### Cybersecurity Platformization: Trends and Market Insights

Cybersecurity companies must innovate and integrate to meet evolving threats and investor expectations.

### Embracing Platformization in Cybersecurity: A Shift Towards Integration
* 🔍 The cybersecurity industry is experiencing a significant transformation as companies move away from purchasing **isolated point products** to seeking **integrated platform solutions**.
* 💻 "Platformization" is a key concept being communicated to investors, emphasizing the **necessity for products to work cohesively** to address **current security challenges effectively**.
* ⚡ With the increasing speed of cyberattacks, there is a growing demand for a **unified approach that leverages common data and language** to enhance security measures.
* 📈 The company boasts **1,100 platform stations**, indicating a robust strategy that aims to **maintain customer loyalty** and **consistent innovation in security solutions**.
* 🔄 Unlike previous cycles of vendor replacements, the focus is on **embedding the platform into customers' security frameworks** to ensure **ongoing relevance and innovation**.
* 🏛 The changing political landscape may lead to **increased technology investments and consolidation** within the industry, potentially benefiting security providers as federal agencies **adopt new technologies**.
* 🔧 Addressing vulnerabilities is crucial, and the shift from **hardware to software solutions** is expected to **streamline the process of patching and enhancing security**.
* 📊 The recent two-for-one stock split reflects a commitment to **making the company's stock more accessible to retail investors**, further integrating them into the **growth narrative of the cybersecurity sector**.

But that's a volatile trading for the
market now pushing you higher. And I'm just interested in the new ones.
You are trying to tell a different story to investors.
You're talking about platformization, you're talking about bundling, but still
they want to turn to your billings

number.
How would you manage to get that across to them that stop looking at it because
there was a little bit of worry about billings.
Well, first of all, thank you for having me, Carol.
And I appreciate you saying the word

platformization, because this is
something we've been trying to tell the market.
I think we are seeing a sea shift in the cybersecurity industry where people are
tired of buying point products which are not solving the problems today.
You have to make these products work

together.
And I was listening to conversations before this.
Everybody's talking about AI, AI, and our business means things are going to
happen faster, attacks are going to happen faster, are going to have to
result in faster, which means you need a

common language. You need common data
which actually points towards integration and stuff that works
together or points towards platformization, a cloud platform strategy that
seems to be earning you plenty of companies.
What is it? Cumulative?
You got 1100 platform stations.

Ultimately, is that more valuable?
Is that more revenue generating? Because people are worried that maybe
within this bundling there is some discounting going on.
Well, I think it's important to understand once you deploy a platform
and it works well for you, you're not

going to replace it.
So we've come from an industry where you look, we've had companies that have
worked well for eight or ten years, but they've been through a cycle and then
you have to replace them and replace them.
And that new set of vendors, because the

last ones didn't stay innovative enough.
What we're trying to do is we're trying to stay.
Evergreen was trying to be innovative and trying to make sure we embed the
platform as part of your security solution that you logically come to us
for the next piece of innovation.

And you don't have to go through a huge
process of constantly transforming your security and state estate.
Today, more customers have security transformation projects on tap than any
other technology transformation because the security landscape is constantly
changing. Let's talk about the cyber landscape and
whether it changes with a new

administration.
Is there going to be more consolidation and is there going to be more deal
making from you? Look, I.
You get past that in different ways. Know I'm watching it like everybody else
and saying it sounds like we're going to

see the new DOJ's go out and do a lot of
cost cutting and deploying a lot of technology now.
Traditionally, the federal government, the United States has been slow to adopt
new technology. Rightfully so, perhaps because they want
to sense their way through it.

But as you see efficiency, as you see
technology investment happening, it has to be secure.
So I think security gets a knock-on benefit if we actually see a technology
wave coming from an administrative perspective.
Do I expect regulations to get easier,

possibly from an M&A perspective?
Do I expect that things will move faster?
Hopefully. So I think generally it should sort of
bode well for all of us in technology. But you know what?
We'll all find out. We'll wait and watch.
Look, as you innovate, as particularly

within the world of generative AI, we
managed to get more sophisticated cyber protection.
You're also getting more sophisticated hackers.
The US government has just flagged some flaws with Palo Alto, so products that
might have been exploited by hackers.

Can you just tell us a little bit about
whether that was a realistic one for you?
What patches have been made? Well, look, what happens is because we
are coming from a hardware industry where we sell products, customers deploy
them.

There's a long product cycle, and you've
seen this across the industry at any point in time.
You know, there's always some bug that is out there that needs to be patched
and fixed. So we're very good about making sure we
work with our customers.

We have full visibility into who has
what product we're able to work with them to pass those things.
I think as we move from a hardware based solution business to a software business
which the world is moving to, that becomes a lot easier to fix.
I think software beats hardware.

From a security recency perspective all
the time. So as the world transforms there, we'll
see less and less of that in the future. As the world transforms, everyone
becomes an investor in the retail community as well.
Talk to us about your two for one stock

split.
You're already up, what, 30% on the year?
Is that why you spread it out? Is it about giving more access?
Well, we want to make sure that there is ample access to our stock for retail
investors.

You know, five years ago when I started,
we were a sort of a niche name in the cybersecurity industry.
We're delighted that we are now part of the general conversation and want to
make sure everybody has access to our stock.

Palo Alto CEO Says Regulations May Get Easier Under Trump

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Investor Concerns Regarding Billings and Platformization

Investors focus on billing numbers, despite company efforts to highlight platformization and bundling strategies.

The company aims to shift investor focus from short-term billing concerns to the long-term value of platformization.

The cybersecurity industry is moving towards platform solutions due to the limitations of individual point products.

The need for integration and a common language in cybersecurity points towards platformization and cloud platform strategies.

The company has 1100 platform installations, and the question of its long-term value and revenue generation is raised, addressing concerns about potential discounting within bundling.

Once a platform is deployed and functioning well, it is unlikely to be replaced, unlike previous point products that required frequent replacement.

The company aims to remain innovative and integrate its platform as a core part of clients' security solutions.

This strategy aims to reduce the need for constant security transformation projects, which are more prevalent than other technology transformations due to the ever-changing security landscape.

Impact of the New Administration on Cybersecurity and M&A

Discussion on potential consolidation and deal-making in the cybersecurity industry under the new administration.

Expectation of increased cost-cutting and technology deployment by the government, potentially benefiting the security sector.

Historically slow government technology adoption might accelerate, leading to increased security investments.

Speculation on potential easing of regulations and faster M&A activity.

Innovation, Sophisticated Cyber Threats, and Product Flaws

Discussion on the increasing sophistication of both cyber protection and hackers in the context of generative AI.

The US government identified flaws in Palo Alto products that could be exploited by hackers.

Explanation of the product cycle, including bug patching and collaboration with customers to address vulnerabilities.

The company's approach to addressing bugs and vulnerabilities, highlighting the transition from a hardware to a software-based business model.

Stock Split and Increased Retail Investor Access

Discussion of the company's two-for-one stock split and its 30% year-to-date increase.

The goal of the stock split is to increase access for retail investors.

The company's growth from a niche player to a prominent name in cybersecurity motivates the increased accessibility of its stock.