Microsemi Invests in Veracity to Support Commitment to IoT Security Market
ALISO VIEJO, Calif, Jun. 22, 2016 – Microsemi Corporation (Nasdaq: MSCC), a leading provider of semiconductor solutions differentiated by power, security, reliability and performance, today announced its collaboration with Veracity Security Intelligence, an innovator in network security delivering an enterprise class security platform for operational technology (OT) networks, to develop secure networking solutions for industrial Ethernet deployments. Security and the threat of cyberattacks are emerging as key concerns for industrial companies, such as power and utilities seeking to protect revenue, as well as network safety and reliability. This collaboration brings new capabilities to the market as the first security solution of its kind optimized for industrial networks, enabling full industrial network security with a simple software installation in managed industrial switches. "Our collaboration with Veracity underscores Microsemi's commitment to enable and accelerate the transition of industrial networks to Ethernet with broad offerings of silicon, system and software solutions," said Larry O'Connell, director of product marketing at Microsemi. "Veracity's security software solution, combined with Microsemi's Ethernet switch portfolio, will enable industrial companies to easily secure their Ethernet networks with minimal software and hardware upgrades, unlike alternatives which require a complex and costly network overhaul."
Microsemi has also invested in Veracity. This investment is part of an early stage raise allowing Veracity to fund its product development efforts to address security needs of an ever growing landscape of industrial threats. This minority position will enable Microsemi to further collaborate with Veracity to deliver innovative security solutions to its strategic customers.
"Internet of Things (IoT) security applications are an important part of our long-term growth at Microsemi, and we are committed to building upon our market advantages," said Steve Litchfield, executive vice president and chief strategy officer for Microsemi. "Security needs within the IoT market are growing significantly, with Gartner currently forecasting the demand for connected things to reach 11.4 billion devices in 2018, and we believe hardware-based security for IoT is a key differentiator-particularly in industrial and automotive applications."
Microsemi is addressing several levels of security threats in all of the company's feature sets and looking to invest in differentiated technologies to build upon its technology capabilities. For example, industrial network security is typically done in isolation or by implementing a firewall between the corporate and industrial network. Using Veracity's software on Microsemi's switch platform, customers can quickly and seamlessly add security applications and policies to existing networks centrally, without making costly changes to the network topology or incurring network downtime. This innovative approach delivers centralized security orchestration with distributed execution, improving the efficiency, resiliency and security of OT networks. It also reduces downtime without adding another layer of network complexity. Target applications for the collaborative security solutions include industrial automation, process control and smart grid/smart energy.
Potential losses of more than $1 trillion, resulting from a possible cyberattack on the U.S. power grid, have been estimated by a Cambridge University study in partnership with Lloyds. In order to combat these increasingly sophisticated attacks, industrial network owners will spend more than $9 billion in 2016 and more than $11.3 billion by 2019, according to market research firm ARC Advisory Group.
"Security is top of mind for industrial companies, including utilities, in the wake of cyberattacks like we recently saw in the Ukraine, where a coordinated exploit on the electric grid plunged more than 230,000 homes and businesses into the dark," said Paul Myer, CEO of Veracity. "We are pleased to share our expertise in network security software with an industry leader like Microsemi, which is bringing next generation security features to the market with its latest integrated circuits and reference designs."
Veracity network security provides complete network visibility and control with applications that deliver programmable security zones and a proactive policy engine based upon pre-defined risk categories and prioritized remediation. The company provides an innovative and comprehensive security platform that is complimentary to existing OT networks. As a leader in the industrial market, Microsemi is leveraging the relationship with Veracity to bring these capabilities to its customers in the security and communications markets by incorporating Veracity's security software into its existing and new product designs.
The new security solutions from Microsemi and Veracity for the industrial Ethernet market will be available the second half of 2016. For more information, visit http://www.microsemi.com/products/ethernet-solutions/ethernet-solutions and http://www.microsemi.com/applications/industrial/industrial-ethernet or contact Email Contact.
Microsemi Corporation (Nasdaq: MSCC) offers a comprehensive portfolio of semiconductor and system solutions for aerospace & defense, communications, data center and industrial markets. Products include high-performance and radiation-hardened analog mixed-signal integrated circuits, FPGAs, SoCs and ASICs; power management products; timing and synchronization devices and precise time solutions, setting the world's standard for time; voice processing devices; RF solutions; discrete components; enterprise storage and communication solutions, security technologies and scalable anti-tamper products; Ethernet solutions; Power-over-Ethernet ICs and midspans; as well as custom design capabilities and services. Microsemi is headquartered in Aliso Viejo, California and has approximately 4,800 employees globally. Learn more at www.microsemi.com.
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"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Any statements set forth in this news release that are not entirely historical and factual in nature, including without limitation statements related to its collaboration with Veracity Security Intelligence, an innovator in network security delivering an enterprise class security platform for operational technology (OT) networks, to develop secure networking solutions for industrial Ethernet deployments, and its potential effects on future business, are forward-looking statements. These forward-looking statements are based on our current expectations and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. The potential risks and uncertainties include, but are not limited to, such factors as rapidly changing technology and product obsolescence, potential cost increases, variations in customer order preferences, weakness or competitive pricing environment of the marketplace, uncertain demand for and acceptance of the company's products, adverse circumstances in any of our end markets, results of in-process or planned development or marketing and promotional campaigns, difficulties foreseeing future demand, potential non-realization of expected orders or non-realization of backlog, product returns, product liability, and other potential unexpected business and economic conditions or adverse changes in current or expected industry conditions, difficulties and costs of protecting patents and other proprietary rights, inventory obsolescence and difficulties regarding customer qualification of products. In addition to these factors and any other factors mentioned elsewhere in this news release, the reader should refer as well to the factors, uncertainties or risks identified in the company's most recent Form 10-K and all subsequent Form 10-Q reports filed by Microsemi with the SEC. Additional risk factors may be identified from time to time in Microsemi's future filings. The forward-looking statements included in this release speak only as of the date hereof, and Microsemi does not undertake any obligation to update these forward-looking statements to reflect subsequent events or circumstances.