Corporate 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 100 customers and a growing number of GTM partners including Juniper Networks and GTT Communications.

Corero enters 2019 following a year of solid growth in revenue and order intake and with a significant resale partnership agreement in place with Juniper Networks. The Board is confident about Corero’s prospects in the short to medium term, with the DDoS mitigation market fundamentals remaining strong and market analysts forecasting double digit growth. Corero remains well-placed to capitalise on the market opportunities and generate future growth.

Market opportunity

Technology continues to promise significant enhancements to business models in terms of both driving competitiveness and revenue growth through the deployment of digital strategies and technology platforms. However, as reported in the World Economic Forum Global Risks Report for 2019, technology also continues to play a profound role in shaping the global risks landscape, with cyber attacks remaining one of the top 5 global risks in terms of likelihood.

Along with email spam, phishing, and malware, DDoS attacks remain a persistent blight on the Internet. Technically sophisticated attackers using automated methods for launching attacks have escalated an occasional but often severe nuisance into a widespread, ever-present and constantly worsening threat. Corero’s Full Year 2018 DDoS Trends Report shows the average number of attacks per customer was up 16% over 2017.

Financially motivated criminal organisations and nation state actors bent on cyber warfare have combined forces with malicious hackers to pool knowledge and experience to launch increasingly complex, multi-vector attacks that are more difficult to detect and mitigate. The vast majority of DDoS attacks are still either volumetric in nature – consuming a high percentage of network bandwidth – or focused on exhausting protocol-processing resources in the host systems under attack. Both types are highly effective in knocking out Internet applications and services, from minutes to sometimes for hours and with negative consequences for service providers, businesses and consumers.

Attacks are often launched utilising large-scale botnets that attackers create by hijacking poorly secured endpoints, including servers, PCs, laptops and, in recent years, consumer IoT devices such as webcams. The majority (according to Verizon, over 75%) still leverage amplification techniques that jack up attack intensity by exploiting vulnerabilities in Internet services and host systems to increase the flood of traffic directed at targets.

The vast complex of public networks spanning the globe is constantly growing and evolving, reaching into every corner of society. New users, endpoints and networks come online every hour of every day, presenting bad actors with a constantly expanding surface with new targets potentially vulnerable to attacks or exploitable for launching them.

Internet evolution is shifting the DDoS battlefield in two directions: out toward the rapidly growing IoT edge and up into the hyperscale datacentres supporting the ever-expanding cloud.

Rapid IoT adoption is driving a proliferation of intelligent devices that will ultimately exceed the number of user endpoints. Machine-to-machine connections from the edge will power a wide range of IoT applications, healthcare, environmental sensing and “smart” infrastructure – cities, buildings, homes and vehicles. Cybercriminals have already hijacked consumer IoT devices to create large-scale botnets and emerging mission-critical IoT networks will become targets for potentially catastrophic DDoS attacks.

Cloud-based services supporting mobile apps, streaming video, e-commerce, SaaS and enterprise IT are growing at an astounding rate, deployed in massive hyperscale data centres consisting of thousands of servers, which are both targets for attack and potential launch platforms. Content delivery networks that are instrumental in scaling cloud service delivery, are also targets for crippling attacks that can disrupt services for millions of users.

Bandwidth at the Internet edge continues to scale up. Gigabit consumer broadband is here, now. Multi-gigabit wireless over 5G networks is just over the horizon. More bandwidth at the edge is driving more capacity in the backbone. Service provider Internet connections are moving from 10Gbps to 100Gbps. A faster edge enables higher intensity attacks, and fewer endpoints are needed to launch crippling volumetric attacks.

Corero strategy

Corero’s focus is to scale its revenue by focusing on the following priorities:

1. Scaling the business towards profitability
  • Three-pronged go-to-market focus:
    • Direct sales: Corero sales team focused on the SmartWall target market to leverage success to date
    • Indirect sales: channel partner proposition
    • Partner sales: close engagement with go-to-market partners such as Juniper and GTT Communications and development of additional relationships
  • Channel leverage: Leverage Juniper channel partners given close alignment between Corero and Juniper’s customer focus (service providers, cloud providers and digital enterprises)
2. Investment in sales and marketing to drive growth
  • Sales investment to support growth plans
  • Marketing spend focused on new customer sales lead generation
3. Maintaining competitive advantage
  • Incremental product enhancements with stable R&D investment
    • New DDoS attack defenses
    • New machine learning and artificial intelligence capabilities

Corero Culture

Corero recognises the importance of culture and values and in conjunction with employees defined the Company’s agreed values:

  • Integrity
  • Customer delight
  • Innovation
  • Open and honest communications
  • Empowerment

Corero has invested in an online tool, known as Kudos, which is being used to acknowledge, reinforce and measure the values-supporting behaviors and actions taken by team members.