Security software is one of Israel's specialities and it's easy to see why. The region has a volatile history and a strong military tradition. In fact, Israel hasn't stopped warring with its neighbour
Security software is one of Israel's specialities and it's easy to see why. The region has a volatile history and a strong military tradition. In fact, Israel hasn't stopped warring with its neighbours since the state was created in 1948. I jumped on an intercity coach and was overwhelmed by the sea of teenagers dressed in olive uniforms. The Israeli Defence Force is everywhere. Every man and woman still does national service in their youth, and men continue to do a month's training a year until they're 45 or 50, depending on the service they're attached to. The result is that military values pervade Israeli culture, and technology originally developed for military application is often re-engineered for civilian use. 'National service equips young Israelis well with the management skills required for starting their own companies,' says Danny Bloch, Director of International Media at the Export Institute. This is a sentiment that I found echoed by many of the Israeli businessmen I interviewed.
It comes as no surprise then, that one of the country's biggest commercial success stories is Internet firewall software company, Check Point Software. With its international headquarters in Tel Aviv, Check Point Software has managed to create what's considered to be the default choice in enterprise firewall software in its FireWall-1 product. Another success story is ICQ, the popular instant-messaging tool. The software, created by four young Israelis, has won the number one place in CNET's most frequent downloads hit parade, and is placed in the top ten of many others. The software has been so successful that AOL bought the company in mid-1998 for $US400 million. In fact, Israel has made such an impression that the online giant also invested millions in DealTime.com, another home-grown startup, in this case focusing on online comparison-shopping. The volatile nature of the country manifests itself in other respects too, as the constant military threat breeds a culture to succeed.