Unlocking Simplicity in Network Security: The Cato Networks Story

A vision born from complexity

Most security companies grow reactively, a continuous, complex cycle of funding and building point solutions to address emerging point problems. Cato Networks chose to revisit and address two decades of accumulated complexities in networking and security infrastructures, looking to finally solve and break the point problem, point solution cycle. Cato envisioned a better way. It began not just with a forward-looking question, but with a reflective look into the past: What if network security could be as straightforward as clicking a button?

“What can we do to actually solve that problem that no point solution can solve, that only adds to the complexity?” shared Yishay Yovel, Chief Strategy Officer at Cato, during a candid discussion with Vikram (Vik) Sood, Managing Director Tech Investment Banking at Jefferies, during Tech Trek 2023.  Inspired by the transformative simplicity that AWS brought to cloud computing, Cato set out to do the same in network security – to allow enterprises of all sizes, with all levels of expertise, to access the same security capabilities once reserved for industry giants.

Crafting the unique: a platform approach

It’s clear that Cato is not just a participant, but a pioneer in a sector burdened by complexity. Recognized by leading industry analysts like Gartner and Forrester, Cato’s single-vendor SASE platform architecture, Cato SASE Cloud, is the answer for enterprises overwhelmed with managing multiple security products.

“We are the first vendor to build a platform from the ground up so we consistently deliver what customers need today, and what they will need in the future, in the exact same way,” Yovel states. This strategic choice not only simplifies and optimizes network and security infrastructure out of the box but aligns with the demand for vendor consolidation.

Organizations no longer tolerate lengthy deployments, planning, rising costs, and unproductive finger-pointing. They need agility, and they need it now.

The ‘Rip and Replace’

Cato’s strategy is bold. It involves removing outdated, cumbersome, and costly traditional architectures, replacing them with an infrastructure that is scalable, resilient, global, secure, and optimized. This transformation is not just about updating technology; it’s about revolutionizing how enterprises operate and grow. The Cato SASE Cloud platform is a turnkey service that delivers security and optimization to anyone, anywhere, at any time – from the largest data center down to a single user. “You take stuff out that costs you, is painful to own and operate on your own, and then you move to something that is an outcome-driven platform,” Yovel states.

Innovative sales strategy

Cato’s sales strategy is designed to integrate into the financial frameworks of enterprises, which means easier adoption without imposing extra costs. Highlighting the hard and soft benefits, Yovel talks about this unique approach: “Cato projects are funded by existing budgets. If you can come to a customer and demonstrate both the hard savings that will come from consolidating multiple budgets – for firewalls, for remote access, for networking infrastructure – you save money on that side.”

This sales motion not only removes direct acquisition costs, it significantly lowers Total Cost of Ownership (TCO). By streamlining how network security is delivered, and by eliminating the need for disparate security solutions, Cato helps businesses achieve long-term savings.

Cato’s SASE platform also enhances operational agility. Its soft benefits change and simplify the management of network security, enabling IT teams to respond more swiftly to business demands and focus on growth initiatives. Enterprises can finally optimize both their IT infrastructure and their fiscal resources with ease.

Facing the future with confidence

Cato’s growth strategy is articulated across two dimensions. The first focuses on their move up-market from an established mid-market base. Yovel explains “Because our technology is so transformative and disruptive, and requires ‘rip and replace’ of infrastructure, we started in the mid-market.” Recent customer acquisitions, such as Carlsberg, demonstrate Cato’s ability to scale and cater to the complex demands of renowned global brands, showcasing the robustness and suitability of its SASE platform for the largest enterprises.

The second dimension involves Cato extending its technological reach beyond the core into adjacent markets, actively expanding its capabilities in XDR, endpoint, and IOT. This not only broadens Cato’s market presence, but also enhances its value proposition across a more diverse customer base.

A story still unfolding

Cato is on a clear path to IPO with its ambitions shaped by the leadership of its founder, Shlomo Kramer. Anecdotally, Yovel offers “When Cato goes public, Shlomo Kramer will be the only founder to take three companies in cybersecurity from seed to multi-billion-dollar IPOs, in history.”

Cato’s journey is heavily influenced by its roots in Israel, a nation renowned for cybersecurity innovation. With its unparalleled SASE platform, next-gen technology, strategic market expansion, strong leadership, and the trust of investors – transition to a public company edges closer.

Cato isn’t another success story; it’s an ongoing revolution in network security. A narrative that invites every enterprise to turn the page to a simpler, more secure future.

Explore the full story

Gain further insights into how Cato is redefining an industry, and the future of network security. Watch the full interview here.

Credit: Vikram (Vik) Sood