capstone of his time at Salesforce.

“In Q4, we grew 32% in the Americas, 28% in APAC and 47% in EMEA in constant currency. Now that includes our recent acquisitions. And at the close of FY 2020, the number of Salesforce customers spending $20 million annually grew 34%,” he said.

Think about that last number for just a minute. This a SaaS vendor with the number of customers spending $20 million growing by 34%. Block helped orchestrate that growth and worked with the executive team to help determine which companies it should be targeting.

At a press conference in 2016 at Dreamforce, he discussed Salesforce’s acquisition strategy. At the time, it had bought a 10 of 12 companies it would end up acquiring that year. It would buy only one in 2017, before revving up again 2018. Here’s what he said about what they look for in a company, as we reported in an article at the time:

“We look at culture. Will it be a good cultural fit? Is it a good product fit? Is there talent? Is there financial value? What are the risks of assimilating the company into our company,” Block explained.

What’s next for Block?

There is no word on what Block will do next beyond acting as an advisor to his former co-CEO Marc Benioff, who took time in the earnings call to thank his colleague for his time at Salesforce. As well, he should.

As Ray Wang, founder and principal analyst point out, Block leaves a big hole as he steps away. “If there is no equivalent replacement, you will see a significant impact in sales. Keith brought industries and sales discipline,” Wang told TechCrunch

It will be interesting to watch what he does next, and who, if anyone, will benefit from his vast experience helping to build the most successful pure SaaS company on the planet.

Zyxel 0day Affects its Firewall Products, Too

On Monday, networking hardware maker Zyxel released security updates to plug a critical security hole in its network attached storage (NAS) devices that is being actively exploited by crooks who specialize in deploying ransomware. Today, Zyxel acknowledged the same flaw is present in many of its firewall products.

This week’s story on the Zyxel patch was prompted by the discovery that exploit code for attacking the flaw was being sold in the cybercrime underground for $20,000. Alex Holden, the security expert who first spotted the code for sale, said at the time the vulnerability was so “stupid” and easy to exploit that he wouldn’t be surprised to find other Zyxel products were similarly affected.

Now it appears Holden’s hunch was dead-on.

“We’ve now completed the investigation of all Zyxel products and found that firewall products running specific firmware versions are also vulnerable,” Zyxel wrote in an email to KrebsOnSecurity. “Hotfixes have been released immediately, and the standard firmware patches will be released in March.”

The updated security advisory from Zyxel states the exploit works against its UTM, ATP, and VPN firewalls running firmware version ZLD V4.35 Patch 0 through ZLD V4.35 Patch 2, and that those with firmware versions before ZLD V4.35 Patch 0 are not affected.

Zyxel’s new advisory suggests that some affected firewall product won’t be getting hotfixes or patches for this flaw, noting that the affected products listed in the advisory are only those which are “within their warranty support period.”

Indeed, while the exploit also works against more than a dozen of Zyxel’s NAS product lines, the company only released updates for NAS products that were newer than 2016. Its advice for those still using those unsupported NAS devices? “Do not leave the product directly exposed to the internet. If possible, connect it to a security router or firewall for additional protection.”

Hopefully, your vulnerable, unsupported Zyxel NAS isn’t being protected by a vulnerable, unsupported Zyxel firewall product.

CERT’s advisory on the flaw rate this vulnerability at a “10” — its most severe. My advice? If you can’t patch it, pitch it. The zero-day sales thread first flagged by Holden also hinted at the presence of post-authentication exploits in many Zyxel products, but the company did not address those claims in its security advisories.

Recent activity suggests that attackers known for deploying ransomware have been actively working to test the zero-day for use against targets. Holden said the exploit is now being used by a group of bad guys who are seeking to fold the exploit into Emotet, a powerful malware tool typically disseminated via spam that is frequently used to seed a target with malcode which holds the victim’s files for ransom.

