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Saturday, Sep 30, 2023

CrowdStrike’s Effort to Block Industry Report Fails

A Delaware district court rejected arguments by Irvine-based software security maker CrowdStrike Inc. to block the release of a report by NSS Labs that shows results of a test of competitor products.

The report, which costs $2,500 for an in-depth comparison of all companies, or $750 for a specific company, rated CrowdStrike’s Falcon flagship product 12th out of 13 tested.

Irvine-based Cylance Inc. was ranked No. 3, prompting the company to issue a press release announcing that it earned the “NSS Labs Recommended Rating” in the inaugural Advanced Endpoint Protection test. CrowdStrike was given a “caution” rating. The company, which refused to take part in the test, referred Business Journal inquiries to a recent post on its website that called the testing “incomplete” and the results “invalid” and “wrong.”

“The inclusion of CrowdStrike in the report is wrong and inconsistent with industry testing standards, and presents an inaccurate and misleading picture of our Falcon product,” the company said.

CrowdStrike made a splash in 2015 after raising $100 million in a Series C round led by Google Capital. Cylance matched that benchmark—believed to be the highest funding for a tech firm here—last year in a Series D round led by Blackstone Tactical Opportunities.

CrowdStrike has raised $156 million since its inception in 2011. Its $100 million funding round valued the company at about $667 million at the time, according to Pitchbook.

CrowdStrike and Cylance are key players in a developing cybersecurity niche in Orange County that’s been bolstered by the recent creation of the Cybersecurity Policy and Research Institute at the University of California-Irvine.

The Business Journal in October reported that national intelligence expert and corporate attorney Bryan Cunningham was tapped to lead the institute.

The issue of cybercrime and cyber-espionage, which cost the global economy $445 billion annually in theft and hacking disruptions, according to the Center for Strategic and International Studies in Washington, D.C., has risen to global prominence in recent months as details continue to surface regarding Russia’s tampering efforts during last year’s presidential election season.

Buy Grows Provider

Anaheim-based AC&C Network Services, which provides phone cabling and systems, networking connectivity and security services, has acquired a Torrance company in a move that will double employment.

Financial terms of the deal for Lawrence Cabling Systems were undisclosed.

AC&C gains added services in customized IT infrastructure, telephone systems, and Internet services, as well as a regional base of customers, particularly in the legal field. The company, which runs national and regional services through a network of contractors, will double employment with the buy.

“We went from 10 employees to 25 workers,” said President Jeff Kane. “Everybody needs data.”

AC&C was the 30th largest telecom in Orange County last year based on employees. Its annual revenue is under $5 million.

Software Maker Sold

Irvine-based Pharaoh Information Services, which makes software for homebuilders, has been sold on undisclosed financial terms to Hyphen Solutions, a Dallas developer of cloud-based construction management software.

Pharaoh’s software provides sales tracking and reporting; options ordering and purchasing; subcontractor bidding and contract creation; customer service and warranty control; construction scheduling; and other related services.

It was established in 1985.

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