WalkMe is going public: Let’s stroll through its numbers

Hot off the heels of our look into Marqeta’s IPO filing and dives into SPACs for Bright Machines and Bird, we’re parsing the WalkMe IPO filing. Later this week, Squarespace will direct list and we’ll see IPOs from Oatly and Procore. It’s a super busy time for public debuts of all sorts.

Given how hectic the IPO market is, we’re going to skip our usual throat clearing and dig into WalkMe’s IPO document. As always, we’ll start with a brief overview of its product and then move into discussing its financial performance.

Image Credits: Alex Wilhelm

WalkMe is the second Israel-based technology company to file to go public this week: No-code startup Monday.com is also pursuing an American IPO.

Alright! Into the breach.

What does WalkMe do?

WalkMe’s software provides visual overlays on websites that help users navigate the product in question. I base that explanation on my time at Crunchbase, which was a customer during at least part of my time there. WalkMe is popular with marketing teams who want to introduce users to a new or refreshed experience.

Per the company’s F-1 filing, other elements of its service that matter include its onboarding system and what WalkMe calls Workstation, or its “single interface to the applications within an enterprise and simplifies task completion through a natural language conversational interface and automation.” We’re including that last feature because it says “automation,” which, in the wake of the UiPath IPO, is a word worth watching. Investors are.

At a high level, WalkMe is a SaaS business, which means that when we digest its results we are digging into a modern software company. Let’s do just that.

WalkMe’s numbers

From 2019 to 2020, WalkMe grew its revenues from $105.1 million to $148.3 million, a gain of 41%. In its most recent quarter, the company’s growth rate slowed: From Q1 2020 to Q1 2021, WalkMe’s top line grew 25% from $34.2 million to $42.7 million.

In SaaS terms, WalkMe calculates that its annual recurring revenue, or ARR, grew from $131.2 million at the end of 2019 to $164.3 million in 2020. In more granular terms, the company’s ARR grew from $137.8 million to $177.5 million in the first quarters of 2020, and 2021, respectively.

How To Achieve Full Endpoint Security With Your Current Team And Resources 

Sometimes, trying to fight off hackers can feel like playing in a five-on-five football tournament, only the other four members of your team couldn’t afford the entry fee, so you’re playing five-on-one. You’re understaffed, under-resourced, and you stand little chance of winning. When you guard one area, they just go around you, exploiting an open space with no coverage.

Or, bringing it around to IT, when you protect one access point, hackers find entry elsewhere. By the time you detect them, they’ve already scored by stealing your data and sensitive information or locking apps within your device and demanding a Bitcoin payment to unlock them. You need a solution to defend against ransomware attacks.

Unlike football, compromised endpoints can have serious consequences. To win against attackers, you need a more complete defense, one that evens up the odds so you can guard each of their moves with one of your own. Or, even better, one that can bring a backup team to give your IT team the advantage.

Empowering Humans with AI and ML Automation

Fortunately, there is a way to do this without struggling for additional headcount or paying for expensive services: automation. The best endpoint protection solutions combine automation with artificial intelligence (AI) and machine learning (ML) to detect and remediate modern attacks in real-time, at machine speed, without human intervention. Your team must only respond to the most severe attacks, which means you can rely on your same IT team, experience, and resources you have now.

That’s how SentinelOne approaches endpoint protection. SentinelOne is the only cybersecurity solution encompassing AI-powered prevention, detection, response, and hunting across endpoints, containers, cloud workloads, and IoT devices in a single autonomous platform. It gives your organization full transparency into everything happening across the network at machine speed—and it gives you the additional resources to defeat every attack at every stage of the threat lifecycle.

How SentinelOne’s Automation Augments Your Team

SentinelOne’s static and behavioral AI models live on each device, detecting anomalous activity without a cloud connection and enabling devices to self-heal from any attack instantaneously. The behavioral AI fully replaces antivirus software and delivers real-time prevention, detection, response, and hunting against known and never-seen-before malware strains.

The Sentinels are managed via SentinelOne’s globally available, multi-tenant SaaS platform designed for ease-of-use and flexible management. SentinelOne is easy to tailor and set up for the unique needs of your business.

The SentinelOne platform includes three primary tiers for EPP+EDR (endpoint protection platform and endpoint detection and response) with increasingly intensive protection, detection, and response:

  • Singularity Core, the entry-level endpoint security product for businesses that want to replace legacy or next-generation antivirus solutions with an endpoint protection platform that is more effective and easier to manage.
  • Singularity Control adds increased options for device control and management, including Firewall Control and USB & Bluetooth Control.
  • Singularity Complete is made for organizations that need modern endpoint protection and control, plus advanced EDR and threat-hunting features.

