Defense Contractor Makes Leap Investment Into Cybersecurity  

April 30, 2015

The expression goes “you should look before you leap,” meaning you should make plans and wise choices before you barrel headfirst into what might be a brick wall.  Some might say Raytheon could be heading that way with their recent investment, but The Wall Street Journal says they could be making a wise choice in the article, “Raytheon To Plow $1.7 Billion Into New Cyber Venture.”

Raytheon recently purchased Websense Inc., a cybersecurity company with over 21,000 clients.  Websense will form the basis of a new cyber joint venture and it is projected to make $500 million in sales for 2015.  Over the next few years, Raytheon predicts the revenue will surge:

“Raytheon, which is based in Waltham, Mass., predicted the joint venture would deliver high-single-digit revenue growth next year and mid-double-digit growth in 2017, and would be profitable from day one. Raytheon will have an 80% stake in the new cyber venture, with Vista Partners LLC holding 20%.”

While Raytheon is a respected name in the defense contracting field, their biggest clients have been with the US military and intelligence agencies.  The article mentions how it might be difficult for Raytheon’s sales team and employees to switch to working with non-governmental clients.  Raytheon, however, is positioned to use Websense’s experience with commercial clients and its own dealings within the security industry to be successful.

Raytheon definitely has looked before its leapt into this joint venture.  Where Raytheon has shortcomings, Websense will be able to compensate and vice versa.

Whitney Grace, April 30, 2015
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph

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