… come through the channel.
Sales to ISPs and telcos are managed directly by Vade Secure. We currently have about 500 partners worldwide, mainly concentrated in Europe and Asia. As I mentioned above, a big focus in 2018 is signing on new partners in North America. Our average partner margin ranges from 20-30 percent, depending on the level of certification.
CP: Who are your main competitors, and what makes your offering better?
AG: Our main competitors are Proofpoint, Mimecast and Barracuda. What sets Vade Secure apart is our native Microsoft API-based integration with Office 365. This allows us to scan internal emails in order to detect and block insider attacks, whereas cloud email security gateway products can only scan incoming/outgoing messages because they sit in line in the SMTP (simple mail transfer protocol) mail flow. Another benefit of being natively inside Office 365 is that there’s no external quarantine or user training required. We simply leverage existing Outlook folders for classification of spam and low-priority emails, while ensuring malicious threats never reach users in the first place.
Another important differentiator of Vade Secure is our advanced, yet user-friendly spear phishing (or business email compromise) detection. We’re able to detect BEC techniques like alias spoofing and use of cousin domains, and put a customizable banner in the email alerting the user of a suspected spoofing attempt. Lastly, for our partners, we offer a provisioning API that enables fully automated provisioning and billing of clients. This means Vade Secure clients can be activated and managed through the central system where you manage all of your products and services.
CP: How do you think your technology portfolio will change in the next three years?
AG: While many security vendors are in the early stages of experimenting with artificial intelligence, Vade Secure has a proven track record of leveraging machine learning predictive models as a key component of our layered approach to email security. We will continue to make investments in AI to improve the efficacy of these models, and ensure they adapt along with the rapidly evolving threat landscape.
Another big road-map theme for us will be exposing components of our technology as APIs so they can be easily and seamlessly integrated with other products and services. These APIs are key to ensuring we fit seamlessly in the landscapes of both our MSP partners, and ISP and enterprise customers.
CP: How do you expect your channel strategy to evolve over that time frame?
AG: We expect the mix of our partner community to shift from resellers to MSPs. It’s clear that companies, particularly in the SMB and midmarket, are turning to MSPs to manage their Office 365 environments. These MSPs will increasingly add third-party security tools to augment native Office 365 security, and help grow their businesses.
CP: What didn’t we ask that partners should know?
AG: Vade Secure’s customer renewal rate is north of 95 percent. This isn’t just great for us; it means that partners can focus on winning new business, versus retaining existing customers. In addition, we heard from many partners at Microsoft Inspire … that insider attacks are a clear and present danger for their clients. We recently published data that reflects this trend. The number of new phishing URLs spoofing Microsoft — and in particular, Office 365 increased 57 percent in [the second quarter]. The goal of these attacks is to harvest Office 365 credentials and launch insider attacks aimed at reaping financial rewards as well as gaining access to valuable data, files, and contacts.