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Cato Networks tops USD $415 million ARR on enterprise demand

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KAREN JOY BACUDO

Finance Editor

Cato Networks has surpassed USD $415 million in annual recurring revenue, a 42% year-on-year increase.

The growth was accompanied by several multi-million-dollar contracts in the second quarter, including agreements with large companies in manufacturing, robotics, telecoms, and data analytics. Its customer base now exceeds 4,800 organisations.

The figures suggest large enterprises continue to invest in combining networking and cybersecurity tools through a single supplier. Recent wins came from Fortune 500 and Global 2000 businesses looking to replace legacy network and security systems with a single platform.

Among the deals highlighted was a Fortune 500 company with nearly 50,000 employees that deployed Cato AI Security. Another customer, a technology manufacturer with more than 150,000 employees, bought the company’s SASE platform to combine connectivity, security, and compliance functions.

A robotics and automation group with more than 100,000 employees also adopted the platform to consolidate networking and security, while a service provider with nearly 10,000 employees expanded its use of the technology into its own customer base.

One customer described the operational case for reducing the number of vendors across large network estates.

“Running one of the world’s largest retail networks means simplifying wherever possible. In just one year, we’ve connected and secured two thousand locations to a single modern SASE platform and consolidated multiple networking and security vendors onto Cato. The result is a more streamlined operation, better visibility, and a scalable foundation for the next phase of our Zero Trust journey,” said Morgan Guyader, Senior Network Director, Carrefour.

AI focus

Cato has also been expanding its AI-related security products following the integration of technology from Aim Security, which it acquired earlier. Its AI Security offering now gives customers visibility and policy controls across different types of AI agents, including local, managed, and internally developed systems.

That push reflects broader concern among corporate security teams about how to monitor the growing use of AI tools inside businesses. The system can inspect prompts and responses across major agentic platforms and apply policies to those interactions.

“Because Cato sits at the top of the network, it catches every AI interaction. Every prompt. Every response. No matter how it’s generated. That’s exactly where AI security needs to be,” said Doug Innocenti, CIO/CSO, MoonPay.

London hub

In the UK, the company has opened its first dedicated AI hub in London as it expands research and development work. The move adds to signs that cybersecurity and AI suppliers continue to invest in the British market for engineering and product development.

Cato has also joined the OpenAI Daybreak Cyber Partner Program and introduced integrations with CrowdStrike and Cyera. Those additions are intended to connect its network security platform more closely with other cybersecurity and data security tools used by enterprises.

Response times

Another product update focused on vulnerability response. In the second quarter, Cato launched full Agentic CVE Mitigation and reduced the time needed to issue protection for newly disclosed vulnerabilities to 45 minutes, compared with what it described as an industry norm of weeks.

The company attributed that result to automated threat research combined with its cloud-native architecture. Faster response times are becoming a more prominent selling point across the cybersecurity market as attackers move more quickly to exploit newly disclosed flaws.

Shlomo Kramer, Co-Founder and Chief Executive Officer of Cato Networks, said the revenue growth reflects a wider shift in enterprise buying patterns.

“Surpassing $415 million in ARR validates what we are seeing across the market. Enterprises need security, resilience, and agility that legacy architectures were never built to deliver. AI is increasing both the speed of business and complexity of risk. Cato’s continued growth reflects customers choosing a cloud-native platform for their AI-driven future,” said Kramer.



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Network Rail will not reopen Botley Road early despite completion

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Gas network company SGN confirmed it had repaired three minor gas leaks and left the site on Monday, August 3, six days earlier than expected.

The leaks were discovered during excavation works last month and contributed to the pushing back of the road’s reopening date, yet again, to September 20.

The completion of the gas mains replacement marked a significant step forward in the wider Oxford Station improvement project, which was originally budgeted at £161 million but is now expected to cost at least £237 million.

The development prompted hopes that Botley Road, closed beneath the rail bridge since April 2023, could reopen earlier than planned.

However, Network Rail has moved to manage expectations, saying the project remains on course to meet its existing target date rather than finish ahead of schedule.

A Network Rail spokesperson said: “We’re pleased that SGN has completed its gas mains replacement work.

“While this is an important milestone, it doesn’t necessarily mean the overall project will finish early as some remaining work is dependent on access to the railway, which we have had to rearrange to enable the replacement of the gas main.

“Our focus remains on meeting our planned deadline of 20 September for reopening Botley Road to traffic.”

While the completion of the gas works removes one of the most recent obstacles facing the scheme, Network Rail says further work under the bridge and around the station is still needed before the route can reopen to traffic.





