You are correct to state that a growth engine for
Rainbow is the cryptoswift / netswift product line.
However the real growth engine is the new business unit
called Spectria (See press release dated 11/10/99).
Rainbow is trying to do a fundamental change in its
business and is apparently banking on this new unit to
drive revenue growth. The cryptoswift and netswift
products are part of this product offering, as these two
areas seem to have nice synergy in terms of a common
customer base. Couple this with a possible de-emphasis on
anti -piracy theme and you have a whole new definition
for what Rainbow is and does. Hopefully they will be
able to sell this message to the investment community.
One or two posts over the last couple weeks and
then this. Wow. Isn't hardware encryption (cryptoswift
etc.) the high growth engine rpopelling Rainbow these
days? Does alladin compete in this area?
me get back to sleep!!!
What a joke! The USA subsidizes the Israeli
military,trains Israeli technical personnel in the USA and the
Israelis go back to Israel and steal the secrets. Then
they sell the technology to the Chinese as reported in
the press today. This is common knowledge among
military contractors in the USA. I wouldn't put $.05 into
an Israeli company, not least because of the dubious
accounting mentioned by another poster.
You bring up valid points about the
growth of Aladdin. Remember that when there is a #1 and
no clear #2 for a long time, when a clear #2
emerges, people love a choice. Does Rainbow management
WANT their anti-piracy business to grow?? great
question. If you compare financials, you will see that
Aladdin and Rainbow appx spend the same amount of gross $
on advertising, yet Rainbow is almost 3x the size
with 3 different product segments to worry about. This
is a real testament to a focused growth strategy
which over the past four years Aladdin has had and
Rainbow has not, for whatever reason. However, this
growth was not accomplished via better technology. Don't
attempt to argue this last point buy quoting those
worthless NSTL reports either. NSTL is a for PROFIT
business that will test anything against anything based on
whatever criteria the buyer wants. I am sure that I could
have them produce a report that proclaims a head of
broccoli will propel us to the moon if I had enough
The real trick for each of these senior management
teams is to show us the next growth engine for their
"Do your homework before you make
an ASS out of yourself" (Referring to your previous
Rainbow has actually had several splits as well.
The bottom line is the software protection market via
hardware keys or a software license manager will never
combine to more than a $200mm/yr market. Nice little
segment, but not one that Analysts get excited
As far as the SentinelLM customer base is concerned,
Annual reports don't say much and their terrible PR
machine doesn't help either. A great proxy for the size
of the software licensing market via software
protection is a privately held company called Globetrotter
(www.globetrotter.com) based in San Jose. They bill themselves as the
"de facto standard" and have an impressive and vast
list of clients, but insiders say that annual revenues
may only reach $8-10mm/yr. Based on this information,
I wouldn't be surprised to see Rainbow's LM at less
than half that. Don't expect Aladdin's privelage to
set any revenue records, the truth is, software
license managers while appearing to be simple, encounter
an incredibly long sales and implementation
As far as the eToken is concerned, Aladdin announced
the product at the RSA99 show, Jan of 1999, literally
hours after Rainbow made their iKey announcement. Right
after the show I ordered sdk's from both Rainbow and
Aladdin. Rainbow's came within two weeks, Aladdins didn't
arrive until the middle of September. Only recently has
Aladdin been able to ship SDK's. At the RSA show the
Aladdin was touting digital signature storage capability
of their eToken, but their strange definition was
that of an actual signature scanned into a computer
and stored on the token. What idiots!
examine the eToken a little more closely you will see
that yes it can store a digital cert (unsecurely in
EEPROM memory) Don't bet the farm on those USB tokens,
Once again, not alot of news about
iKey sales. Rainbow has three solid iKey partners in
I/O, Aventail and EZLock. These products are available
today. Aladdin lists Ashley Laurent, Ailiroo, and some
other firm. None of these products are available
commercially, and representatives of Aladdin are unable to
provide an exact delivery date, as
Therefore I once again place my money on Rainbow.
a lively discussion here. Should be good for
educational purposes. Indeed, you've enjoyed a nice stock
price move as of late.Alladin has too. Actually had a 2
for 3 split some time ago.
Being based in Israel
is a handicap, no question, and should be taken in
ALDN's eToken does not hold
digital certificate storage? I think you're wrong.
many customers for SentinelLM and what are the sales
for that product?
Same Question for ikey?