Sunday, July 26, 2015

Allot's Former CEO: "Security is the Right Direction for Allot"

The Israeli financial paper, Globes, interviewed (by Shlomit Lan, here, Hebrew) Rami Hadar [pictured], former Allot Communications' President and CEO about his new activity as one of the 3 managing partners of  Eucalyptus, a new investment fund seeking now $300M investments.

The article also discusses Allot's current situation [see "Is there a Problem in the DPI Market?" - here], providing some remarks from Rami (who is still a member of Allot's board of directors):
  • Of the 3 acquisitions made during his CEO term, Rami admits that one, the smallest, in the security space, was successful while the other two [see "Allot Buys Oversi for $16M in Cash" - here and "Allot to Buy Ortiva Wireless" - here] haven't yet shown success
  • "Every company goes through a crisis each time it doubles its revenues. It happens to Israeli companies when they reach annual revenues of $100-120M and then they standstill till they find the next growth engine, which takes few years"
  • "Almost half of Allot's revenues comes from 3-5 large customers [see "Allot: Two 10% Customers in 2014" - here] - that creates volatility. Andrei [Elefant, current CEO], understands that, and knows he needs to win more large operators and add complementary solutions. He announced recently that Allot entry into the security market [see "Allot CEO: We Compete Against Security Vendors " - here] - and I think it is the right direction for Allot


  1. Rami Hadar is the one that lead Allot to look 50% and more of their market CAP.
    1. The need to do like Sandvine and openet and develop/buy a PCRF, AAA and Billing company.
    2. The need solutions for Wifi offloading - growing market.
    3. Need to sell also for other operator types and not cling to high end Tier-1 where the sales takes up to 2 years.

    And more important - reduce the expenses and be more efficient. They burn 50M USD a quarter for a DPI company?!
    40M USD should be for all year.

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