ChannelLife Australia logo
Industry insider news for Australia's technology resellers
Story image

Trend Micro ups its AI game to pre-empt ‘silver bullet’ startups

By Shannon Williams
Thu 10 Nov 2016
FYI, this story is more than a year old

Trend Micro unveiled its enterprise security portfolio updated with new machine learning capabilities and fresh threat intelligence at the Trend Micro Insight 2016 event.

According to Technology Business Research, the updated offering from the 27-year-old pure play security vendor is a bid to displace competitors and pre-empt ‘silver bullet’ startups.

“The combination of Trend Micro’s refreshed portfolio, ample resources and fortunate timing due to disruptions challenging some of its key competitors position Trend Micro to accelerate its revenue growth in 2017,” comments Jane Wright, principal analyst at TBR.

According to TBR’s estimates, the vendor’s year-to-year enterprise (nonconsumer) security revenue growth has often lagged the market average, ranging from -6% to 5% (not including the inorganic increase it earned from its 1Q16 acquisition of TippingPoint) over the past two years.

Wright says TBR expects Trend Micro to achieve high-single-digit growth in 2017 based on its current initiatives. “These initiatives include promoting its new machine learning-based threat detection capabilities on servers and endpoints, expanding its cloud service provider partnerships to extend its Deep Security solution to more platforms, and leveraging TippingPoint to increase its customer base in the Americas,” she explains.

“Importantly, Trend Micro delivers its security technologies via a handful of suites, with many covering more than one domain, such as Deep Discovery that includes network traffic sandboxing, email inspection and endpoint sensors in one solution,” says Wright.

“Trend Micro’s suites will appeal to customers that are turning away from point security products to take up fewer but more comprehensive security suites.”

Wright says the Trend Micro’s channel-focused financial strategy enables the vendor’s growth initiatives.

“There are many strategies for growth in the enterprise security market, but not all vendors have the funds needed to support their plans,” she explains.

Two-thirds of vendors in TBR’s Enterprise Security Benchmark achieved a positive operating margin in 2Q16. Trend Micro earned a 24.2% operating margin, while competitors such as Palo Alto Networks and FireEye were unprofitable in the quarter.

Wright says Trend Micro’s positive margin is partly due to its channel strategy.

“Trend Micro’s sales team develops opportunities but then passes 100% of those deals to channel partners for fulfillment,” she says.

“TBR expects Trend Micro’s revenue growth will accelerate in 2017 because its financial strategy has provided the resources the vendor will need to integrate the TippingPoint assets and promote its new technologies in behavioral analysis, machine learning and application control,” explains Wright.

Trend Micro modernises its threat detection capabilities

“Many startups such as Cylance (founded in 2012) and SentinelOne (founded in 2013) have entered the market touting machine learning technologies and artificial intelligence-based algorithms as a ‘silver bullet’ to detect and analyse security threats,” Wright says.

“Some startups even encourage customers to abandon their installed antimalware solutions and depend entirely on these new technologies as key tenets of a modern security strategy, raising questions about the efficacy of more mature solutions such as Trend Micro’s Smart Protection Suites,” she says.

However, Trend Micro recently added machine learning capabilities to its Smart Protection Suites and revealed plans to extend machine learning to its other solutions, including Deep Discovery and Deep Security.

“This development enables Trend Micro to offer customers a blend of traditional security features such as spam filtering, web filtering and application control with newer threat detection capabilities derived from machine learning, all in a single endpoint agent and managed from a single console,” Wright says.

TBR believes Trend Micro customers will favor this blend of traditional (for continued protection from numerous malware types) and modern threat detection, analysis and forensics features.

“They will renew their Smart Protection Suite licenses or subscriptions rather than placing their endpoint security entirely in the hands of a startup,” Wright explains.

However, most business customers are already running Symantec Endpoint Protection or Intel McAfee Endpoint Protection on their users’ PCs and Macs.

According to TBR’s Enterprise Security Market Forecast 2015- 2020, Symantec and Intel held 16.6% and 11% of the endpoint security segment, respectively, compared to Trend Micro’s 4.4% share, in 2015.

“But Symantec and other organisations are undergoing significant organisational disruptions, as Symantec absorbs its large Blue Coat acquisition and Intel spins out a majority ownership of its McAfee portfolio to a private investment firm,” Wright explains.

Wright says Trend Micro has a one-year window of opportunity to take advantage of these disruptions.

“It can amplify its market education and sales outreach to displace some Symantec and Intel McAfee installations while blocking advancements by startups, earning a greater share of the fast-growing endpoint security segment,” she says.