The Vigilance Managed Detection and Response (MDR) service subscription can augment your security team by ensuring that every threat is reviewed, acted on, documented, and escalated if needed.

Singularity Control, with device control capabilities that offer granular device management for USB and Bluetooth on Windows and Mac, provides centralized and customizable policy-based control with hierarchy inheritance.

Firewall Control enables you to control inbound and outbound network traffic for Windows and Mac devices. You can tag mechanisms for streamlined policy assignment and administrative clarity, while touchless location awareness allows you to assign network control based on the system’s physical location.

The rogue device discovery feature identifies the endpoints that are not protected by SentinelOne, and passively and actively sweeps networks to provide enterprise-wide visibility.

SentinelOne Singularity Complete, which is made for organizations that need modern endpoint protection and control plus advanced endpoint detection and response, features Storyline™ technology that automatically contextualizes all OS process relationships at all times and stores them for future investigations. This feature saves the IT team from tedious event correlation tasks and helps them get to the root cause of an event quickly.

Staying A Play Ahead Of Attackers

With SentinelOne, it’s like you’re bringing professionals as your teammates into the football tournament. And they brought their friends. Suddenly, you have the advantage and every play attempted by the other team (we’ll call them The Hackers) is blocked.

Organizations are changing, and that requires a digital transformation to ensure continuity when unforeseen circumstances occur—like a pandemic. With SentinelOne, you get the security you need to keep your business on track.

If you would like to know more about the capabilities that make up the SentinelOne Singularity Platform, contact us or request a free demo.


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Fast growth pushes an unprofitable no-code startup into the public markets: Inside Monday.com’s IPO filing

At long last, the Monday.com crew dropped an F-1 filing to go public in the United States. TechCrunch has long known that the company, which sells corporate productivity and communications software, has scaled north of $100 million in annual recurring revenue (ARR).

The countdown to its IPO filing — an F-1, because the company is based in Israel, rather than the S-1s filed by domestic companies — has been ticking for several quarters, so seeing Monday.com drop the document on this Monday morning was just good fun.


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The Exchange has been riffling through the document since it came out, and we’ve picked up on a few things to explore. We’ll start by looking at the company’s revenue growth on a historical basis to see if it has accelerated in recent quarters thanks to the pandemic. Then, we’ll turn to profitability, cash burn, share-based compensation expenses and product vision.

We’ll wrap at the end with a summary of what we’ve learned and also make sure to check out the company’s marketing spend, because I’m sure you’ve seen its digital ads.

It’s a lot to chew through, so no more dilly-dallying. Into the numbers!

As always, we’re starting with revenue growth because it’s still the single most important thing about any venture-backed company.

Revenue adds are accelerating

This is great news for the startup, its employees and its investors. From 2019 to 2020, Monday.com grew its revenues from $78.1 million to $161.1 million, or 106%.

From Q1 2020 to Q1 2021, the company’s revenues grew from $31.9 million to $59 million. That’s about 85% growth. So, by what measure do we mean that the company’s revenue growth is accelerating? Its sequential-quarter revenue growth is picking up. Observe the following:

Image Credits: Monday.com F-1 filing

From Q2 2019 to Q3 2019, the company added around $4 million in revenue. From Q2 2020 to Q3 2020, that number was $6.1 million. More recently, the company’s revenue added $7.6 million from Q3 2020 to Q4 2020, which accelerated to $8.8 million from the final quarter of 2020 to the first quarter of 2021. Of course, from an ever-larger base, the company’s growth rate may decline. But the super clean and obvious expanding sequential revenue gains at the company are solid.

The fact that it added so much top line in recent quarters also helps explain why Monday.com is going public now. Sure, the markets are still near record highs and the pandemic is fading, but just look at that consistent growth! It’s investor catnip.

Merge raises $4.5M to help B2B companies build customer-facing integrations

Merge, a startup that helps its users build customer-facing integrations with third-party tools, today announced that it has raised a $4.5 million seed round led by NEA. Additional angel investors include former MuleSoft CEO Greg Schott, Cloudflare CEO Matthew Prince, Expanse co-founders Tim Junio and Matt Kraning, and Jumpstart CEO Ben Herman.

Launched in 2020, the core focus of Merge is to give B2B companies a unified API to access data from what is currently about 40 HR, payroll, recruiting and accounting platforms, with plans for expanding to additional areas soon. But Merge co-founders Shensi Ding and Gil Feig, who have been lifelong friends and previously worked at companies like Expanse and Jumpstart, stress that the service isn’t aiming to replace workflow tools Workato or Zapier.

