Napera Networks Evolves, Moves Into Purely Cloud-Based IT Security

3/1/10Follow @gthuang

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business model that wasn’t working. Hooper says that by the fall of 2008, it was clear that Napera’s original model, which depended on global distribution of its software through channel partners, was too expensive. Around that time, the economy crashed and he was unable to raise more money.

So the company changed up and moved to a purely cloud-based subscription business model, analogous to Google Apps for businesses (things like Gmail, Google Calendar, and Google Docs). That was no easy task; it took Napera most of 2009 to switch over. It now has about 150 beta customers for its new service.

Hooper hopes the timing is right now. “When we started in 2006-2007, it was a little too early to say, ‘It’s a pure [software-as-a-service] model,’” he says. “There has been a pretty dramatic change in the last couple of years.”

Of course, with that change comes a lot of competition, from companies like Spiceworks, SolarWinds, PacketTrap (acquired by Quest Software in December), and Paglo (acquired by Citrix and announced last week). Hooper maintains Napera’s approach is different from all of theirs, mostly because of its new business model.

Napera currently has a dozen employees, and is not profitable as of yet. It is venture backed by Kirkland, WA-based OVP Venture Partners, which also funded WatchGuard (one of the VC firm’s most successful exits, in fact).

Gregory T. Huang is Xconomy's Deputy Editor, National IT Editor, and the Editor of Xconomy Boston. You can e-mail him at gthuang@xconomy.com or call him at 617-252-7323. Follow @gthuang

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