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SecureKey Technologies Inc. (Private) |
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September 3, 2012 Issue |
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The Most Powerful Name In Corporate News and Information |
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CURRENT ISSUE | COVER ARCHIVES | INDEX | CONTACT | FINANCIALS | SERVICES | HOME PAGE |
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Providing an Innovative Platform-as-a-Service for Authentication, Payment and Identity, SecureKey Technologies Inc. has the Products, Services, People and Investors – to really Win Big in Canada, the US and a Number of Other Markets |
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www.SecureKey.com Charlie has been involved in the information security industry for more than 30 years. Recently, as COO and General Manager for INSIDE Secure’s NFC & Payments Business, he was responsible for defining business strategy, driving product strategy and development, and leading the launch of new contactless and NFC chip products. He was instrumental in securing key NFC business with Intel and RIM, and for the rollout of contactless payments within the US bankcard market. As the founder of Caradas, he was involved in authentication and smart card system development & integration programs with Visa, MasterCard, Fleet Bank, and Target. He had served as COO of Diversinet with focus on mobile security and with Securify, Certco, and Spyrus, all in the smart card & security sectors. He was the co-founder of the CyberTrust business at GTE and captured first contract wins with MasterCard, American Express, and the CyberTrust Japan joint venture. His early career at GTE Government Systems was focused on the development of large-scale secure communication systems for defense segment customers.
Charlie holds a Bachelor of Science in Computer and Systems Engineering from RPI in 1981. |
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Interview conducted by: Lynn Fosse, Senior Editor, CEOCFO Magazine, Published – September 3, 2012
Mr. Walton: First, I have known the company since the beginning and I have been quite close with Greg Wolfond, the founder and current CEO. We have great chemistry between us, and over the years have developed a good friendship, and then a partnership, with the company I am now leaving, INSIDE Secure. I have followed SecureKey closely and am attracted by the fact that it is at a fairly important inflection point of growth.
The services of the company have been validated by the Government of Canada and the Intel deal that has been set in place has been quite substantial. I have been close to Intel historically, so I understand the valid reasons for the Intel/SecureKey connection. I am also quite attracted by the validation that has come from strategic investors. The company is in a growth trajectory and I think that with the investors that have recently come in, we have the capital, the people, and the right services to lead forward to the next level. In many respects, that has aligned well with my background and my history in security and authentication. At INSIDE Secure I helped the company grow from very early stages, when it was about the size of SecureKey now, to a much more substantial company. The synergy amongst the core security technology, my involvement in financial services, and the smart devices ecosystem is ideal.
Mr. Walton: Today, the key thing is deployment of SecureKey’s authentication services, and really extending the power of chip-based ID and payment technologies for online, PC-based and mobile-based transactions. SecureKey is currently focused on serving the financial services sector, government, healthcare and other industries where security, privacy and convenience are priority. One of the key challenges of moving forward given the fairly broad applicability of the SecureKey services will be the growth strategy. This is one of the reasons that Greg has asked me to come into the company; it was really to help map out a sensible strategy for growth. In many respects, being too shy about growth or being too aggressive about growth could be the wrong thing for the company. We are really trying to make sure that we are taking a very pragmatic approach on growing the company, which means mapping out where we take that growth, in geographies and in vertical markets. The focus of the growth and that strategy is one of the key things that we will be working on very early in my tenure at SecureKey.
Mr. Walton: One of the nicest examples is a demonstration that was done earlier this year at the CES conference in Las Vegas with Intel Corporation, a partner of SecureKey. SecureKey’s authentication technology is being incorporated into Intel’s “Identity Protection Technology” and next generation Ultrabooks will include SecureKey authentication services. The use-case demonstrated at that conference is quite evocative of what we will begin to see from SecureKey. Here a device, either a contactless smart card, or a mobile phone with NFC (Near Field Communication) capability, was tapped against an Ultrabook equipped with Intel’s identity protection technology – and by definition SecureKey’s authentication technology – to show on online payment transaction. The information for purchase was form-filled, making the payment transaction easy-to-use with either my card or NFC phone. That is a terrific example of SecureKey’s authentication technology. What sets SecureKey apart is that with the mechanisms that have been bolted in, it has been very simple to deploy. And for a user, nothing is simpler than waving something they already have against their own Ultrabook device.
