Smokescreen Technologies

History

2021: Acquisition by Zscaler

On May 25, 2021, it became known that Zscaler, one of the American providers of cloud protection solutions, is acquiring the startup Smokescreen Technologies, whose flagship development Smokescreen is designed to counter targeted cyber attacks, intrusions and attempts to introduce ransomware encryptors into corporate resources.

Zscaler acquires an IB startup to combat intrusions and targeted attacks < br/> Source photo: investorplace.com

Zscaler intends to integrate Smokescreen developments into its ZIA system for protecting web gateways and ZPA - a solution for protecting access to the network, as well as other solutions.

Through acquisitions, we seek to occupy any potential niches that will help us enter or strengthen our position in adjacent markets, said Zscaler CEO Jay Chaudhry, noting that the company has gained very high potential for expansion.

Zscaler does not explicitly name the cost of the transaction, noting, however, that operating expenses in the quarter that ends July 31, 2021 will increase by $2.5-3 million, and additional operating expenses in the next financial year, which ends July 31, 2022, will amount to $13-15 million.

Just a month ago, Zscaler announced the acquisition of another startup, a platform developer to protect access to Trustdome cloud resources. Smokescreen and Trustdome products will be integrated into Zscaler offerings.

Smokescreen appeared in 2015. As of May 2021, its staff is 42 people. During its existence, it did not attract financing from outside, that is, it existed and developed its main product, using only its own funds.

The company's flagship platform uses proactive principles to combat cyber threats: a large number of false targets are located inside the protected network, simulating the resources most interesting for potential attackers. This allows you to quickly collect telemetry and block the efforts of attackers in the event of a real attack. The company officially calls its technology "Deception technology."

The use of traps and false targets also makes it very difficult for attackers to complete their task. In theory, you can crack anything, the main question is the cost of the resources necessary for this. If it is too difficult to conduct an attack, if the "operation" encounters unexpected obstacles, the attackers will rather prefer to look for other victims, says Mikhail Zaitsev, an information security expert at SEC Consult Services.

The expert also added that the Smokescreen platform provides customers with means to combat the most current and most dangerous varieties of cyber attacks.

The deal is expected to close in the fourth quarter of the current financial year, which will end on July 31, 2021^[1].

Notes