Jungle Disk announced Tuesday its acquisition of TeamPassword, a password manager that simplifies password management security for users of its service. Jungle Disk provides encrypted cloud backup for small businesses up to 250 employees, as well as a network firewall to protect against ransomware, malware, and denial-of-service attacks.
As businesses use more cloud-based services, the number of accounts and passwords each person needs to maintain is growing. “The average TeamPassword customer has 147 passwords to manage within their business,” said Brian Sierakowski, CEO of TeamPassword. Sierakowski is planning to move to San Antonio later in 2018.
The addition of TeamPassword to the Jungle Disk product portfolio provides customers a data security tool that can generate secure unique passwords as teams share access to applications and services during work collaboration. The 2017 Verizon Data Breach Investigations report found 81 percent of hacking-related breaches can be traced to stolen or weak passwords. Cloud-based password managers like TeamPassword’s generate complex passwords, acting as a digital gatekeeper by filling in necessary login info when a user accesses a certain site, storing them with secure encryption.
The password manager works as a Google Chrome plug-in, allowing companies to change a password easily and distribute it only to approved employees. To keep passwords out of the hands of former employees, simply remove them from the company’s TeamPassword list, then use the tool to create a new password and send it to current employees.
TeamPassword will offer four different plans ranging from $150 annually for five users up to $1,000 for up to 50 users.
“With the acquisition of TeamPassword, we are pleased to offer our customers a simple password manager to ensure they are filling in this critical component to data security while also offering additional productivity and collaboration benefits,” said Bret Piatt, CEO at Jungle Disk. “TeamPassword was designed specifically for businesses sized up to 250 employees so there is complete customer alignment between our two businesses. Their password management services make life for business owners both easier and safer.”
TeamPassword began in Sept. 2012 at a Startup Weekend event in Baltimore, Maryland. Sierakowski entered the event winning first place of 15 competing teams. TeamPassword has since grown to serve more customers as it has added features such as support for all major browsers, Google Sign In, account activity logging, and email collaboration workflows.
“Jungle Disk is the perfect home for us given our shared values and focus on providing critical productivity and security services to small business,” Sierakowski said.
Jungle Disk continues to expand its technology portfolio, having bought software startup SafetyNet in early December. The Canada-based SafetyNet provides backup for the cloud version of accounting software QuickBooks, creating a safe, second copy of critical financial data for businesses.
Financial details of the TeamPassword and SafetyNet deals were not disclosed.
Jungle Disk was first acquired by cloud hosting company Rackspace in 2008 along with Slicehost for $11.5 million in cash and stock. Jungle Disk spun out of Rackspace in January 2016 for an undisclosed amount and is located in the Rand Building on Houston Street. Since 2016, the company has grown to 30 employees, with over 25,000 customers globally.
The cybersecurity startup has been actively investing in research and development (R&D) and has hired a team to develop new capabilities that will be announced later in 2018.
“Jungle Disk’s mission is to partner with small businesses to ensure that they have the proper data protection technologies and best practices in place to ensure that they do not fall victim to a cyber attack or accident,” Piatt said. “We’re actively engaged in R&D in order to offer the latest in business cybersecurity services.”