Check Point Secures Through Amazon

Tel Aviv, Israel-based network and Internet security solutions provider Check Point Technologies Ltd. (CHKP - Analyst Report) will now make its security offering easily available through the cloud. Check Point’s security gateways will now be available to customers for downloading through Amazon.com Inc. (AMZN - Analyst Report) Web Services.

Amazon.com operates as an online retailer in North America and internationally. In addition, the company serves developers through Amazon Web Services (AWS), which provides access to technology infrastructure that developers can use to enable various types of virtual businesses. All services over AWS are billed on usage, but how the usage is measured for billing varies from service to service.

Developers can access Check Point’s software blades, such as Firewall, Intrusion Prevention, Application Control and URL Filtering. The arrangement will help organizations (those who have account in AWS) to easily deploy Check Point’s virtual appliance to activate protections that prevent network attacks and data breaches, while enabling secure connectivity in dynamic cloud computing environments.

A broad portfolio of appliances has made Check Point the market leader in network security. Now, with its offerings being easily available through Amazon’s customized cloud, Check Point could witness rapid product adoption, which could in turn help it take market share from key players such as Cisco Systems Inc. (CSCO - Analyst Report), Juniper Networks Inc. (JNPR - Analyst Report), Symantec Corp. (SYMC - Analyst Report) and Microsoft Corp. (MSFT - Analyst Report).

We are encouraged by Check Point’s growth prospects indicated by its continuous market share gains, strength at the high end of the market, product launches and the growing demand for its blade solutions. But limited scope for margin expansion (over-dependence on indirect sales model), an uncertain economic environment and its European exposure are concerns.

Currently, Check Point has a Zacks #3 Rank, implying a short-term Hold recommendation.