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Exam Code: NSE7_ATP-2.5 Practice test 2022 by Killexams.com team
NSE7_ATP-2.5 Fortinet NSE 7 - Advanced Threat Protection 2.5

Fortinet NSE 7 - Advanced Threat Protection 2.5
Exam series: NSE7_ATP-2.5
Number of questions: 30
Time allowed to complete: 60 minutes
Language: English and Japanese
Product version: FortiSandbox 2.5

How to protect their organization and Improve its security against advance threats that bypass traditional security controls
l How FortiSandbox detects threats that traditional antivirus product miss
l How FortiSandbox dynamically generates local threat intelligence, which can be shared throughout the network
l How other advanced threat protection (ATP) components—FortiGate, FortiMail, FortiWeb, and FortiClient—leverage this threat intelligence information to protect organizations, from end-to-end, from advanced threats

After completing this course, participants will be able to:
l Identify different types of cyber attacks
l Identify threat actors and their motivations
l Understand the anatomy of an attack—the kill chain
l Identify the potentially vulnerable entry points in an Enterprise network
l Identify how the ATP framework works to break the kill chain
l Identify the role of FortiSandbox in the ATP framework
l Identify appropriate applications for sandboxing
l Identify FortiSandbox architecture
l Identify FortiSandbox key components
l Identify the appropriate network topology requirements
l Configure FortiSandbox
l Monitor FortiSandbox operation
l Configure FortiGate integration with FortiSandbox
l Configure FortiMail integration with FortiSandbox
l Configure FortiWeb integration with FortiSandbox
l Configure FortiClient integration with FortiSandbox
l Troubleshoot FortiSandbox-related issues
l Perform analysis of outbreak events
l Remediate outbreak events based on log and report analysis

Fortinet NSE 7 - Advanced Threat Protection 2.5
Fortinet Protection guide
Killexams : Fortinet Protection guide - BingNews https://killexams.com/pass4sure/exam-detail/NSE7_ATP-2.5 Search results Killexams : Fortinet Protection guide - BingNews https://killexams.com/pass4sure/exam-detail/NSE7_ATP-2.5 https://killexams.com/exam_list/Fortinet Killexams : Fortinet Launches New Cloud-native Protection Offering on AWS

Fortinet recently announced FortiCNP, a new built-in-the-cloud offering that correlates security findings from across an organization’s cloud footprint to facilitate friction-free cloud security operations.

FortiCNP’s patented Resource Risk Insights (RRI)TM technology produces context-rich, actionable insights that help teams prioritize the remediation and mitigation of risks with the highest potential impact on cloud workload security without slowing down the business.

Also announced today, Fortinet is an Amazon Web Services (AWS) Launch Partner for Amazon GuardDuty Malware Protection, which provides agentless malware detection capabilities across AWS data stores, disk volumes, and workload images. FortiCNP supports Amazon GuardDuty Malware Protection, delivering near-real-time threat protection with zero-permission capabilities to actively scan running workloads with no impact or delays to operations.

A defining feature of FortiCNP is integration with AWS security products and services, and the Fortinet Security Fabric, which helps organizations more effectively secure their cloud environments and maximize their cloud security investments.

FortiCNP Resource Risk Insights (RRI)TM leverages a patented risk score algorithm to contextualize security findings from Fortinet Cloud Security solutions and AWS products and services to provide teams with prioritized, context-rich, and actionable insights about resources that present the highest risk and need immediate attention.

By analyzing, correlating, and contextualizing security findings from AWS cloud security services with FortiCNP, customers maximize the value and benefit from easy deployment capabilities offered by Amazon GuardDuty Malware Protection, Amazon Inspector, AWS Security Hub, AWS CloudTrail, and AWS Organizations.

Jon Ramsey, Vice President (VP) AWS Security
At AWS, we provide our customers with smarter tools to easily take action and mitigate risk faster. Security Partners like Fortinet with their FortiCNP offering built on AWS and integrated with our security services like Amazon GuardDuty provide customers a choice to simplify and accelerate their cloud journey with cloud-native security services.

John Maddison, EVP of Products and CMO at Fortinet
FortiCNP is the latest example of Fortinet’s commitment to delivering Fabric solutions that extend enterprise security with cloud-native integrations. We’re pleased to continue to deliver solutions that allow security professionals to transition from time-consuming triage and manual analysis processes to proactively securing their cloud workloads and easily understand their cloud security risk.

Thu, 04 Aug 2022 14:11:00 -0500 en text/html https://www.thefastmode.com/technology-solutions/26691-fortinet-launches-new-cloud-native-protection-offering-on-aws
Killexams : 5 Companies That Came To Win This Week

Components peripherals News

Rick Whiting

For the week ending July 29, CRN takes a look at the companies that brought their ‘A’ game to the channel.

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The Week Ending July 29

Topping this week’s Came to Win list is the U.S. semiconductor industry – and especially Intel – for the passage of the CHIPS Act by the U.S. Congress that provides $52 billion in subsidies for semiconductor manufacturers.

Also making this week’s list are Amazon Web Services for upgrades to its security competencies for partners and new security specializations for MSPs. Aqua Security makes the list for unveiling a major revamp of its partner program while European solution provider Atos snagged new financing to help with its upcoming split into two companies.

And security tech developer Fortinet wins kudos for launching a new security platform that will help partners and customers with their cloud migration initiatives.

Semiconductor Industry To Benefit From CHIPS Act

The U.S. semiconductor industry – including Intel – were big winners this week with the passage of the $280 billion CHIPS Act that provides $52 billion in incentives and subsidies to boost domestic semiconductor manufacturing.

The legislation also provides billions in funding for semiconductor-related research by the National Science Foundation, the Department of Commerce and the National Institute of Standards and Technology.

The CHIPS Act was approved by the U.S. Senate on Wednesday and the U.S. House of Representatives on Thursday. President Joe Biden is expected to sign the legislation.

Semiconductor giant Intel is a winner here as it stands to significantly benefit from the legislation. The subsidies are expected to help cover the cost of two advanced semiconductor manufacturing plants Intel is building in Ohio . Intel is investing $20 billion to build those chip fabrication facilities and has already begun site preparation work.

AWS Offers Channel Partners An Expanded Security Competency, Additional Security Services

Cloud giant Amazon Web Services made several moves this week to boost the fortunes of its channel partners in the IT security space including revamping its security competency and unveiling new security specializations for MSSPs.

AWS has reinvented its popular AWS Security Competency program with eight new security categories that will help customers find software and service solutions from systems integrators, MSSPs and ISVs while also providing the channel with more than 40 specific customer use cases.

The eight new AWS Security Competency categories are: Threat Detection and Response; Identity and Access Management; Infrastructure Security; Data Protection; Compliance and Privacy; Application Security; Perimeter Protection; and Core Security.

AWS also launched six specialized managed security services that will boost the channel’s ability to provide 24x7 security services. The specializations include identity behavior monitoring; data privacy event management; modern compute security monitoring for containers and serverless technologies; managed application security testing; digital forensics and incident response support; and business continuity and ransomware recovery.

The announcements came during this week’s AWS re:Inforce event in Boston where the cloud platform provider debuted its AWS Wickr enterprise collaboration service and the new AWS Marketplace Vendor Insights.

Aqua Security Revamps Partner Program, Creates ‘Entirely New Ecosystem’

Cloud security provider Aqua Security wins kudos this week for launching a completely revamped partner program, replacing an older program that chief Jeannette Lee Heung acknowledged wasn’t fully benefiting channel partners.

The new Aqua Advantage program provides a slew of new partner resources including deeper training and support services, dedicated partner managers, joint marketing development opportunities, and improved vendor-partner alignment across technical and sales teams.

Aqua Security also completely redesigned its partner portal with updated materials for partner training, marketing and more.

Lee Heung, previously head of Palo Alto Networks’ Prisma Cloud Global Ecosystem, was recruited earlier this year to boost Aqua Security’s channel efforts and Improve the cybersecurity company’s channel relationships. She described the new partner program as “more structured and built on business outcomes.”

About 50 percent of the company’s revenue comes through the channel. But recently about 70 percent of new customers have come through the channel – a number CEO Dror Davidoff wants to increase to 85 percent.

Atos Gets Financing For Proposed Corporate Split

Global systems integrator Atos said this week that its plan to split into two publicly listed companies had cleared a significant hurdle by securing a debt financing package to help fund the plan.

Atos said in June that it was developing a plan to split into two companies: Atos, with a focus on managed infrastructure services, digital workspace and professional services; and Evidian, concentrating on services in digital transformation, big data and cybersecurity.

Atos, which reported financial results on Wednesday, said it had secured a debt package to provide the funding the company needs leading into the split. The package includes the conversion of €1.5 billion (about $1.5 billion) out of a revolving credit facility commitment of €2.4 billion (about $2.4 billion).

The funding will be used to ensure that Atos is fully funded before the scheduled split later this year and strengthen the company’s liquidity.

Atos North America is No. 28 on the CRN Solution Provider 500.

Fortinet Unveils New Security Platform To Help Customers Move To The Cloud

Fortinet showed off its security technology prowess this week, launching a new cloud-native cybersecurity offering that the company said will make it easier for solution providers and service providers to help their customers move to the cloud at their own pace.

The new FortiCNP integrated security platform is designed to simplify cloud migrations. FortiCNP was unveiled at this week’s AWS re:Inforce conference in Boston.

The basic idea behind FortiCNP is that it creates a single platform with potentially multiple numbers of security tools ultimately chosen by customers. FortiCNP’s Resource Risk Insights (RRI) technology will also produce “context-rich, actionable insights” that help security teams prioritize the remediation and mitigation of risks without slowing down a customer’s business, Fortinet said.

Over the long run, the FortiCNP platform can integrate security tools from Fortinet, cloud service companies like AWS, and other technology vendors. FortiCNP is initially available on the AWS cloud but will eventually be available for Microsoft Azure and Google Cloud Platform.

Rick Whiting

Rick Whiting has been with CRN since 2006 and is currently a feature/special projects editor. Whiting manages a number of CRN’s signature annual editorial projects including Channel Chiefs, Partner Program Guide, Big Data 100, Emerging Vendors, Tech Innovators and Products of the Year. He also covers the Big Data beat for CRN. He can be reached at rwhiting@thechannelcompany.com.

