“60% of our global revenues comes from outside Japan”
Mahendra Negi, Group CFO, Trend Micro
As a Japanese company, how does Trend Micro position itself?
There are more than 2000 companies doing security today worldwide, out of which only 60companies have got more than 50 million dollars of revenue. 1940 companies have product and feature, they are making money, or maybe they have a very small niche and that’s where they are playing. They have VC money and create a lot of noise, but in reality they don’t have much revenue. On the other hand, only 8 companies have a billion dollar revenue.
Second point is, even though we are headquartered in Japan, we are a global company. 40% of revenue comes from Japan and 60% are from outside. We have 6000 employees, and only 800 are in Japan. One of the things we take pride in is, whichever country you engage us in, we become the company of that country.
As a premier security vendor, how has the domain evolved?
Security is going through a major evolution now, as it happens every few years. The way our business evolves is, first there is a technology change and then the users start adopting the technology and sothe user behaviour changes. The hackers target the user behaviour, and that’s when they come to security companies. Hence, big technology changes usually drives a major change in security landscape. One big change that is happening right now is the evolution of IOT. The threat landscape is changing rapidly because the number of connected devices is growing and the hackers are trying to exploit this, becausethey are making moneyout of this. The threats they are developing are a lot more complex and point products cannot solve the problem anymore.
What sort of traction do you witness across different verticals?
From the vertical point of view, we are focussing on
almost all verticals. We have a team addressing govt. vertical, dedicated govt. head and team for govt. We have a large enterprise team headed by a person who has a high focus on manufacturing, services, IT/ITes, banking/BFSI and primarily large customers. There are about 100 named enterprisecustomers with whom we engage directly, but the business is done through partners and distributors. We also have a team for non-named enterprises, they are still enterprise business in commercial. We alsohave an SMB team who are inbound and outboundselling team,which is sizably big and would be part of the commercial team, but not right now.
Depending on the nature and maturity of that organisations adaptability to security, there are few banks who are way ahead in the maturity of adapting security.The basic rule is anything more than 15000 users is very large enterprise. There are 15000 endpoint customers who are still going through a maturity curve for them to even accept the need of security right now. Manufacturing, finance companies, and overall most of the large banks are in very large enterprise, and few of them in commercial. Most of the large manufacturing companies are with named enterprises.In commercial, there are around 1200-1500 customers.
In banking/BFSI, we have a widest penetration. Out of the large 42 nationalised banks that we have including public and private sector banks, around 2930 banks are Trend Micro customers, either on data center or on endpoint or both.We do lead in govt. and banking batch that are the two batches who areheavily investing into cybersecurityfollowed by IT/ ITES. Out of top 5 IT/ITES, 3-4 are Trend Micro customers. We do have a good penetration in manufacturing, pharma, service and that’s where we have our team across India.
How many govt. projects are you working on?
There are 16 states who are Trend Micro customers. J&K, Delhi, Chattisgarh, Rajasthan, MP, Maharastra, Gujarat, Goa, Kerala, TN, AP, Telangana. Either they are using Trend Micro in their datacenters or on their SWAN (State Wide Area Network) or in both. It is one of the largest penetrations when it comes to the datacenter security or endpoint security in the country.
We have a good govt. team which is addressing most of the Smart City projects, proactively working with them and aligning in terms of how cybersecurity must be looked upon.
What is Trend Micro’s GTM strategy, specially in terms of channel? What is the channel structure that you have in place?
We are purely as a marketing strategy change; our channel product change, customer expectations change; our ecosystem of partners also change. Of course the conventional channel partners are also evolving. They themselves are changing their skill sets. We have one set of partners who are doing end-to- end integration of security, they are having their own SOC, they are managing customers security incidences and they are giving them a solution,that’swhere we plug-in our solutions with them.
We do work with Sify, IBM, and HP etc. Not all of them are platinum partners. Platinum partners are definedbased on their revenue as well apart from their capabilities and it keeps on varying with particular year’s revenue.
There are partners who are Large scale System Integrators and there are partners who are specialised into one job which is partner who does servers for customers, they build datcenters only or they do supply virtualisation platform for customers, VMware or any physical server. They are my Deep Security partner. And there are born in cloud partners likeAWS and Azure who are big partners and they are evolving as some of the largest partners for us.
They are emerging faster than you and I can think of.We have 4-5 Platinum partners in India, as there standards are too high. Revenue, competencies and capabilities and their ability to invest in market with us. We have 8-9 Gold partners and 13-14 Silver partners and the rest are bronze or registered partners.
We have partners depending uponthe verticals.If you talk about SMB business,we have 2200 partners. We do business every quarter with at least 300-350 partners.
What is the model for SMBs?
We have product design for addressing very small to medium customers who have 5 to 500 user customers. There is a separate product called WorryFreethat is designed for SMBs. They are designed in such a way that it has a minimum complexity, easy to manage for partners and multiple customers. It can manage 1000-2000 users also, but we generally restrict them to 500 users.SMBs are really big market for us, not in terms of revenue but in terms of penetration.
MAHENDRA NEGI, Group CFO, Trend Micro