Morningstar | Fortinet Remains Fortified by Its Enterprise Presence and Subscription Offerings
Fortinet is a leading pure-play cybersecurity company that established its market presence by selling unified threat management, or UTM, appliances to small and midsize businesses. Its products were expanded into the more demanding enterprise, government, and service provider spaces, and the company also developed a centralized cybersecurity management plane. Fortinet sells security appliances and subscriptions as well as technical and professional services. We think Fortinet has established customer switching costs and has a nice runway for growth within its vast customer base by developing a holistic approach to network cybersecurity, which enables its users to upgrade their security capabilities through Fortinet's product ecosystem, while at the same time increasing its revenue stream from the stickier enterprise segment with nascent security offerings for cloud and software-defined networking.We believe the vast creation of data and the dispersed nature of network traffic, due to hybrid and multi-cloud-based environments and software-as-a-service applications, create a continually increasing number of threats. Attacks are becoming more masqueraded and serpentine, which drives up the complications associated with cybersecurity management and threat prevention. Compounded by a dearth of cybersecurity talent, we think that consolidated security platforms, like Fortinet's Security Fabric, will remain in high demand, as customers prefer to add capabilities via subscriptions over managing disparate software and hardware vendors.The company has a build-versus-buy mentality, with a penchant for making custom processors. While we believe this strategy has helped establish its name within the perimeters of localized networks, we expect Fortinet to supplement its engineering prowess with inorganic growth in areas like cloud-based security, machine learning, and automated threat responses. In our view, these high-growth areas can help drive new product growth on top of a considerable base of durable services and support income.Fortinet provides cybersecurity solutions. The company's product offerings consist of its FortiGate product family and its non-FortiGate products. The company's FortiGate hardware and software licenses are sold with a set of security services. These security services are enabled by FortiGuard, which provides threat research and artificial intelligence capabilities from a global cloud network to deliver protection services to each FortiGate appliance. The company's non-FortiGate products include the Fortinet Security Fabric (such as FortiAP, FortiAnalyzer, FortiSwitch and FortiManager), certain cloud security products (such as virtual machines and cloud services) and other products.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.