Fri, 29 Jul 2022 09:09:00 -0500 en text/html https://www.crn.com/news/components-peripherals/5-companies-that-came-to-win-this-week-july-29
Killexams : Fortinet Looks to Address Rising Costs with Price Increases

Endpoint Protection Platforms (EPP) , Endpoint Security , Intrusion Prevention Systems (IPS)

Fortinet Says Price Hikes Have More Than Offset Supply Chain, Geopolitical Issues
Fortinet Looks to Address Rising Costs With Price Increases
Ken Xie, CEO, Fortinet (Photo: Fortinet)

Fortinet has raised prices on products and services to address macroeconomic challenges including shipping delays, longer activation timelines and the suspension of sales in Russia.

See Also: OnDemand | Zero Tolerance: Controlling The Landscape Where You'll Meet Your Adversaries

The Silicon Valley-based platform security vendor says price hikes have more than offset supply chain and geopolitical headwinds in recent months, allowing Fortinet to increase both product gross margins and short-term deferred revenue from a year ago, according to CFO Keith Jensen. Service gross margins dropped since it will take longer for that side of the business to benefit from higher prices, Jensen says (see: Fortinet CEO Ken Xie: OT Business Will Be Bigger Than SD-WAN).

"Our goal is really to try over a longer period of time to just match the cost increases and maintain a consistent margin," Jensen tells investors Wednesday. "It's not that we're really trying to take down more margin."

Fortinet has found that higher prices don't tend to result in lost business since the company has historically offered 30% to 40% better performance at the same price as products from competitors, Jensen says. Fortinet tracks "very religiously" in its CRM tool why it loses competitive deals and hasn't seen any uptick in deals being lost on price since the company began charging customers more, he says.

"The question is always, 'How far can you push the envelope?'" Jensen says. "We know we come into the conversation with a significant price performance advantage."

The company has even raised prices around products that are no longer shipping since higher labor costs mean the expense associated with providing services and renewals on older products has increased, according to CEO Ken Xie. Although the price of the older product itself hasn't changed, Xie says customers now have to spend more to service and support that product.

Channel partners receive 60 days advanced notice before a price increase takes effect, and Jensen says the impact of price hikes is felt fairly quickly from both a product revenue and billings perspective. The trickle-down effect is much slower when it comes to service revenue, but Jensen expects growth to accelerate there as well in late 2022 and 2023 thanks to the price increases.

"You're going to see the benefit over a much longer period of time on the service revenue line," Jensen says. "You will see the benefit in billings much sooner. That's a very good leading indicator of where service revenue growth is going to go in the future."

Surviving the Supply Chain Squeeze

Price hikes are just one way Fortinet has attempted to address supply chain challenges alongside increasing inventory purchase commitments, redesigning products and qualifying additional suppliers, according to Jensen. But even with those actions, Jensen says demand continues to outpace supply, meaning that Fortinet's backlog is expected to increase throughout the rest of 2022.

"As we balance our pricing actions with the opportunity for continued market share gains, we have passed along most but not all cost increases," Jensen says.

Fortinet's backlog increased yet again in the quarter ended June 30 by $72 million to $350 million, but the rate of increase is down from $120 million in the first quarter of 2022, according to Xie. Networking equipment accounted for 50% of Fortinet's backlog due to continued challenges sourcing raw materials for switches and access points, while the company's FortiGate firewalls accounted for 40% of backlog.

"Our operation and R&D teams did an excellent job navigating the tough supply chain environment," Jensen says. "Nonetheless, we still expect supply chain constraints to be challenging throughout the remainder of the year."

Fortinet's gross margins have been affected not only by price increase but also the product mix from one quarter to the next, Jensen says. The company earns more profit on high-end firewalls as compared with entry-level firewalls, meaning that if Fortinet introduces a high-end firewall in a specific quarter or ends up with more high-end firewall shipments, the company's margins are likely to be higher, he says.

The impact of the economic downturn on Fortinet has thus far been brief and relatively insignificant, Jensen says. Fortinet saw a dip in field closure rates during the first half of June as well as the addition of an approver or negotiator on the customer side in larger deals to ensure the client was making the right decision, according to Jensen. But despite the pause, close rates actually increased slightly last quarter.

"For whatever reason, there was a slight pause there for a couple weeks in June," Jensen says. "But everybody came back and got the deal done that last week in June."

Product Revenue Growth Outpaces Service

Category Q2 2022 Q2 2021 % Change
Total Revenue $1.03B $801.1M 28.6%
Service Revenue $629.4M $502.68M 25.2%
Product Revenue $400.7M $240.7M 34.3%
Americas Revenue $413.6M $337M 22.7%
EMEA Revenue $391.8M $306.2M 28%
APAC Revenue $224.7M $157.9M 42.3%
Net Income $173.5M $137.5M 26.2%
Earnings Per Diluted Share $0.21 $0.16 31.3%
Non-GAAP Net Income $194.1M $158.7M 22.3%
Non-GAAP Earnings Per Share $0.24 $0.19 26.3%
Source: Fortinet

Fortinet's revenue of $1.03 million in the quarter ended June 30 was in line with Seeking Alpha's sales estimate. Meanwhile, the company's non-GAAP earnings of $0.24 per share edged out Seeking Alpha's non-GAAP estimate of $0.22 per share.

The company's stock is down $5.88 - 9.35% - to $57 per share in after-hours trading Wednesday. That's the lowest Fortinet's stock has traded since July 26.

The Americas accounted for 40.2% of Fortinet's revenue in the second quarter, while Europe, the Middle East and Africa, or EMEA, delivered 38% of revenue and Asia-Pacific, or APAC, was responsible for the remaining 21.8% of revenue.

For all of 2022, Fortinet expects non-GAAP net income of $1.01 to $1.06 per share on revenue of between $4.35 billion and $4.4 billion. Analysts had been expecting non-GAAP net income of $1 per share on sales of $4.38 billion.

Tue, 02 Aug 2022 12:00:00 -0500 en text/html https://www.govinfosecurity.com/fortinet-looks-to-address-rising-costs-price-increases-a-19704
Killexams : Fortinet's new FortiCNP security platform helps customers migrate to cloud

Fortinet has released a new cloud-native protection offering that it says will make it easier for channel players to help customers migrate to the cloud at their own pace.

Fortinet’s unveiling of FortiCNP, which the firm described as an integrated security platform designed to simplify a company’s cloud adoption, came on the first day of the AWS re:Inforce conference in Boston, where attendees are gathering to hear and learn more about all things AWS and cloud security.

The unveiling also comes as competition heats up to provide ever more cloud-native protections as companies increasingly move to the cloud, either all at once or in ‘hybrid’ stages.

Vince Hwang, a senior director of cloud security at Fortinet, told CRN US that the new FortiCNP will be available, for the time being, only with AWS’s cloud services. “We had to pick a starting point,” he said. “So we started with (AWS).”

But he said his giant cybersecurity firm hopes to expand FortiCNP to Google Cloud and Microsoft Azure over the “next few months.”

The basic idea behind FortiCNP is to provide a single platform with potentially multiple numbers of security tools ultimately chosen by customers.

FortiCNP’s Resource Risk Insights (RRI) technology will also produce “context-rich, actionable insights” that help teams prioritize the remediation and mitigation of risks without slowing down a customer’s business, Fortinet said in a press release, adding the product “points (IT) teams to the security alerts that matter most.”

Over the long run, the FortiCNP platform can integrate a number of security tools from Fortinet, cloud service companies like AWS, and other technology vendors.

Hwang stressed that customers deploy only what they want, depending on their unique needs and based on the pace of their migration to the cloud.

“Fortinet is going to do the heavy lifting,” Hwang said of the backside product integration work involved. “It’s not just Fortinet for Fortinet. It’s whatever (tools) the customer wants, no matter what tools.”

“We’ve simplified the protections” needed to migrate to the cloud, he added. “It’s our new cloud-native platform.”

By handling much of the product integration and other work for customers, portions of FortiCNP’s offerings are “almost like a service,” Hwang said.

For channel partners, multiple cloud-native security products running on one platform is an efficient and time-saving feature for MSPs, resellers and others dealing with customers, Hwang said.

“This is a great tool for them,” he said of channel players.

This article originally appeared at crn.com

Tue, 26 Jul 2022 19:09:00 -0500 text/html https://www.crn.com.au/news/fortinets-new-forticnp-security-platform-helps-customers-migrate-to-cloud-583208
Killexams : Fortinet Empowers Teams to Proactively Manage Cloud Risk with New Cloud-native Protection Offering, Available Now on AWS

SUNNYVALE, Calif., July 26, 2022 (GLOBE NEWSWIRE) -- AWS re:Inforce

News Summary
Fortinet ® (NASDAQ: FTNT), a global leader in broad, integrated, and automated cybersecurity solutions, today announced FortiCNP, a new built-in-the-cloud offering that correlates security findings from across an organization’s cloud footprint to facilitate friction-free cloud security operations. FortiCNP’s patented Resource Risk Insights (RRI)TM technology produces context-rich, actionable insights that help teams prioritize the remediation and mitigation of risks with the highest potential impact on cloud workload security without slowing down the business.

Also announced today, Fortinet is an Amazon Web Services (AWS) Launch Partner for Amazon GuardDuty Malware Protection, which provides agentless malware detection capabilities across AWS data stores, disk volumes, and workload images. FortiCNP supports Amazon GuardDuty Malware Protection, delivering near-real-time threat protection with zero-permission capabilities to actively scan running workloads with no impact or delays to operations.

The rapid pace of cloud adoption as part of a hybrid IT architecture allows organizations to achieve faster time to market and increased responsiveness to customer needs. However, the cloud can increase overall security risk, which is often addressed by adding new security solutions to an organization’s existing infrastructure. Each of these solutions comes with a litany of alerts that often require manual analysis and can quickly compound across an organization’s cloud deployment.

“Without the proper tools, security professionals must manually sift through hundreds, if not thousands, of security alerts on a daily basis,” said Doug Cahill, Vice President, Analyst Services and Senior Analyst at Enterprise Strategy Group (ESG). “Inundated with alerts, teams can face decreased productivity, inefficient workflows, and security risks accumulating faster than they can be addressed. FortiCNP helps cut through the noise, pointing teams to the security alerts that matter most.”

