E-Security Inc., a small cybersecurity company, plans to move its headquarters to Tysons Corner from central Florida and has hired a new chief executive, Joseph P. Payne, to help it navigate the increasingly competitive market.
The privately held firm, founded in 1999, sells software that integrates disparate computer security systems. For example, a company that uses one brand of software to detect intrusions on its network and another to create a firewall, would be able to monitor all activities from one program, company officials said.
E-Security is positioning itself to tap into the growing concern about vulnerability to computer attacks. There were 73,359 cybersecurity breaches and attacks through the third quarter of this year, surpassing the 52,684 that were reported in all of last year, according to the CERT Coordination Center, the computer-security reporting center based at Carnegie Mellon University.
Integration of security software is still an embryonic market, in which no company has more than $10 million in revenue and most have less than $2 million, said Matthew Easley, an analyst with research firm Gartner Group. E-Security and companies like it must compete with big companies such as International Business Machines Corp., company officials acknowledged.
Payne was once a top executive at local software firm MicroStrategy Inc. He left MicroStrategy in February 2001 to become chief executive of eGrail Inc., a Bethesda firm that manages online content. EGrail was sold to California-based FileNet Corp. in April.
E-Security improved its software's interface, adding graphics and color to make it easier to navigate, company officials said. The firm also added six salespeople in Europe, they said.
"The market is growing, and we are looking to capitalize on that growth," Payne said.
E-Security's business has been hit like others by the slowdown in the software industry. "We're seeing deals close but they are taking longer to close" in the commercial sector, Payne said.
The company's government business, which accounts for about 40 percent of its revenue, continues to grow, according to a company spokesman. "The emphasis on security since 9/11 and legislation such as the Patriot Act are helping us close business more quickly in the federal area," Payne said.
Moving to Virginia will put the company in the center of a technology market and closer to government customers, Payne said. The new headquarters, which is to open by the end of the year, will house 20 to 30 sales and marketing employees initially, Payne said. Most of E-Security's 75 employees -- mostly engineers -- will stay in Rockledge, Fla., he said.
E-Security also announced $10 million in additional funding from three investors -- Fidelity Ventures, FT Ventures and Updata Venture Partners. The group invested $20 million in January 2001.