Allot Ltd. (‘Allot’) provides innovative security solutions and network intelligence solutions for mobile, fixed and cloud service providers, as well as enterprises worldwide.
The company’s solutions have been deployed globally for network-based security, including mobile security, distributed denial of service (‘DDoS’) protection, and Internet of Things (‘IoT’) security, network and application analytics, traffic control and shaping, and more. More recently, the company has cultivated a strate...
Allot Ltd. (‘Allot’) provides innovative security solutions and network intelligence solutions for mobile, fixed and cloud service providers, as well as enterprises worldwide.
The company’s solutions have been deployed globally for network-based security, including mobile security, distributed denial of service (‘DDoS’) protection, and Internet of Things (‘IoT’) security, network and application analytics, traffic control and shaping, and more. More recently, the company has cultivated a strategic focus on the expansion and advancement of its SECaaS product offerings.
The company delivers a unified security service for individual consumers and small and medium-sized businesses (‘SMBs’), at home, at work, and on the go, with the Allot Secure product family. The company’s Allot Security Management product is, to its knowledge, the only platform that unifies security services for mobile, fixed, and 5G converged networks.
The company’s industry-leading network-based SECaaS solution has previously achieved high double-digit percentages of penetration with some service providers and is used by approximately 20 million subscribers globally. The company’s multi-service platforms (AllotSmart) are deployed by over 500 mobile, fixed, and cloud service providers, and over 1,000 enterprises.
The company has a global and diverse customer base composed of mobile and fixed broadband service providers, cable operators, satellite service providers, private networks, data centers, governments, and enterprises, such as financial and educational institutions.
The company enables network operators and enterprises to detect security breaches, protect their own networks and their users from attacks, clearly see and understand their networks from within, optimize, innovate, and capitalize on every opportunity, learn about users and network behaviors, and improve Quality of Service (‘QoS’) and reduce costs, all while increasing value to customers and deploying new services faster.
Through the company’s combination of innovative technology, proven know-how, and collaborative approach to industry standards and partnerships, it delivers solutions that equip service providers with the capabilities to elevate their role as premier digital services providers and expand into new business opportunities. The company offers its customers market-leading, proprietary technologies that are powerful, diverse, and scalable. In addition, the company has developed significant industry know-how and expertise through its experience in designing and implementing use cases with its large customer base.
During 2024, the company defined a new strategy. As part of the strategy process, Allot is becoming a security-first company, operating under a single, unified business unit. The company’s foundations are its deep expertise and proven capabilities, combining two key areas: cybersecurity and network intelligence.
The company has been working to leverage synergies between its existing network intelligence assets and its security offerings, including integrated cloud-based solutions focused on network visibility, traffic management, and cybersecurity for the 5G era.
The combination creates a compelling value proposition, enabling the company to deliver a highly differentiated, fully integrated solution.
Security Solutions
The company’s Security-as-a-Service Market Opportunity
For CSPs offering the Allot solutions as security services to their subscribers, the Allot SECaaS solutions are offered to the CSPs on a recurring revenue basis, in which both Allot and the operator share the revenue generated from the operator’s subscribers for the use of Allot security services, or offered for a fixed yearly fee, or a fixed fee up to an agreed number of subscribers.
Products
Allot provides a comprehensive security solution, referred to as Allot Secure 360, to protect network customers, network service integrity, and brand reputation. Allot’s SECaaS solutions enable operators to secure subscribers against online threats and harmful content by providing network-based SECaaS to their customers. Allot Secure 360 provides consumers and SMBs with a 360-degree security architecture—complete, end-to-end protection anywhere, against any cyber threat, and on any device.
Protection for Consumers and SMBs - 360-Degree Security
Allot Secure Management (ASM): The Allot Secure Management platform creates a unified security experience for Allot security consumers by providing an end-to-end security management infrastructure that seamlessly communicates with and integrates each enforcement point—NetworkSecure, HomeSecure, DNSecure, IoTSecure, EndpointSecure, and BusinessSecure. On-net coverage is provided through NetworkSecure, HomeSecure, DNSecure, and IoTSecure, and off-net coverage through EndPoint Secure, and the ASM solution creates a flexible security architecture of advanced threat detection technologies in-network, at the consumer-premises equipment, and at the endpoint device with network intelligence solutions, machine learning, and comprehensive personalization capabilities. The ASM solution delivers a scalable platform that simplifies security service activation, system awareness, new enforcement point integration, threat event reporting and handling, operation, and management by the consumer regardless of which enforcement point is active.
Allot NetworkSecure: A multi-tenant solution that allows the service provider to offer opt-in security services that allow subscribers to define and enforce safe-browsing limits (Parental Control) and prevent incoming malware from infecting their devices (Anti-Malware). Services are enforced at the network level, requiring no device involvement or battery consumption.