Customers are already experiencing the benefits of FortiCNP’s approach to cloud-native risk management:

“FortiCNP gives us comprehensive cloud visibility with an intuitive dashboard that allows us to easily track risk management over time,” said Caio Hyppolito, Chief Technology Officer (CTO) at BK Bank. “Most importantly, it enables our team to focus on securing high-priority resources instead of spending time working through long lists of security findings. Integrations with the products we already have allow us to get even more value out of our deployment and allow broader visibility and easier, more proactive cloud security management.”

Partners are also leveraging FortiCNP to enhance their offerings:

“As an AWS Level 1 MSSP Competency Partner, Observian is dedicated to ensuring our service offerings support customers in building scalable, secure cloud deployments. Observian is thrilled to deliver a new service featuring Fortinet’s new Cloud-Native Protection solution, FortiCNP, with Observian’s trusted and proven managed detection and response services,” said Scott Plamondon, Co-Founder and VP of Architecture at Observian. “FortiCNP allows customers to easily integrate, more quickly operationalize, and immediately benefit from AWS’s native-cloud security services with more targeted and actionable alerts tuned to their needs and less noise. Our customers that rely on Observian’s Security Operations team will benefit from our ability to even better triage and report on those alerts 24/7.”

A defining feature of FortiCNP is integration with AWS security products and services, and the Fortinet Security Fabric, which helps organizations more effectively secure their cloud environments and maximize their cloud security investments.

“At AWS, we provide our customers with smarter tools to easily take action and mitigate risk faster,” said Jon Ramsey, Vice President (VP) AWS Security. “Security Partners like Fortinet with their FortiCNP offering built on AWS and integrated with our security services like Amazon GuardDuty provide customers a choice to simplify and accelerate their cloud journey with cloud-native security services.”

FortiCNP delivers the following features that allow security teams to effectively manage risk in the cloud:

  • FortiCNP Resource Risk Insights (RRI)TM leverages a patented risk score algorithm to contextualize security findings from Fortinet Cloud Security solutions and AWS products and services to provide teams with prioritized, context-rich, and actionable insights about resources that present the highest risk and need immediate attention.
  • By analyzing, correlating, and contextualizing security findings from AWS cloud security services with FortiCNP, customers maximize the value and benefit from easy deployment capabilities offered by Amazon GuardDuty Malware Protection, Amazon Inspector, AWS Security Hub, AWS CloudTrail, and AWS Organizations.
  • Integrations with Amazon GuardDuty Malware Protection leverage a zero-permission, agentless approach for detecting malware throughout the data supply chain by scanning cloud data stores, disk volumes, and workload images.
  • Integrations with digital workflow solutions turn FortiCNP RRIs into intuitively actionable workflow tasks as part of the cloud infrastructure lifecycle.
  • For customers utilizing Fortinet Cloud Security solutions such as FortiGate-VM and FortiWeb, RRIs will be able to trigger stop-gap remediations to block high-impact threats.
  • FortiCNP continuously scans and monitors changes to cloud data with industry-leading threat intelligence and content scanning powered by FortiGuard Labs.

FortiCNP will be continually expanded to ingest more types of cloud security findings to provide broader context across more cloud workloads. Enabling consistent workflows that scale security across the public cloud helps teams Improve security coverage, productivity, and risk mitigation—at the speed of the cloud. Cloud-native integrations facilitate reduced friction from deployment through operations. With consistent workflows utilizing cloud-native services across multiple clouds, security teams will no longer be required to master the intricacies of each cloud platform’s security service operational model. This will help security teams increase productivity by effectively working through cloud security backlog, mitigating risk, and quantifiably improving cloud security over time.

“FortiCNP is the latest example of Fortinet’s commitment to delivering Fabric solutions that extend enterprise security with cloud-native integrations,” said John Maddison, EVP of Products and CMO at Fortinet. “We’re pleased to continue to deliver solutions that allow security professionals to transition from time-consuming triage and manual analysis processes to proactively securing their cloud workloads and easily understand their cloud security risk.”

Today’s announcement builds on Fortinet and AWS’ relationship to support customers in accelerating their journey to AWS. Fortinet has also been named an AWS Security Competency Partner, with FortiCNP serving as the latest example of Fortinet’s commitment to delivering purpose-built cloud security solutions that integrate with AWS products and solutions. Fortinet delivers one of the broadest sets of use cases with comprehensive security for AWS workloads including firewall, security gateway, intrusion prevention, and web application security. With flexible procurement options in AWS Marketplace, including contract and consumption offerings, and a range of available form factors, including Software-as-a-Service (SaaS), virtual machine (VM), container, and application programming interface (API) based protection, customers can address a broad variety of AWS security and procurement requirements to protect their AWS workloads.

Get a free trial of FortiCNP at AWS Marketplace:https://www.forticnp-aws.com

Additional Resources

About Fortinet
Fortinet (NASDAQ: FTNT) makes possible a digital world that we can always trust through its mission to protect people, devices, and data everywhere. This is why the world’s largest enterprises, service providers, and government organizations choose Fortinet to securely accelerate their digital journey. The Fortinet Security Fabric platform delivers broad, integrated, and automated protections across the entire digital attack surface, securing critical devices, data, applications, and connections from the data center to the cloud to the home office. Ranking #1 in the most security appliances shipped worldwide, more than 580,000 customers trust Fortinet to protect their businesses. And the Fortinet NSE Training Institute, an initiative of Fortinet’s Training Advancement Agenda (TAA), provides one of the largest and broadest training programs in the industry to make cyber training and new career opportunities available to everyone. Learn more at  https://www.fortinet.com, the  Fortinet Blog, or  FortiGuard Labs.

FTNT-O

Copyright © 2022 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAP, FortiAppEngine, FortiAppMonitor, FortiAuthenticator, FortiBalancer, FortiBIOS, FortiBridge, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCenter, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCNP, FortiDB, FortiDDoS, FortiDeceptor, FortiDirector, FortiDNS, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLocator, FortiLog, FortiMeter, FortiMoM, FortiMonitor, FortiNAC, FortiPartner, FortiPenTest, FortiPhish, FortiPortal, FortiPresence , FortiProtect, FortiProxy, FortiRecorder, FortiReporter, FortiSASE, FortiScan, FortiSDNConnector, FortiSIEM, FortiSDWAN, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiVoIP, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLCOS and FortiWLM.

Other trademarks belong to their respective owners. Fortinet has not independently Checked statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments. This news release may contain forward-looking statements that involve uncertainties and assumptions, such as statements regarding technology releases among others. Changes of circumstances, product release delays, or other risks as stated in our filings with the Securities and Exchange Commission, located at  www.sec.gov, may cause results to differ materially from those expressed or implied in this press release. If the uncertainties materialize or the assumptions prove incorrect, results may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Fortinet assumes no obligation to update any forward-looking statements, and expressly disclaims any obligation to update these forward-looking statements. 

Tue, 26 Jul 2022 02:32:00 -0500 en text/html https://apnews.com/press-release/GlobeNewswire/technology-e9c67c6a2ecbbefc2dbda441f9a3850a
Killexams : Fortinet unveils ‘fastest’ compact firewall for hyperscale data centers and 5G networks

Fortinet has unveiled a new series of compact firewalls to help enterprises and 5G mobile network operators (MNOs) run more applications concurrently with a smaller footprint.

Dubbed FortiGate 4800F, the new flagship line of firewalls comes with a 4RU chassis and 400GbE, 200GbE, and 50GbE interfaces. Building on Fortinet’s seventh-generation network processors (NP7), the firewalls can support, on average, 19 times more connections per second. 

The FortiGate 4800F series also offers support for encryption standard TLS 1.3. Additionally, natively integrated universal zero trust network access (ZTNA) ensures steadfast and consistent policies and security controls spanning all operating environments, on-premise or virtual.

Furthermore, FortiGate AI-Powered Security Services adds an extra layer of protection by offering real-time insight into known, zero-day, and unknown threats.

“No other firewall is better suited to support hyperscale and 5G. Not only is FortiGate 4800F the industry’s fastest compact hyperscale firewall, with 2.4 Tbps of capacity, but it is also the only 4RU chassis on the market that includes 400GbE, 200GbE, and 50GbE ports, which allows hyperscale customers and mobile network operators to seamlessly scale their business without disrupting operations,” said John Maddison, EVP of products and CMO at Fortinet.

“The combination of performance and scalability packed into our latest firewall will help future-proof organizations’ investments in hyperscale data centers, especially with the rise of 5G and as the volume and velocity of data continues to accelerate at an unprecedented pace,” added

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Thu, 04 Aug 2022 05:41:00 -0500 en text/html https://www.itpro.co.uk/security/firewalls/368739/fortinet-unveils-fastest-compact-firewall-for-hyperscale-data-centers-and
Killexams : Fortinet, Inc. (FTNT) CEO Ken Xie on Q2 2022 Results - Earnings Call Transcript

Fortinet, Inc. (NASDAQ:FTNT) Q2 2022 Results Conference Call August 3, 2022 4:30 PM ET

Company Participants

Peter Salkowski - VP, IR

Ken Xie - Founder, Chairman and CEO

Keith Jensen - CFO

Conference Call Participants

Brian Essex - Goldman Sachs

Fatima Boolani - Citibank

Adam Borg - Stifel

Saket Kalia - Barclays

Adam Tindle - Raymond James

Michael Turits - KeyBanc

Keith Bachman - BMO

Shaul Eyal - Cowen

Hamza Fodderwala - Morgan Stanley

Gray Powell - BTIG

John Weidemoyer - William Blair

Gregg Moskowitz - Mizuho

Andrew Nowinski - Wells Fargo

Roger Boyd - UBS

Operator

Good day, and thank you for standing by. Welcome to the Fortinet Second Quarter Earnings Call. At this time all participants are in a listen-only mode, after the speakers’ presentation, there’ll be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference call is being recorded.

I would now like to hand the conference over to your speaker today, Peter Salkowski. Please go ahead.