Image Credits: Merge

“What we built is more similar to Plaid than MuleSoft or other things,” Feig said. “We built a unified API, so we’re fully embedded in a customer’s product and they build one integration with us and can automatically offer all these integrations to their customers. On top of that, we offer what we call integrations management, which is a suite of tools to automatically detect issues where the customer would have to get involved — automatically detect that stuff and handle it without ever having to involve engineering again.”

When Merge’s systems detect issues with an integration, maybe because a data schema in an API response has changed without notice (which happens with some regularity), Merge’s engineers can fix that within minutes, in part because the teams also built an internal no-code tool for building and managing these integrations.

Image Credits: Merge

As Ding also noted, B2B buyers today also simply expect their tools to feature integrations with the service they use. “Companies, when they purchase a vendor, they expect that vendor to have integrations with all the other vendors that they own,” she said. “They don’t want to have to purchase a vendor and then purchase a workflow product and then connect those products.”

And while Merge’s focus right now is squarely on a few verticals, the plan is to expand this to far more areas shortly, likely starting with CRM. “Salesforce has a pretty large market share, so we thought that it wasn’t going to be as interesting of a market,” Ding said. “But it turns out that their API is so complex that customers would still prefer to integrate with us instead if we simplify it for them.”

Ding and Feig tell me the company, which came out of stealth about two months ago, already has about 100 organizations on its platform, varying from seed-stage companies to publicly listed enterprises. The team credits its focus on security and reliability (and its SOC II compliance) with being able to bring on some of these larger companies despite being a seed-stage company itself.

To monetize the service, Merge offers a free tier (up to 10,000 API requests per month) and charges $0.01 per API request for additional usage. Unsurprisingly, the company also offers customized enterprise plans for its larger customers.

“The time and expense associated with building and maintaining myriad API integrations is a pain point we hear about consistently from our portfolio companies across all industries,” said NEA managing general partner Scott Sandell, who will join the company’s board. “Merge is tackling this ubiquitous problem head-on via their easy-to-use, unified API platform. Their platform has broad applicability and is a massive upgrade for any software company that needs to build, manage, and maintain multiple API integrations.”

Try This One Weird Trick Russian Hackers Hate

In a Twitter discussion last week on ransomware attacks, KrebsOnSecurity noted that virtually all ransomware strains have a built-in failsafe designed to cover the backsides of the malware purveyors: They simply will not install on a Microsoft Windows computer that already has one of many types of virtual keyboards installed — such as Russian or Ukrainian. So many readers had questions in response to the tweet that I thought it was worth a blog post exploring this one weird cyber defense trick.

The Commonwealth of Independent States (CIS) more or less matches the exclusion list on an awful lot of malware coming out of Eastern Europe.

The Twitter thread came up in a discussion on the ransomware attack against Colonial Pipeline, which earlier this month shut down 5,500 miles of fuel pipe for nearly a week, causing fuel station supply shortages throughout the country and driving up prices. The FBI said the attack was the work of DarkSide, a new-ish ransomware-as-a-service offering that says it targets only large corporations.

DarkSide and other Russian-language affiliate moneymaking programs have long barred their criminal associates from installing malicious software on computers in a host of Eastern European countries, including Ukraine and Russia. This prohibition dates back to the earliest days of organized cybercrime, and it is intended to minimize scrutiny and interference from local authorities.

In Russia, for example, authorities there generally will not initiate a cybercrime investigation against one of their own unless a company or individual within the country’s borders files an official complaint as a victim. Ensuring that no affiliates can produce victims in their own countries is the easiest way for these criminals to stay off the radar of domestic law enforcement agencies.

Possibly feeling the heat from being referenced in President Biden’s Executive Order on cybersecurity this past week, the DarkSide group sought to distance itself from their attack against Colonial Pipeline. In a message posted to its victim shaming blog, DarkSide tried to say it was “apolitical” and that it didn’t wish to participate in geopolitics.

“Our goal is to make money, and not creating problems for society,” the DarkSide criminals wrote last week. “From today we introduce moderation and check each company that our partners want to encrypt to avoid social consequences in the future.”

But here’s the thing: Digital extortion gangs like DarkSide take great care to make their entire platforms geopolitical, because their malware is engineered to work only in certain parts of the world.

DarkSide, like a great many other malware strains, has a hard-coded do-not-install list of countries which are the principal members of the Commonwealth of Independent States (CIS) — former Soviet satellites that all currently have favorable relations with the Kremlin, including Azerbaijan, Belarus, Georgia, Romania, Turkmenistan, Ukraine and Uzbekistan. The full exclusion list in DarkSide (published by Cybereason) is below:

Image: Cybereason.

