What Happened

Check Point Software Technologies completed a broad go-to-market reorganization, shifting focus to large enterprise customers, new logo acquisition, and subscription/SaaS businesses. The company expects its firewall product business to return to growth by Q4 2024, following near-term disruptions in Q2 and Q3.

Who Is Affected

The reorganization impacted roughly one-third of Check Point’s employees, with many moving into new roles or receiving new account assignments. Large enterprise customers and strategic partners are now prioritized, while generalist account teams saw disruptions in firewall appliance sales.

Market Impact

• Firewall business experienced delays in pipeline generation, particularly in Q2 and Q3.
• Competitive displacement programs aim to attract customers from competitors like Microsoft and Citrix.
• AI data centers, supported by partnerships with NVIDIA, present growth opportunities.

What to Watch

Monitor Check Point’s competitive displacement pricing and AI data center initiatives, particularly its integration with NVIDIA’s DPU. Additionally, track funnel generation improvements and new-logo pipeline growth, which are key indicators of the reorganization’s success.