Peter Salkowski

Thank you, Hope. Good afternoon, everyone. This is Peter Salkowski, Vice President of Investor Relations at Fortinet. I’m pleased to welcome everyone to our call to discuss Fortinet’s financial results for the second quarter of 2022.

Speakers on today’s call are Ken Xie, Fortinet’s Founder, Chairman and CEO; and Keith Jensen, our Chief Financial Officer. This is a live call that will be available for replay via webcast on our Investor Relations website.

Ken will begin our call today by providing a high-level perspective on our business. Keith will then review our financial operating results for the second quarter before providing guidance for the third quarter, updating the full year. We’ll then open the call for questions. During the Q&A, we ask that you please limit yourself to one question and one follow-up question to allow for others to participate.

Before we begin, I’d like to remind everyone that on today’s call, we will be making forward-looking statements, and these forward-looking statements are subject to risks and uncertainties, which could cause real results to differ materially from those projected. Please refer to our SEC filings, in particular, the risk factors in our most recent Form 10-K and Form 10-Q for more information. All forward-looking statements reflect our opinions only as of the date of this presentation, and we undertake no obligation and specifically disclaim any obligation to update forward-looking statements.

Also, all references to financial metrics that we mine in today’s call are non-GAAP, unless stated otherwise. Our GAAP results and GAAP to non-GAAP reconciliations are located in the earnings press release and in the presentation that accompany today’s remarks, both of which are posted on the Investor Relations website.

Ken and Keith’s prepared remarks today for the earnings call will be posted on the quarterly earnings section of our Investor Relations website immediately following today’s call. Lastly, all references are on a year-over-year basis, unless noted otherwise.

I’ll now turn the call over to Ken.

Ken Xie

Thanks Peter. Thank you to everyone for joining today’s call to review our outstanding second quarter 2022 results.

Total billings increased 36%; the fifth consecutive quarter of at least 35% year-over-year billings growth. Revenue grew 29% driven by 34% product revenue growth. SD-WAN and OT bookings grew over 60% and 75%, which together accounted for 25% of total second quarter bookings. Our better-than-expected performance demonstrates the strong demand for our cybersecurity innovation.

Fortinet is at the forefront of networking and security convergence, enabling our customers to reduce complexity, while securing and connecting hybrid and remote users to advanced security with superior performance.

Today we announced the FortiGate 4800F, our latest innovation in converged Network Security. The 4800F is the world’s fastest compact firewall for hyperscale data centers and 5G networks. Powered by Fortinet’s NP7 SPU, the 4800F delivers Security Compute Ratings of on average 5-10 times better performance than competitive solutions, across the six most common and important functions.

A leader in the Gartner Magic Quadrant for WAN Edge Infrastructure, Fortinet continues to take market share for Secure SD-WAN. Our integrated secure SDWAN solution, powered by Fortinet’s SPU SOC4, delivers huge performance, security and efficiencies over traditional offerings.

In addition to convergence, consolidation of vendors and product functionality is another major trend, particularly in Network Security. In a recent CISO survey, Gartner found the percentage of companies surveyed who want fewer security providers increased to 75% from only 29% in 2020. With over 30 products lines built mostly by our in-house strong engineering and development innovation, Fortinet is benefiting from this consolidation with our Security Fabric MESH offering. The Fortinet Security MESH platform delivers unparalleled protection with broad, integrated and automated protection across multiple edges, from endpoint, to data center, and hybrid cloud environments. These two major trends, convergence and consolidation, position Fortinet well for long-term growth.

Before turning the call over to Keith, I’d like to thank our employees, customers, partners and suppliers worldwide for their continued support and hard work, that are contributing to Fortinet’s strong growth.

Keith Jensen

Thank you, Ken, and good afternoon, everyone.

Let’s start the more detailed quarterly discussion. Second quarter results were solid and broad-based across geographies, customer sizes, industries, and use cases, driving market share gains and demonstrating the strong support from our three key growth drivers: first, an elevated threat environment; second, the convergence of security and networking; and third, the consolidation of security products across our platform offerings.

Total revenue of $1.03 billion was up 29%, passing the $1 billion milestone in quarterly revenue for the first time in our history. Total product revenue growth was up 34%. Core Platform and Platform Extension product revenue growth was up 35% and 33%, respectively.

We continued to see robust product revenue growth from a wide range of security use cases, including Secure SD-WAN and Operational Technology, or OT. Total service revenue growth increased sequentially to 25%, resulting in service revenue of $629 million. Support and related service revenue was up 26% to $289 million, while security subscriptions service revenue was up 25%, or 2 points sequentially, to $340 million.

Service billings, defined as total billings minus product revenue, were up 36%. The year-over-year growth rate for short-term deferred revenue has increased for six quarters in a row from just under 21% in Q4 of 2020 to just over 31% in Q2 of 2022, the highest short-term deferred revenue growth rate in over six years.

The accelerating growth rates for service billings and short-term deferred revenue reflect the earlier pricing actions that quickly appeared in product revenue and that are now beginning to appear in service revenue.

The pricing benefit more than offset various service revenue headwinds, including suspending services in Russia, an increase in the average number of days between when a customer purchases and subsequently activates a security service contract, and the impact of contract manufacturers delaying deliveries to later in the quarter, which limits our service revenue on new sales recognized in the quarter.

With growth and pricing benefits more than offsetting these headwinds, we expect service revenue growth will continue to accelerate through 2022 and into next year. As summarized on slide 6, total revenue in the Americas increased 23%, EMEA revenue increased 28%, and APAC posted revenue growth of 42%.

Despite macro conditions that may be more readily impacting other industries, our pipeline growth remains strong. In particular, EMEA’s pipeline growth indicates continued strength in our European business.

Moving to a summary of our success with large enterprises. Large enterprises continue to favor Fortinet’s leading cost for performance advantage and are increasingly more appreciative of our integrated platform. The platform strategy allows customers to converge networking functionality with security capabilities and consolidate multiple point products.

Our success with large enterprise customers includes: global 2000 bookings growth of over 65% year-over-year and on a rolling four quarter basis; large enterprise bookings growth of over 55% year-over-year and on a rolling 4 quarter basis; and the number of deals over $1 million increased over 50% to 122 deals and the total billings value of these transactions doubled.

Secure SD-WAN bookings grew over 60%, reflecting the convergence of networking and security as well as a strong ROI for our customers. OT bookings were up over 75%, reflecting the continued response to the elevated threat environment.

Shifting to billings. Billings of $1.3 billion were up 36%, as Ken pointed, representing the fifth consecutive quarter of billings growth in excess of 30%.

I’ll pause here to offer thoughts on product refresh cycles and their impact on our financial results. Specifically, we do not believe new product releases drive a near term spike in our top-line growth; rather, we believe the continual nature of our product releases drives long-term growth.

For example, each new ASIC is included in a series of products released over several years. Our most recent ASIC chip, the NP7 Security Processing Unit, was introduced in Q1 of 2020. Including the 4800F announced today, we have released 9 high-end Core Platform products with the NP7 chip. Over the next several quarters we will release several additional midrange and high-end products with the NP7. Lastly, I would note that since the start of 2019, we have released over 23 new FortiGate models.

While some of our competitors with much shorter product SKU lists may have shown clear signs of product refresh cycles, our strong long-term performance illustrates an extended series of overlapping product maturity curves.

Core Platform billings were up 32% and accounted for 69% of total billings. As shown on slide 7, mid-range FortiGates posted very strong billings growth with the mix shifting 5 points in their favor driven by demand as well as supply availability.

Platform Extension billings were up 44% and accounted for 31% of total billings, a mix shift of over one 1.5 points. Average contract term was up one month year-over-year at 29 months, driven by the strength from large enterprise customers and the 50% plus increase in the number of deals greater than $1 million.

Worldwide government billings grabbed the largest share of the mix at 15% and were up 45%. The top five verticals accounted for 60% of total billings.

Moving back to the income statement. Total gross margin of 76.5% exceeded the midpoint of the guidance range by approximately 125 basis points, even as component, labor and freight costs increased, and the year-over-year revenue mix shifted 2 points to product revenue from higher margin service revenue.

Product gross margin of 61.9% was up 20 basis points year-over-year and 450 basis points sequentially as pricing actions, product mix, and lower discounting offset higher component and other costs.

Service gross margin of 85.9% was down 100 basis points due to increased costs associated with the expansion of our data center footprint as well as labor cost and other costs; partially offset by benefits from FX and some of the earlier pricing actions. Operating margin of 24.8% exceeded the midpoint of the guidance range by approximately 200 basis points. The year-over-year comparison saw the FX benefit offset by lower gross margins, increased travel and marketing costs and other costs. Headcount increased 27% to 11,508.

Looking to the statement of cash flows summarized on slides 8 and 9. Free cash flow was $284 million and was impacted by increases in DSO and cash taxes. DSO increased 14 days year-over-year and 5 days sequentially to 80 days due to the change in billing linearity driven by the timing of inventory deliveries from contract manufacturers. New R&D capitalization rules increased second quarter cash taxes by $85 million to $110 million. Second half cash taxes of approximately $135 million are expected to be more evenly spread across the third and fourth quarters.

For the first half of the year, our adjusted free cash flow margin, which excludes real estate spending, was 34%. Capital expenditures for the quarter were $39 million, including $21 million for real estate investments.

We repurchased approximately 14.4 million shares of our common stock for a cost of $800 million, bringing the total year-to-date shares repurchased to 25.8 million for a total cost of $1.5 billion. The Board increased the share repurchase authorization by $1 billion. The remaining repurchase authorization is now $1.03 billion. Inventory turns of 3.1 times were up a half turn year-over-year and down a half turn sequentially.

Moving to bookings and backlog. As a reminder, backlog is excluded from the current quarter billings and revenue. Nonetheless, it is expected to provide increased visibility and a top-line tailwind in future quarters. Bookings were up 42% to $1.4 billion.

Total backlog of $350 million is up $72 million sequentially and reflects very strong demand. Of the total backlog, networking equipment accounted for about 50%, while FortiGates accounted for 40%. We believe our backlog is very strong and sticky. Existing customers account for over 95% of total backlog and no single end customer accounts for more than low single digits as a percentage of backlog. There are four deals in backlog, all from previously existing customers, with a remaining balance of over $2 million that together account for 6% of total backlog. Just 4% of ending Q1 backlog was canceled in Q2 and about half of the deals in backlog have been partially fulfilled suggesting that double ordering is not a significant contributor to backlog.