Mr. Walton: Security is a funny thing; it does not have the appeal of a new iPhone, or consumer electronic device, or flashy new gadget out there. But when customers say they want to make a payment with their phone, or they want to use their phone to open a hotel room door, you find that their concern is whether their information is safe and if their privacy is maintained. I would say that while the security services that SecureKey is offering do not have the flashy appeal as consumer electronics, they are beginning to address what has been a dominant issue on the part of consumers who are intent on adopting new types of mobile services. We believe consumers will absolutely gravitate to this; they will see that this is a way to secure their data, that it has a very easy, intuitive feel that will ultimately make their life easier and more secure. That is a win/win. In some sense, we cannot really think about security as an over-arching consumer service, but rather an innate part of performing online and mobile transactions with integrity. We think SecureKey’s technology will ultimately deliver great value for the consumer.
Mr. Walton: I would say that it’s the core technology that has been put together in a manner that is properly balanced to deliver security conveniently. The coupling of security with convenience has been done exceptionally well by SecureKey. The underlying technical development of course contributes to that. I would say that secondly, it is the company’s approach into market: becoming incorporated into the ecosystem; working closely with Intel; establishing strategic investment relationships with the major card brands in North America; and SecureKey’s footprint into Government. The award-winning, core security work, coupled with convenience and the market approach, has been unique on the part of the company.
Mr. Walton: Yes, they have!
Mr. Walton: Well, as part of the Government of Canada’s new online authentication service, SecureKey was awarded a contract to provide a credential brokering service that enables citizens to use their bank authentication credentials to gain access to online services. This provides a way for a consumer with a contactless card, or even in the future an NFC-equipped phone, to be able to gain access to citizen-based functions. This leverages security credentials that have been issued “out in the world” through the bank’s authentication credentials and major payment groups.
Mr. Walton: I think it is a matter of trying to envision the future. To date, SecureKey has done a very good job of laying the foundation for access to services through mobile devices. Having that vision, and being highly focused upon it, will be key. The challenge going forward in the next year will be the focus on growth that is not too fast or too slow, and making the right choices on both partner and customer engagements. I would say that our alignment with Intel has been very substantial. SecureKey has been very fast-moving, has seen the future, and has made the right choices in the early days on selecting opportunities and delivering. The next stage is to begin widening the focus appropriately.
Mr. Walton: It is still up for review. I know Greg has put together a wonderful team and the management team is topnotch. I would say the most critical thing is setting up properly for growth. I do not see anything lacking at all in the company. It is now a matter of growing in geographies and verticals that are the best suited for us. That is where the focus will be through the coming ninety days or so.
Mr. Walton: We recently concluded a fundraising round, which was a very substantial round for the company, in the sense that we raised nearly $30 million. The round was led by Intel and we were thrilled that they were able to do that. We also brought new strategic investors Visa, MasterCard, Discover, Roger’s Venture Partners and TELUS into our equity mix.
Mr. Walton: I see SecureKey at the center of a next wave of computing. In many respects if we look at how computing changed in the 1995-2000 timeframe, we saw the emergence of web browsers and servers, and of early stage ecommerce. The landscape changed and never went back.
We are now in the midst of the next level of substantial change driven by mobility, which continues to accelerate. This year, we have seen a flip as tablet-based devices were deployed more substantially than PC-based laptop devices. We are beginning to see more mobility with lightweight laptops, ultrabooks, tablets, smart phones, and other lower-end smart phones. In the industry at large, we see attacks on our computing devices becoming more substantial, so it is really import to be laying down a solid authentication foundation to allow more types of transactions to occur in a secure manner that is convenient for the consumer. I see SecureKey at the center of helping the industry to secure many more types of transactions. SecureKey has focused on applying security and authentication to mobile devices, which makes the company super interesting. I have a great deal of excitement about that and is certainly the reason I am on board.
Mr. Walton:
SecureKey is at an exciting stage and is set up for some substantial growth.
I am thrilled to be coming in now and working more closely with Greg and the
team that has been put in place. The team is fantastic and we are set up
with all the right things - products, services, people, and investors - to
really win big in Canada, the US and a number of other markets. |
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SecureKey is at an exciting stage and is set up for some substantial growth. I am thrilled to be coming in now and working more closely with Greg and the team that has been put in place. The team is fantastic and we are set up with all the right things - products, services, people, and investors - to really win big in Canada, the US and a number of other markets. - Charles Walton |
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