In 2024, SonicWall underwent a significant transformation, evolving from its longstanding role as a firewall vendor into a full-fledged cybersecurity company. This shift placed a strong emphasis on engaging with Managed Security Service Providers (MSSPs) and Managed Service Providers (MSPs). The Milpitas, California-based company began implementing strategic changes under the leadership of CEO Bob VanKirk, who succeeded Bill Conner in 2022. These changes involved a series of acquisitions, new product launches, and enhancements aimed at better positioning SonicWall in the cybersecurity market.
Strategic Acquisitions
Solutions Granted: Expanding Service Offerings
Leading up to 2024, SonicWall made three critical acquisitions that had not been attempted in 14 years. Between late 2023 and early 2024, the company acquired Solutions Granted, Banyan Security, and Trapmine. Each acquisition was strategically selected to expand SonicWall’s capabilities and offerings. Solutions Granted, a master MSSP, introduced a variety of services, including security operations centers (SOCs) and managed detection and response (MDR), alongside partner-friendly financing options like month-to-month agreements without annual contracts or mandatory minimums. This purchase aligned well with SonicWall’s intention to deliver flexible, manageable security solutions to its partners.
The acquisition of Solutions Granted was pivotal for SonicWall because it provided essential tools and services, positioning SonicWall to offer a greater range of security options to its customers. Solutions Granted’s models allowed SonicWall to serve a broader client base, particularly those with fluctuating security needs. Bringing on a master MSSP also demonstrated SonicWall’s commitment to partnering with organizations that could enhance their service offerings and operational capabilities. This development further solidified SonicWall’s evolution from being predominantly seen as a hardware provider to a comprehensive security service provider.
Banyan Security: Embracing Zero Trust
By January 2024, SonicWall had acquired Banyan Security, which operates within the security service edge (SSE) arena that emphasizes zero trust network architectures and cloud-native capabilities. This acquisition catered to the growing need for remote and hybrid work environments where secure access to business applications is increasingly crucial. SonicWall aimed to leverage Banyan’s technology to provide MSSPs and MSPs with tools to secure complex networks effectively.
With the rise of remote work and increased reliance on hybrid working models, zero trust principles have become more important than ever. Banyan Security’s expertise in this field allowed SonicWall to develop solutions that prioritize verifying every access request before granting it, regardless of where the user is based or the device they are using. This approach not only bolstered SonicWall’s product lineup but also enhanced its appeal to organizations seeking robust security measures amid an evolving work environment. By integrating Banyan’s cloud-native capabilities, SonicWall ensured their offerings were adaptable and could meet the modern demands of MSSPs and MSPs.
Integration and Expansion
Early Integration Efforts
These early acquisitions laid the groundwork for SonicWall’s first-half initiatives focused on integrating new technologies and expanding their service offerings. Early 2024 saw substantial integration work, quickly bearing fruit. Solutions Granted’s financing models were adopted, and SonicWall launched an expanded MDR portfolio for MSPs. This included integrating its Capture Client Endpoint Detection and Response (EDR) platform with Microsoft’s Defender Antivirus. Additionally, SonicWall promised forthcoming services like managed firewalls and managed cloud security, thereby enhancing its service lineup.
SonicWall’s early integration efforts demonstrated their commitment to seamlessly incorporating acquired technologies and services into their existing framework. By swiftly adopting Solutions Granted’s financing models, SonicWall provided its partners with flexible, manageable options that catered to diverse financial needs. The expansion of the MDR portfolio, including the integration with Microsoft’s Defender Antivirus, represented a significant step towards offering advanced threat detection and response tools. SonicWall’s promise of forthcoming managed services, such as managed firewalls and cloud security, underscored their dedication to continually evolving and expanding their offerings to better serve their partners.
Launch of SonicPlatform
In April 2024, SonicWall introduced SonicPlatform, a unified management platform designed specifically for MSSPs and MSPs. This platform consolidated the management of various SonicWall products, facilitating a streamlined security and health management process through a single interface. The launch of SonicPlatform expectedly represents a significant shift towards simplicity and ease of use for their partners, leveraging APIs and AI to support deployment and other operations.
The SonicPlatform initiative highlighted SonicWall’s efforts to simplify the management of their diverse product suite, making it easier for partners to oversee and maintain security operations. By consolidating these tasks into a single interface, SonicWall aimed to reduce complexity and improve efficiency for MSSPs and MSPs. Utilizing APIs and AI in this context allowed for smoother deployments and more responsive operations, enabling partners to better serve their clients. This strategic move demonstrated SonicWall’s understanding of the need for streamlined processes in an increasingly complex cybersecurity landscape.
