INVESTORUPDATE · Manager is the first step •UseSSH’s unique differentiators to establish...
Transcript of INVESTORUPDATE · Manager is the first step •UseSSH’s unique differentiators to establish...
INVESTOR UPDATESSH COMMUNICATIONS SECURITY
Kaisa Olkkonen, CEO
21.12.2017
SSH Background and Business1
Marketing Update3
Questions and Answers 4
CONTENTS
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SSH Strategic Direction renewed2
SSH BACKGROUND AND BUSINESS
WHAT IS SSH ABOUT
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3000+ demanding customers worldwide
Industry-leading products
100+ patents
Inventor of the SSH protocol – the backbone of Internet security1
20+ years of engineering excellence
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SSH STRATEGIC DIRECTION RENEWED
OUR GROWTH EQUATION (JUNE 2017)
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ELIMINATING THE SYSTEMIC
PROBLEMS
INTRODUCINGDISRUPTIVE NEW TECHNOLOGIES
EXPLOITING THE CLOUD
OPPORTUNITY
ACTIVELY MONETIZING
IPRS• Reshape and widen
offering for a more strategic vendor position
• Reposition SSH into relevant segment(s)
• Expand into more customer segments
• Rapidly introduce new technologies and products to exploit the cloud opportunity
• PrivX On-Demand Access Manager is the first step
• Use SSH’s unique differentiators to establish leading position in Cloud Access Management
• Continue IPR creation and filings
• Actively pursue licensing
• Be prepared to protect our rights in courts if necessary
GROWTH: EXPANDING OUR REACH WITH PRIVX (JUNE 2017)
Existing Base
Wider offering with PrivX
New customer segments with
PrivX
Upsell
More strategic offering
Cross-Sell
MARKET EXPANSIONWider offering for better competitive position when competing for new Fortune 1000 class customersPrivX™ creates a wider offering for existing customers and segmentsPrivX™ enables both new customer segments and new business models (SaaS) for accelerating growth
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Source: Vmoksha Technologies (2017)
THE CLOUD CHANGES EVERYTHING
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“More than $1 trillion in IT spending will be directly or indirectly affected by the shift to cloud during the next five years, said Gartner, Inc. This will make cloud computing one of the most disruptive forces of IT spending since the early days of the digital age.”
-- Gartner
"Cloud-first strategies are the foundation for staying relevant in a fast-paced world”
-- Ed Anderson, Gartner
SECURITY IS SLOWING DOWN THE CLOUD TRANSFORMATION
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Top challenges holding back cloud projects
28%
30%
34%
38%
38%
73%
Loss of control over IT services
Concern about regulatorycompliance
Concern about the security of data
Knowledge and experience of bothIT and business managers
Concern over business continuityor disaster recovery
Concern over compromisedaccounts or insider threats
Source: Cloud Security Alliance: “Cloud Adoption Practices & Priorities Survey Report” Focus areas of SSH
THE MARKET IS GROWING
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The Economist (May 28,2016)
MARKET GROWTH CONTINUES
Zion Research: Cyber Security Market Trends and Forecast 2015-2021 (August 2016)
INSIDERS ARE THE KEY THREAT AWARENESS IS INCREASING
PwC GSISS 2015: Number of detected security incidents (millions) with sources
3,4
9,4
22,724,9
28,9
42,8
2009 2010 2011 2012 2013 2014
Top 3 sources of security incidents
24%
30%
35% Current employeesFormer employees
Hackers
Projected CAGR of 9.5% between 2016 and 2021
CLOUD SECURITY GROWS EVEN FASTER
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9.5% 26%vs.
The cloud security market grows significantly faster than the overall information security market
Sources: Zion Research 2016; MarketsandMarkets 2017
OVERALL INFORMATION SECURITY MARKET CLOUD SECURITY MARKET
OUR MISSION
Access Your Digital Core
Digital core is where organizations’ most valuable information, business applications, and core services exist and operate. Frictionless and secured
access to the digital core is a new competitive advantage as every organizationis either morphing into or born "digital" in the global data economy.
