In the past 12 months Corero has worked with many organizations world-wide; helping to solve their DDoS dilemma by deploying Corero’s SmartWall Threat Defense System (TDS). Today Corero’s technology is protecting large swaths of the internet against the ill-effects of DDoS attacks. As more-and-more service providers, hosting providers, and gaming providers deploy the technology, they have all noted that the technology continues to exceed their expectations and is managing their daily risks associated with the DDoS cyber threat. Once SmartWall TDS is deployed, DDoS is no longer a threat to their environments. However, Corero has also observed the following as more organizations deploy their always-on, anti-DDoS technology.
Once SmartWall TDS is deployed, Corero has similarly observed many of these same organizations begin to recognize a return on their investment (ROI) by up-charging their customers for a premium amenity called DDoS Defense as-a-Service. Corero began conversing with the industry with regards to DDoS Defense as-a-Service late last year and has directly observed its success in many cases. Providers would often ask, “Can we obtain an ROI by deploying SmartWall?” The answer was a resounding YES; however, Corero was unable to quantify the actual opportunity until now.
In the past quarter (Q3-2015) Corero recognized that in order to say something publicly, they had to validate their commentaries with indisputable research – and that’s what they did. Having access to a large database of Medium-to-Large Enterprise’ contacts, Corero sent each contact an email asking them to participate in a short survey regarding DDoS defenses within their enterprises. The response was significant. Not only did Corero get a flood of responses; the answers to the questions in the survey all seemed to sway in a single direction – Internet bandwidth subscribers are demanding more and are willing to pay for it.
For example let’s take a look at the first question in the survey.
It’s somewhat amazing that nearly 70% of the responders selected “traditional security infrastructure” with regards to DDoS mitigation solutions in place; since most understand that traditional security infrastructure is ineffective at defeating DDoS attacks. At the same time “cloud-based scrubbing technology or service” had the lowest response percentage overall. Since the percentage figures added up to greater than 100%, it’s likely that many enterprise responders selected more than one option and today are utilizing a combination of approaches to defeat DDoS attacks.
The second question in the survey was as follows:
With nearly 75% of responders selecting “Yes”, this question clearly indicates enterprises want their upstream Internet Service Provider (ISP) to offer additional security services to their subscribers. This is also an indicator of the opportunity to monetize security services for subscribers who desire new service offerings.
The third question in the survey was as follows:
Nearly 53% of organizations indicate that they would be willing to pay for a premium service offering to eliminate the DDoS challenge to their environment. Most enterprises understand the costs associated with DDoS defenses deployed on-premises and employing cloud defenses as a backup. Enterprises also realize that the perfect place to block DDoS attack traffic is upstream within the service provider’s network; since they are delivering the attack traffic to the subscriber in the first place.
The fourth question in the survey was as follows:
Almost 40% of the responders indicated they would be willing to pay less than a 5% upcharge for DDoS defenses delivered by the ISP and nearly 51% indicated they would be willing to pay more. Between 5% and 10% seems to be the upcharge most would be willing to absorb in addition to the regular monthly charges from their ISP.
The remaining two questions on the survey were written in the context of purchased and consumed Internet bandwidth in the effort of determining the average size of Internet pipes the responders purchased. Over 60% of the responders purchase monthly between 1Gbps and 40Gbps worth of raw bandwidth and over 50% of them utilize 1Gbps or more of Internet-based bandwidth daily.
The overall results of the survey support exactly what Corero has been articulating to the industry. Subscribers desire new security-based services and are more than willing to pay a premium. This survey also supports the fact that that organizations with larger Internet pipe sizes are willing to pay more since they are inclined to come under DDoS attack more frequently and are desperately seeking affordable solutions to manage the ongoing DDoS threat.