Allot HomeSecure: A multi-tenant solution that allows the service provider to offer opt-in security services that allow subscribers to define and enforce safe-browsing limits (Parental Control) and prevent incoming malware from infecting their devices (Anti-Malware). Services are enforced at the home router and network level.
Allot DNSecure: A multi-tenant solution that allows the service provider to offer opt-in security services that allow subscribers to define and enforce safe-browsing limits (Parental Control) and prevent incoming malware from infecting their devices (Anti-Malware). Services are enforced at the network DNS requests level, requiring no device involvement or battery consumption.
Allot IoTSecure: A multi-tenant solution that enables CSPs to grant each of its enterprise customers a dedicated management console for monitoring and securing their mobile IoT deployments on the CSP network.
Allot BusinessSecure: A multi-tenant solution that provides a simple, reliable, and secure network for the connected business achieved through a small firmware agent installed on the business router, supported by the Allot Secure cloud, and a mobile application. These elements, working in concert, provide visibility into the network and block both external and internal attacks.
EndPoint Secure: A multi-tenant solution that functions as an extension of NetworkSecure, securing subscribers’ devices while off the Internet, producing seamless customer protection using market-leading malware protection and controls.
Allot Secure Cloud: The Allot Secure cloud provides to each enforcement point in the security architecture up-to-date threat intelligence, web categorization, and device fingerprint data. The Allot Secure cloud uses machine learning and Artificial Intelligence technologies to identify connected devices, create device-specific profiles, and provide anti-virus screening.
Allot Network Protection as a Service: A multi-tenant solution that allows the service provider to offer opt-in network protection services to SMB and Enterprise customers to protect their connectivity lines from DDoS attacks, prevent traffic saturation, and ensure uninterrupted service.
Protection for the Carriers
DDoS Secure: A solution that provides attack detection and mitigation services that protect commercial networks against inbound and outbound Denial of Service (‘DoS’) and DDoS attacks, Zero Day attacks, worms, zombie, and spambot behavior.
NetProtect: Allot’s multi-layer approach provides protection from multi-vector attacks against network infrastructure, subscribers, and applications. It is composed of multiple protection capabilities: Anti-DDoS, Anti-Botnet, Firewall, and QoE protection.
5GNetProtect: A solution focused on 5G SA architecture and providing means to integrate with 5G Core on top of the security functionality.
Integrated Network Visibility and Traffic Management Solutions
In addition to the company’s comprehensive and sophisticated security offerings, its integrated network visibility and traffic management solutions, together called AllotSmart, provide network visibility and control and allow mobile, fixed, and enterprise operators to elevate their role in the digital lifestyle ecosystem and expand into new business opportunities. AllotSmart provides the company’s customers with the potential to increase their revenues by monetizing network usage through value-added products and services, implementing value-based charging, and reducing costs by optimizing the delivery and performance of OTT content and cloud computing services. AllotSmart also promotes improved customer loyalty by enabling service providers to offer a selection of service tiers and digital lifestyle options, empowering customers to personalize their network experience. In addition, AllotSmart enables telecommunication providers to comply with a wide range of regulatory requirements aimed at assisting governments with securing the public. The company’s products enable both CSPs and its governmental and law enforcement customers to monitor the content of internet traffic in order to oversee compliance with legal and law enforcement requirements.
Allot Smart offering includes the following solutions:
Smart5G: Deliver granular visibility and control of 5G network and application performance to help CSPs meet customer expectations from eMBB, mMTC, and URLLC.
SmartVisibility: Access accurate usage data and analytics to improve network performance and deliver the services subscribers want. Make informed business decisions based on granular insights.
SmartTraffic QoE: Leverage SmartVisibility to reap the benefits of automated congestion management and QoE optimization. Get the most out of deployed infrastructure and defer expansion.
SmartPCC: Innovate and grow revenue by rolling out personalized service plans that cater to the unique and dynamic needs of prepaid, postpaid, and business customers.
SmartSentinel: Navigate the regulatory landscape with flexibility and precision. Comply with URL filtering, data retention, and GDPR regulations efficiently and cost-effectively.
Centralized Management
The Allot NetXplorer is the management umbrella for the company’s devices, platforms, and solutions, providing a central access point for network-wide monitoring, reporting, analytics, troubleshooting, accounting, and Quality of Service policy provisioning. Its user-friendly interface provides its customers with a comprehensive overview of the application, user, device, and network topology traffic, while its wide variety of reports provide accessible, detailed analyses of granular traffic data.
Customers
The company derives a significant and growing portion of its revenue from direct sales to large mobile and fixed-line service providers, as well as government and law enforcement entities. The company generates the remainder of its revenue through a select and well-developed network of channel partners, generally consisting of distributors, resellers, OEMs, and system integrators. In 2024, the company derived 38% of its revenues from Europe, 15% from the Americas, 26% from Asia and Oceania, and 20% from the Middle East and Africa.
