16th Oct 2018 11:41
LONDON (Alliance News) - Falanx Group Ltd said Tuesday its partnership with American software company SolarWinds Inc could be "transformational" for the company and could "dramatically change" its financial position.
Falanx was selected by SolarWinds to be its Threat Monitoring service provider in the UK and South Africa, giving Falanx "first-mover" advantage to SolarWinds 2,000 managed service providers in the UK.
The UK cyber defence company will deliver and support the service, which is designed to help enable proactive security monitoring, in conjunction with its cybersecurity services to managed service providers.
"As we work ever closer with SolarWinds our partnership is developing into a fantastic opportunity for Falanx. Combining the marketing and sales power of a USD1 billion software company with our security operations centre services and expertise is transformational," said Mike Read, chairman and chief executive officer.
Falanxe believes GBP200 per month, per end customer for the security operations centre service is "likely" to support mass adoption.
Pricing per customer will be determined by the size of their IT estate and incremental services will be charged separately.
Read added: "As the only Security Operations Centre service provider supporting the SolarWinds Threat Monitoring market in the UK and South Africa, just a modest uptake of services is required to dramatically change Falanx's financial performance. We are now very well placed to scale Falanx into a significant leader of Cyber Security services in the UK in the short to medium term."
Falanx has an addressable market of over 2,000 managed service providers but some are "sophisticated enough" to support and provision Threat Monitoring, whilst others, according to Falanx, "lack the required cyber security basics to consume Threat Monitoring".
The company will focus on the companies who have an "appetite to strengthen their current security posture".
Falanx's estimates suggests this will be about 20% of the addressable market, or about 20,000 target end customers. If only 2,000 end user customers take up the service at entry level pricing, this would generate GBP400,000 revenue per months for the Threat Monitoring security operations centre services alone.
It is estimated the delivery of the support services will begin in the first quarter of 2019, meaning current sales will have a "limited" impact on the current year's revenue, ending March 2019, but could "dramatically" benefit future periods.
Falanx has also agreed with SolarWinds to offer the company's Cyber Security professional services to managed service providers, for onward resale to customers in the UK and South Africa.
The company believes the service will be "attractive to a significant" portion of the security operations centre services user base, and could generate a further GBP200,000 per month.
Shares in Falanx were down 1.7% Tuesday at 2.90 pence each.
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