While the rest of the security community is trying to optimize data loss prevention technology for on-premise implementations, Palisade Systems in Iowa is introducing products that enable managed service providers to stop the inadvertent leaks of intellectual property and data.

Data loss prevention is not a mature technology. Analyst firms place Symantec, RSA (the security division of EMC) and Websense as the leaders in DLP technology and implementations. About a dozen companies offer products with varying degrees of performance and functionality in data loss prevention. But analysts and customers agree that most of the current DLP products—almost all exclusively for on-premise implementation—are limited to guarding the loss of classified data (number strings and known data set such as credit card and Social Security numbers) and are designed primarily for enterprises (1,000 seats and greater).

That’s not to say that DLP isn’t a good or even necessary technology. It works just fine for what it’s intended to do today, and the technology continues to mature to become more effective in guarding unclassified data. For organizations that high exposure to data integrity and security compliance issues, DLP provides an added degree of protection. And in most cases, such organizations that needed that extra layers are enterprises.

Data loss is as much a concern for small and midsized businesses (100 to 999 seats), but such organizations cannot afford the cost and resource expense to acquire, deploy and manage a DLP solution effectively. Ironically, these are also the same businesses that are rapidly adopting managed services to provide cost-effective management and security of their networks.

This is the brilliance of the Palisade’s managed services offering. It’s PacketSure DLP is designed so managed service providers can offer data loss protection alongside their existing managed network and security services offerings.

"MSPs serve as outsourcing IT agents for enterprise networks, with integration and certification of Internet security for applications and content," said Christian Renaud, CEO and president of Palisade Systems. "Palisade Systems continues to expand its reach and focus on the small- and medium-sized enterprise with PacketSure DLP. This product will allow us to partner with managed service provider partners and provide a new group of customers with data loss prevention needs."

Renaud, a former Cisco executive for emerging technologies, knows a thing or two about developing and cultivating new markets. While at Cisco, he pioneered the use of virtual worlds as a marketing and communication vehicle. He was also responsible for cultivating channels for new products and technologies. Palisade Systems is just the environment in which a guy like Renaud thrives.

No surprise if you haven’t heard of Palisade Systems. The company started out as an offshoot of an Ames University research project in network management. Its first incarnation was focused primarily on network management and traffic shaping. While great with the technology it developed, Palisades suffered from engineering blindness - it was focused on the performance of its wares not marketing its creations.

Since taking the helm of Palisade, Renaud has been working to transform this sleepy engineering company with great technology in the farmlands of Iowa into an innovation machine. Renaud recently told me that not only is Palisades ready to compete with the likes of Symantec and Websense, but it’s got DLP that goes beyond the classified data protection that exists today.

Palisades has already deployed its PacketSure Managed DLP at a handful of managed service providers, including LightEdge Solutions. "By offering Data Loss Prevention to our hosted networking and IT services, we are able to continue to differentiate LightEdge in the market and offer our customers the highest level of security on their network," said Travis Thompson, vice president of engineering at LightEdge Solutions.

While other security vendors are continuing to optimize their DLP solutions and using existing offerings to expand their footprint - see Sophos’ bundling of free DLP with its antivirus products - Palisade’s is pioneering not only the implementation of DLP in managed services, but pushing managed services down market to SMBs where it’s needed as much as the enterprise.