international enlightenment brought by mq

Posted by millikan at 2020-03-14


The first part tries to introduce the panorama of Gartner MQ. According to the feedback of friends in recent days, the amount of information is too large, and the scholarly taste comes from it. It seems that it's still hard to write. Therefore, this article focuses on the international enlightenment brought by MQ.

It is not difficult to find out from the analysis of MQ reports that if the manufacturers are limited to the domestic market, they are more likely to fall into the nice players quadrant, because international manufacturers usually have two advantages:

Choosing a global market often means more market gains are possible.

Global vision creates products with global competitiveness.

market potential

Choosing a global market often means that more market gains are possible.

The first question that product managers usually ask when choosing a target market is the potential of the market, that is, "is there any potential profit"? Here you will focus on market size and market growth rate. In terms of information security market, the scale comparison between global market and domestic market is at least 10:1. Gartner estimates that in 2017, the global information security market is 85.3 billion US dollars, while the domestic market is 3.8 billion US dollars. The specific product / service scale you may be concerned about is as follows:

Next, let's look at three global companies. The first two are always based on the global market, and the third is to achieve sustained growth through internationalization after the success of the local market. The first is Imperva company founded by Israel, which focuses on application and data security. The most well-known products in the industry are its WAF and database security products. In recent years, it has also vigorously developed its cloud business (invested and acquired incapsula, a CDN security company). Imperva's product field is smaller than firewall / IPS market, and its product line is far less than that of domestic large-scale security enterprises. In terms of revenue, Imperva is close to the scale of domestic large-scale security enterprises. Take a look at a group of information disclosed on Imperva's official website. 2 in 2016, its revenue was 264 million US dollars, equivalent to about 1.7-1.8 billion yuan, 900 + employees and 500 + partners, serving 5200 + customers in 100 + countries around the world. Palo Alto networks, another Silicon Valley company, is the next generation security innovator. It "defines" the NGFW market. In fiscal 2016, its revenue reached 1.4 billion US dollars, nearly 10 billion RMB, with a year-on-year growth of 49% 3. In addition to the traditional European and American markets, it is also making more investment in the Asia Pacific market, such as the New Asia Pacific headquarters in Singapore. It is said that it now has more employees in China than McAfee, another giant. It's also interesting to see the 2016 revenue of us CDN giant Akamai. Us revenue was $1.62 billion, up 1% year-on-year; global revenue was $720 million, up 21% year-on-year. In recent years, based on its own advantages of CDN business and customer resources, it is also vigorously developing security business, providing cloud cleaning, cloud WAF, BOT mitigation, etc. Its cloud security solutions generated $365 million in revenue in 2016, up 43% year-on-year.


Global vision creates products with global competitiveness.

The market potential problem is introduced earlier. The second problem of the target market is usually the problem of competitiveness. I want to mention Fortinet, a security company. It's called feita in China. According to colleagues who have used the tower products in the early stage, its firewall products 10 years ago are not much different from those of domestic manufacturers. This year, for the first time in the latest enterprise firewall MQ report, it entered the leaders quadrant, directly following Palo Alto and Check Point. This shows that in the global market, the initial level of products is not a necessary starting condition. On the contrary, the global vision and competition pattern will help to improve product quality and delivery capacity.

Take Imperva as an example. It faces the competition environment: data center market and F5 competition. Cloud business faces the competition of CDN giant Akamai and start-up cloudflare, and NGFW / IPS competition in previous years. Looking back on its development, we can understand how it has been improving its competitiveness in the global market, including the following two aspects:

Keep pace with the times and innovation in the field of attack and defense

Dynamic modeling (self-learning white list), association analysis

Exploration and practice of Threat Intelligence Based on IP reputation

Layout of cloud delivery

Invest in incapsula and complete acquisition in 2014 to expand CDN security market

Virtualization form delivery, VMware version, and AWS / azure version

Another thing impressed Imperva. At the RSA conference in 2008, when my leader went to Imperva booth to exchange business cards and collect product information, he was a foreigner. He smiled and said, "I know your company, we are competitors.". At that time, the domestic WAF market was still in its infancy, and its global market share for Imperva was very small.

