Internet Security Systems

Internet Security Systems, Inc., commonly known as ISS, was a United States cybersecurity software and services company founded in 1994 by Christopher Klaus. The company originated from Internet Security Scanner, a vulnerability-assessment program Klaus developed while studying at the Georgia Institute of Technology. ISS was established to commercialize and expand that technology for business customers, eventually turning it into Internet Scanner, one of the company’s best-known products. ISS operated at the intersection of enterprise security software and managed security services. Its products were designed to identify vulnerabilities, detect suspicious activity, block network attacks, protect servers and endpoints, monitor security events, and help organizations manage security controls across distributed environments. The company’s portfolio included Internet Scanner and related system-scanning tools, Network Sensor and Server Sensor, RealSecure intrusion-detection technology, BlackICE desktop and network protection, Proventia security appliances, SiteProtector management software, Secure Log Manager, database-security tools, and managed security services. During its expansion, ISS combined internal product development with acquisitions. It acquired March Information Systems in the United Kingdom in 1998 and rebranded that company’s Security Manager product as System Scanner. It also acquired DbSecure to add database-security capabilities, renaming the resulting offering Database Scanner. The acquisition of Network ICE brought BlackICE technology into the ISS portfolio and broadened the company’s endpoint and network-protection capabilities. These moves helped ISS build a product family covering vulnerability assessment, intrusion detection and prevention, endpoint defense, security management, and security monitoring. ISS raised venture capital in the mid-1990s, with investment led by firms and investors including Greylock Ventures, Sigma Partners, Kleiner Perkins, and AT&T Ventures. It completed its initial public offering on NASDAQ on March 23, 1998, trading under the symbol ISSX. Founder Christopher Klaus initially served as chief technology officer, while Tom Noonan became chief executive officer in 1995. Klaus stepped down from the CTO position in 2004 but remained involved as a major shareholder and chief security adviser. Chris Rouland subsequently assumed the CTO role. IBM announced an agreement to acquire ISS on August 23, 2006. The announced transaction valued the acquisition of the principal company at $1.36 billion, with IBM’s Japanese subsidiary ISS KK subject to an additional transaction valued at $570 million. ISS shareholders approved the deal on October 16, 2006. Following completion, ISS technology, products, personnel, and services were incorporated into IBM’s security business rather than continuing as an independent public company. IBM later discontinued some legacy ISS offerings, including the Proventia multifunction security appliance, after a prolonged decline in related technical-support and licensing-renewal activity. By 2011, IBM had combined ISS and more than ten other security-related acquisitions with Q1 Labs to form a broader Security Systems Division. The division was led by Brendan Hannigan, formerly chief executive of Q1 Labs. Consequently, Internet Security Systems is best understood today as a discontinued independent cybersecurity brand whose technologies and product heritage became part of IBM Security.

Internet Security Systems began with a security tool created by Christopher Klaus while he was attending the Georgia Institute of Technology. In 1992, Klaus developed the first version of Internet Security Scanner, a program intended to identify weaknesses in networked systems. Two years later, he founded Internet Security Systems to develop and market the technology commercially. The product was later known as Internet Scanner and became the foundation of the company’s business. Klaus initially served as ISS’s chief technology officer. In 1995, Tom Noonan was recruited as chief executive officer, adding experienced operational leadership as the company moved from an entrepreneurial software project toward an enterprise-security business. ISS received its first significant venture financing in 1996, in a round led by David Strohm of Greylock Ventures and Bob Davoli of Sigma Partners. A subsequent round in 1997 included Ted Schlein of Kleiner Perkins and AT&T Ventures. The company went public on NASDAQ on March 23, 1998, using the ticker ISSX. ISS expanded beyond vulnerability scanning through both internal engineering and acquisitions. It developed Network Sensor and Server Sensor, which extended its ability to monitor network traffic and server activity. In 1998, the company acquired the United Kingdom-based March Information Systems. March’s Security Manager product was subsequently rebranded as System Scanner. ISS also acquired DbSecure, founded by Eric Gonzales and Aaron C. Newman, to introduce database-security capabilities; the product became Database Scanner. The acquisition of Network ICE added BlackICE technology, strengthening ISS’s endpoint and network-defense portfolio. The resulting product family covered several layers of enterprise security. Internet Scanner and System Scanner assessed vulnerabilities, while Network Sensor, Server Sensor, and RealSecure addressed detection and monitoring. BlackICE provided endpoint and firewall-oriented protection. Proventia packaged multiple security functions in appliance form, and SiteProtector offered centralized management for parts of the product portfolio. ISS also provided managed security services and products related to log management, web protection, mail security, virtual-server protection, and intrusion prevention. In 2004, Klaus stepped down as chief technology officer. He continued as a significant shareholder and chief security adviser, while Chris Rouland took over the CTO role. ISS remained an independent public company until IBM announced its acquisition plan on August 23, 2006. IBM valued the main ISS transaction at $1.36 billion and announced an additional $570 million transaction involving ISS KK in Japan. ISS shareholders approved the deal on October 16, 2006, after which the independent ISS corporate structure was absorbed into IBM. IBM subsequently managed the former ISS technologies as part of its security portfolio. Some legacy offerings were later retired, including the Proventia multifunction security appliance, following a long decline in technical-support and licensing-renewal activity associated with the product. By 2011, IBM had brought ISS together with more than ten other security-related startups and Q1 Labs in a new Security Systems Division led by Brendan Hannigan, Q1 Labs’ former chief executive. This integration marked the transition of ISS from a standalone cybersecurity company and public brand into a component of IBM Security.

