StillSecure Sells Off Managed Services Division, Promotes New CEO

6/5/13Follow @MichaelXBD

Big changes appear to be happening at StillSecure, which announced today it has sold its managed security services division to a Connecticut-based company for an undisclosed price and has named a new CEO. StillSecure is a network security company based in Superior, CO.

StillSecure struck the deal with SilverSky, which develops cloud-based security software and managed services. The number of employees who will join SilverSky and whether they will remain in Colorado was not announced.

StillSecure also announced that James Brown is its new president and CEO. It’s a promotion for Brown, who was StillSecure’s chief technology officer and is a 10-year veteran of the company, according to a news release.

Brown replaces StillSecure founder Rajat Bhargava, who will remain chairman of the company. Bhargava founded the company in 2000 after Service Metrics, which he co-founded with Trada CEO Niel Robertson, was acquired by Exodus Communications for $280 million. Bhargava has helped launch other startups, including MobileDay, which is based in Boulder and of which he is a board member, and Boston-based Yesware, which he co-founded.

StillSecure’s release said the company now will focus its efforts fully on the network access control (NAC) business and selling its Safe Access software to commercial and government costumers.

“Our NAC business has been the vehicle upon which we’ve built our brand, our reputation and our significant customer base…” Brown said in the release. “With BYOD (bring your own device) driving the resurgence of NAC, we felt this was the right time to focus all of our energies on Safe Access.”

Brown elaborated on the opportunity on StillSecure’s blog.

“In 2011, Securing Bring-Your-Own-Device (BYOD) emerged as a real and serious need, and one that will only gain momentum. Because BYOD technologies are almost inherently mobile, and often involve unmanaged devices, it can be very difficult to enforce security policies involving it. Meeting this new challenge required new technologies and new innovations….This has driven a major resurgence in the NAC market, and in large part has driven StillSecure’s decision to divest its managed security services business and focus 100 percent on it’s Safe Access NAC product.”

StillSecure said its NAC clients include the U.S. Department of Defense, financial institutions, retailers, and healthcare companies. Its investors include Mobius Venture Capital, the firm managed by Brad Feld prior to the Foundry Group. Feld is a StillSecure board member.

SilverSky plans to add the assets acquired from StillSecure to its managed security services portfolio, it said in a release. The company said it plans to support StillSecure customers and channel partners.

StillSecure and SilverSky executives could not be reached this morning.

Michael Davidson is the editor of Xconomy Boulder/Denver. He covers startups, venture capital, clean tech, energy, aerospace, telecoms, and whatever else happens above 5,280 feet. Contact him at mdavidson@xconomy.com. Follow @MichaelXBD

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