: Interview With Jerry Ungerman"> Ungerman: We dont see them deteriorating. Its still a software business model with our traditional high margins. We are seeing some very significant orders, in the thousands and the tens of thousands [of users] right now. But we will have the same profit as a percent of price as before. And well also have higher volumes, so it will be very consistent from a financial aspect to our traditional business. EWEEK: Some of your high profitability is due to Israeli tax laws, isnt it? Briefly, how does that work?EWEEK: How will Web services impact Check Point? Are you going to try to promote security standards for Web services? Ungerman: We will be involved [in security standards] through our OPSEC initiative and through partners. And we will be bringing technology ourselves to the market. Youll see announcements from us this year that Im not prepared to discuss today in this area. There is a lot that we can do and will do. OPSEC is of course an open platform for security. It consists of 20 APIs that allow others to integrate with Check Points firewall technology. For example, using the OPSEC APIs, content filtering and intrusion detection can be added. EWEEK: Are you paying attention to the Web services initiatives of Sun, Microsoft and IBM, and are you focusing on one of them, say, Microsoft.Net, more than others? Ungerman: No, we do them all. We really are horizontal in what we do. Weve always been open: we run on all platforms, all operating systems and all environments. You really do have to be heterogeneous. Its one of the things weve done successfully. It makes sense for us as an independent company because our customers can use multiple vendors and multiple protocols and have an entire network be secure. Web Services are very interesting for us. There are many demands for us to take our level of security and put it in a Web services environment. Were doing more in single sign-on. And were partnering with Netegrity and Oracle, for example. But we try to work with all competing Web services providers.
Ungerman: We do have a lower tax rate. Its just approved enterprise status. They give tax breaks to companies that are growing and developing. Its very pro-business. We have had a favorable tax rate and well continue to have it for an indefinite period of time.