Consistent with the first quarter, we shipped approximately 60% of the prior quarter’s backlog in the current quarter, as our operation and R&D teams did an excellent job navigating the tough supply chain environment. Nonetheless, we still expect supply chain constraints to be challenging throughout the remainder of the year. We are continuing to address the supply chain challenges in a number of ways, including by increasing inventory purchase commitments, redesigning products, qualifying additional suppliers, and certain pricing actions. We believe that even with these actions, demand will continue to outstrip supply. As a result, we expect backlog to continue to increase in 2022; and while the situation is very dynamic, we believe we will have access to sufficient inventory to meet our guidance.

As we balance our pricing actions with the opportunity for continued market share gains, we have passed along most, but not all cost increases. As such, we expect ongoing gross margin volatility from these increases as well as shifts in our product mix related to inventory availability.

Before reviewing our guidance, let’s offer a few Fortinet specific observations in areas you may have heard discussed elsewhere. In Q2, we noted certain larger transactions with increased or elongated negotiating cycles. Also, linearity pushed to later in the quarter, and later in the last month of the quarter, mainly due to supply constraints and the deliveries. Lastly, close rates were strong and, importantly, the aggregate value of deals that pushed out were within our historical norms.

Now, I’d like to review our outlook for the third quarter as summarized on slide 10, which is subject to the disclaimers regarding forward-looking information that Peter provided at the beginning of the call.

For the third quarter, we anticipate our solid third quarter pipeline growth across deal types, sizes and geographies to support the following: Bookings in the range of $1,455 million to $1,485 million, which at the midpoint represents bookings growth of 36%; billings in the range of $1,385 million to $1,415 million, which represents growth of 32%; revenue in the range of $1,105 million to $1,135 million, which represents growth of 29%; non-GAAP gross margin of 75% to 76%; non-GAAP operating margin of 25% to 26%; non-GAAP earnings per share of $0.26 to $0.28, which assumes a share count of between 810 million and 820 million; we estimate third quarter capital expenditures to be between $105 million and $115 million; we expect a non-GAAP tax rate of 17%.

For the full year, we anticipate backlog that could approach or possibly exceed $500 million that will be offset by robust industry growth, pipeline strength, and market share gains fueling our growth and support the following: Billings in the range of $5,560 million to $5,640 million, which at the midpoint represents growth of 34%; revenue in the range of $4,350 million to $4,400 million, which represents growth of 31%; total service revenue in the range of $2,620 million to $2,670 million, which represents growth of 27% and implies full-year product revenue growth of 38%; we expect non-GAAP gross margin of 75% to 76%; non-GAAP operating margin of 25% to 26%; non-GAAP earnings per share of $1.01 to $1.06, which assumes a share count of between 810 million and 820 million; we estimate full year capital expenditures to be between $300 million and $330 million; we expect our non-GAAP tax rate to be 17%; we expect cash taxes for the year to be $265 million, as I mentioned earlier, cash taxes paid are higher in 2022 due to the new R&D capitalization rules in the U.S.

Along with Ken, I would like to thank our partners, customers, suppliers, and all members of the Fortinet team for all of their hard work, execution and success.

I’ll now hand the call back over to Peter to begin the Q&A session.

Peter Salkowski

Thank you, Keith. As a reminder, during the Q&A session, we ask that you please limit yourself to one question and one follow-up question to allow others to participate. With that, Hope, please open the call for questions.

Question-and-Answer Session

Operator

Thank you. [Operator Instructions] Our first question comes from the line of Brian Essex with GS.

Brian Essex

Great. Thank you. Good afternoon and thank you for taking the questions. Congrats to team on a nice set of results for the quarter. I was wondering if maybe -- and Keith, I certainly appreciate the commentary and the granularity with the full year revenue guide. Can we maybe unpack some of the commentary on the services side and the lower, I guess, services revenue guide for the year? Maybe help us understand what’s going on there. And maybe pair that with your comments on delays in activations and how much insight you might have there that gets folks comfortable that there isn’t pull-forward? Thank you.

Keith Jensen

Yes. I don’t think -- Brian, I don’t think pull forward really applies to the service revenue line, but maybe -- it’s actually a couple of questions at once. I think the answer to your question about service revenue, I think the biggest change from where we started the year is really about Russia. If you think about Russia, we talked at the very beginning, it’s about 1.5% of our total revenue. And it applies to the service revenue line as well. Earlier in the year, we stopped recognizing revenue on existing contracts for services that provide in Russia in conjunction with our suspending of services. At that time, we did not anticipate it would be a full year event, but we are now. And if you kind of think through that 1.5% of service revenues in Russia, so we really backed out now for the full year about $25 million of revenue related to Russia. That’s the largest change there.

I think the delay in registrations from when contracts are sold, when they’re actually registered by customers, I think we pretty much got out of the quarter what we expected on that. That seems to be something in the current environment with inventory constraints that we’re going to continue to see. I think the linearity part of it is a little bit new in that because the shipments occurred later in the quarter, there really wasn’t the opportunity to get the service revenue from those Q2 shipments that we would normally get. And so, I think those are really the parts to put together there.

On the other side, I would probably point to, again, the short-term deferred revenue billings and the number that we’re putting up here and the growth that you’re seeing with that number as well as service billings itself.

And I think the last comment on this, and we haven’t talked about it before, is that the service contracts are really a use it or lose it contract, meaning it’s not that they have the ability to cancel, they just have the ability to postpone the registration for a period of time, whether -- depending upon the geography, whether that’s 90 days or one year or what have you. So, eventually, it comes to revenue, but the timing has been pushed out to that aspect.

Operator

Our next question comes from Fatima Boolani with Citibank.

Fatima Boolani

Hey. Keith, this one’s for you. Just with respect to some of the backlog detail and commentary that you shared, I want to hone in on the cancellation rates that you quantified for us. I believe you said it was about 4%. Can you provide us a sense of what are some of the reasons behind the cancellation? And what gives you confidence that that 4% isn’t going to stretch or escalate into maybe mid to high single digits? Thank you.

Keith Jensen

Yes. I think I would point to some of the factors that we’ve talked about before. I think that last quarter, we talked about the cancellation rate being 5%, I think we’re seeing it now 4%. I think it’s unlikely that existing customers, particularly those that have received partial shipments are going to cancel. Also, I don’t want to -- that it’s naïve that as backlog gets older, and it’s also why we provide that 60% of shipments from prior backlog number for The Street to try and understand it. But if that number starts to tick up, obviously, there’s more risk in it. I think it’s important to understand the guidance that we provide really isn’t reflecting in any sort of shift in the backlog that we’re going to ship a lot of things from backlog. So, I think we’re fairly prudent in that regard, and I think we’re also comfortable with described as the stickiness of the backlog number.

Operator

Our next question comes from Adam Borg with Stifel.

Adam Borg

Maybe just on the macro. You talked a little bit about the demand environment and highlighted some delayed deals and elongated linearity. Can you maybe go a little bit deeper here and talk about what these customer conversations look like? Are these tied to any particular verticals or geographies? You talked a little bit about large enterprise or larger deals. I’d love to hear about the midsize to smaller deals, too. Thanks.

Ken Xie

It’s Ken. So, we do see a lot of customers, especially enterprise, they’re starting to design some new infrastructure to support and work from anywhere and also expand security beyond the traditional network security and to whether like internal segmentation to prevent nowadays ransomware attack or go to work from home and at the same time, have multiple security products, need to be automated together. So we call the consolidation, both on the product side, on the vendor side.

I see this kind of trend will be last for the next few years, will be pretty long-term change. And at the same time, Keith also mentioned elevated security environment also other drive. So, that’s where we see the trend we’re keeping going for the next few years. If you look at the billing number compared to two years ago, I mentioned in my script is -- we have over 35% of billing increase in the last five quarters compared to two years ago, Q1 2020 is only about 14%. So, we do see the change in acceleration and also the convergence consolidation going on in the whole space right now will be pretty much the amount of growth.

Operator

Our next question comes from Saket Kalia with Barclays.

Saket Kalia

Keith, maybe for you. I’d like to talk a little bit about bookings. Can you just talk about how bookings did versus your expectation this quarter? I think the guide coming into Q2 was for about 40% growth. We came in at 42%, clearly better, but a bigger delta on the billings versus the guide. And so, can you just talk about how to read into that, if there’s anything to consider there with just those two kind of in relation to each other?

Keith Jensen

Yes. I don’t -- I think, obviously, 42% bookings. I think we’ve been over 40% now for 3 quarters, maybe 4 quarters in the bookings line, we feel really, really good about it. I think the one thing that we’re looking at internally, it’s just that the interplay between bookings, backlog and billings and trying to really get a sense of the direction of the business. And the example I kind of gave is we had a very good quarter on the midrange of the product. But some of that was due to availability. Demand was very strong, but it was also because we had the midrange product available. We didn’t have as much product available in the low end. Now, as we shifted to this third quarter, I think we’re probably going to see the low end availability improved fairly dramatically. And so, when you’re looking at billings information that we have historically disclosed and trying to gauge the direction of the business, it gets a little bit distorted now just in terms of what’s available. And I think of the total when you look at bookings and backlog, there’s some of that as well in terms of the characterization of what the booking is versus the characterization of what’s available to ship and what comes in the billings line.

Ken Xie

Also compared to one year ago, maybe a tough comparison because we’re started to see the acceleration about five quarters ago.

Operator

Our next question comes from Adam Tindle with Raymond James.

Adam Tindle

Keith, you talked in the prepared remarks about still expecting supply challenges for the rest of the year and to offset you’re thinking increased purchase commitments, qualifying additional suppliers and pricing actions. I wanted to zoom in on that last point on pricing actions to see if you would maybe put a finer point on timing and magnitude for expected pricing actions? And secondly, you sounded positive on elasticity and confident on the elasticity moving forward. But just curious what underpins that confidence, especially in international markets with dollar strengthening in local currencies and fixed budgets, et cetera? Thank you.

