WatchGuard's firewall came in a bright red box called the Firebox, and it became a familiar sight in small server closets. The company started in Seattle as Seattle Software Labs. Small businesses were connecting to the internet full time and becoming easy targets. The Firebox stood guard between their network and the outside world. When WatchGuard filed to go public in the summer of 1999, network security was moving into every office.

Security a Reseller Could Install

WatchGuard bet that small and mid-sized companies needed serious network security but could not afford complex systems or expert staff. It built firewalls into simple appliances that resellers could install and manage. It also sold subscriptions for updates and services. The box got WatchGuard in the door. Each one then brought in recurring revenue for as long as the customer kept it.

Private, and Still in Seattle

WatchGuard priced at $13 a share in July 1999. It survived the crash but struggled to grow profitably as competition increased. In 2006 Vector Capital and Francisco Partners took it private for about $151 million. As a private company it kept growing into wireless, endpoint and identity security. Vector Capital became its majority owner in 2022, and WatchGuard is still based in Seattle.

Cover: Old Tower at Avignon, Samuel Colman. Art Institute of Chicago, public domain. Chosen for an old watchtower (on guard).