IWG Chart, page-4

Broker notes.......Telstra :

The Gatekeeper for the Future of Security
Investment Highlights

• iWebGate Limited (IWG) has developed a IT security software solution, intended to add a critical layer of security and significantly simplify the delivery of solutions across all networks.
• IWG has created a Virtual Services Platform (LaunchPad), which deploys a network of service in front of an existing network and its firewall. This new virtual network separates core networks from other dangerous networks via a virtual “reception area”. Network environments thus become safer with no direct access points and more control over access points. Additionally, IWGs technology can install secure containers on connected devices that ensure all applications connect to LaunchPad in a highly secure manner. Ideal for mobility initiatives, this establishes a vibrant app marketplace for third-party applications to be integrated and securely delivered across networks.
• This technological advancement could replace old-style Virtual Private Networks (VPNs) and relegate traditional firewalls to a secondary level of security.
• Given the large size of the IT security industry, IWG is in a position to establish itself as an industry standard for security and leverage off this fast growing market.
• Additionally cloud providers, like Telstra, is now capable of providing many Software-as-a-Service (SaaS) solutions to its customers, which were often too complicated and expensive to implement. IWG’s software overcomes this barrier and enables cloud providers to generate tighter security, more revenues and deeper customer relationships instead of over-the-top (OTT) providers.
• IWG is currently in advanced negotiations globally and has launched its product suite in Australia via agreements with Telstra.
• We believe there are numerous near and medium term catalysts for IWG but, given that the risks associated with the fact that the product is yet to be fully commercialised, we initiate with a Speculative Buy rating.