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40-year-old Oxfordshire gymnastics club at risk of closure due to heat

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The club is currently struggling in the summer heat, and has launched a new fundraiser to keep its gymnasts safe.

The club, which is based at Grove House Barn near Warkworth in Banbury, launched the fundraiser so it could buy and install four air conditioning units to keep its space cool.

Currently, the club hopes to raise £7,000 through the appeal so it can buy four 10kW air conditioning units and cover all the installation costs.

So far, the club has raised £380.

Karl Wade, director of Wade Gymnastics, said the club has become “increasingly warm” during the summer months due to the rising temperatures.

READ MORE: Thames Water leakage targets are ‘not realistic’ says boss after pay rise

Wade Gymnastics at Grove House Barn in BanburyWade Gymnastics at Grove House Barn in Banbury (Image: Google Maps)

“Despite our best efforts to keep doorways and shutters open, it becomes very uncomfortable for gymnasts to play and train,” Mr Wade said.

He added: “The safety of our gymnasts and coaches is always our utmost priority.

“Unfortunately, the risk of having to close the business during these hot spells is increasing and we need to have more effective ways of keeping everyone cool.

“An air conditioning system would allow the business to stay open during those extreme hot conditions and continue to provide classes for everyone who attends.”

The gym currently delivers classes seven days a week for around 900 people, which range from toddlers to athletes competing at national level.

The gym club was founded more than four decades ago by Ruth Wade and, for the past 20 years it has been based at its current facility.





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Solihull Council appoints ICS.AI for AI discovery phase

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SOFIAH NICHOLE SALIVIO

News Editor

Solihull Council has appointed ICS.AI to deliver the first phase of an AI Transformation Discovery programme to examine how artificial intelligence could be used across several resident-facing services.

The 24-week programme will review opportunities in Adult Social Care, Children’s Services, Economy & Infrastructure, and Public Health. It is intended to help the council decide where AI could be used and where future spending should be directed.

In this first phase, ICS.AI will assess the council’s readiness for AI and identify use cases across the four service areas. The programme is expected to produce a prioritised shortlist of about 200 use cases, including 50 validated from a finance perspective, alongside a longer-term AI Transformation Roadmap.

The work is intended to create an evidence base before any wider implementation decisions are taken. Ethics, privacy, and safeguarding will be considered throughout the assessment process.

Discovery phase

ICS.AI will use its AI Target Operating Model framework to review Solihull’s current position across five dimensions before ranking opportunities. The outputs will be based on council-owned baseline data and reviewed by public sector specialists.

The approach reflects a broader pattern among local authorities exploring AI in service delivery while facing pressure to justify spending and manage risks around data use and public accountability. Councils have also been seeking clearer business cases before committing to larger technology programmes.

Solihull said the discovery exercise would support a measured approach to service modernisation. The authority wants to identify where AI could improve services for residents while also demonstrating value for money.

“We are committed to taking a well-considered and planned approach to modernising the services we provide. By building a strong evidence base for future decisions, this programme will help us understand where the greatest AI opportunities exist. We will then be able to prioritise those improvements that will deliver the greatest benefit for residents, while ensuring full value for the council,” said Councillor Dave Pinwell, Cabinet Portfolio Holder for Resources, Solihull Council.

Public sector focus

ICS.AI said the Solihull engagement builds on work it has carried out with more than 20 public sector organisations using its AI transformation and discovery assessments. Those organisations include Derby City Council.

The company focuses on AI projects for the public sector, where interest has increased as authorities look for ways to manage demand pressures in social care, public health, and other frontline services. At the same time, councils are under scrutiny to show that new technology investments are proportionate and supported by practical evidence.

Dwayne Johnson, Chief Local Government Officer at ICS.AI, said local authorities need stronger justification before committing funds. “Local authorities need confidence that every investment is backed by robust evidence and long-term value for residents. Solihull Council is taking the right approach by starting with a structured discovery programme that builds a clear understanding of priorities before decisions are made. By developing finance-validated business cases and a practical roadmap, the council can be more proactive in the decisions it makes,” he said.

The programme’s initial outputs are expected to give Solihull a ranked view of where AI could be applied across services, the level of organisational readiness, and which projects may warrant further consideration. This first phase is focused on identifying options rather than moving directly into deployment.

For local government leaders, that distinction is becoming increasingly important as councils test AI in areas that affect vulnerable residents and essential public services. In Solihull’s case, the work spans some of the authority’s most visible functions, including care services, children’s provision, public health activity, and parts of local infrastructure planning.

The council aims to use the findings to inform later investment decisions through finance-validated business cases and a practical roadmap for future priorities.



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