Here’s some relevant info on the just announced ESTC acquisition of endpoint security software firm Endgame.
What is endpoint security?
Endpoint security or endpoint protection is an approach to the protection of computer networks that are remotely bridged to client devices. The connection of laptops, tablets, mobile phones and other wireless devices to corporate networks creates attack paths for security threats. Endpoint security attempts to ensure that such devices follow a definite level of compliance to standards.
Remember that Elasticsearch has Beats.
Beats is the platform for single-purpose data shippers. They send data from hundreds or thousands of machines and systems to Logstash or Elasticsearch.
We have also started to see our Beats agents being used more and more beyond just as server-side machines, and being installed on endpoints of many kinds, including workstations. Endgame’s endpoint product is purpose-built to run on a variety of endpoints, such as Windows, Mac, Linux, and Solaris devices, and using Beats will form a foundation to ship endpoint data into Elasticsearch.
See the fit there?
The Endpoint platform is currently based on Elasticsearch. Also from that blog.
We have known about Endgame and its endpoint product for quite some time. The product embeds Elasticsearch as its main data store for its alerts and investigation workflows, and is considered one of the best endpoint solutions out there today.
The deal is reported as $234M in all stock issuance. What is Elastic getting for that?
“Endgame had been working on growing its annual recurring revenue, which it said in materials sent to investors earlier this year was about $21.8 million in 2018, up from just $3.6 million in 2016. It had been aiming for $39 million in revenue for 2019, according to those materials.”
Endgame expects $39M in revenues for 2019 up from $21.8M in 2018. That comes in at 79% yoy growth. At $234 price tag that represents a forward P/S of 6! And growth of 79%! For the revenue add-in alone that is very attractive.
Endgame gets very high reviews. Here’s the Gartner insights with a stellar 4.9/5. Note there are only 15 reviews, they are a fairly small company after all.
“The product itself is best-in-class”
What does Elastic plan to do with Endgame and the Elasticsearch stack? From Shay during Q&A.
“But then we’re also moving up, and you should expect us to see over the next year a more curated experience when it comes to the SIEM product and the SIEM market and are starting to release a concrete product in that space. I’m also excited about the – I’ll mention it again. I’m excited about the endpoint market and our Endgame opportunity.
We’ve been developing the ability to shift some security events obviously not at the scale of what the Endgame product has into the Elastic stack because we know once you put all of this type of information in a search engine, you really empower security researchers and security users across the world. And to be honest, you bring security capabilities to dev ops and ops people out there. So we’re excited about doing that. And when you really look at these two markets, you start to see that they’re really – they work wonderfully together, and it’s a compounding effect that you can give to any type of security user out there by merging together SIEM and endpoint.
And that’s our goal moving forward with this acquisition, is to be able to provide the best product to market and asking tough questions like why do you have two products? Or single-user experience that any security user out there deserves.”
It appears the roadmap is to develop a more concrete combined SEIM/endpoint security platform for the entire digital stack.