Simply put, countless malware strains will check for the presence of one of these languages on the system, and if they’re detected the malware will exit and fail to install.

[Side note. Many security experts have pointed to connections between the DarkSide and REvil (a.k.a. “Sodinokibi”) ransomware groups. REvil was previously known as GandCrab, and one of the many things GandCrab had in common with REvil was that both programs barred affiliates from infecting victims in Syria. As we can see from the chart above, Syria is also exempted from infections by DarkSide ransomware. And DarkSide itself proved their connection to REvil this past week when it announced it was closing up shop after its servers and bitcoin funds were seized.]

CAVEAT EMPTOR

Will installing one of these languages keep your Windows computer safe from all malware? Absolutely not. There is plenty of malware that doesn’t care where in the world you are. And there is no substitute for adopting a defense-in-depth posture, and avoiding risky behaviors online.

But is there really a downside to taking this simple, free, prophylactic approach? None that I can see, other than perhaps a sinking feeling of capitulation. The worst that could happen is that you accidentally toggle the language settings and all your menu options are in Russian.

If this happens (and the first time it does the experience may be a bit jarring) hit the Windows key and the space bar at the same time; if you have more than one language installed you will see the ability to quickly toggle from one to the other. The little box that pops up when one hits that keyboard combo looks like this:

Cybercriminals are notoriously responsive to defenses which cut into their profitability, so why wouldn’t the bad guys just change things up and start ignoring the language check? Well, they certainly can and maybe even will do that (a recent version of DarkSide analyzed by Mandiant did not perform the system language check).

But doing so increases the risk to their personal safety and fortunes by some non-trivial amount, said Allison Nixon, chief research officer at New York City-based cyber investigations firm Unit221B.

Nixon said because of Russia’s unique legal culture, criminal hackers in that country employ these checks to ensure they are only attacking victims outside of the country.

“This is for their legal protection,” Nixon said. “Installing a Cyrillic keyboard, or changing a specific registry entry to say ‘RU’, and so forth, might be enough to convince malware that you are Russian and off limits. This can technically be used as a ‘vaccine’ against Russian malware.”

Nixon said if enough people do this in large numbers, it may in the short term protect some people, but more importantly in the long term it forces Russian hackers to make a choice: Risk losing legal protections, or risk losing income.

“Essentially, Russian hackers will end up facing the same difficulty that defenders in the West must face — the fact that it is very difficult to tell the difference between a domestic machine and a foreign machine masquerading as a domestic one,” she said.

KrebsOnSecurity asked Nixon’s colleague at Unit221B — founder Lance James — what he thought about the efficacy of another anti-malware approach suggested by Twitter followers who chimed in on last week’s discussion: Adding entries to the Windows registry that specify the system is running as a virtual machine (VM). In a bid to stymie analysis by antivirus and security firms, some malware authors have traditionally configured their malware to quit installing if it detects it is running in a virtual environment.

But James said this prohibition is no longer quite so common, particularly since so many organizations have transitioned to virtual environments for everyday use.

“Being a virtual machine doesn’t stop malware like it used to,” James said. “In fact, a lot of the ransomware we’re seeing now is running on VMs.”

But James says he loves the idea of everyone adding a language from the CIS country list so much he’s produced his own clickable two-line Windows batch script that adds a Russian language reference in the specific Windows registry keys that are checked by malware. The script effectively allows one’s Windows PC to look like it has a Russian keyboard installed without actually downloading the added script libraries from Microsoft.

To install a different keyboard language on a Windows 10 computer the old fashioned way, hit the Windows key and X at the same time, then select Settings, and then select “Time and Language.” Select Language, and then scroll down and you should see an option to install another character set. Pick one, and the language should be installed the next time you reboot. Again, if for some reason you need to toggle between languages, Windows+Spacebar is your friend.

The Good, the Bad and the Ugly in Cybersecurity – Week 20

The Good

They say every dark cloud has a silver lining, and it could just be that the DarkSide ransomware incident that caused Colonial Pipeline to shut down its network on Saturday may end up doing less harm and more good in the long run. That possibility is reinforced by two events that have occurred in the wake of the attack.

First, President Biden has announced an executive order to improve the nation’s cybersecurity in the wake of this and similar high profile cyber attacks on U.S. critical infrastructure. Among other things, that order instructs service providers to share cyber threat and incident information with government agencies, for all Federal agencies to deploy EDR solutions and to engage in threat hunting activities across all federal infrastructure. Biden’s order also aims to improve the security of the software supply chain in the wake of attacks like SolarWinds and Hafnium. The White House Fact Sheet provides a good summary of the details.

