RealTime IT News

Digital Security Play Vigilinx Launches With $75 Million

Call it sheer luck.

Alley-based digital securities service Vigilinx has announced its launch with help from a $75 million funding commitment. Thursday's launch coincided with reports of a denial of service attack that plagued several Microsoft properties.

"We'd like to say we planned it that way, but the truth is that it was just dumb luck," said Bruce Murphy, CEO of Vigilinx.

Murphy is only half joking. While Microsoft's denial of service attack was clearly an unintended bit of free promotion, Murphy thinks it shows how security considerations are not only here to stay, but also are getting increasingly complicated.

"There's no doubt that these sorts of attacks are happening more and more. And there's an increased need to address security issues," said Murphy. "And we want to help organizations manage the whole range of security issues, as well as clean up the mess after it hits the fan."

But launching a securities service at a time when such plays are taking a beating in the marketplace sounds like a risky proposition. Earlier this week, Predictive Systems , an Alley security firm which also specializes in consulting for major corporations, announced its fourth quarter would be about $2.3 million below expectations because of slowing corporate IT spending.

And Vigilinx also faces some stiff competition from an already crowded field of security services. In addition to Predictive Systems, there are a host of similar plays, including Viant and Reciprocal Inc.

But Murphy says that Vigilinx will use a very different service model to reach profitability. While the company plans to offer the standard array of security services, including designing and implementing security and the so-called "forensic" work after a security breach, it also plans to offer out-sourced services which will help it to offer a more complete and cutting-edge solution to clients.

"Many of our clients will be organizations who've already made significant in-roads towards technology infrastructure. And these systems are getting increasingly complex, and the problem of how to protect them has become increasingly complex," he said. "But many of these organizations can't afford to keep the array of people they need. We think by adapting a co-sourcing model, we can own most perspectives of a client's security."

Vigilinx announced its launch in conjunction with its acquisition of Ifsec, a security consulting firm. DC-based venture capitalists Thayer Capital Partners supported the company's launch and its acquisition of Ifsec with a $75 million funding commitment.

"We're hoping that this round is the only money we'll need," said Murphy, who was formerly head of the Technology Risk Services consulting practice at PricewaterhouseCoopers. "The funding should last us until we can carry through on the weight of our own business. We're planning to use the vast majority of it to finance acquisitions, and put the rest towards organic growth."

Paul Zakrzewski is associate editor of atNewYork.