Competitiveness is actually the embodiment of the company's comprehensive strength, including a company's activities and capabilities for customer delivery from product planning, research and development, testing, production, marketing and promotion, sales, customer service, business, finance and legal affairs. For example, in addition to the traditional sales channels, the channels for obtaining products and services also need to consider the availability of information. It has become a history that wine is not afraid of alleys. Once the company invited Lawrence, an analyst, to visit. When meeting and communicating with each other, when talking about a product, he was very pertinent to give a suggestion. He could not see any information about the product on the company's international official website, so that analysts or international customers would have less channel to know the product most directly.

In recent years, the development of foreign market in the field of information security tends to go faster than that in China. Meeting the needs of customers in foreign market may bring the first mover advantage of products in the domestic market. For example, participating in the tests of foreign authoritative evaluation institutions, on the one hand, as a stepping stone to enter the international market, improving brand awareness, on the other hand, improving the quality of products in the evaluation preparation. In the POC test project of international customers, the first-hand intelligence of benchmarking manufacturers can be collected to help identify the gap between products as the demand input for product improvement. There are also some basic work at the level of productization and product delivery, which may be filled by means of sales relations or services in China. However, in the case of strong competition in the international market, such short boards must be filled.

Looking at the problems from the existing internationalization experience

In recent years, domestic security enterprises have started internationalization. Green alliance has established wholly-owned subsidiaries in Hong Kong, the United States, Japan, Singapore, Germany and the United Kingdom. Qiming sells UTM products through OEM in Japan. We are convinced to expand our business in Southeast Asia and set up its EMEA headquarters in Dubai. At present, the overseas income of several companies is far lower than the domestic income.

Writing here is actually the most difficult part. The author once had the honor to work in one of the companies that adhere to internationalization, witnessing this hard and still adhere to the process. There is a question that has been lingering in my mind. What is the reason why the internationalization of domestic security enterprises is not successful? I have some immature opinions. I would like to share them with you and welcome you to discuss them together.

Resource input and allocation

Silicon Valley in the United States has a very mature venture capital and entrepreneurial culture system. Many security companies' entrepreneurial teams come from successful international companies in the industry, with rich experience and global vision. Globalization is a more natural product strategy choice. Israel, known as the country of entrepreneurship, has a global vision because of its narrow domestic market. In contrast, domestic security companies have grown up together with the domestic security market. The product definition was initially to meet the needs of customers in the domestic market. Therefore, the choice of internationalization is facing a brand-new market which is quite different from the domestic market. In practice, it will face many practical challenges, such as laws and regulations, cultural differences, language, brand awareness, product quality, product delivery and so on. For the enterprise, it means the imperative change and the real significance of resource investment.

Let's start with an example. I worked briefly in Huawei in 2006, which coincided with the period when the company vigorously expanded its overseas market. The most intuitive feeling at that time: all kinds of mobilization orders and calls of the company, from top to bottom, all levels of cadres and technical backbones have been sent to all regional departments around the world. In terms of performance, personal career development in the company is directly related to overseas work experience. Many of the second or third level department heads with very small work numbers have accumulated a good accumulation in China. After the war in various regions of China, they came to Beijing to make a good plan for stability, and the company rushed overseas at the same time. Specific to the daily work requirements of all staff, all notices for global business must be bilingual, and emails involving overseas employees must be in English at least. In addition, the preparation of product English materials is solely in the charge of an English writing team, whose work is not just Chinese to English translation. At that time, I was too young to understand the meaning of being in it. Now in retrospect, the real investment here refers to whether or not to put the best resources into it.

For domestic manufacturers, the domestic market is the current golden cow, while the overseas market means the possibility of development, but to some extent, it is a sub optimal choice, and the investment made is largely a selective investment. The most direct investment will be at the sales and marketing level, but the product investment is far from enough. As described in the innovator's dilemma, we will try our best to listen to the voice of customers in our current vision and think more about the continuous innovation of existing products. Unfortunately, what drives product development and resource investment here is the domestic market.