TippingPoint acquisition extends Trend Micro’s presence in the Americas

In 2Q16 Tokyo-headquartered Trend Micro earned 53.8% of its revenue in APAC, 19.7% in EMEA and 27.4% in the Americas.

TBR believes Trend Micro’s acquisition of TippingPoint, a portfolio of intrusion prevention system appliances, will create more opportunities in the Americas for the vendor.

“Most of TippingPoint’s employees and customers are located in the Americas. More importantly, TippingPoint has strong brand recognition in the region due to the highly regarded Zero Day Initiative (ZDI) security vulnerability discovery program TippingPoint founded in 2005,” Wright says.

“As Trend Micro leverages TippingPoint’s reputation and integrates ZDI intelligence across its portfolio, more Americas-based customers will evaluate Trend Micro for their network security requirements.”

Related stories
Top stories
Story image
New digital traffic light system to tackle construction defects
Smarter Defects Management launches its PaaS digital system and says it will revolutionise managing defects in the construction industry.
Story image
Google and CSIRO use AI to help protect the Great Barrier Reef
Google has partnered with CSIRO in Australia to implement AI solutions that help protect the Great Barrier Reef.
Story image
Artificial Intelligence
SAS launches human-focused responsible innovation initiative
SAS has launched a responsible innovation initiative, furthering its commitment to equity and putting people first.
Story image
New SAS service overcomes subscription fatigue for media companies
SAS has launched SAS 360 Match which helps media companies move towards a AVOD model to generate revenue as subscribers cancel.
Story image
Artificial Intelligence
Updates from Google Workspace set to ease hybrid working troubles
Google Workspace has announced a variety of new features which will utilise Google AI capabilities to help make hybrid working situations more efficient and effective.
Story image
SAS Viya on Microsoft Azure to deliver 204% return - study
The Forrester Total Economic Impact study finds SAS Viya on Microsoft Azure brings a 204% return on investment over three years.
Story image
D-Link launches new G415 Smart Router as part of EAGLE PRO AI range
D-Link A/NZ has announced the launch of its new G415 AX1500 4G Smart Router as part of the new EAGLE PRO AI Series.
Story image
Artificial Intelligence
ANU and Seeing Machines to use AI to improve driver safety
The Australian National University and Seeing Machines have won a grant to develop AI systems monitor human behaviour while driving.
Story image
Hawaiki Cable
BW Digital completes acquisition of Hawaiki Submarine Cable
BW Digital has completed its full acquisition of Hawaiki Submarine Cable, with all applicable regulatory filings and approvals now received.
Story image
Hands-on review: STM laptop bags
The advent of hybrid working has meant we need laptop bags. We got our hands on two of the most popular laptop bags from STM.
Story image
Google reveals new safety and security measures for users
Google's new measures include automatic two step verification, virtual cards and making it easier to remove contact information on Google Search results.
Story image
Atturra partners with Focus HQ to support Aus organisations
Atturra has executed a partnership agreement with Focus HQ, to resell and support the company's Australian developed SaaS-based portfolio management platform.
Story image
Hands-on review: Technics EAH-A800 Noise Cancelling Wireless Headphones
Designed in Osaka, Japan, these headphones just exude quality. They aren’t heavy, but they feel well built and solid.
Story image
Application Security
What are the DDoS attack trend predictions for 2022?
Mitigation and recovery are vital to ensuring brand reputation remains solid in the face of a Distributed Denial of Service (DDoS) attack and that business growth and innovation can continue.
Story image
Zerto unveils updates to ransomware recovery capabilities
"Organisations face increased risks from the volume and sophistication of ransomware attacks prevalent today."
Story image
Appian awarded billions in damages against Pegasystems Inc.
Appian has been awarded USD$2.036 billion in damages against Pegasystems Inc as the result of a jury verdict in the Circuit Court for Fairfax County, Virginia.
Story image
Aussie data & analytic execs not confident in data strategy
Less than half of Australian data and analytics leaders are confident in their data strategy as siloes and lack of culture prevent innovation.
Story image
Hands-on review: Amazon Kindle Paperwhite Signature Edition
In almost every respect it works like a book, apart from the fact that it weighs next to nothing, fits in my hand perfectly, and is soothing on my eyes.
Story image
Nokia and Optus reaches new 5G levels using Samsung
Nokia and Optus have achieved the world’s first 3CC Carrier Aggregation 5G SA data call using a commercial Samsung headset in Australia.
Story image
Fortinet training edges toward closing cybersecurity gap
The Fortinet Training Institute has made significant progress in closing the cybersecurity skills gap, on track to train one million people by 2026.
