Strategy

Investor Proposition

Corero is well positioned to deliver on its goal of being the leading player in the real-time DDoS mitigation market with SmartWall solution validation from over 90 customers. 

Corero enters 2018 with the foundations in place for continued acceleration of SmartWall revenue growth as a result of:

  • Strong market demand from the growing awareness of the threat and impact of DDoS attacks, and increased risk associated with the projected growth of IoT deployments;
  • Pending regulations in the US, UK and Europe, including the Directive on the Security of Network and Information Systems (NIS Directive) which comes into force for all EU member states on the 9th May 2018, which are expected to positively impact demand for DDoS mitigation investment in 2018 particularly by Digital Enterprises (including critical national infrastructure providers);
  • Corero go-to-market partner recruitment and enablement efforts with partners is expected to contribute to revenue in 2018; and
  • Investment in channel sales development to grow Corero’s routes to market in 2018.

Market opportunity

DDoS attacks are accelerating in purpose, sophistication, complexity, scale and frequency.

A wide range of critical cybersecurity issues face every Internet connected enterprise or organisation. These threats include denial of service (DoS/DDoS), hacking, breach, phishing, fraud, data theft or exfiltration. These threat vectors present themselves via the essential Internet connections that are required to support the enterprise’s online business.

Today, the vast majority of the leading Internet Service Providers sell raw Internet transit capacity. This capacity, usually sold via 1Gbps, 10Gbps and increasingly 100Gbps transport connections, carries good customer traffic and malicious bad traffic without discrimination. If an enterprise data centre or hosting facility connects to these raw transit providers they will be exposed to Internet borne cyber threats and the corporation’s information security posture should be prepared to detect and protect against the associated malicious intent.

Corero has focused on one specific category of these cyber threats encompassing denial of service and has developed a real time DDoS detection and mitigation solution that can provide automatic detection and protection against DDoS attacks. In contrast to legacy approaches to DDoS mitigation which often require tens of minutes to detect and react, the Corero solution can block DDoS attack traffic in seconds eliminating critical service latency and downtime. 

The broad range of motivations for executing a DDoS attack, coupled with the relative ease with which they can be performed, means that they are carried out by a variety of actors, including criminal gangs, activists, terrorist groups and nation state “bad actors”. Aside from those who are focused purely on disrupting services, many of those who carry out DDoS attacks do so as a form of extortion or as a smokescreen to steal data, map other vulnerabilities, or plant malware or ransomware.

Both businesses and public-sector organisations are vulnerable to DDoS attacks and recent years have seen some of the world’s best-known companies fall victim, with notable UK examples including TalkTalk, BBC and HSBC. Similarly, the vulnerability of Government services was highlighted in October 2016 when Dyn, a company that provides DNS services to some of the world’s largest digital brands was subject to a DDoS attack, resulting in downtime for a range of government services.

Corero is targeting a high growth security market; the market for DDoS prevention appliances is forecast by IHS Markit Technology research, a leading industry analyst, to reach $1.4 billion by 2021 with a CAGR of 15.6% in the period 2016 to 2021 (Source: IHS Markit Technology research, DDoS Prevention Appliances Forecast (November 2017). 

Corero strategy

The Corero strategy is to protect against a continuously evolving DDoS threat landscape that threatens any Internet connected business, or the providers that serve them.

The Company’s strategic objectives and plans are summarised below:

 

Expand routes to market

  • Generate first $ revenues from go-to-market partners

  • Leverage the channel to broaden end-user customer reach

  • Explore licensing opportunities for the SmartWall software offering

Continue to focus on customer delight

  • Superior customer service and support

  • Target world class support and services renewal rates of >90%

Grow customer base

  • Sell the new SmartWall NTD1100 100Gbps and vNTD virtual software appliance

  • Develop digital enterprise market opportunity through targeted system integrator and go-to-market partner leverage

Maintain competitive advantage in real-time DDoS mitigation

  • New DDoS attack defences

  • Additional forensics and analytics capability