Resellers rue Apani Networks hiccup

Security vendor known to have suspended trading as Japanese investor gets cold feet

Apani Networks appears to be the latest start-up security vendor to hit the buffers after its investor pulled the plug.

The California-based vendor, which specialises in identity-aware network security software, recently signed up VADition as its UK distributor and had amassed a network of about 15 local partners.

According to sources, the vendor has suspended trading after its Japanese investor got cold feet. It is currently in talks to secure a new financial backer, after which it plans to relaunch itself and begin shipping new products again, insiders say.

Apani is also understood to be continuing to support its network of 30 or so existing UK customers.

Apani's UK office did not respond to ChannelWeb's calls despite repeated attempts over the past eight days. Calls to the US office go through to an automated message and its generic email also did not produce any response.

Apani's EpiForce software is designed to protect data and communications by segmenting end users, servers, clients and data into network security zones. It was in the process of moving into the hardware arena just as its Japanese investor got cold feet.

Jon Busfield, managing director of security VAR Cygnia, said he was disappointed that Apani had stopped trading.

"We had a proof-of-concept that was just about to go ahead and we cannot do it now," he said. "Unfortunately, the product was quite unique so I don't know what we would put in for the customer instead."

Other resellers listed on Apani's partner locator confessed they had failed to make any headway with the technology, with one branding it a "non-starter".

"It was a tough sale, and our customers weren't interested," he explained.

Busfield said Cygnia had also been hit by the recent demise of authentication vendor GrIDsure, whose patents were sold to Cryptocard last week.

"I would like to say we check out the financial details of any vendor we work with but it is difficult when they are venture capital-funded," he said.