Keith Jensen

Yes. Great question. And I’ll take the last one first because I think it’s probably very important, and I probably forgot the first one already. So one of the things that we do is we track very religiously in our CRM tool when a customer -- if we lose a deal, we want to know why, right? Is it because we could not overcome the incumbency, is it because the channel partner may have had a bias, if you will, to one of our competitors, a feature issue, a functionality issue or something like that, but also very specifically, do we lose on price. And we’ve been tracking that now for over a year. And that percentage, which is low -- lower than the other ones that I just gave in to you, has been extremely consistent. And so with that very consistent loss percentage, if you will, I translate that into price elasticity, which tells me that the question is always how far can you push the envelope. We know we come into the conversation with a significant price and performance advantage, The Street sometimes -- or channels just may say 30% or 40%. We have known that from the beginning of this phase of the economic cycle. And the question has become how far can we push that.

But again, keep in mind, our goal is really to try over a longer period of time just match the cost increases and maintain a consistent margin. It’s not that we’re really trying to take down more margin. Now you will get volatility quarter-to-quarter because of the mix and things like that. So, a long-winded way to say, I think I really hang my head on what I’m seeing and we’re tracking on the CRM data about reasons that we lose deals and reasons that we win deals.

Ken Xie

Yes. And also a few other comments about pricing. Our policy tends to be just by the price by small step, but also kind of more open, like we do have a new price book basically released every quarter. Also, the other thing is really like the product we released today, on average for the same function, for the same price range, our product has a performance factor 10 times better than competitors. Like Keith mentioned, on the CRM on the tracking, we don’t see any big loss on kind of changing or even -- if you do not -- actually improved because we still have a huge price advantage compared to competitors.

The other thing also may be mentioned to the service. I think one we may try to Improve a little bit going forward is really even in the last few quarters, we increased some of the price more on the new product release, but we are not changing the price for the expired product. Basically, the product is still added to the service like 5, 6 -- right? So, that’s one thing we made because the labor cost on the service and supporting, so we may have to increase the price of the outdated product no longer shipping because all the service or the renew still tied to the old product, which is no longer shipping but is the customer still buying the renewal, buying the service based on the old product. So, that’s probably -- we can also help in the improving the service and also helping the margin and compensate our additional costs, especially on the labor.

Operator

Our next question comes from Michael Turits with KeyBanc.

Michael Turits

So, Keith, two questions. First, maybe it seems obvious in some ways, but do you feel like -- and this is the first time that you’ve talked about this linearity issue as well as the extension of the negotiation cycle. So, do you simply tie it to macro being worse right now, or do you have any other insights to it? And then, I just wanted to make sure that in your mind, second question, you really think that it’s really primarily services as a result of those things, this shortfall in the year and you’re happy with product?

Keith Jensen

Yes. So, I think the -- well, putting aside the -- Mike, you broke the rule and you asked two questions and Peter said only one and a follow-up.

Michael Turits

Sorry about that...

Keith Jensen

I think what we’re seeing in linearity, unlike a “normal world” where you can kind of look at linearity and DSO and you can get a sense for whether or not a company is pushing to close deals at the end of the quarter and maybe it’s a more challenging quarter. Because of the timing of when the finish -- when the inventory is delivered from the contract manufacturers, we see a shift in that linearity of when we receive inventory from our contract manufacturers. That shift then it translates into when we can turn around QA, et cetera, and ship it out to our customers and sell it. So, there’s a different aspect of linear that’s come into play here now. So, service contracts that maybe would have been sold in the first month of the quarter, actually got sold in the third month of the quarter. So, we lose service revenue from that. And you see that appearing in the DSO and you see it appearing in the free cash flow.

On the negotiating side of it, I think what we saw, and I don’t know if this is common to others -- what we saw was probably the first two weeks of June and maybe there was more conversation around recession and concerns there, if you will, a bit of a pause in terms of deal closure rates for those first 10 days of June and then a reacceleration as we got through the end of June. We did notice or I did notice during that time frame maybe additional parties were being introduced to either as an approver or a negotiator, if you will, on some of the larger deals just to make sure on the customer side that they were making the right decision. And I think that’s why I went on to say in the prepared remarks, not only did we notice this shift, but the close rates, which were important actually were up just a tad in the quarter. So, I think there was just for whatever reason, there was a slight pause there for a couple of weeks in June and everybody came back and got the deals done by -- on the customer side and our side at that last week in June.

Ken Xie

The other reason for a little bit longer closing time really the bigger deal grow faster. So, like I mentioned, the deal over $1 million grew over 50% year-over-year. So, that’s the bigger deals also tend to be -- take a little bit longer time to close. And also, we see more like a deal involving multiple products, not just the FortiGate, but also we call the non-FortiGate, call the platform retention, which also take a little bit long time to test -- evaluate to close.

On the supply chain, since really compared to before the pandemic, we probably ship majority -- most of the products by sea. Now we’re pretty much shipping every product by air. That’s where the timing of the supply shipping the product to us is pretty critical automatically. And so last quarter, we did experience a lot of product being shipped in end of the quarter from suppliers to us, that drives the linearity. Even we have the booking -- but we are the way -- like a few weeks or even a couple of months before the product was shipped to the customer more towards the quarter end because the supply shipping goes pretty much in the end of the quarter. So, we do see long term, this will be changing, improving. We’ll keep increasing some of the product inventory and improving the product turn and also balance among not just shipping everything by air, but some by air, some by ocean.

Operator

Our next question is from Keith Bachman with BMO.

Keith Bachman

Good segue from Michael’s question. Keith, I want to try to understand, you talked about a few different things impacting the year guide. To put context around it, your revenue guide for ‘22 isn’t changing, which I think is viewed as a disappointment to investors. Now underneath that, services revenues is getting compressed a little bit. And so, as you think about why the revenue estimates are going higher for the year, is there a change in, a, the demand level, whether it’s the elongation because you said, in fact, there was two weeks, sort of weak at the end of June, but it sounds like during the last -- through the 3rd of August, things have normalized, or is it b, supply chain issues that are causing you to not raise your revenue guidance even as you’re raising billings modestly? I’m just trying to understand what are the forces that are impacting the lack of raise, if you will? Is it the demand side and/or is it the supply side?

Keith Jensen

Yes. I don’t really think it’s necessarily either demand or supply. I would start the conversation off by saying I think the pipeline growth is extremely strong. We feel very, very good about that. I do think there’s a fair amount of uncertainty as we look out beyond the third quarter to the fourth quarter in terms of directions the economies may go, what inflation may do and a little bit of supply chain. I don’t think -- we did, as you point out, cover the shortfall, if you will, in the service revenue -- economies may go, what inflation may do and a little bit of supply chain. I don’t think -- we did, as you point out, cover the shortfall, if you will, in the service revenue, in the product revenue. So I think that’s a fairly good size of us being bullish and feeling very, very good about our competitive advantage.

And I think that the other aspect we talked about is just the large deals and how we’re seeing the success in the enterprise and getting a little more dependent on large deals than we have in prior years and some of the close rates around those. I think that while we’re bullish, we think we have competitive advantages. I don’t know as we get to the fourth quarter, if this is really a good time to think about that in a very, very aggressive fashion.

Keith Bachman

Okay. So, as I just clarify, so it sounds like you want to be a little bit conservative or you don’t want to get ahead of yourself on particularly the Q4 guide, so lead numbers where they are on revenues, in particular?

Keith Jensen

Yes, I think that’s a fair description.

Operator

Our next question comes from Shaul Eyal with Cowen.

Shaul Eyal

Maybe segueing from the prior question from revenue maybe to OpEx. So, your hiring plans appear to remain largely on track. What’s the current thinking on second half? Is it becoming a little easier in recent months, given some layoffs at some private competitors?

Ken Xie

We want to maintain healthy margins and then also keeping growth and gaining market, agreed hiring is relatively a little bit easier compared to like a few quarters ago, especially in the cybersecurity space. So for us, we feel we have a good pace on hiring, especially we still -- we’re keeping gaining market share. And the margin -- and it’s a healthy margin, basically, both on the gross margin and also on the operating margin side. So, we feel we have pretty solid plan and balance among the growth and margin.

Keith Jensen

Yes. I think Ken’s spot on with that. I would probably offer a couple of things to support. One is you continue to hear us talk about our inventory commitments looking out now 6 quarters or more. I think the read through that is that we still feel fairly bullish about it. And the other aspect of it. And the other aspect of it and Ken made reference to it is we talk about 25% operating margins in different ways over the years as being an average or target, what have you. And obviously, to -- in this environment to -- with high inflation, to come in successfully and still be providing guidance for the full year of 25% to 26%, while growing the top line aggressively while taking market share, I think we feel very good about how the sales team, the engineering team, the operation teams and support teams, et cetera, are all working together and driving the growth of the Company and the execution.

Operator

The next question comes from Hamza Fodderwala with Morgan Stanley.

Hamza Fodderwala

Maybe a question for both, Ken and Keith. Ken, just given the general pressure on budgets in the macro environment, are you seeing a little bit more impetus to -- from customers to want to consolidate to a converged security networking platform like Fortinet? And then for Keith, if you’re seeing any weakness, let’s say, elongating, negotiating cycles and whatnot? Is it more weighted towards the core platform FortiGate side or the platform extension side, which is in access points?

Ken Xie

It’s a very good question. Definitely, we see the convergence among the network and security. Also the pandemic accelerated this kind of change, especially inside the company, campus network and also work from remote anywhere. So that’s where we see that pretty strong growth. And also a lot of connected devices like in the OT space, also, we see very strong growth. Like we mentioned, SD-WAN grew 60% and the OT growth 75%, and we’re still keeping growth and gaining market share there.

And at the same time, have to secure the whole infrastructure not only expanding our network security to the networking side, but also like beyond the network security, with the end point, with the cloud with all the other like application level from email, web, working together. So we do see all these -- we keep saying the convergence and consolidation will benefit Fortinet multiple years going forward, it’s more long-term growth driver for us. And we prepared this in the last like 22 years since start company with investment like from ASIC technology for the R&D with most of the product internally developed to integrate, automate together. And so, we do see the time is starting coming and for all this investment starting to see some good return. And also, we feel we have a very healthy business model since IPO now is about 13 years now, want to maintain the balanced growth and also healthy margin. And that is what makes the company to last longer. And at the same time, we’re also kind of keeping invest in the long term to follow the change and also keep up the innovation and quickly customer benefit from our innovation and also the long-term investment.

