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Network Associates 3965 Freedom Circle, Santa Clara, CA 95054
www.nai.com (408) 988-3832    Fax: (408) 970-9727  

The Scoop  

Two years, eight companies

In 1997, Network Associates, now the 10th-largest software company in the world, was just a gleam in William Larson's eye. Two years ago, Larson was the CEO of MacAfee Associates, maker of the computer virus detection program called McAfee VirusScan. Larson was searching for some way to trump McAfee's bitter rival Symantec, maker of the Norton Utilities software package. In October 1997, Larson took the first step in his new battle strategy.

Buy, buy, and then buy some more

First, McAfee bought Network General, a network management specialist for $1.4 billion. The new company changed its name to Network Associates, and promptly embarked on a strategy of growth through expansion. Next, in December, Network Associates bought the software encryption firm Pretty Good Privacy (PGP) for $36 million. In 1998, the company bought firewall vendor Trusted Information Systems, help desk firm Magic Solutions, Inc., and Secure Networks, Inc., a maker of devices that scan corporate networks for weaknesses. The company then moved to buy Cyber-Media, a producer of computer "first-aid" software, and Dr. Solomon's Software, Inc., which makes virus protection rememedies.

Bundling toward the future

While rival Symantec focused on forming strategic partnerships, Network Associates bundled its newly acquired products into larger software packages. Thus, Network Associates sold both firewall and virus protection in one package, and sold service desk and network management products in another. The company hoped that bundling its software would attract customers in the same way that the Microsoft Office software package attracted customers to MS Word and Excel. Larson's motto, "Drive fast and take chances," seemed to have paid off. Network Associates was the largest company in the computer security field, and the second most profitable software firm in the world after Microsoft. Software like its Net Tools Secure, a winner of more than 30 awards in 1998, helped bolster sales.

Growing pains

Network Associates' maturation process was not without its awkward pubescent stage, however. In January 2000, faced with abysmal 1999 results, the company decided to reorganize itself into four specialized divisions. Additionally, it launched two hosted services: MyCIO.com for businesses, and McAfee.com for consumers, which has since become a separate subsidiary. The moves appeared to benefit the company; results from the first quarter of 2000 showed significant improvement. Furthermore, the company recently collaborated with Infonet Services Corporation to advance Infonet's security; and it became a charter member of Cisco Systems' Virtual Private Network client interoperability program. Other 2000 accomplishments include recent successes combatting the Love Bug Virus, and the settlement of legal disputes between Network Associates and Trend Micro Inc.

Getting Hired  

Network Associates looks for "bright, curious, enthusiastic self-starters" with "a passion for perfection and a commitment to deadlines." Network Associates lists its openings on its Web page at http://careers.nai.com. Jobseekers can search for jobs by type, location, and even minimum salary. For consideration in one of Network Associates' offices in Europe, candidates should be fluent in English and at least one other major European language. McAfee's main offices are based in or near Amsterdam, London, Paris, and Munich.

Our Survey Says  

I used to know everybody by name and face

MacAfee's extraordinary growth and transformation into Network Associates has astounded a fair number of employees. "We grew in a little over a year from a company with 300 employees to a corporation with 1800 employees around the globe," says one employee. "With this growth has come much opportunity and, of course, complexity. In a way, I miss the little company feel. I used to know just about everybody by name and face. Now I don't."

The company's growth has also resulted in some concrete operational changes. "Before, if you needed to do something and couldn't find the person to do it within two phone calls, you did it yourself. As long as it was good for the company, the CEO and company's motto was 'Drive Fast, Take Chances.' That applied to everything: contracts, purchasing, whatever," says an insider. "Now we've got a lot more rules and people and departments to do all the business stuff."

You will be recognized and rewarded

The bureaucracy varies between the respective offices; a few insiders report "an unfeeling corporate structure." In particular, one informant relates, "management cares little for its employees, and numbers are their only concern." A contact at the Dallas office, on the other hand, puts a different spin on the situation. She says, "corporate success, after all, merely culminates in a series of personal successes. If you are good at what you do, and bring an entrepreneurial spirit in with you every day, it doesn't matter your color, sex, or anything else. You will be recognized and rewarded." But this success doesn't come without a price. "The company," sighs one exhausted insider, "is by far the fastest-paced, most challenging environment I've ever been involved with."

Cult of hackers

Heavy demands upon individuals and groups brings the burden of time. "The pre-eminent thought is getting the work done," says one Network Associates insider. "We generally work very long hours without much regard to the weekends or holidays. If our competition takes the time off, good for them - we take their market share," finishes another. And then there are the expectations about corporate integrity. "We're an anti-virus and a security company at our core. This is a very secretive, highly educated, and very, very closed society of hackers and reformed hackers."

Employment Contact  

Human Resources

Key Competitors  

AXENT;Checkpoint Systems;Cisco Systems;Computer Associates;Hewlett-Packard;Intel;Microsoft;Novell;Quarterdeck;Seagate;Security Dynamics;Symantec;Wandel & Goltermann

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