Meanwhile, on the other side of the fence, it seems the attack is having repercussions among criminal gangs now running scared of increased attention from authorities. Intelligence gathered by SentinelLabs suggests that some criminal forums are banning discussion of ransomware topics and that some ransomware operators are now forbidding their affiliates from attacking government and public sector industries in any country.

Has the DarkSide team scored an own goal for the bad guys? Let’s hope so, and that in the wake of this incident, we see improved cybersecurity across all organizations and fewer attacks on our critical infrastructure.

The Bad

This week’s bad news revolves around the disclosure of twelve vulnerabilities that can be found in some combination in nearly all Wi-Fi devices. Three of the flaws occur in the design of the IEEE 802.11 technical standard, while others are implementation flaws in particular devices. Combined, the vulnerabilities impact Wi-Fi protocols from WEP all the way up to WPA3.

Dubbed FragAttacks (Fragmentation and Aggregation attacks), the twelve flaws are a result of programming mistakes related to the way IEEE 802.11 fragments and aggregates frames, the data structure that encapsulates packets and is processed by the Data link layer.

The researcher, who in 2017 demonstrated Krack attacks against WPA2 – also due to flaws in the Wi-Fi standard – says that the vulnerabilities could allow an attacker to inject arbitrary packets and “to trick a victim into using a malicious DNS server to then intercept most of the victim’s traffic”. The attack was successfully tested against devices running Linux, Windows 10, macOS 10.15.4 as well as mobile devices running Android 8.1 and iOS 13.4.1.

In practice, the three design flaws are difficult to abuse because they either require user interaction or certain uncommon network settings. Some of the other twelve bugs which were due to specific Wi-Fi vendor implementations are more trivial to exploit, and have been addressed by firmware updates. Users are encouraged to ensure all internet-capable devices (including IoT devices) are patched where possible. For those that cannot patch, see the mitigation advice here. The researcher has also released an open source tool with comprehensive instructions for those wishing to test Wi-Fi clients and access points for vulnerability to FragAttacks.

The Ugly

While news of the DarkSide ransomware attack has dominated the cyber headlines this week, the claim that a U.S. police department engaged in negotiations with a criminal gang and agreed, in principle, to pay that gang for its criminal activity seems to have largely flown under the radar.

Regular readers may recall that two weeks ago we reported on a Babuk ransomware attack on Washington DC’s Metropolitan Police Department. Since then, things have gone from bad to worse. It has been claimed that the police department’s attempt to hand the criminals a handsome reward was rejected for being too paltry. As a result, the ransomware operators leaked personal files of officers with threats of more to come if the offer is not improved.

Alleged negotiations between the police and the criminals reached a dead end after the gang – who claim to have 250GB of stolen data pertaining to investigations, arrests, informants, job applications and more – demanded $4 million in ransom. Screenshots provided by the ransomware operators purportedly show their interactions with the police negotiators, who apparently stated that:

“Our final proposal is an offer to pay $100,000 to prevent the release of the stolen data. If this offer is not acceptable, then it seems our conversation is complete. I think we both understand the consequences of not reaching an agreement. We are OK with that outcome”.


Source

Subsequently, the police were given 24 hours after which the criminals threatened “if they do not raise the prices, we will release all the data”.

It appears that no one in this unfortunate story comes out looking good, whatever happens next. While there’s no doubt about the criminal activity of the ransomware operators, there is something seriously worrying about a police department agreeing to pay criminals a ransom and reward them for their illegal behavior, assuming the communications above are genuine.

Meanwhile, officers who have had their PII leaked – not to mention members of the public who may be discussed in the stolen police files – are all victims who could be at risk of further crimes as a result.

Let’s hope that, like the Federal government, police departments start taking cybersecurity more seriously in the wake of this sorry affair. Preventing ransomware attacks shouldn’t be beyond the capabilities of any organization, let alone the nation’s police forces.


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New Relic’s business remodel will leave new CEO with work to do

For Bill Staples, the freshly appointed CEO at New Relic, who takes over on July 1, yesterday was a good day. After more than 20 years in the industry, he was given his own company to run. It’s quite an accomplishment, but now the hard work begins.

Lew Cirne, New Relic’s founder and CEO, who is stepping into the executive chairman role, spent the last several years rebuilding the company’s platform and changing its revenue model, aiming for what he hopes is long-term success.

“All the work we did in re-platforming our data tier and our user interface and the migration to consumption business model, that’s not so we can be a $1 billion New Relic — it’s so we can be a multibillion-dollar New Relic. And we are willing to forgo some short-term opportunity and take some short-term pain in order to set us up for long-term success,” Cirne told TechCrunch after yesterday’s announcement.

