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Loudcloud Steps-Up Security

Managed Service Provider (MSP) Loudcloud Inc. today launched four new managed security services, adding to its existing portfolio.

The expanded security offerings will be powered by the Loudcloud's Opsware automation technology, a technology that the firm says can bolster the security of customers' Web operations by minimizing human error when deploying, monitoring, and managing systems.

"Loudcloud enterprise customers are protected against disruptions around the clock," says Tim Howes, CTO and EVP of Development for Loudcloud.

"In addition to the extensive preventive and detective measures that are built into every site we manage, Loudcloud's newly expanded suite of managed security services enables our customers to further protect themselves against the growing number of threats," he explains.

Loudcloud's four new managed security services are:

  • Intrusion Detection Analysis: This service analyzes scans, probes, and intrusion attempts directed at the customer's site and provides a detailed report of statistics highlighting the sources of attack.

  • Vulnerability Analysis: Using vulnerability assessment tools Loudcloud security experts identify and analyze weaknesses in the customer's site profile and recommend a course of action to address any security exposures that are identified.

  • Application Attack Simulation: Using its partner @stake, a digital security consultancy, the service models specific threat scenarios, locates vulnerabilities, and validates specific exploitation possibilities, providing customers with an in-depth analysis.

  • Application Code Review: Also using the expertise provided by @Stake, security experts will examine customer's application source code to detect insecure coding techniques or practices that may allow for vulnerabilities such as URL tampering and cookie poisoning.

As for Loudcloud's existing security services, through SAS 70 Type I and Type II Audits conduced by accounting firm Ernst & Young LLP, the services have earned SAS 70 Type the SysTrust Certification.

The SAS 70 Audits measure and assess critical security-related elements and attest that vital operational controls have been effectively implemented.

According to Loudcloud, Ernst & Young LLP conducted the Audits after completing rigorous independent reviews. In receiving the SysTrust Certification, Loudcloud says it provides additional validation of the reliability of its systems when measured against availability, security, integrity and maintainability.

The firm also announced today that in light of its reduced losses in the third quarter, it expects full-year revenues to be at the high end of its previously announced prediction.

Loudcloud reported third-quarter revenues of $14.32 million, compared to $4.61 million in the same quarter last year and $14.1 million in the previous quarter, citing a rush of new and repeat business for the growth.

As a result, the firm now expects fourth-quarter revenue projections to between $15.5 up and $15.7 million and is reappraising full-year revenue predictions to be at the high end of the $53 million to $57 million range.

The company is still very much in the red, however. Loudcloud, an improvement on the $58.16 million recorded in the same quarter last year.

Investment research firm Goldman Sachs & Co., puts Loudcloud's robust Q3 down to aggressive cost cutting, particularly in sales and marketing (S&M) and research and development (R&D).

The firm says that while Loudcloud faces a number of challenges in the current economic environment -- it reported less than ideal net losses of $40.72 million for Q3 -- the company's technology and significant value proposition poise it to emerge in a position of strength, Goldman predicts.