Keith Jensen

Yes. And Hamza, I think your speculation about where the larger or the timing comes in is accurate and that it’s going to be in that 1/3 of our business that is large enterprise. One, the dollars are larger, obviously. And so, they’re going to -- customers spend a little more time with the ROI. But I think more importantly, and to your kind of second point, your question on, by adding in more of the platform products into a deal, you’re perhaps a little more likely to run into additional competitors or people internally that are champions of those competitors. And so, there’s a little more than it takes to get across the finish line because they are more complex in that way.

I’ll fill the void here. As a reminder, we did 122 deals over $1 million in the quarter, which -- that’s a pretty fantastic number for us.

Operator

Our next question is from Gray Powell with BTIG.

Gray Powell

So, Keith, I know you hit on this once or twice already, but I just want to make sure I understand a dynamic on the services billings. So, if I back out product revenue from short-term billings, it looks like the annual recurring component of billings actually accelerated pretty nicely. I’m calculating like 29% in Q1, improving to 40% in Q2. I don’t need you to bless the numbers, but directionally, does that seem right to you? And then, if so, how much of that was driven by pricing dynamics that you talked about versus just the natural cadence of the business?

Keith Jensen

I do think your math is directionally correct, but it’s lot more time to get anything more about how actually it may or may not be because kind of looking at a different way. And I would say, again, if you think about the timing of where -- when a price increase is effective, right? It’s got to go through the process of being preannounced to the channel partners, they get, I think, 60 days of advanced notice and then whether it’s actually start to have an impact on it. But keeping that in mind, you do see the impact on pricing actions fairly quickly on product revenue and on billings, whether it’s a product or whether it is a service item, right? You will see it there. But on service revenue, you won’t see that benefit for an extended period of time.

And I think one thing that may help people, if you think back of our shift from 8 by 5 support to 24 by 7 support. We talked about that for several years because when we turned off the 8 by 5 support, with that came a price lift. And the question that we were addressing, seen for 8, 12 quarters probably in a row, was how was that mix shifting and how was that coming into it. And we were providing information back then about all the buildings, so to speak, are in the 24 by 7, but you’re not seeing the revenue mix that way because it’s kind of -- that mix has to evolve over time as you go through the installed base. Price increases for service revenue, this is just another flavor of the same thing that way. You’re going to see the benefit over a much longer period of time on the service revenue line. You will see the benefit in billings much sooner, and that’s why we gave that information earlier, and you kind of -- Gray, you’re looking at it, that’s a very good leading indicator of where service revenue growth is going to go in the future.

Gray Powell

Okay. That’s really helpful. And then just a real quick follow-up. You mentioned $25 million headwinds on service revenue from Russia, which is a new headwind. Does that apply to billings as well, or was that purely a revenue dynamic?

Keith Jensen

That was a revenue dynamic, and I would probably say 40% of that probably, 30% to 50% of that would have been a billings dynamic, in terms of where we were from the beginning of the year where we’ll end up now.

Operator

Our next question is from John Weidemoyer with William Blair.

John Weidemoyer

On your platform extension, cloud security capabilities. I’m curious of the type of customer profile that’s interested there. I suspect they’re probably an existing Fortinet customer that’s transitioning to the cloud. And I’m curious if there are also maybe a fabric mesh. And so there might be an all-in customer -- an all-in Fortinet type customer. Can you talk about the characteristics of the people that are going down?

Ken Xie

We do see the cloud security growing well, pretty much on a similar pace as other networking appliance growth. And also, we do see a lot of cloud security come from the service providers, especially carrier service provider, someone also combined with an offer SDWAN and some also with OT, all this together. So that’s what we keep saying, for better security, the new secured whole infrastructure, not just the cloud, but also appliances and some other product infrastructure. So, we do see more and more customers want to consider overall together. So basically, cost security also drive a lot of other part of cybersecurity, other part of infrastructure for cyber security. And also, we do believe long term, the service provider, both in the telecom space, also in the securities integrate and also like even a cloud provider, will play a very, very important role on this security, especially in the service part. And that’s where we also want to keep supporting them. So, that’s where we see that is kind of a still more hybrid environment going forward and especially with more and more device connected with a lot of other, we see kind of the whole infrastructure security more and more important connect, consider all parts of security together is quite important.

Operator

Our next question is from Gregg Moskowitz with Mizuho.

Gregg Mizuho

I’d like to ask about your backlog, which has significantly and consistently increased for each of the last three quarters. It’s dramatically above year ago levels. So, Keith, you made it clear that the backlog should further rise by year-end, which is great. But at the same time, it’s not going to grow forever. And it’s common to see dips in the company’s backlog due to seasonality, significant order shipments, cancellations, et cetera. And so, it would just be helpful to get your sense of perhaps when we begin to see ebbs and flows in the backlog metric. If you could offer anything there, that would be helpful.

Keith Jensen

When supply chain is going to get better Ken. So, I’ll let you handle that one.

Ken Xie

If you compare to end of Q1, we increased backlog $120-some million. And then end of Q2, we increased about $72 million. It’s a little bit better increase, less than end of Q1 and also less than end of Q4. So, there is some kind of improvement on increased backlog. But also, we put a lot of effort to sourcing different parts or different vendor designed products. So, you see the product line we got quite broad right now. And also can help leverage some kind of -- I mean, some alternative of kind of a more broad supply chain for us. So, that’s why I do believe because the demand is still very, very strong, and so we do see probably keeping -- get a little bit better and better. But like Keith said, we probably not expect backlog will reduce in Q3, Q4. But the increase probably will be less each quarter, I’ll put it this way.

And then maybe next year, we’ll see -- starting to see some kind of improvement within the backlog. But overall, with our engineering effort, with the kind of the investment we’ve made in the operation in the manufacture, we do see since that get improved a little bit better now.

Keith Jensen

I think it was a logical place to have questions and Ken’s comments are great. I would just add to that, keep in mind, the -- this is why we provide some of the metrics there. We’re not -- there’s not airplane orders, right? These are relatively small dollar items compared to what you may see in other industries. And that’s why we gave some of the metrics on the size, if you will, and the fact also that their existing customers and many of those have been partially fulfilled. And we all have the same concern and the question is, how do you get comfortable that that backlog is sticky and it’s going to be here when the product and the supply chain loses up. And that’s why we’re giving those metrics for people to get some sort of context. But keep in mind these are comparatively to other industries, construction industry, airline, what have you, these are very small dollar amounts.

Ken Xie

Also, the age of our backlog probably much better than our competitors. Like Keith mentioned in the last 2, 3 quarters, every quarter, even if we increase the backlog and we fulfill probably like 60%, even over 60% of previous quarter backlog. So, that’s making our age in the backlog also pretty short, few months compared to most other competitors sometimes may take 1 to 2 years to deliver. So, that gives us a pretty good position and also the customer trust continue working with us during this supply chain issue. And at the same time, we offer quite a broad product. There’s always some kind of alternative product because suggest out customer to use if 1 or 2 provide some shortage. I think we deliver over 90% of any booking in every quarter, I believe.

Gregg Mizuho

Yes, the bookings...

Ken Xie

Between 90% to 95% of the booking, we deliver the product.

Operator

Our next question comes from Andrew Nowinski with Wells Fargo.

Andrew Nowinski

Congrats on another great quarter. I had a question on free cash flow. So I think you said you expect the low-end supply appliances to dramatically Improve in Q3. So is there a margin or free cash flow impact that mix shift in Q3? And then related to that, given the shortfall on services that we saw in Q2 and the negative impact it had on your free cash flow, should we expect free cash flow to rebound in Q3 and Q4, or are you assuming the linearity remains unchanged in those quarters? Thanks.

Keith Jensen

Yes. I’m assuming the linearity is -- I don’t really have any reason to think that’s going to be any different. I’m looking for a reason to find, but I certainly have not found one yet. So, when we look at what our expectations are internally, we don’t guide to free cash flow, we’re trying to provide information is helpful to others. I would assume that -- I have no reason to assume anything other than we’ll still see more of the same, if you will. And then, I think the first part of your question was -- you asked about low end and about margin. And maybe I can offer a little bit of commentary there. When you look at our FortiGate firewall product families, the entry level, the low end, you call it, mid-range and high end. In general, the margins increase -- the gross margin increases as you move up from the entry level to the higher end of it.

So from that aspect of it, and that’s why the comment in the script that there can be gross margin volatility both from the pricing actions that we’ve taken and the discounting as well, but also the mix of our product. So, in a quarter that we see a higher mix of higher-end firewall shipments, margins will be higher by definition. But there’s many puts and takes in there that we -- when we go through the gross margin guidance that we give, hopefully, we’re considering all the different puts and takes that are in there, not just the mix of the inventory and the pricing actions.

Operator

Our last question comes from Roger Boyd with UBS.

Roger Boyd

Keith, I was curious just to go back to the backlog for a second. You had mentioned the split being about 50-50 between FortiGate and networking portfolio. Just wondering if you could talk about how you expect that mix to trend through the end of the year? And I guess, the follow-up to that is what you’re seeing around the supply constraints between those two product portfolios? Thanks.

Keith Jensen

Yes, I might double check the numbers. I think it was 50%, 50-40 between FortiGate and networking equipment. I have it backwards. Networking equipment is 50% and firewalls 40% and then cash and dollars the remainder of it. I think everything that we’ve seen to read in here can probably know more, the pressure certainly seems to be for the term, more intense on switches and access points than they do on firewalls. And for a lot of the reasons I think we’re more successful with firewalls.

Ken Xie

Yes, I agree. Probably on the direction wise, we do see the FortiGate inventory will keep improving. So probably the percentage, maybe a little bit more on the backlog, probably a little bit more towards the switching and AP side, which is probably the whole industry is suffering some play issue, because we are more able to redesign and also use our own ASIC, which is also helping kind of reduce the backlog and supply on time for the customer. But it’s -- from the beginning of this backlog issue almost one year ago, definitely, we see the shifting a little bit more towards the networking side that have longer backlog.