Project or product

The second question I want to discuss next is about the choice of project or product. I remember that when I participated in the external training, I asked a very experienced teacher about this problem. Customization is not unacceptable for products. The company wants to make profits, and the company's resources are always limited. The key lies in figuring out an account, whether the customized return is good enough, worth (meaning of other non-financial return level), and whether the cost paid is acceptable.

In the exploration process of this new field of overseas market, many project tentacles (POC of direct PK with friends, bidding documents, or requirements directly put forward by customers) will bring back the demand and noise of several products, and the project has time requirements. As a latecomer in the mature market, they will face such a dilemma. What they PK with those international manufacturers is the comprehensive strength, the core function of the product, and several problems of productization and product delivery. At this time, the sales team and the product team need to work together. The sales team needs to make a more comprehensive judgment on the project (under the performance appraisal, every possible opportunity in the new market will strive for, so the project itself will not be discussed here), the core needs of customers, project budget, decision chain and competition. The first thing the product team should do is to analyze the competition. It should be symmetrical with the sales team to know the advantages and disadvantages, especially the competitive advantages. Although the domestic products may have various short boards in the overseas market, they also have their own characteristics. Then we can judge the current degree of satisfaction based on the core needs of customers. When it comes to customization, we should first make a judgment on the value of demand, such as the scale of the project, the typicality of customers, the possibility of turning into general demand, and the help to enhance the competitiveness of products. Then the technical feasibility, risk, workload evaluation and version upgrade maintenance strategy of requirement realization are considered, especially the later version maintenance strategy. In fact, this is also one of customization costs, which may not be paid enough attention. Sometimes, the requirements may be general requirements, which also help to enhance the competitiveness of products. However, under the pressure of delivery, the quality of products may be sacrificed, hidden dangers of product stability may be buried, or technical considerations in design are not comprehensive enough, and application scenarios are limited. After customization, there are customization version management issues to consider. Even if the project is won, the customer is not willing to be a mouse himself, and will definitely put forward the requirements of customizing the main line of merger.

On the other hand, the domestic practice of international manufacturers. I have some friends working in foreign companies, whose products are usually less likely to be customized in the domestic market. There are two reasons for this, the importance of the domestic market and the project. In addition, the product management is careful enough to customize. Another example is that in the project of a large Internet company, friends show more investment in PK and POC testing with foreign friends. In order to meet the specific needs of customers' business flow, they also provide multiple upgrade packages to solve the problems in the testing. This kind of emphasis also makes customers feel clearly.

I'm trying to describe so much of the above, mainly to show that it's a very complex process to explore a new market model away from the local market. Every decision needs comprehensive consideration and careful consideration. This is not a requirement on the team or individual level, but on the comprehensive strength of the company. Therefore, the importance of whether to invest the optimal resources mentioned above will not be repeated.


MQ has built a multi-dimensional evaluation framework for the market success of products. The inspiration is that everyone has a hamlet in mind. This article mainly discusses the benefits of internationalization and the challenges faced by domestic enterprises in the process of internationalization. The final personal enlightenment is as follows:

Internationalization is an inevitable choice for domestic security enterprises with high aspirations.

Considering the real resources to be invested in internationalization, especially the best talents, we need to carefully choose the timing of internationalization, not necessarily the sooner the better.

At the same time, when investing, we need to consider sales, market and R & D as a whole, rather than simply regard it as the development of sales market.

Internationalization itself is a topic worthy of too much consideration and discussion, and it is not worth mentioning. I think of my former colleagues who have struggled in the international front line. With their faith, enthusiasm and courage, I would like to pay tribute to them.

PS, the clerical errors in the previous article are corrected as follows: teros should have been acquired by Citrix in 2005.

Forecast: Information Security, Worldwide, 2014-2020, 4Q17 Update, by Ruggero Contu, Christian Canales, Sid Deshpande and Lawrence Pingree, Gartner, 25 January 2017  A kind of A kind of A kind of