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November 24, 1997, Section: News

PGP Reverses Direct Strategy

By Charlotte Dunlap

San Mateo, Calif. -- Pretty Good Privacy Inc. (PGP) is launching a direct assault on encryption rival RSA Data Security Inc. by reversing its direct-sales strategy and inking its first distribution deal.

The two companies have had competing security E-mail technologies-RSA's S/MIME and PGP's Open PGP, but PGP previously had no strategy to penetrate the commercial marketplace.

Last week PGP, based here, announced a distribution contract with Tech Data Corp. PGP officials said the developer plans to move 50 percent of its sales through the VAR channel. Currently, the company sells all its products direct.

PGP is borrowing a page from RSA's playbook, which distributes technology through OEM relationships and integrators. "We sell applications where RSA sells technology," said Spencer Snedecor, vice president of sales at PGP. "PGP is more of a turnkey application, in that our mail product runs on your desktop totally independent of applications."

PGP's move to work with the channel comes on the heels of its first release of applications aimed at the enterprise network.

A couple of months ago, PGP rolled out the PGP Business Security family of products, which includes PGP for Business Security 5.5, PGP Certificate Server and PGP Policy Management Agent for SMTP.

Copyright (c) 1997 CMP Media Inc.



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