Cisco continues to shift its security strategy by moving to acquire Observable Networks

Over the past few years Cisco has changed the face of its security business. What was once a struggling concern is now the fastest-growing part of Cisco. How did the company do this? Part of the rebirth of Cisco security can be traced to a change in focus, away from point products to a more data-driven model. Big data, analytics and machine learning have been hot topics in IT, and Cisco has gotten religion in this area and applied it masterfully to its security business.

Today, Cisco added to that when it announced its intent to acquire privately held Observable Networks. The St. Louis-based company provides dynamic network behavior monitoring to help security teams find anomalies that could indicate a breach. The product captures data and analyzes it to gain situational awareness of all users, devices and traffic, not only on a company’s network, but also out to the cloud, with support for both Amazon Web Services and Microsoft Azure.

Observable Networks gains its insights from cloud-native machine learning techniques that can model device behavior to identify internal and external threats. Cisco will use Observable to extend the value of its Stealthwatch solution into public clouds.

The acquisition by Cisco is well-timed, since security is going through a significant shift. The bad guys are getting smarter and are no longer trying to hack through state-of-the-art, next-generation firewalls. Instead, their energies are spent finding ways to attack users and devices through email, file sharing and other cloud services. An interesting factoid from my research has found that although 90% of security spend is focused at the perimeter, only 27% of breaches happen at that point. Security professionals need to completely rethink security and move away from the notion that more point products in more places is the right approach, particularly in an era when businesses are connecting IoT endpoints at an unprecedented rate.