Centrify: The Momentum Continues

Centrify runs on a July 1 to June 30th fiscal year, so our Fiscal Year just ended, and yesterday we announced our Fiscal Year 2012 results. I wanted to give our customers and partners an update on our business and reflect on the last twelve months.

The good news for our customers and partners is that Centrify is a fast-growing and vibrant software and cloud services vendor. We posted record bookings and revenue over the prior fiscal year, and have produced a compound annual growth rate of approximately 50 percent over the past 3 years. Our customer adoption also continues at a torrid pace, adding more than a 1,000 new customers and increasing our paying install base to over 4,500 customers. So customers are voting with their proverbial wallets and more and more they are voting for Centrify.

We have also grown the company in terms of hiring and expanded geographic presence. The number of people working here at Centrify grew approximately 85% year over year, and we added regional sales offices in Asia Pacific, Europe and most recently in Brazil. We also added to our management team by hiring a new CFO, Tim Steinkopf. The number of regional sales specialist teams grew by more than 50 percent. And we opened up a new development office in Bellevue, WA where many of our cloud services developers reside. The company also closed its Series D round of financing to expand distribution to meet the growing global demand from organizations for its security and compliance solutions, and to accelerate growth in new areas, including cloud environments.

But probably most significantly, we have continued to heavily invest in both our software products and cloud services. Over the last 12 months we released a major upgrade to our flagship software product line: Centrify Suite 2012. Overall, Centrify Suite 2012’s platform support grew to cover more than 375 mobile, UNIX, Linux and Microsoft operating system platforms — the most extensive support in the industry.

We also released our first iteration of our on-demand cloud services. Our first cloud-based service offering is Centrify for Mobile, which lets enterprises centrally secure and manage smart phones and tablets, including iPads and Android devices, using existing Active Directory infrastructure, skill sets and processes. Expect more solutions to be built on the Centrify Cloud Service.

Over the last 12 months we also focused on ensuring seamless product interoperability with other vendors and solutions, and also focused on making sure our products met stringent security certifications and requirements. For example, Centrify Suite 2012 was awarded the Federal Information Processing Standards (FIPS) 140-2 Level 1 validation from the Cryptographic Module Validation Program — the first Active Directory bridge solution to earn this important industry distinction. Centrify DirectControl for Mac OS X earned the Certificate of Networthiness (CoN) from the U.S. Army Network Enterprise Technology (NETCOM) Command 9th Signal Command, while Centrify DirectControl v5.1 was accepted for Common Criteria certification and is now listed as "In Evaluation" at EAL (Evaluation Assurance Level) 2+. Another example is Centrify DirectControl for Applications version 4.4.3 achieved SAP certification for integration with the SAP NetWeaver® 7.0 technology platform to provide enhanced, secure, centralized authentication for users of client-server and Web browser solutions.

In addition, Centrify’s solutions earned significant industry recognition in FY2012. For example, Centrify Suite 2012 earned an overall 5-Star Rating by SC Magazine in an identity management competitive technical group test review, the highest rating possible, and Centrify DirectAudit was named Windows IT Pro’s 2011 Editors’ Best Gold Award winner in the Auditing/Compliance awards category.

Last, but not least, we added to our stable of partners with new industry relationships with system integrators, value added distributors and value added resellers. We grew the number of channel partners by nearly 150 percent, and we now work with approximately 100 channel partner organizations.

So overall a pretty darn good year! I would like to thank our customers and partners for supporting and investing in us — especially the 100+ customers and partners who attended our recent Centrify Customer Conference. And of course I would also like to thank the Centrify employees for delivering these results.

Finally, as I look at this new Fiscal Year for Centrify, I am really excited about how the products and services we have today — and what we plan to deliver in the coming months dovetails — so nicely with the most significant trends happening today in IT today, namely the whole cloud and mobile revolution. One of the end results of this revolution is a proliferation of heterogeneous devices and applications, and as apps and devices come and go, the one constant I see in this new cloud and mobile world is identity. Therefore it is critically important from a security and compliance perspective to control what a user can access across this changing sea of heterogeneous devices + systems + applications, and to also make a user’s life easier by preferably giving them a single username and password. This becomes even more significant as more organizations and users embrace the cloud, which means that the traditional Security 1.0 approach of "protect the perimeter" becomes less relevant and Identity in effect becomes the new perimeter.

We think the Centrify approach of delivering secure, universal access from any end point to any on-premise or cloud resource is what is required in today’s increasingly heterogeneous IT infrastructure. And we think the way we go about — by allowing you to leverage an existing identity infrastructure (Active Directory) tied to our on-premise software and the Centrify Cloud Service (that acts as a "Cloud Access Security Broker" for cloud-based resources) — to enable this is the way to go. We have already gotten amazing feedback from our customers to our vision and product roadmap at our recent User Conference, and we look forward to delivering on this vision in the coming months of our new Fiscal Year.