On the positive side of the equation, New Relic is one of the market leaders in the application performance monitoring space. Gartner has the company in third place behind Dynatrace and Cisco AppDynamics, and ahead of DataDog. While the Magic Quadrant might not be gospel, it does give you a sense of the relative market positions of each company in a given space.

New Relic competes in the application performance monitoring business, or APM for short. APM enables companies to keep tabs on the health of their applications. That allows them to cut off problems before they happen, or at least figure out why something is broken more quickly. In a world where users can grow frustrated quickly, APM is an important part of the customer experience infrastructure. If your application isn’t working well, customers won’t be happy with the experience and quickly find a rival service to use.

In addition to yesterday’s CEO announcement, New Relic reported earnings. TechCrunch decided to dig into the company’s financials to see just what challenges Staples may face as he moves into the corner office. The resulting picture is one that shows a company doing hard work for a more future-aligned product map and business model, albeit one that may not generate the sort of near-term growth that gives Staples ample breathing room with public investors.

Near-term growth, long-term hopes

Making long-term bets on a company’s product and business model future can be difficult for Wall Street to swallow in the near term. But such work can garner an incredibly lucrative result; Adobe is a good example of a company that went from license sales to subscription incomes. There are others in the midst of similar transitions, and they often take growth penalties as older revenues are recycled in favor of a new top line.

So when we observe New Relic’s recent result and guidance for the rest of the year, we’re more looking for future signs of life than quick gains.

Starting with the basics, New Relic had a better-than-anticipated quarter. An analysis showed the company’s profit and adjusted profit per share both beat expectations. And the company announced $173 million in total revenue, around $6 million more than the market expected.

So, did its shares rise? Yes, but just 5%, leaving them far under their 52-week high. Why such a modest bump after so strong a report? The company’s guidance, we reckon. Per New Relic, it expects its current quarter to bring 6% to 7% growth compared to the year-ago period. And it anticipates roughly 6% growth for its current fiscal year (its fiscal 2022, which will conclude at the end of calendar Q1 2022).

Cisco strikes again grabbing threat assessment tool Kenna Security as third acquisition this week

Cisco has been busy on the acquisition front this week, and today the company announced it was buying threat assessment platform Kenna Security, the third company it has purchased this week. The two companies did not disclose the purchase price.

With Kenna, Cisco gets a startup that uses machine learning to sort through the massive pile of threat data that comes into a security system on a daily basis and prioritizes the threats most likely to do the most damage. That could be a very useful tool these days when threats abound and it’s not always easy to know where to put your limited security resources. Cisco plans to take that technology and integrate into its SecureX platform.

Gee Rittenhouse, senior vice president and general manager of Cisco’s Security Business Group, wrote in a blog post announcing the deal with Kenna that his company is getting a product that brings together Cisco’s existing threat management capabilities with Kenna’s risk-based vulnerability management skills.

“That is why we are pleased to announce our intent to acquire Kenna Security, Inc., a recognized leader in risk-based vulnerability prioritization with over 14 million assets protected and over 12.7 billion managed vulnerabilities. Using data science and real-world threat intelligence, it has a proven ability to bring data in from a multi-vendor environment and provide a comprehensive view of IT vulnerability risk,” Rittenhouse wrote in the blog post.

The security sphere has been complex for a long time, but with employees moving to work from home because of COVID, it became even more pronounced in the last year. In a world where the threat landscape changes quickly, having a tool that prioritizes what to look at first in its arsenal could be very useful.

Kenna Security CEO Karim Toubba gave a typical executive argument for being acquired: it gives him a much bigger market under Cisco than his company could have built alone.

“Now is our opportunity to change the industry: once the acquisition is complete, we will be one step closer to delivering Kenna’s pioneering Risk-Based Vulnerability Management (RBVM) platform to the more than 7,000 customers using Cisco SecureX today. This single action exponentially increases the impact Kenna’s technology will have on the way the world secures networks, endpoints and infrastructures,” he wrote in the company blog.

The company, which launched in 2010, claims to be the pioneer in the RBVM space. It raised over $98 million on a $320 million post-money valuation, according to PitchBook data. Customers include HSBC, Royal Bank of Canada, Mattel and Quest Diagnostics.

For those customers, the product will cease to be standalone at some point as the companies work together to integrate Kenna technology into the SecureX platform. When that is complete, the standalone customers will have to purchase the Cisco solution to continue using the Kenna tech.

Cisco has had a busy week on the acquisition front. It announced its intent to acquire Sedona Systems on Tuesday, Socio Labs on Wednesday and this announcement today. That’s a lot of activity for any company in a single week. The deal is expected to close in Cisco Q4 FY 2021. Kenna’s 170 employees will be joining the Security Business Group led by Rittenhouse.

