Bolstering its capabilities in cybersecurity, Boeing [BA] is acquiring software firm Narus, which is based in California but has regional offices around the world, giving it a global presence in the cyber sphere.
Boeing “can’t play in a global market without global products” and Narus is there, Roger Krone, president of Boeing Network and Space Systems, tells reporters on a media call earlier this month.
Narus provides real-time analysis capabilities of Internet Protocol-based networks, further bolstering Boeing’s capabilities and presence in the cybersecurity space.
The primary reason for doing the deal is the “people and products” Narus has, Krone says. But Narus does do software development outside of the U.S. and Boeing needs global presence and reach with cybersecurity, he adds.
Krone says that about half of Narus’ 150 employees are in India. The company’s customers include one-third of the world’s largest wire line and wireless telecommunications companies, he says.
On its website, Narus says that its real-time traffic intelligence system is used by Korea’s KT, Japan’s KDDI, Raytheon [RTN], Telecom Egypt, India’s Reliance, Cable and Wireless, Saudi Telecom, U.S. Cellular, Pakistan Telecom Authority and more.
Narus’ products are also used by Boeing it its proprietary network, which is the sixth largest in the world, and in its military aircraft, Krone says.
Boeing’s existing cyber capabilities and customers are focused on the military and intelligence community. Krone says that Boeing has “deep content” in these domains but unlike other large defense contractors hasn’t proactively publicized its cyber work here.
Dot-Com Entrée
Narus provides an entrée into the “dot-com” domain, Krone says. The cyber market is still relatively immature, similar to the “Wild West” days at the start of the commercial airline industry, lacking standards, management and order, he says.
For the commercial Internet today standards and security issues are all still being dealt with and determined, Krone says. Boeing believes that certain rules and structures that currently exist in the military and intelligence domains for network security such as rules for authentication will migrate to portions of the dot-com domain, he says.
Krone says that Boeing won’t pursue customers across the entire dot.com realm but will focus on certain areas such as financial institutions, energy companies deploying smart grids and air traffic management. Anyone with large Internet-based networks and a deep packet inspection capability on a network with the need to analyze these for anomalies and threats is a potential customer, Krone says.
Krone also says that more than half of Narus’ customers are in the commercial sector although the company has a good balance of commercial and military work.
Narus’ product is called NarusInsight, which the company says provides wide visibility across “heterogeneous networks” and provide deep analysis into multiple layers of the network. That defense in depth allows users to analyze malicious traffic and take responsive action, Krone says.
One thing Boeing likes about the product is that once customers use it, they “tend to go very deep with it,” Krone says.
Terms of the deal were not disclosed. Narus will become a subsidiary within Network & Space Systems, which is a business within Boeing’s Defense, Space & Security division.
The acquisition follows the announcement in late June by Boeing to acquire the defense electronics firm Argon ST [STST] to boost its capabilities in the C4ISR and cyber areas.