Bell spins off security business, aims to capture major share of $1 billion market

The spin off of Bell Canada’s security business into a separate operating unit is designed to provide a more effective and holistic approach to network security provision and management, with the ultimate goal being to capture a major portion of the $1 billion Canadian security market. Bell Security Solutions Inc. (BSSI), which was officially launched at a press conference in Ottawa on February 15, will offer three broad product and service portfolios, giving the company the ability to offer an end-to-end approach on security and networking (see box). In an interview with Network Letter, Charles Salameh, president of the recently formed division, explained that as a carrier offering communications networks, it also has to be involved in being able to protect the content that is transmitted over those pipes. "If you’re going to offer the communications infrastructure to move content, then you better be able to ensure customers understand how to secure content…securing the content that rides on that network is just an inherent competency that we have already." Salameh also said that the company needs to remain nimble to respond to market changes. "Bell is just a huge machine and this is a very fast moving market. To be able to be agile and to be responsive to very quickly changing dynamics of the market within security was one of the reasons (for creating a separate company)," he said. Secondly, he added, security can now be viewed as being a standalone business. During a press conference announcing the creation of BSSI, Salameh said it marks an important step in recognizing an evolution in the Canadian communications landscape. "Our view is that security not be looked at in isolation of the network that information and content rides on, and Bell Security Solutions is one of the very few companies that’s taken a fully integrated view of network and security: a holistic point of view. (Our goal is to provide) a comprehensive holistic approach to security solutions," he told partners, interested parties and media in attendance. Isabelle Courville, Bell Canada’s enterprise group president, said that the formal creation of BSSI is "one of the building blocks in our transformation of Bell Canada in the enterprise market." It demonstrates yet another example, she added, of the company shifting from being a simple provider of network connectivity services to one that offers its enterprise customers a whole host of value-added services, with security being one of them. Salameh also stressed the company’s ongoing commitment to providing value-added services to Canadian businesses. "It’s a well kept secret that we have been a security provider for our customers for over three years. We have and are committed to continuing to provide these services. The launch of Bell Security Solutions (on February 15) is simply a reinforcement of that commitment," Salameh said. "Our job is simply to secure Canadian communications infrastructure. The company has a mandate, I’ve been given a mandate to establish Bell as a premier network and security provider coast to coast. We will assist companies in developing innovative solutions continuing to handle the escalation of threats, vulnerability and quite frankly now legal obligations. We will also assist companies in helping them understand the risk both present and future of the content and information they are required to protect," Salameh explained. The company, with headquarters in Ottawa, now counts about 200 professional employees and that number is expected to double by year’s end. To fully prepare the company to go forward, Bell will have invested more than $100 million by the end of 2006 and that includes staffing and acquisitions. Salameh said that there are a number of companies BSSI is interested in acquiring. Without revealing the identities, he stated that they will fall into two categories: market share expansion and capability enhancement. Companies of all sizes that are focused on providing security services to the government, finance, retail, insurance, manufacturing, transportation and healthcare markets, among others, are on the radar screens, he added.

Bell spins off security business, aims to capture major share of $1 billion market

News | March 2, 2005

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