Review of cybersecurity market and areas to focus for vendors and potentia customers

1. CYBERSECURITY INDUSTRY 2020
BRING THE NOISE
March 5, 2020
Phil Agcaoili

2. Simple can be harder than complex.
You have to work hard to get your
thinking clean to make it simple.
But it’s worth it in the end, because
once you get there, you can move
mountains.
Steve Jobs, 1998

3. Research

4. 2019 Key Trends
Another record-breaking year for the industry
 $27.6 billion in M&A volume
 $8.9 billion inVC investments
 Over 3,500 Cybersecurity companies
Source: Momentum Cyber - Cybersecurity Almanac 2020

7. Source: Market and Markets, 2019

8. Exits (IPO)
Low Likelihood
 The IPO market was similarly robust in 2018 with 10 IPOs
completed globally.
 Avast Software,Tenable, Zscalar, and Carbon Black raised over USD
$150 million with a valuation of USD $1 billion or higher.
 Combined, these four companies raised $1.4 billion
 Nearly double the amount raised by the top 4 cybersecurity IPOs in 2017.
 The Cybersecurity IPO market remained active with 4
Cybersecurity companies going public in 2019
 Ping Identity, Crowdstrike,Tufin, & CloudFlare.
 Public markets exited 2019 at all-time market highs, with high-growth
Cybersecurity companies leading major indices.

9. Exits (M&A)
Medium Likelihood

10. Exits (Death)
High Likelihood
 Cuts both ways
 Lost investments
 EOL support?
 Where’d the data go?

11. Lost in the Crowd - Vendors
 Where do you fit?
 What verticals?
 Who defines the verticals you are in?
 Are there multiple overlapping verticals that
compete with you?
 How are your customers funding your tech?
 Do potential customers know about you?
 Are you relevant? How do you differentiate from
your competition?

12. Keeping Up - CISOs
 What do you use to fill in gaps/address risks? Deal with
compliance needs?
 Do you have the resources/support to address needs?Triage?
 How do you keep up with the technology landscape?
 Internal/External support?
 Do you have enough support? Resources?
 What are your priorities?
 2020, 2021, and 2022?
 Are you looking far enough ahead?
 What is your likelihood for deployment or use success/failure?

13. CybersecurityIndustryFramework

14. Source: Momentum Cyber - Cybersecurity Almanac 2020

15. Source: Momentum Cyber - Cybersecurity Almanac 2020

37. Closing Thoughts
 We have to stop listening to and promulgating FUD.
 We can’t allow ourselves to become paralyzed by the
overwhelming nature of the growing cybersecurity
technology landscape.
 We can’t bury our heads in the sand and hope the
board will continue to approve the purchase of the
next greatest cybersecurity technology.
 There’s too much competition in the market and are
driven by growth and profitability, the most likely exit
is oblivion.
 We must get back to basics of building and
maintaining simple and measurable cybersecurity
programs.