Blue Coat Systems on Monday said it will roll out a cloud security service that will enable it to better target smaller businesses and remote offices as well as diversify its revenue stream, which relies on hardware appliances.
The Web Security and Wide Area Networking (WAN) optimization company said it first foray into software as a service (SaaS) will revolve around the Blue Coat Cloud Service, which will launch with a Web Security Module.
With the move, Blue Coat will take the software embedded into its security appliances and offer it as a service. Blue Coat’s security appliances hunt for malware and attempt to save enterprise employees from themselves. Many security issues are started by user mistakes, infections via social networking and other Web tricks.
Among the key points, according to Anthony James, vice president of product management at Blue Coat:
- Blue Coat customers have been expressing an interest in cloud services.
- The company can better target smaller businesses and remote offices with the cloud launch.
- The service is expected to be more complementary than competitive with antivirus companies such as McAfee, which is now owned by Intel.
- Volume pricing will run about $12 per user per year for the cloud service.
- Blue Coat doesn’t see much cannibalization from the cloud service. “We see this as an addition,” said James, who adds that many customers will add the on-demand software to existing appliance infrastructure.
- According to the company, it will expand the modules available in the cloud service.
- The Web service will be sold by partners instead of direct. James indicated that Blue Coat’s model has always relied on the channel. If Blue Coat reaches consumers it will be via white label deals with broadband providers.
The Web security service will revolve around Blue Coat’s WebPulse service, which vets possible malware from more than 70 million users. Blue Coat plans to add modules focused on WAN optimization to its cloud platform in the future.




