Barracuda CEO BJ Jenkins: We make it easy for customers ..

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Barracuda Networks President and CEO BJ Jenkins talks to Jim Cramer on CNBC about our IPO.


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Jenkins: We focus on a segment of the mark that we feel is not understood well, the mid-market customers, 100 employees to 5,000 employees. … We solve problems for them in a very elegant and simple way.

Cramer: BJ, the clients you have are anything but small, Nascar, the Homeland Security, Fedex. I see you do Boston Celtics, too. But those are huge companies. So you managed to snag them too?

Jenkins: Large companies at times overbuy and get overcomplex and they realize they need simplicity, too. This is why you see the rise of things like cloud that simplifies some of the infrastructure.

Cramer: I had Palo Alto on Mad Money and they say it's become very cut throat. what's different in your pitch?

Jenkins: If you think of Palo Alto and FireEye, they're chasing after the largest enterprises, they have to deal with every legacy application, they have to have every bell and whistle on their product. … Our customers only have a few IT people and they have to deal with every part of the stack and we make it simple. Think of your tv remote you've got at home. It's got 40 buttons. I use channel up, channel down,volume and mute when someone in my family is yelling at me. … We make it easy for customers so they can deploy, because they're exposed to security challenges —

Faber: How much is more of a consulting arrangement, because it's a constant consultation, in a way, in which you're also selling them product. Is that fair to say?

Jenkins: I think a lot of our customers have these problems and they have to solve them right away. One of the things we do is we offer a subscription service so it's infrastructure as a service. And when they call us today, the service is on tomorrow for them. It can often be deployed in less than 15 minutes. If they don't like it, we give them a 30-day right of return. Think of this in the IT industry: No one is out there saying our product sells itself, try it first and then if you don't like it you can bring it back. Our product sells itself for our customers. 30-day right of return.

Quintanilla: Margins in the 80% range? Is the trajectory up or down?

Jenkins: As more customers leverage our cloud infrastructure, the subscription portion of the business grows, we believe we can expand margins over time.

Quintanilla: Is churn significant?

Jenkins: You always have some churn in the mid-market, our renewal rates on a dollar basis are at 96% for the first half of our fiscal year, and we go over the top with service. Again, if you think of this mid market, you call us, you get a live person at barracuda that's responsible for solving your problem, whether it's ours or somebody else's in the environment. it's hard to walk away that, when you love the product and you love the service they give you.

Cramer: When I go to BostonCeltics.com what are you doing? Where are you?

Jenkins: We provide web application firewalls that prevent a web site from automated attacks from bot nets, we do things like backup and archive for their corporate data, and we provide a next generation firewall so use of social media and new applications, they're protected.

Barracuda provides security and storage solutions that are affordable and easy to deploy. Check out our product line here, and order a 30-day evaluation here.

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Barracuda Web Application Firewall
 

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