Channelnomics

Barracuda Networks CEO Resigns

Security appliance vendor Barracuda Networks is launching a CEO search as its longtime leader and cofounder Dean Drako submitted his resignation. He is leaving the company July 18.

In the interim, the company will be managed by the newly formed Office of the CEO, headed by board member Gordon Stitt, chief marketing officer Michael Perone and chief financial officer David Faugno.

“Dean has executed with extraordinary focus, integrity and passion for the company and its customers, leading Barracuda Networks from a startup concept to the worldwide leader in content security appliances,” said Faugno, in a statement. “We wish him well in his new venture, and are pleased he has agreed to remain on our board of directors as we continue to grow the company.”

Drako, who has served as the company’s chief executive since its inception in 2003, did not disclose his future plans. He did say that he achieved many of his goals, including maintaining an annual growth rate of 30 percent and profitability over the last year.

“I met my goal of building Barracuda Networks from an idea to a highly profitable, high recurring revenue company,” said Dean Drako, Barracuda’s President and CEO. “Barracuda now has the technology, user community, and growth ramp to be a thriving public company. I would like to thank Barracuda’s employees, partners and customers, who contribute daily to its success. With the team and strategy we have put in place, I have confidence Barracuda Networks will continue to deliver great things.”

Under Drako’s leadership Barracuda has grown into a formidable competitor in the security market, giving more entrenched companies like Websense, Blue Coat and SonicWall a run for their money in security appliances. Barracuda also has a strong channel presence with resellers and systems integrators.

While CEO searches are often challenging, particularly under abrupt circumstances, there’s no indication that Drako’s departure or the management by committee will change Barracuda’s operations and channel relationships.

By comparison, Palo Alto Networks went through a similar situation last  year when Lane Bess departed the CEO post. The company operated under an Office of the CEO for nearly eight months, during which time sales, market share and channel penetration flourished.

 

 

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One Response to “Barracuda Networks CEO Resigns”

  • Craig Kensek:

    Barracuda Networks was named one of the 25 Best Tech Companies to work for, finishing 24th, in a June 25 Business Insider article (based on information on glassdoor.com). Dean Drako received a CEO approval rating of 68%. The company under Drako has had great growth. They don’t release profitability figures. They’ve been stuck, if that’s the word, in the Challengers portion of Gartner’s Magic Quadrant for Secure Web Gateways. It’ll take increased innovation (and marketing) on their part for them to move into the Leaders portion. The enterprise is a different segment than SMB’s (where Barracuda has been most successful) and requires a different strategy.

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