CEOCAST.COM: INTERVIEW WITH
LOCKSTEP SYSTEMS, INC.
CEOcast: This is Ken Sgro with CEOcast, my
guest today is Karl Forster. Karl is the Founder and Chief Executive
Officer of Lockstep Systems Incorporated a privately held company.
Karl, welcome to CEO Cast.
Karl Forster: Thank you for having me.
CEOcast: Why don’t we start out with you
giving our audience a brief background of your company and the main
products that you offer to the community.
Karl Forster: Our flagship product is called
WebAgain. What it does is it
monitors a web server such that if a hacker defaces a web site it will
automatically detect the hack and repair the damage to the web server.
And when it does that it takes the files from the web server that
have been altered, places them into a quarantine, replaces those files
with the original copies from an archive and then sends notifications to
the webmaster to inform them that their web site had been altered and has
been repaired. It is the only
product that concentrates on the repair to the damage that a hacker does
to a web site. A second
product of ours is called SiteRecorder.
SiteRecorder concentrates on backing up web sites remotely, which
is great for people who need off-site storage of their website content. And it is also important for companies that need an audit
trail such that they can receive notifications each time their web site
changes. This gives them a
complete history of their website so they can roll back their site in the
event of an unplanned event or problem, such as an equipment failure or
something of that nature. Those
are our two primary products. We
have concentrated on web site utilities.
How do you go about marketing these products?
I would like to introduce Mark Dixon, our VP of Business
Development, and he can go through a lot more of the details of the
marketing plans here at Lockstep.
Hi, this is Mark Dixon. We
are focusing primarily on developing a reseller and distributor channel
that focuses on what we call “expert recommenders,” people who
understand the need for protecting the integrity of web site content and
then delivering solutions for that to their customers.
We currently have 4 distributors in the world, and a couple of
dozen resellers, all that focus on the web site security marketplace. We are actively recruiting resellers to extend that network.
And we also provide direct sales through our web site for customers
in locations without a (local) distributor.
What is the compelling reason for using your products?
Mark Dixon: The
compelling reason is (for) someone who places value on the content on the
web. That might be measured
in terms of their public image that they present to their customers, the
protection that they want for their site to ward off legal risk, or the
cost of repair. It is
compelling to someone who places the value on their web site as an
integral part of their business enterprise.
So we focus on businesses and government entities that have
positioned their web site as crucial to their business.
How do you reach these people, to use your product?
Mark Dixon: We are doing direct marketing to
them, to webmasters. And we
have (various) public relations activities underway to inform the general
How do you finance the company?
The company is privately funded by the founders and angel
What do you perceive to be the greatest challenge in this current
I think the challenges, right now, are awareness.
We are a small company and we recognize that we must expand the
awareness about our company. The second challenge is raise the awareness of people who own
web sites about the emerging threat of web site intrusions.
In many ways, you may say that we sell web site insurance for them,
insurance against the risk of damage and loss of their web site, and our
software provides that insurance to them.
(This second challenge is) in informing them about the risk which
CEOcast: In terms of vertical markets, have
there been any that seem more amenable to using your products?
One key vertical market is financial services, obviously they are
very concerned about the content of the web sites which they present to
their customers. And the
other would be government entities, both at the state and local levels and
the national and international levels.
Are there any new products that you have in development that might
be introduced in 2002 that you can at least allude to at this point?
Our primary development focus is on the growth of product line.
Our products are sold in retail form, as a boxed copy that someone
buys and installs at their location.
Where we are seeing a lot of growth potential is in the service
offerings of both WebAgain and SiteRecorder, such that hosting companies
can serve this (software) at their location and sell the use of the
service to their customers. Effectively
this is on a rental basis or on a monthly basis, which is convenient for
the end user because they do not have to install the hardware to set up an
additional server at their location.
They can just use a hosting company for that. And it is also convenient that they know a professional is
maintaining the product on a 24/7 fashion.
These are the areas that we are pursuing for the products.
Last question, what are the targets that the company has set for
the year 2002?
Our 2002 (efforts) are to accelerate the sales of WebAgain and
SiteRecorder and gain a significant foothold in both the domestic and
international markets. We are
focusing primarily on revenue growth acceleration in 2002.
CEOcast: Karl, Mark, thanks so much for being
with us today. I’ve been
speaking with Karl Forster, the CEO and he was assisted by Mark Dixon, who
is the Vice President of Business Development for Lockstep Systems,
Incorporated. This has been
Ken Sgro for CEO Cast, where Wall Street listens.