DarkSide Ransomware Gang Quits After Servers, Bitcoin Stash Seized

The DarkSide ransomware affiliate program responsible for the six-day outage at Colonial Pipeline this week that led to fuel shortages and price spikes across the country is running for the hills. The crime gang announced it was closing up shop after its servers were seized and someone drained the cryptocurrency from an account the group uses to pay affiliates.

“Servers were seized (country not named), money of advertisers and founders was transferred to an unknown account,” reads a message from a cybercrime forum reposted to the Russian OSINT Telegram channel.

“A few hours ago, we lost access to the public part of our infrastructure,” the message continues, explaining the outage affected its victim shaming blog where stolen data is published from victims who refuse to pay a ransom.

“Hosting support, apart from information ‘at the request of law enforcement agencies,’ does not provide any other information,” the DarkSide admin says. “Also, a few hours after the withdrawal, funds from the payment server (ours and clients’) were withdrawn to an unknown address.”

DarkSide organizers also said they were releasing decryption tools for all of the companies that have been ransomed but which haven’t yet paid.

“After that, you will be free to communicate with them wherever you want in any way you want,” the instructions read.

The DarkSide message includes passages apparently penned by a leader of the REvil ransomware-as-a-service platform. This is interesting because security experts have posited that many of DarkSide’s core members are closely tied to the REvil gang.

The REvil representative said its program was introducing new restrictions on the kinds of organizations that affiliates could hold for ransom, and that henceforth it would be forbidden to attack those in the “social sector” (defined as healthcare and educational institutions) and organizations in the “gov-sector” (state) of any country. Affiliates also will be required to get approval before infecting victims.

The new restrictions came as some Russian cybercrime forums began distancing themselves from ransomware operations altogether. On Thursday, the administrator of the popular Russian forum XSS announced the community would no longer allow discussion threads about ransomware moneymaking programs.

“There’s too much publicity,” the XSS administrator explained. “Ransomware has gathered a critical mass of nonsense, bullshit, hype, and fuss around it. The word ‘ransomware’ has been put on a par with a number of unpleasant phenomena, such as geopolitical tensions, extortion, and government-backed hacks. This word has become dangerous and toxic.”

In a blog post on the DarkSide closure, cyber intelligence firm Intel 471 said it believes all of these actions can be tied directly to the reaction related to the high-profile ransomware attacks covered by the media this week.

“However, a strong caveat should be applied to these developments: it’s likely that these ransomware operators are trying to retreat from the spotlight more than suddenly discovering the error of their ways,” Intel 471 wrote. “A number of the operators will most likely operate in their own closed-knit groups, resurfacing under new names and updated ransomware variants. Additionally, the operators will have to find a new way to ‘wash’ the cryptocurrency they earn from ransoms. Intel 471 has observed that BitMix, a popular cryptocurrency mixing service used by Avaddon, DarkSide and REvil has allegedly ceased operations. Several apparent customers of the service reported they were unable to access BitMix in the last week.”

SentinelOne is a Leader in the 2021 Gartner Magic Quadrant for Endpoint Protection Platforms. Here’s Why.

tldr: SentinelOne Positioned as a Magic Quadrant Leader and the Highest Scored Vendor Across All Three Gartner Critical Capabilities Use Cases

Before sharing my thoughts on what this Magic Quadrant and Critical Capabilities report means for SentinelOne and cybersecurity defenders, I want to thank our thousands of customers who’ve placed their trust in us as their cybersecurity partner. Our customers are our guiding “why.” We believe our Magic Quadrant position is about our customers – and for them – and proves what many know or discover when they select SentinelOne: 1) SentinelOne’s technology excels in delivering real-time protection and visibility; 2) SentinelOne’s team puts customers first and delivers.

I believe this year’s Gartner Magic Quadrant is a formal acknowledgment by the most trusted third party in cybersecurity that SentinelOne’s strategy, execution, and market impact are undeniable. We are selected by organizations who value the power of autonomous EPP, EDR, and XDR that not only prevents, but also remediates in real-time. While others sell human-powered products, SentinelOne pioneered an AI-powered automated approach that scales humans.

A Magic Quadrant Leader, Highest Scores in the Gartner Critical Capabilities Report, and Highly Reviewed in Gartner Peer Insights

Gartner published three materials in the Endpoint Protection Platforms market which can guide enterprises in their cybersecurity decision process:

  1. Gartner Magic Quadrant: “a graphical competitive positioning of vendors in markets where growth is high and provider differentiation is distinct” (Gartner). SentinelOne was named a Leader in the 2021 Gartner Magic Quadrant for EPP. We were recognized for our ability to execute and completeness of vision.