1. 2011ISS integrated with Q1 Labs and other IBM security assets

   IBM incorporated ISS and more than ten other security-related startups into a Security Systems Division formed with Q1 Labs.

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2. 2006IBM acquisition approved

   ISS shareholders approved IBM’s acquisition proposal on October 16, 2006, ending ISS’s period as an independent public company.

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3. 2004Founder leaves CTO role

   Christopher Klaus stepped down as CTO and remained associated with ISS as a major shareholder and chief security adviser. Chris Rouland assumed the CTO position.

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4. 1998ISS goes public and expands by acquisition

   ISS completed its NASDAQ initial public offering and acquired March Information Systems and DbSecure during its product expansion.

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5. 1995Tom Noonan becomes chief executive

   Tom Noonan joined ISS as chief executive officer while Klaus continued as chief technology officer.

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6. 1994Internet Security Systems founded

   Christopher Klaus founded ISS to develop and commercialize Internet Security Scanner and related enterprise-security technologies.

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7. 1992First Internet Security Scanner developed

   While studying at the Georgia Institute of Technology, Christopher Klaus developed the first version of the vulnerability-scanning software that later became Internet Scanner.

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ISS positioned itself as a proactive enterprise-security provider, emphasizing the discovery and mitigation of vulnerabilities before they could be exploited. Its portfolio combined software, appliances, monitoring capabilities, and managed services for organizations protecting computers, servers, networks, databases, and remote locations.

• Internet ScannerVulnerability assessment

  Internet Scanner was the commercial successor to the Internet Security Scanner created by Christopher Klaus. It assessed networked environments for security weaknesses and became the foundational product around which ISS built its broader enterprise-security portfolio.

• System ScannerSystem vulnerability assessment1998

  System Scanner was the ISS name for the Security Manager product obtained through the acquisition of March Information Systems. It extended ISS’s assessment capabilities toward systems and infrastructure and complemented the company’s network-focused scanning products.

• Database ScannerDatabase security

  Database Scanner originated from DbSecure, which ISS acquired to add database-security functionality. The product addressed security assessment for databases and broadened ISS beyond network and host vulnerability analysis.

• RealSecureIntrusion detection and prevention

  RealSecure was an ISS security technology family focused on detecting and responding to suspicious network and system activity. It represented the company’s move from identifying vulnerabilities to monitoring and preventing active attacks.

• BlackICEEndpoint and network protection

  BlackICE technology entered the ISS portfolio through the acquisition of Network ICE. It provided protective capabilities for endpoints and networks and was incorporated into ISS offerings alongside scanning, detection, and prevention technologies.

• ProventiaSecurity appliances and prevention

  Proventia was ISS’s security-appliance family, covering multifunction network protection and related intrusion-prevention, web-application, mail-security, web-filtering, and server-protection products. IBM later discontinued the Proventia multifunction security appliance after declining support and licensing-renewal activity.

• SiteProtectorSecurity management

  SiteProtector was a management platform for administering and coordinating parts of the ISS security portfolio. Related offerings included the SiteProtector management console and web console, supporting centralized administration of prevention and monitoring technologies.

• Network Sensor and Server SensorSecurity monitoring

  Network Sensor and Server Sensor were developed internally by ISS to monitor activity at network and server levels. They complemented vulnerability scanners by providing visibility into events and behavior that could indicate attacks or policy violations.

• Managed Security ServicesManaged cybersecurity services

  ISS provided managed security services in addition to software and appliances. These services supported organizations that needed external monitoring, security operations, and assistance protecting distributed computers, servers, networks, and remote locations.

• 2011IBM consolidates ISS within Security Systems DivisionStrategy

  IBM had accumulated ISS and more than ten other security-related startups and sought to organize these assets with Q1 Labs into a broader security-intelligence business.

  What changed. IBM integrated ISS and the other acquired security companies with Q1 Labs to create the Security Systems Division, led by Brendan Hannigan.

  Aftermath. ISS’s products and technology were managed as part of IBM Security rather than as a distinct standalone brand.

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• 2006ISS accepts IBM acquisitionM&A

  ISS had developed a broad enterprise-security portfolio but faced the strategic opportunity to join a larger technology company with global distribution and security-investment resources.

  What changed. IBM announced its intention to acquire ISS for $1.36 billion, with an additional $570 million transaction involving ISS KK in Japan. ISS shareholders approved the transaction on October 16, 2006.

  Aftermath. ISS ceased to operate as an independent public company and its technologies became part of IBM’s security business.

  Announced acquisition value. $1.36 billion for Internet Security Systems; an additional $570 million for ISS KK in Japan (2006)

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• Retirement of the Proventia multifunction security applianceOther

  The Proventia multifunction appliance experienced a prolonged decline in technical-support activity and licensing renewals.

  What changed. IBM discontinued the legacy Proventia multifunction security appliance.

  Aftermath. The retirement further reduced the visibility of the former ISS product portfolio within IBM’s later security offerings.

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• 2011IBM integrates ISS into a broader security division

  IBM combined ISS and more than ten other security-related startups with Q1 Labs to form its Security Systems Division.

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• 2006IBM announces acquisition of Internet Security Systems

  IBM announced plans to acquire ISS for $1.36 billion, with a separate additional transaction involving ISS KK in Japan valued at $570 million.

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• 2006ISS shareholders approve IBM transaction

  ISS shareholders approved IBM’s proposed acquisition on October 16, 2006, clearing a major step toward the company’s integration into IBM.

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• 1998Internet Security Systems completes initial public offering

  ISS began trading publicly on NASDAQ on March 23, 1998, under the ticker ISSX.

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1. Internet Security Systems