“60% of our global rev­enues comes from out­side Ja­pan”

Ma­hen­dra Negi, Group CFO, Trend Mi­cro

PCQuest - - PORTADA - Jy­oti Bha­gat jy­otib@cy­ber­me­dia.co.in

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

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