Sunday, October 29, 2006

Narus Secures $30 Million for IP Traffic

Narus, a start-up based in Mountain View, California, secured $30 million in new financing for its solutions for real-time, IP traffic analysis and management. This financing includes $20 million in equity and a $10 million revolving line of credit. The funding will be used primarily to develop the next generation of NarusInsight products, and to accelerate the company's global channel initiative to support the worldwide adoption for its products.

NarusInsight is an IP traffic processing system that is capable of providing companies with the means to capture, normalize and correlate IP traffic at the speed required for carrier-class networks. In 2006, Narus filed seven patents, introduced the world's first carrier-class security algorithms based on information entropy, and developed the industry's first algorithms to classify encrypted IP traffic such as Skype.

The new funding round was led by American Capital Strategies Ltd., and included participation from existing investors including Mayfield Fund, Pacven Walden Ventures, JP Morgan Partners and NeoCarta Ventures.

Detection: Traffic Classification In the Dark
is having a dramatic impact on carriers' revenue streams. But perhaps
more importantly, the very nature of Skype traffic is raising security
concerns, especially for large enterprise networks. Skype uses a unique
peer-to-peer technology, making it challenging for network operators to
identify, classify and manage associated traffic. This column provides an
overview of VoIP with a focus on Skype, details Skype's impact on
telecom service providers and explains how Skype traffic can be classified
and managed.