Story image
Hands-on review: Corsair 32GB Vengeance 5200MHz DDR5 DRAM kit
Corsair’s Vengeance 5200MHz DDR5 DRAM offers PC users an entry-level upgrade to the new memory standard allowing them to get a little bit more out of their new Alder Lake CPUs.
Story image
HackerOne launches Attack Resistance Management solution
HackerOne has launched Attack Resistance Management - a new category of security solution that targets the root causes of the attack resistance gap. 
Story image
Microsoft unveils three new security managed services
Security Experts includes three new managed services, Defender Experts for Hunting, Defender Experts for XDR, Security Services for Enterprise.
Story image
Application Performance Monitoring / APM
Why SolarWinds Partners will have big wins in 2022
We summarise the key recent changes that the monitoring software vendor has made to accelerate its channel business.
Story image
Sony to bring new 1000X series WH-1000XM5 headphones to the market
Sony has announced the newest edition of its award-winning wireless headphones, with the 1000X series WH-1000XM5 noise-cancelling model.
Story image
Microsoft unveils adaptive accessories for disability access
Microsoft is introducing an expansive Inclusive Tech Lab to give people with disabilities greater access to technology through new software features and adaptive accessories.
Story image
Artificial Intelligence
Google to enter the smartwatch market with the Google Pixel Watch
Google has provided a first look at its new Google Pixel Watch, which is set to make an entry into the competitive smartwatch market.
Story image
Poly introduces new smart devices and announces Amazon e-store in Australia
Poly is introducing two new pro-grade devices to the market and announcing its first official Australian e-store on Amazon.
Story image
TeamViewer and SAP combine AR and warehouse operations
TeamViewer combines its AR platform, Frontline, with SAP's Extended Warehouse Management solution, to make warehouse and logistics operations more efficient.
Story image
Mastercard users can now use rewards points in gaming
Mastercard has launched Mastercard Gamer Xchange (MGX), allowing APAC consumers to convert their rewards points into gaming currency.
Story image
Adyen expands partnership with Afterpay as BNPL payments increase
Adyen has expanded its partnership with AfterPay allowing more of Adyen’s merchants in more countries worldwide to use the BNPL provider.
Story image
Hands-on review: MSI MPG Z690 Carbon WIFI motherboard
It’s all change with Intel’s 12th generation CPUs. We have a new chipset in the 600-series, a new socket with the LGA 1700, and new DDR5 memory.
Story image
Cybersecurity starts with education
In 2021, 80% of Australian organisations responding to the Sophos State of Ransomware study reported being hit by ransomware. 
Story image
Jabra reveals its latest portable headset Engage 55
Jabra has launched the Engage 55, the newest product in Jabra's Engage series designed for ultimate call security and quality.
Story image
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
Palo Alto Networks says ZTNA 1.0 not secure enough
Palo Alto Networks is urging the industry to move to Zero Trust Network Access 2.0 because previous versions have major gaps in security protection.
Story image
HINDSITE wins Aerospace Xelerated Pitch Challenge with solution to support Boeing
Brisbane-based startup HINDSITE was the winner of the first ever Pitch Challenge organised by Aerospace Xelerated in partnership with Queensland XR Hub. 
Story image
Wasabi Technologies
Wasabi opens new cloud storage in Australia with Equinix
Wasabi Technologies has opened a new hot cloud storage region in Sydney, Australia, using Equinix services. This is the company's 12th global storage region.
Story image
Open banking
A look at the rewards and risks of open banking - report
RiskBusiness says its report on open banking finds that while it holds much potential, financial services firms need to ensure they have robust, risk processes.
Story image
Red Hat
Red Hat expands capabilities to provide streamlined application development in cloud
"Application development is undergoing significant change and developers need tools to support this transformation."
Story image
Hybrid Cloud
Red Hat and Accenture expand alliance for hybrid cloud
Red Hat and Accenture have announced the expansion of their partnership, collaborating on new offerings to assist businesses in their cloud continuum operations.
Story image
Tech job moves
Tech job moves - Datacom, Micro Focus, SnapLogic and VMware
We round up all job appointments from May 6-12, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Avaya expands Microsoft partnership to deliver OneCloud on Azure
The joint technology and go to market agreement will help customers accelerate their digital transformation initiatives in the cloud.
Story image
Fastly named 2022 Gartner Peer Insights Customers’ Choice
Fastly has announced it has been named a Customers' Choice in the 2022 Gartner Peer Insights "Voice of the Customer": Global CDN.