Company and partners will see expanded market opportunities for the MDR solution
Cybersecurity vendor FireEye is evolving products in its Mandiant Solutions unit, including making its Mandiant Managed Defense service available for third-party products, a move that will help the company meet growing demand for its managed defense and response (MDR) technology and expand its addressable market.
The Lowdown: CEO Kevin Mandia announced the moves this week while discussing the Milipitas, California-based company’s latest quarterly numbers, which included a record $230 million in revenue, a year-over-year jump of 6%.
The Details: FireEye bought Mandiant six years ago for about $1 billion in a move that added greater threat intelligence capabilities to the company’s solution portfolio. In April, FireEye announced the Mandiant Solutions unit that includes such offerings as Mandiant Consulting, Mandiant Managed Defense, FireEye Intelligence, FireEye Expertise On Demand, and Verodin Security Validation.
During a conference call about the second-quarter earnings, Mandia unveiled plans for some of the products:
>Mandiant Managed Defense: Along with expanding its market, enabling the service to run on third-party endpoint technology will enable FireEye to forge new partnerships and alliances. Mandiant officials had planned to make the shift before being bought by FireEye, but once the deal closed, it was decided it would stay tied to FireEye products for five years, according to the CEO.
>Mandiant Advantage: The company is combining its Mandiant Intelligence and Mandiant Validation to create Mandiant Advantage, which will comprise both threat intelligence and security validation. Doing so will enable customers to leverage the intelligence from FireEye to defend against cyberattacks and improve their protections based on the results of the attacks.
>Mandiant Consulting: FireEye will continue to invest in the consulting services business by adding new services due to its continued growth (more than 20% in the quarter), its contribution to the company’s margins, and the opportunities services bring to established long-lasting services with customers.
The Impact: Threat intelligence is a key factor in a cybersecurity world that’s increasingly active and complex. FireEye is creating an environment that highlights and expands its intelligence capabilities. Channel partners will also have expanded opportunities to get FireEye’s technologies into clients’ hands.
Background: The Mandiant deal, which came a year after FireEye went public, has been a key to the company’s more recent transition from a hardware vendor to a Software-as-a-Service (SaaS) provider, a move that has come with its share of challenges. There were reports late last year that FireEye was looking for a buyer and other rumors earlier this year that Cisco was interested, but so far FireEye remains an independent company. In April the company cut about 6% of its workforce as part of a larger restructuring plan.
The Buzz: “You’re not going to own every damn account on endpoint — period,” Mandia said. “And the demand for our expertise in a second set of eyes to look at every single alert is something almost everybody I talked to wants, and they’re not going to throw out their endpoint for our endpoint just to get that, so it just makes sense for us to go in and say, ‘What do you got and can we support it?’ … We’re just sitting there on the frontline seeing what gets evaded, how it gets evaded, and we need to apply that knowledge to more than just our technology. It’s more valuable for us to do that. … The bottom line is, we use different technology to get the damn job done and we’ve got to elongate that.”