Channel Partners
The company markets and sells its products to end-customers both by direct sales and through channel partners, which include distributors, resellers, OEMs, and system integrators. A significant portion of the company’s sales occurs through its channel partners. In some cases, its channel partners are also responsible for installing and providing initial customer support for its products, with the company providing continuous technical assistance. In the majority of cases, the partners are responsible for the initial customer support (Tier 1 support), while the company acts as the escalation level. The company’s channel partners are located around the world and address most major markets. The company’s channel partners target a range of end-users, including carriers, alternative carriers, cable operators, private networks, data centers, and enterprises in a wide range of industries, including government, financial institutions, and education. The company’s agreements with channel partners that are distributors or resellers are generally non-exclusive, for an initial term of one year, and automatically renew for successive one-year terms unless terminated.
The company offers support to its channel partners. This support includes the generation of leads through marketing events, seminars, and web-based leads, and incentive programs, as well as technical and sales training.
Sales and Marketing
The company’s product sales cycle varies based on the intended use by the end-customer. The sales cycle for initial network deployment may generally last between twelve and twenty-four months for large and medium service providers, six to twelve months for small service providers, and one to six months for enterprises. Follow-on orders and additional deployment of the company’s products usually require shorter cycles. Large and medium service providers generally take longer to plan the integration of the company’s solutions into their existing networks and to set goals for the implementation of the technology.
The company’s SECaaS sales strategy is to target strategic accounts that have high revenue potential, while ensuring small to medium-sized deals have customer assurances or minimum revenue thresholds. Moving forward, the number of the company’s SECaaS deals will likely drop, but the company anticipates the total sales potential will remain the same as was expected under the prior SECaaS sales strategy, and the emphasis on larger customers with a minimum guaranteed revenue will help the company achieve profitability sooner.
The company focuses its marketing efforts on product positioning, increasing brand awareness, communicating product advantages, and generating qualified leads for its sales organization. The company relies on a variety of marketing communications channels, including its website, trade shows, industry research, professional publications, the press, and special events to gain wider market exposure, as well as an internal cyber marketing team.
The company has organized its worldwide sales efforts into the following regions: North America, South America, Europe, the Middle East and Africa, and Asia and Oceania. The company has regional offices in Spain, Italy, France, Singapore, India, Kazakhstan, Japan, Colombia, and Israel.
Service and Technical Support
The company’s technical staff provides project management, delivery, training, support, and professional services, as well as assists in presale activities and advises channel partners on the integration of its solutions into end-customer networks. The company’s basic warranty to end-customers (directly or through the company’s partners) is three months for software and twelve months for hardware. Generally, end-customers are also offered a choice of one year or multi-year customer support programs when they purchase the company’s products. These customer support programs can be renewed at the end of their terms. The company’s end-customer support plans generally offer the following features:
Unlimited 24/7 access to the company’s global support organization, via phone, email, and online support system, provided by regional support centers;
Expedited replacement units in the event of a warranty claim;
Software updates and upgrades offering new features and protocols and addressing new and changing network applications; and
Periodic updates of solution documentation, technical information, and training.
The company’s support plans are designed to maximize network uptime and minimize operating costs. The company’s customers, including partners and their end-customers, are entitled to take advantage of its around-the-clock technical support, which the company provides through its seven support centers located in France, Israel, Singapore, India, Colombia, Spain, and the United States. The company also offers its customers 24-hour access to an external web-based technical knowledge base, which provides technical support information and, in the case of its channel partners, enables them to support their customers independently and obtain follow-up and support from the company.
The company also offers particular professional services, such as network audit, solution design, project management, business intelligence reports, customer project documentation, integration services, interoperability testing, and training.
Subcontracting
The company subcontracts the integration of its software products with off-the-shelf hardware platforms provided mainly by Lenovo and Hewlett Packard Enterprise (HPE). Based on verbal understandings, Arrow ocs (Israel) performs the integration of the software product with HPE servers, while Malam-Team (Israel) performs the integration of such software with Lenovo Servers. Such hardware components are manufactured in accordance with the design of the company’s products.
The company also purchases off-the-shelf hardware components from single or limited sources for its security and Traffic Management products.
Intellectual Property
As of December 31, 2024, the company had 32 in-force U.S. patents and 5 U.S. reissued patents.
Customer
In 2024, the company’s ten largest customers accounted for 42.7% of its total revenues.
Research and Development
The company’s gross research and development expenses decreased to $27.7 million in 2024.
History
The company was founded in 1996 under the laws of the state of Israel. It was incorporated in 1996 as Ariadne Ltd. and changed its name to Allot Communications Ltd. in 1997. Further, the company changed its name to Allot Ltd. in 2018.
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