Operator

I would now like to turn it back to Peter Salkowski.

Peter Salkowski

Thank you, Hope. I’d like to thank everyone for joining the call today. Fortinet will be attending investor conferences hosted by KeyBanc, Citibank, Evercore, Stifel and Goldman Sachs during the third quarter. Fireside chats will be available through our IR website. Please let me know if you have any follow-up questions, feel free to contact me and have a great rest of your day. Thank you very much.

Operator

Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.

Wed, 03 Aug 2022 13:00:00 -0500 en text/html https://seekingalpha.com/article/4529425-fortinet-inc-ftnt-ceo-ken-xie-on-q2-2022-results-earnings-call-transcript
Killexams : Fortinet Introduces the World’s Fastest Compact Firewall for Hyperscale Data Centers and 5G Networks

SUNNYVALE, Calif., Aug. 03, 2022 (GLOBE NEWSWIRE) --

John Maddison, EVP of Products and CMO at Fortinet
“No other firewall is better suited to support hyperscale and 5G. Not only is FortiGate 4800F the industry’s fastest compact hyperscale firewall, with 2.4 Tbps of capacity, but it is also the only 4RU chassis on the market that includes 400GbE, 200GbE, and 50GbE ports, which allows hyperscale customers and mobile network operators to seamlessly scale their business without disrupting operations. The combination of performance and scalability packed into our latest firewall will help future-proof organizations’ investments in hyperscale data centers, especially with the rise of 5G and as the volume and velocity of data continues to accelerate at an unprecedented pace.”

News Summary
Fortinet®  (NASDAQ: FTNT), a global leader in broad, integrated, and automated cybersecurity solutions, today announced the FortiGate 4800F series of hyperscale firewalls, which sets new standards for security, scale, performance, and innovation to meet the requirements of hyperscale customers and 5G mobile network operators (MNOs). Powered by 16 of Fortinet’s seventh generation network processors (NP7 ), FortiGate 4800F offers the highest performance figures of any compact firewall, with Security Compute Ratings that deliver up to 34x better performance than competitor solutions, including the ability to support an average of 19x more connections per second.

Large enterprises and MNOs are in the continual pursuit of doing more with less. When it comes to firewalls, higher performance in a smaller footprint means security becomes an enabler for 5G adoption, allowing mobile providers to deliver new use cases for enterprises and critical industries and infrastructure. It also ensures enterprise customers such as high-velocity e-retail, cutting-edge research facilities, financial institutions, and cloud providers have access to the performance, scalability, and security they need to meet escalating business needs. Reduced costs for space, cooling, and power are additional benefits to achieving higher performance in a smaller form factor.

With these outcomes in mind, Fortinet’s dedication to pushing the boundaries of what is possible in security performance has yielded the most powerful compact firewall yet: the FortiGate 4800F. With a 4RU chassis and 400GbE, 200GbE, and 50GbE interfaces, this latest model of Fortinet’s flagship line of firewalls enables MNOs to secure 5G networks with the following capabilities:

  • Accelerates 5G adoption with secure IP connectivity and support for 19x more connections per second: 5G enables massive machine-to-machine communications that require secure IP connectivity to untrusted environments such as the internet, edge sites, and the cloud. The FortiGate 4800F enables MNOs to secure massive scale and performance for IP connectivity to external networks and domains with massive carrier-grade NAT (CGNAT) performance and hardware logging. To build capacity that meets the needs of today and the future, FortiGate 4800F supports 25 million connections per second to provide MNOs the capacity they need to handle surges in traffic and large sustained loads of subscriber connections. Enterprises with ultra-performance needs can converge multiple firewalls into a single unified system, host on-premises applications, and deliver the required user experience.
  • Secures 5G radio access network (RAN) traffic and core connectivity with 19x faster IPsec VPN performance: With the increased scale of 5G radio and the sharing of RAN between operators to reduce costs, the FortiGate 4800F provides a cost-effective security gateway (SecGW or SEG) to handle 5G’s RAN scalability and security requirements for both user and control planes.

FortiGate 4800F also delivers hyperscale security for hyperscale data centers with the following capabilities:

  • Enables 400G ultra-fast data center interconnect: With 400GbE ports in a compact 4RU form factor, FortiGate 4800F enables organizations to connect and replicate data securely with ultra-fast elephant flows, while ensuring privacy and confidentiality to guarantee that all data and services are delivered close to the customers and partners. Enterprises with ultra-performance needs can converge multiple firewalls into a single unified system, host on-premises applications, and deliver the required user experience. In April 2021, Fortinet became the first vendor to deliver 400GbE ports on a hyperscale firewall via FortiGate 7121F, followed by the FortiGate 3700F in May 2022. FortiGate 4800F continues Fortinet’s legacy as the only vendor delivering 400GbE interfaces on a hyperscale firewall to support the most intensive hyperscale use cases.
  • Removes blind spots with 6x faster SSL inspection: With as much as 95% of today’s traffic being encrypted, SSL-inspection has become critical to properly secure the network. While encrypted paths are meant to make traffic more secure, they also let bad actors hide malicious activity. To allow all encrypted traffic to be inspected while keeping up with the speed of today’s networks, FortiGate 4800F offers the industry’s highest SSL-inspection performance as well as support for the industry’s latest TLS 1.3 standard. This also ensures network blind spots are eliminated by enabling full visibility of clear-text and encrypted network flows.
  • Secures hybrid IT architectures with VXLAN segmentation: Digital acceleration is only possible with hybrid IT architectures that seamlessly connect and secure on-prem and cloud assets. The FortiGate 4800F enables massively scalable hardware-accelerated Virtual Extensible LAN (VXLAN) segmentation and allows super-fast communication between enormously scaled services, such as compute, storage, and applications that are co-hosted on physical and virtual platforms.

The entire FortiGate suite of next-generation and hyperscale firewalls supports organizations of all sizes with the following features:

  • High-performance security at scale: FortiGuard AI-Powered Security Services deliver innovative real-time protection for known, zero-day and unknown threats, including IPS, DNS, AV, and inline sandbox, for datacenter edge and core deployments leveraging segmentation and more granular device (OT/IoT) as well as web and application security capabilities for comprehensive perimeter protection.
  • Supports zero trust architectures with integrated universal ZTNA: FortiGate natively integrates universal zero trust network access (ZTNA) enforcement to support zero trust architectures. Setting up universal ZTNA with an on-prem or virtual FortiGate ensures that consistent policies and controls span across all operating environments, including across multiple clouds.

FortiGate 4800F vs. Competitors
Below is a comparison of the top firewalls on the market against the target performance numbers of the FortiGate 4800F series.  Security Compute Rating  is a benchmark (performance multiplier) that compares FortiGate performance versus the industry average of competing products across various categories that fall within the same price band.

Specification​ FortiGate 4801F1​ Security
Compute Rating​
Industry ​
Average​
Palo Alto Networks​
PA-54503​
Check Point​
Quantum 28000​
Cisco​
Firepower 4145​
Juniper​
SRX54004​
Firewall​ 2.4Tbps​ 15x​ 158Gbps​ 136.4Gbps​ 145Gbps​ 80Gbps​ 270Gbps​
IPsec VPN​ 800Gbps​ 19x​ 42Gbps​ 34.8Gbps​ 49Gbps​ 23Gbps​ 60Gbps​
Threat Protection5 ​ 70Gbps​ 1.5x​ 46Gbps​ 61.8Gbps​ 30Gbps​ N/A​ N/A​
SSL Inspection ​ 55Gbps​ 5.5x​ 10Gbps​ -​ -​ 10Gbps​ N/A​
Concurrent
Sessions​
280M/ 1760M2​ 34x​ 51M​ 40M​ 32M​ 40M​ 91M​
Connections
Per Second​
900K/ 25M2​ 19x​ 1.3M​ 1.45M​ 615k​ 1.5M​ 1.7M​

Additional Resources

About Fortinet
Fortinet (NASDAQ: FTNT) makes possible a digital world that we can always trust through its mission to protect people, devices, and data everywhere. This is why the world’s largest enterprises, service providers, and government organizations choose Fortinet to securely accelerate their digital journey. The Fortinet Security Fabric platform delivers broad, integrated, and automated protections across the entire digital attack surface, securing critical devices, data, applications, and connections from the data center to the cloud to the home office. Ranking #1 in the most security appliances shipped worldwide, more than 580,000 customers trust Fortinet to protect their businesses. And the Fortinet NSE Training Institute, an initiative of Fortinet’s Training Advancement Agenda (TAA), provides one of the largest and broadest training programs in the industry to make cyber training and new career opportunities available to everyone. Learn more at  https://www.fortinet.com, the  Fortinet Blog, or  FortiGuard Labs.

FTNT-O

Copyright © 2022 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAP, FortiAppEngine, FortiAppMonitor, FortiAuthenticator, FortiBalancer, FortiBIOS, FortiBridge, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCenter, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDB, FortiDDoS, FortiDeceptor, FortiDirector, FortiDNS, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLocator, FortiLog, FortiMeter, FortiMoM, FortiMonitor, FortiNDR, FortiNAC, FortiPartner, FortiPenTest, FortiPhish, FortiPortal, FortiPresence , FortiProtect, FortiProxy, FortiRecorder, FortiReporter, FortiSASE, FortiScan, FortiSDNConnector, FortiSIEM, FortiSDWAN, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiVoIP, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLCOS and FortiWLM.
Other trademarks belong to their respective owners. Fortinet has not independently Checked statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments. This news release may contain forward-looking statements that involve uncertainties and assumptions, such as statements regarding technology releases among others. Changes of circumstances, product release delays, or other risks as stated in our filings with the Securities and Exchange Commission, located at  www.sec.gov, may cause results to differ materially from those expressed or implied in this press release. If the uncertainties materialize or the assumptions prove incorrect, results may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Fortinet assumes no obligation to update any forward-looking statements, and expressly disclaims any obligation to update these forward-looking statements.

Wed, 03 Aug 2022 01:03:00 -0500 en text/html https://apnews.com/press-release/globe-newswire/technology-mobile-networks-632a470d0662938dc20986a9ed3c4fe9
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