Check Point CEO warns on escalating cyberattacks

Cybersecurity companies speaking at the Globes Israel Business Conference Check Point Software Technologies Co., Ltd. (NASDAQ: CHKP) CEO Gil Shwed said that cyber-attacks are on the rise around the world and are causing more damage than ever before. Shweed was speaking with Asaf Gilead, the tech editor at Globes, as part of the Game Changer Sessions in collaboration with Playtika. Shwedo will step down as CEO after 30 years at the helm of the company he co-founded. Mr. Shweed will become executive chairman and be succeeded by Mr. Nadav Zafrir as CEO.

What are the characteristics of the attack?

“Attacks by Iranian organizations are very widespread and of many types, and before the war Hamas was very active, but now there are more organizations that are funded by Iran. The level of attacks is increasing and increasing. Previously they occurred sporadically, like gunfire, and caused more damage, but now they are integrated attacks that penetrate organizations. They are taking over assets and causing damage.

There are attacks on the top, MKs, ministers, what is happening?

“Whereas attacks used to involve sending phishing emails to millions of people and hoping someone would bite, they are now much more targeted and professional. It used to be easy to identify, but now the email is written in a very professional manner: “They conducted an investigation.” Because an expert from a US research institution should be contacting you. , search on the internet to find him. ”

I’ve witnessed sophisticated attacks where people use the names of senior executives in their companies to reach out to someone and ask for help. In the end, it is the victim who offers help and suffers great harm.

“The law is expanding, with regulations providing for increased fines for senior Israeli executives, and giving more powers to the National Cyber ​​Directorate. Some see it as a transfer of responsibility.

“In the entire cyber world, we are responsible for that. Most countries do not protect, and law enforcement authorities have little to do with it. In Israel, the situation has actually improved, but 99% of the burden is on us.” I’m against regulation of organizations in general, but it makes sense. I think the purpose of this bill is to remind administrators that cyberattacks are not just the responsibility of technical staff, and to explain that this is a big problem. Organizations must take steps to protect themselves.

“The industry is constantly innovating, and you can’t sell the same product for 10 to 20 years. Check Point sells the same gateway, but it doesn’t look anything like the gateway from 10 to 20 to 30 years ago. About 15 years ago, we introduced a new architecture that shifted the balance and turned firewalls into stronger security machines, and we changed our business model so that customers purchased a subscription to add an additional layer of security. More recently, customers have Purchasing subscriptions to our Services is our primary revenue driver.

“We offer modular, scalable protection delivered from the cloud that also protects corporate sites. It has completely changed our business model.”

We’re going to see more small businesses being acquired by larger companies.”

When it comes to cloud cybersecurity, there have been a number of acquisitions in this industry’s hottest space.

“The high-tech industry has always been based on mergers and acquisitions, and will become even more so in the future. The industry needs consolidation. There are tons of ideas, thousands of companies, and many While good, the average organization is unlikely to purchase dozens of solutions, and many businesses are not generating cash and are looking for a “home” or exit. In the future, we will see more small and medium-sized businesses being acquired by larger companies and implementing integrated solutions. We acquired 10 large companies. Companies have increased in Israel in recent years, each adding a new layer. ”

Your acquisition was relatively small. There were no major mergers to shake things up.

“Not yet, but maybe there will be more. There are not many large companies in this industry. There are about five companies the same size as Check Point. So rather than a large-scale merger, each company will It’s a portfolio-building situation.” ”

You are in your final days as CEO.

“Earlier this year, I announced that I was becoming executive chairman to focus more on strategy and was looking for a CEO to manage the company and help build strategy. – We found Mr. Zafrir. He officially started working at Check Point yesterday and has already met many of the employees in a few weeks. We feel that he is part of the family.

“I am very excited about this change. Nadav is a great leader, knows the industry well, the interaction between us has been great and he is the right person to lead Check Point. ”

When you announced your appointment, your stock price rose. What did you think about it?

“I felt good. The capital markets and Check Point are doing well. We took the company public 28 years ago and the stock price has gone up 70 times. I have no complaints about Wall Street. We’ve had a good year. It was.”

The stock has increased 130% since the beginning of the year.

“I’m very happy. I’m very satisfied.”

How do you transition your role? How do you let go?

“That’s a good question. Ask me in a few months. I don’t really know what’s going to happen. I’m very happy. Every meeting since 1996, I’ve asked myself why are we still working, when? I’ve been asked if I’m at work. Can you please move on? I’m 28 to figure this out. It’s been the right thing to bring new energy to the company. I have a lot of faith in our people. We’ve built a great organization, culture and security capabilities that are second to none. I really think so. I’m glad someone with more energy than me came to do this today.

“We’re very different people. I’m more focused on the technical side and internally, and he’s more focused externally. Obviously a CEO needs both, but his focus is It’s more about go-to-market and customer support. He has a network of security managers.”I think what Check Point needs now is to get the message out to the world about our security capabilities.

Check Point is Israeli and run by Israelis. What is it like when you talk to senior executives around the world?

“There is no big difference. We have always been treated as a global technology company. We do not hide our Israeli identity, nor are we even ashamed of it. After almost 32 years, , Check Point is recognized as an Israeli company.” That’s a good thing and I’m proud of it. Our customers buy top-notch security products from major companies, but that can be difficult for administrators from overseas. Having come to Israel, there are generally no major obstacles.

The Globes Israel Business Conference is organized in collaboration with Hapoalim Bank and Phoenix Holdings, and is supported by El Al, Bezeq, Nespresso, Walt, Dell, Israel Medical Association, Enerjan, Jewish National Fund, BlackRock, Playtica, Meta, Strauss Group, BAZAN Group, MSCI, Mekorot, Port of Ashdod, and Israel Innovation Agency participated.

Published by Globes, Israel Business News – en.globes.co.il – on December 3, 2024.

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