We help all businesses access their digital core securely and frictionlessly.
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KEY ACTIONS 2017
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Internal• Personnel Engagement through the strategy renewal work with the whole SSH team.• Renewal of the target setting and incentive process to improve everybody´s
understanding of the key targets of the company and their role in reaching those targets. • Regular pulse surveys to measure the commitment and understanding.• Development of the finance tools to give us more detailed visibility to cost structures and
financial situation.• Competence analysis and recruitments based on that to build our capabilities in the new
digital business model.• Continuous building of the leadership team with internal and external recruitments and
work on the ways of working and behaviors of the leadership team.• Strong cost consciousness and reducing the losses substantially from 2016.
Journey on the performance culture change started
KEY ACTIONS 2017
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Product portfolio• Universal Key Manager as the best SSH key management tool for SSH users, offering
different levels of deployment possibilities.• Crypto Auditor repackaged as a product for key defined use cases: third party access as
the key use case in the ecosystem world.• Tectia client/server as our bread and butter.• Firewall product reached the certification process stage.• PrivX On Demand Access manager as the lead product for cloud transformation.
• PrivX 1.0 launch in June and customer engagements started.• PrivX® organized as a separate Business Program to ensure focus and agility• New version of PrivX® On-Demand Access Manager in Q1/18.• Development of a SaaS version of PrivX® On-Demand Access Manager as the
next step.
From point solutions to a broader offering
KEY ACTIONS 2017
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Sales• Acknowledging the volatility of the SSH turnover quarter on quarter.
• Balance between license and subscription deals to increase predictability.
• Renewing the sales teams over the year, recruitments in Germany and UK. Refocus of roles in the US.
• Understanding customer needs and behavior: Shortening sales cycles through repackaging of products.
• Adding automation and analysis to recurring business process – maximizing revenue.
• Building our capability to address the new segment for PrivX.
• Start of online sales during H1/18.
• Building the sales development team, inside sales team starting in the US, global roles starting the work in Finland.
• Theme focused campaigns continue, utilizing e.g. GDPR, ecosystem development…
• First customer satisfaction survey conducted with our customer support interfaces.
Growing customer focus, facilitating faster sales cycles
KEY ACTIONS
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Marketing• Ari Vänttinen as the Chief Marketing Officer and Simo Karkkulainen as the
Chief Digital Officer.• A completely new way of addressing marketing in SSH: turning SSH
Communications Security to SSH.COM.
Turning the substantial website traffic to sales
IPR DEVELOPMENT
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• As announced on December 6, 2017, SSH has entered into a patent cross-license agreement with a global technology company including a one-timelicense fee payment of 2.1 M EUR paid to SSH• The agreement does not have any direct impact on our ongoing patemnt litigation with
Sony in Germany and the UK and the court cases proceed normally
• The agreement reflects the strength of our IPR portfolio and validates our patentlicensing program• We will continue the litigation and further intensify the many active licensing negotiations
with several leading global technology companies
Announcement of new direction; Launch of PrivX; decreasing loss
Start of new PrivX Business Program; operating cash flow positive quarter
Ecommerce and new sales
model start
New marketing leader-ship and renewed mar-keting focus; first patent licensing win
PrivX™ 2.0 launch; major digital presence and marketing upgrade
Q2/17 Q3/17 Q4/17 Q1/18 Q2/18
EXECUTING THE STRATEGY
Q&A
SIZING UP THE COMPETITION
Company NotesCyberark Acquired SSH ex-partner Conjur
ScaleFT Similar approach, cloud only
aqua Well-funded, container focus
Venafi Strong in key & certificate mgmt
Cloud-Only
Also-Rans Legacy-First
Cloud-First
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SSH: the smart and credible player
THE IMPACT OF GDPR
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GDPR is happening fast and non-compliance can get VERY expensive
Multiple SSH product help cope with GDPR: we help reach compliance and report promptly