Check Point Partners VMware - Analyst Blog

Check Point Software Technologies Ltd. CHKP recently announced a partnership with VMware, Inc. VMW to provide cloud-based security services. With this partnership, Check Point will enrich its virtualization, automation and cloud-based portfolios.

Through this collaboration, Check Point will combine its security solution Virtual Edition VE with VMware's vSphere or the new VMware NSX network virtualization platform that provides private cloud-based service to make the cloud-computing environment more secure, simple, flexible and efficient.

The partnership will better equip organizations to handle private cloud technology and control business applications securely. As VMware remains one of the leading companies in the virtualization and cloud computing space, we believe Check Point will gain significantly from this collaboration.

Due to the rapid adoption of cloud computing technologies, security and prevention of data loss have become the top priorities for enterprises in recent times. According to Gartner, the cloud-based security services market will rise from $2.1 billion in 2013 to $3.1 billion in 2015.

Check Point's innovative product portfolio is well positioned to benefit from this significant growth going forward. We believe the interoperability of Check Point VE and the VMware vCloud Suite will help customers accelerate their transition to the cloud.

Furthermore, Check Point has teamed up with the largest online retailer Amazon.com AMZN and its security offering can be easily downloaded through Amazon Web Services. We believe this integration will enable secure connectivity in dynamic cloud computing environments, which in turn would help Check Point to spur growth in the competitive market and accelerate product adoption.

However, competition from Cisco Systems Inc. CSCO and Juniper Networks Inc., an uncertain economic environment, competitive pressures, currency headwinds and Check Point's significant European exposure are concerns.

Currently, Check Point carries a Zacks Rank #3 (Hold).