Cloud-Native Solutions
Cloud Secure Edge
Through these strategic moves, SonicWall demonstrated its commitment to delivering cloud-native security solutions. They built on the Banyan acquisition by launching Cloud Secure Edge in July 2024. This suite of zero trust access capabilities enabled MSPs to efficiently connect workers and third-parties securely, regardless of their device or location. The company also integrated Banyan technologies into its SonicOS operating system, ensuring every firewall now came with built-in cloud-native capabilities suited to MSPs and MSSPs.
The launch of Cloud Secure Edge was a significant milestone for SonicWall, as it encapsulated the company’s dedication to providing flexible, cloud-native security solutions. This offering was particularly important in the era of remote work, where securing access to business applications from various devices and locations became a critical concern. Integrating Banyan’s technologies into SonicOS ensured that SonicWall’s firewalls were equipped with advanced security features, catering to the needs of modern businesses. This development reinforced SonicWall’s position as a forward-thinking cybersecurity company focused on addressing emerging challenges with innovative solutions.
TZ80 Firewall
The culmination of these efforts was reflected in their November 2024 release of the TZ80 firewall, a subscription-based product aimed at small to medium-sized businesses (SMBs), branch offices, and small office/home office (SOHO) settings. The device exemplified SonicWall’s evolving business strategy, offering managed security services and cloud-based functionalities out-of-the-box. This approach signals a clear departure from merely selling hardware to presenting an integrated solution that benefits both partners and their customers.
The TZ80 firewall represented a significant shift in SonicWall’s product strategy, moving away from traditional hardware sales towards offering comprehensive, subscription-based solutions. This product was designed to cater to the specific needs of SMBs, branch offices, and SOHO settings, providing them with robust security measures and cloud-based functionalities without requiring extensive in-house IT resources. By offering managed security services along with the hardware, SonicWall aimed to deliver a more holistic solution that would better serve their customers’ needs and enhance overall security.
Financial and Market Impact
Growth and Transformation
As of the end of 2024, SonicWall had achieved considerable growth and transformation. CEO VanKirk and CFO Jeff Dolce reported a 700% year-over-year increase in their cloud-native business, alongside double-digit expansion in managed security services. The integration of AI into support services further optimized partner response time, reducing it from minutes or hours to seconds. This success marked a significant departure from previous declines in partner engagement, with SonicWall now experiencing triple-digit growth in partner and transacting partner numbers.
The remarkable growth in SonicWall’s cloud-native business and managed security services highlighted the effectiveness of their strategic initiatives. By incorporating AI into their support services, SonicWall significantly improved partner response times, demonstrating their commitment to enhancing partner experience. This success was a notable turnaround from previous years of declining partner engagement, signaling that SonicWall’s efforts to evolve and expand were resonating well with their partners. The triple-digit growth in partner numbers further underscored the positive impact of their transformation on the market.
Future Plans and Partnerships
Looking ahead to 2025, SonicWall plans to continue simplifying and integrating its offerings for MSSPs and MSPs. VanKirk emphasized the need to recognize and adapt to the diverse cybersecurity needs of their partners, as opposed to an outdated belief that partners would standardize on SonicWall solutions alone. A key focus will be on advancing support for non-SonicWall-related capabilities, aligning with broader industry needs and expectations.
SonicWall’s forward-looking approach signaled their understanding that the cybersecurity landscape is ever-evolving and requires continuous adaptation. By focusing on simplifying and integrating their offerings, SonicWall aimed to make it easier for MSSPs and MSPs to provide comprehensive security solutions to their clients. The emphasis on supporting non-SonicWall-related capabilities reflected a broader industry trend towards interoperability and flexibility, ensuring that SonicWall’s partners could seamlessly integrate various technologies to meet their diverse needs. This strategic direction positioned SonicWall favorably for future growth and success.
Expanding Beyond Traditional Cybersecurity
Regulatory Compliance and Insurance
In 2024, SonicWall underwent a major transformation, shifting from its traditional role as a firewall vendor to becoming a comprehensive cybersecurity company. This transformation placed a significant focus on collaborating with Managed Security Service Providers (MSSPs) and Managed Service Providers (MSPs). The company’s base is in Milpitas, California, and it began implementing strategic changes under the new leadership of CEO Bob VanKirk, who took over from Bill Conner in 2022. The changes included a series of acquisitions, launching new products, and enhancements designed to better position SonicWall in the competitive cybersecurity market. These strategic initiatives aimed to fortify SonicWall’s presence and capabilities, ensuring they could meet the evolving needs of their clients in the cybersecurity landscape. Among these initiatives was a focused effort on integrating advanced threat detection technologies and improving overall security measures, solidifying SonicWall’s reputation as a forward-thinking and adaptive leader in cybersecurity.