“To me, a 0day exploit in Zyxel is not as scary as who bought it,” he said. “The Emotet guys have been historically targeting PCs, laptops and servers, but their venture now into IoT devices is very disturbing.”

CircleCI-AWS GovCloud partnership aims to bring modern development to US government

Much like private businesses, the United States government is in the process of moving workloads to the cloud, and facing a similar set of challenges. Today, CircleCI, the continuous delivery developer service, announced a partnership with AWS GovCloud to help federal government entities using AWS’s government platform to modernize their applications development workflows.

“What this means is that it allows us to run our server offering, which is our on-prem offering, and our government customers can run that on dedicated pure cloud resource [on AWS GovCloud],” CircleCI CEO Jim Rose told TechCrunch.

GovCloud is a dedicated, single tenant cloud platform that lets government entities build FedRAMP-compliant secure cloud solutions (other cloud vendors have similar offerings). FedRAMP is a set of government cloud security standards every cloud vendor has to meet to work with the federal government

CircleCI builds modern continuous delivery/continuous integration (CI/CD) pipelines for development teams pushing changes to the application in a rapid change cycle.

“What GovCloud allows us to do is now provide that same level of security and service for government customers that wanted us to do so in an on prem environment in a dedicated single tenant environment [in the cloud],” Rose explained.

While there are a number of steps involved in building cloud applications, Rose said they are sticking to their core strength around building continuous delivery pipelines. As he says, if you have a legacy mainframe application that changes once every year or two, using CircleCI wouldn’t make sense, but as you begin to modernize, that’s where his company could help.

“[CircleCi comes into play] when you get into more modern cloud applications that are changing in some cases hundreds of times a day, and the sources of change for those applications is getting really diverse and managing that is becoming more complex,” Rose said.

This partnership could involve working directly with an agency, as it has done with the Small Business Administration (SBA), or it might involve a systems integrator, or even AWS, inviting them to be part of a larger RFP.

Rose says he realizes that working with the government can sometimes be controversial. Companies from Chef to Salesforce to Google have run afoul with employees who don’t want to work with certain agencies like DoD or ICE. He says his company has tended to focus on areas where agencies are looking to improve citizen interactions and steered away from other areas.

“From our perspective, given that we’re not super involved in a lot of those areas, but we want to get in front of it, both commercially, as well as on the government side, and determine what falls within the fence line and what’s outside of it,” he said.

Salesforce co-CEO Keith Block steps down

Salesforce today announced that Keith Block, the company’s co-CEO, is stepping down. This leaves company founder Marc Benioff as the sole CEO and chair of the CRM juggernaut. Block’s bio has already been wiped from Salesforce’s leadership page.

Block stepped into the co-CEO role in 2018, after a long career at the company that saw him become vice chairman, president and director before he took this position. Block spent the early years of his career at Oracle . He left there in 2012 after the release of a number of documents in which he criticized then-Oracle CEO Mark Hurd, who passed away last year.

Industry pundits saw his elevation to the co-CEO role as a sign that Block was next in line as the company’s sole CEO in the future (assuming Benioff would ever step down). After this short tenure as co-CEO, it doesn’t look like that will be the case, but for the time being, Block will stay on as an advisor to Benioff.

“It’s been my greatest honor to lead the team with Marc [Benioff] that has more than quadrupled Salesforce from $4 billion of revenue when I joined in 2013 to over $17 billion last year,” said Block in a canned statement that was surely not written by the Salesforce PR team. “We are now a global enterprise company, focused on industries, and have an ecosystem that is the envy of the industry, and I’m so grateful to our employees, customers, and partners. After a fantastic run I am ready for my next chapter and will stay close to the company as an advisor. Being side-by-side with Marc has been amazing and I’m forever grateful for our friendship and proud of the trajectory the company is on.”

In related news, the company also today announced that it has named former BT Group CEO Gavin Patterson as its president and CEO of Salesforce International.