NTT Com Security becomes own largest vendor

Security integrator - formerly Integralis - now generating more UK sales from own services lines than Check Point

NTT Com Security says it is now generating more UK revenue from some of its own services platforms than key vendors such as Check Point.

The security integrator – formerly Integralis – fell to a €17.2m (£14.1m) net loss in its fiscal 2013 as the NTT Com-owned outfit invested heavily in its WideAngle-branded managed and professional services capabilities.

Talking to CRN, northern European managing director Neal Lillywhite claimed the services splurge is paying off, with managed services and GRC consulting set to replace Check Point as the two biggest of its 12 UK business lines in 2014.

"Historically, it would have been Check Point and F5. This is the first year where [our own platforms] are outstripping the contribution from our traditional vendors," he explained.

Some 30 to 35 per cent of UK revenues now come from professional services and 15 to 20 per cent from managed services, Lillywhite revealed, with product sales generating just 50 per cent.

Lillywhite said Integralis' decision to rebrand under the NTT Com Security and WideAngle banner last year has enabled it to "reset expectations" for the business.

"We've rearchitected and invested heavily in our managed services over the last few years but we are also building out our consulting services, not only from a European perspective but also a global perspective," he said.

"I'm flying out to Australia tomorrow [yesterday] so we're building out that global plan, which is part of the reason we rebranded as NTT Com Security – it's a consistent global brand with a consistent WideAngle services message."

The numbers are in

After turning a small €1.9m net profit in 2012, NTT Com Security slipped back into the red again in 2013 as costs associated with its services assault took their toll on the bottom line.

According to its annual results, which for the first year are available only in German (following NTT Com Security's decision to switch to a different section of the Munich stock exchange), net losses for the 12 months to 31 December 2013 hit €17.2m on revenue that rose 11 per cent to €226.9m.

The UK, which remains NTT Com Security's largest territory, saw sales fall 8.3 per cent to €82.6m. Sales from the DACH region rose 33.8 per cent to €76.4m, with the US, France and the Nordics contributing €22.1m, €15m and €16.2m respectively. From a standing start, Japan generated €6m for the security integrator last year.

"We knew we had to invest in the business to grow our managed and professional services and had already factored that into the numbers," said chief technology officer Garry Sidaway.

Constantly moving battle

The security landscape is in a state of flux as the failure of traditional signature-based defences to ward off the new breed of cybercriminal thrusts to the fore a new generation of vendors such as FireEye.

But Sidaway said blocking the new wave of threats is more about ensuring the technology installed is effective than the technology itself.

"FireEye or LogRhythm's disruptive messaging doesn't actually help organisations move on," he said. "It's about doing the basics, not installing something, configuring it and forgetting about it. It's about making sure it's effective, and that's great business for us.

"We're already starting to see how the FireEye solution is going to be bypassed and it's a constantly moving battle. The technology choices are pretty well defined; it's how do we collaborate more with [vendors such as] Check Point and Palo Alto. These are two competing products but they actually collaborate through us and it's that type of collaboration we are seeing more of."