@carl_t
No, it will not fail in your scenario. There is a second case, called Inbound HTTPS Inspection. If clients are on Internet, and the servers are in your secured perimeter, you "borrow" the actual server certificate with its private key to use on the GW. Clients do not see the substitution.
The goals, however, are different in both cases:
- Inbound inspection protects your DMZ server from malicious activities of the client
- Outbound inspection is to protect your clients inside your security perimeter.
Both cases are thoroughly documented in the admin guides and also discussed multiple times on CheckMates. For example, you are welcome to look into one of our TechTalks for the matter.
Now, to the last question. According to public sources, HTTPS traffic now covers 95 to 99 percent of all web traffic. Without HTTPS Inspection, your advanced security blades are basically ineffective when it comes to analysis of web-related flows. And all ATP inter-communications: C&C, module drops, exfiltration, etc. - are encrypted.