VCs Notice Networking Security Firm

Vernier Networks has tacked on another $2 million to its most recent
financing round, another sign that security and networking plays are growing in popularity.

The latest windfall will be used to enhance Vernier’s Adaptive Security
Platform (ASP) — an integrated suite of security products to defend against
wireline and wireless network intrusions.

The offering is aimed at enterprise, health care, government and education
customers and is already used by Boingo Wireless, Hitachi Consulting and
University of California, San Diego.

“We have seen a recent surge in demand for the Vernier ASP as organizations
realized that the only true defense against intrusion threats is through an
integrated endpoint security solution,” Simon Khalaf, president and CEO of
Vernier Networks, said in a statement.

The financing is timely given recent research in the field. On Monday, a new
report Yankee Group predicted
that enterprise spending on outsourced security security will hit $3.7
billion by 2010.

Overall, enterprise spending on security is even higher. According to the
Radicati Group, the total enterprise security market is $2.9 billion
worldwide this year, and will reach $6.6 billion in 2008.

The chances of being bought by a large network equipment or security
software company are also looking brighter than in recent years.

The privately held Mountain View, Calif., firm has now raised $12 million in
its fourth round and $35 million since its founding in 2001.

Previous backers — Foundation Capital, DCM-Doll Capital Management, Allegis
Capital, UV Partners, Masthead Ventures and Weber Capital — added to their
investments.

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