Varonis Systems
| Company type | Public |
|---|---|
| Industry | Software, Cybersecurity |
| Founded | 2005 |
| Founder | Yaki Faitelson, Ohad Korkus |
| Headquarters | Miami, Florida , United States |
Area served | Worldwide (95 countries) |
| Products | Data Security Platform, DatAdvantage, DatAlert, IDU Classification Framework, Salesforce Security Posture Management (SSPM) |
Number of employees | (doubled staff in Cork by 2021; exact number not specified) |
| Website | varonis |
Varonis Systems, Inc. is a software enterprise based in Miami, Florida, with research and development centers located in Herzliya, Israel. Its Data Security Platform uses analysis of data and user activity to identify risks related to access permissions and software-as-a-service (SaaS) setups, facilitating automated corrective actions.
The firm focuses on User Behavior Analytics (UBA) to detect unusual behaviors indicative of cyberattacks. Varonis software collects metadata from corporate IT infrastructures to establish connections between personnel, data assets, and usage trends, thereby improving management of data security.
History
Established in 2005 by Yaki Faitelson and Ohad Korkus, Varonis Systems was created to tackle security issues such as monitoring file activities, managing information rights, and controlling access. The founders brought experience from NetVision and NetApp. They engineered a method for extracting metadata from file systems and collaborated with Dr. Jacob Goldberger, a specialist in statistical modeling and machine learning, to create algorithms that link user information. That same year, they filed a patent titled "Automatic management of storage access control," which was granted in 2006. This innovation led to the development of the Intelligent Data Use (IDU) classification platform, debuting its initial product, DatAdvantage, in 2006 to assist organizations in tracking file operations, assigning data ownership, and regulating access permissions.
In 2009, Varonis upgraded its platform by introducing the IDU Classification Framework, allowing for keyword and pattern searches within file contents. The launch of DatAlert in 2013 provided capabilities to detect insider threats and potential security breaches by generating alerts on suspicious file system activities. Prior to going public in 2014, the company obtained investments from Accel Partners, Evergreen Venture Partners, Pitango Venture Capital, and EMC.
Varonis transitioned from perpetual licensing to a subscription-based model in February 2019, which triggered a 22% drop in its stock price. By 2021, it had expanded its presence and doubled its staff in Cork, Ireland. The firm completed its first acquisition in 2020 by purchasing Polyrize, a startup specializing in cloud data tracking.
In 2022, Varonis introduced its Data Security Platform as a SOC® 2-compliant SaaS solution designed for quicker updates and improved functionality. The following year saw the integration of generative AI into its SaaS platform aimed at reducing investigation durations. By 2024, Varonis supported Microsoft Copilot with capabilities for real-time surveillance and detection of anomalous interactions while broadening its offerings to include managed services for breach detection and response.
September 2024 brought enhancements to the Salesforce Security Posture Management (SSPM) product to automate the discovery and mitigation of data vulnerabilities. In November 2024, Varonis expanded infrastructure-as-a-service (IaaS) security coverage to Google Cloud. Its annual report for 2024 highlighted a client base spanning 95 countries and announced plans to relocate headquarters to Miami, Florida during the first quarter of 2025.
In January 2025, Varonis entered advanced discussions to acquire Apex Security—a cybersecurity startup supported by Sam Altman and prominent venture capital firms—for an estimated $30–40 million. By February 2025, the company targeted completing its SaaS transition with an anticipated annual recurring revenue (ARR) between $737 million and $745 million. In March 2025, Varonis revealed intentions to purchase Cyral to strengthen database security through cloud-native AI technologies while finalizing its SaaS migration by the end of the year.
Technology and Architecture
The Varonis Metadata Framework functions through a dual-layer approach. It continuously monitors file servers without interference, capturing live file activities and ACLs that are sent to a specialized server. This information is archived in a database for further examination. Utilizing the IDU analytics engine, statistical assessments are conducted to determine data ownership, establish normal user behavior patterns, and categorize users into groups. By progressively indexing file metadata, the system ensures the metadata remains current, which is then delivered to IT administrators via DatAdvantage, facilitating robust data governance and security oversight.