    Gartner, Magic Quadrant for Endpoint Protection Platforms, Paul Webber, Peter Firstbrook, Rob Smith, Mark Harris Prateek Bhajanka, 5 May 2021.
    Gartner, Magic Quadrant for Endpoint Protection Platforms, Paul Webber, Peter Firstbrook, Rob Smith, Mark Harris Prateek Bhajanka, 5 May 2021.
  2. Gartner Critical Capabilities: “As an essential companion to the Gartner Magic Quadrant, this methodology provides deeper insight into providers’ product and service offerings by extending the Magic Quadrant analysis” (Gartner). SentinelOne earned the highest score for all Use Cases within the 2021 Gartner Critical Capabilities for EPP report.

    Gartner, Critical Capabilities for Endpoint Protection Platforms, Mark Harris, Peter Firstbrook, Rob Smith, Paul Webber Prateek Bhajanka, 6 May 2021.
  3. Gartner Peer Insights: Direct and verified opinions from security leaders and practitioners just like you. According to Gartner, “Gartner Peer Insights is a free peer review and ratings platform designed for enterprise software and services decision makers. All reviews go through a strict validation and moderation process in an effort to ensure they are authentic.”
    To me, Peer Insights isn’t about what analysts think; it’s about what practitioners experience and share in a verified and anonymous space. In the past year, SentinelOne received hundreds of reviews with a score of 4.9 out of 5.0 for both EPP and EDR*.

The Sum of the Parts: Your Own Interpretation

Taking these data points together, I believe CISOs and IT leaders can make the very best product decisions for their organizations. For example, let’s say a CISO is concerned with selecting a solution that’s easy to use for their team: turning to Critical Capabilities, reading relevant peer reviews, and consulting the latest Magic Quadrant Report, are each important inputs to forming a point of view and making the right decision. There’s no “one size fits all” metric for success with a cybersecurity solution; but using these three sources in conjunction with one another, decision makers can make relevant decisions about which vendors to deploy.

Being recognized across each of these Gartner reports is an exciting accomplishment for SentinelOne. In my opinion, receiving the highest score for each use case – in the same year – is indicative of the customer traction and product-market fit we’re seeing in the market. We made a flexible solution highly relevant to solving diverse customer problems.

Download the 2021 Magic Quadrant for Endpoint Protection Platforms
Recognizing the success of thousands of enterprises who chose our autonomous platform for cloud, IoT, and endpoint protection.

A Leader

SentinelOne is extremely proud to be recognized as a Magic Quadrant Leader, something that I believe most vendors never achieve. I believe this achievement corresponds to SentinelOne’s new logo adoption and existing SentinelOne customer satisfaction market realities: we’re global, we’re in hypergrowth, and we’re purpose-built for the threat landscape of the future.

Technology for Tomorrow: Cybersecurity’s Platform for the Future

Pioneering behavioral AI with the industry’s leading converged EPP and EDR solution, SentinelOne’s innovation set the stage for the evolution that’s taken place between two historically separate offerings: protection and visibility. Our technology is purpose built for the XDR era.

In my opinion, we are the only vendor in the Magic Quadrant report that delivers machine speed prevention, detection, response, and remediation on-device, powered by AI. Our platform delivers these capabilities in a unified fashion, autonomously, without connectivity reliance or human intervention.

Our approach was validated in the latest MITRE Engenuity ATT&CK evaluations: while other vendors require software that sends data to the cloud for analysis – some even maintain hundreds of people that investigate alerts, make decisions, and ultimately take action on behalf of customers. In contrast, SentinelOne is a technology-first AI approach that scales the human – to make decisions and take action in real time – akin to the innovation we see in the robotic process automation market.

The MITRE Engenuity ATT&CK evaluations show SentinelOne was the only vendor with 100% visibility, zero missed detections and no configuration changes. Watch the on-demand webinar for a deep dive into SentinelOne’s results.

I believe this year’s Magic Quadrant and accompanying Critical Capabilities report highlight SentinelOne as a leading “go to” platform for protection, visibility, and innovation. I invite you to take a demo or start a free trial to see the difference for yourself. It’s time for real time. It’s time for technology that solves your cybersecurity problems and saves you and your staff time. It’s time for SentinelOne.

Thanks for reading! Let’s continue the discussion. Please feel free to comment or book a meeting with our team today.

Webinar: A Leader is Born
Join us for a webinar discussing SentinelOne’s Magic Quadrant placement in the Leader Quadrant.

Disclaimer
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.


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