Why this cybersecurity vendor has 'no ambitions' to win large enterprise customers

Avast's SMB boss reveals why it is actively choosing not to pursue large enterprise customers

Avast's business division is opting not to pursue large enterprise clients, instead focusing its efforts on the SMB segment, according to Erik Preisser, VP of SMB.

The vendor originally made its name with its anti-virus offering, but now covers other areas of cybersecurity, including end-point protection, managed security and network security.

Speaking to CRN, Preisser explained that the anti-virus vendor sees more opportunities to grow in the SMB market.

"We are completely focused on the SMB side of the market," he said.

"We think the SMB market is a much better market for us in the sense that there's lots of growth to be had with our portfolio.

"If you look at the layered security portfolio we have, it is really fitted for this portion of the market. That's where we think our strength is and where we want to expand."

Earlier this year, Barracuda bought Avast's Managed Workplace, a remote monitoring and management business unit.

The deal includes Barracuda offering Avast's Business CloudCare, Management Console and Antivirus Security Solutions which integrate with Managed Workplace.

Preisser said that the deal allows Barracuda to sell Avast's security products into its MSP community - including its growing enterprise customer base.

"Barracuda is focused on managed services and in the high part of the enterprise arena, which is a market that we don't have the ambition to grow in," he explained.

"We were working with MSPs but not covering all managed service partners and Barracuda was addressing a bigger portion in certain pockets globally where we didn't have proper coverage.

"This gives us the opportunity to expand and start relationships with those MSPs that we weren't doing business with before."

The cybersecurity space has seen a significant amount of consolidation over the past couple of years, not least Avast's own purchase of its competitor AVG in 2016 for $1.3bn (£1bn).

Preisser said that it is difficult to predict how this consolidation will continue to play out or whether it will plateau soon.

"There's a lot of diversification going on in the market, but how it pans out is difficult to say," he said.

"We look at the market and how the SMB customers are forced to look differently at how they secure the network. That's where we then see where changes are.

"At any point in time, three out of five SMBs are confronted with cybersecurity crimes and that portion of the market doesn't have the capabilities or capacity to counter that with resources or budget.

"That's where we play a part, together with partners, to help them overcome the burden of having to secure the network."

Czech Republic-based Avast debuted on the London Stock Exchange to much fanfare last year, becoming one of the top five tech IPOs ever on the LSE.

Preisser stated that Avast now has 450 million end users made up of its consumer and SMB businesses and that the latter is becoming an increasingly large revenue contributor.

"SMB is specifically mentioned when we do notifications for the stock market," he explained.

"It is definitely an engine that we are betting on in terms of growth and a very good addition to the consumer part of the business -which is bigger - but SMB is a market where Avast definitely wants to grow dramatically."