Netgear's enterprise ambitions grow with SASE acquisition

Addressing the SME security gap

The acquisition directly addresses a portfolio gap that Netgear (Nasdaq:NTGR) has identified through customer feedback. 

According to Badjate, customers have been saying that they like the Netgear products, but they also really need more security capabilities. Netgear’s target market focuses on organizations with fewer than 500 employees and distributed enterprises such as franchisees. These customers require enterprise-grade reliability and support but need solutions that can be managed through MSP platforms with simplified operations compared to large enterprise deployments.

The company conducted a survey of existing customers, with 80% indicating they would purchase an integrated solution if it included specific security capabilities including URL filtering, basic firewalling, VPN access, zero trust for perimeter protection, and intrusion prevention/detection systems.

Technical integration strategy and architecture

Exium was selected from multiple acquisition candidates based on several technical and strategic factors. The company operates on a cloud-native architecture and has focused specifically on MSPs as their go-to-market strategy, aligning with Netgear’s channel approach.

Netgear plans to maintain Exium’s existing solution for customers who prefer standalone security services, while simultaneously developing integrated network and security packages. The company has not yet finalized branding decisions for the combined offering.

“What Exium offers is targeted to solve the needs of this type of customer and at a very reasonable price point,” Badjate noted.