- Massachusetts-headquartered cybersecurity services and technology provider SideChannel Inc. is building its operational model on contracting out its employees’ expertise as “virtual” chief information security officers (vCISOs) to companies that can’t afford to staff their own CISOs
- SideChannel’s CEO and CFO recently addressed the company’s history, expertise and strategies for the future in an Investor Day webcast that is now being rebroadcast on the company’s YouTube channel
- The webcast noted that SideChannel is tapping into an underserved market of mid-market clients whose needs for cybersecurity mirror those of larger-budget companies who can afford to employ their own CISOs
- During 2022, about 200,000 cyber attacks were reported at an average cost of $4.5 million per company to recover when a breach occurred, according to the webcast
An Investor Day webcast event hosted by cybersecurity services and technology provider SideChannel (OTCQB: SDCH) provided insights on the company in a virtual meeting place that addressed the company’s history, its products, its financial position, its strategies for the future and introduced some of officers and board members for those investigating SideChannel’s potential.
The live webcast took place last month but video of the event now is available on the company’s YouTube channel, showcasing CEO Brian Haugli’s efforts to engage the investing community in an open and cost-effective manner while addressing the importance of safeguarding SMB business computer network operations.
“We see Fortune 500s having easy access to large (cybersecurity) providers but, really, the middle market is over a million companies, and who’s working with them?” Haugli said in introducing the forum (https://ibn.fm/0UVzj). “That’s what we set out to do with SideChannel. … I joke about this — there’s only 2,000 companies in the Fortune 2000. Who’s working with everyone else? It’s an untapped market.”
SideChannel’s key service is providing companies who don’t have their own chief information security officers (“CISOs”) to lead their cybersecurity strategy with SideChannel’s outsourced expertise in the form of contract “virtual” chief information security officers (vCISOs) for hire. The company also launched a microsegmentation security product last September that it brands Enclave that it considers competitive because of its lower price point and ease of use, as well as a managed service option not offered by other companies.
“Our revenue is really built on relationships,” CFO Ryan Polk added during his portion of the webcast. “The vast majority of the work that we do for our clients has an ongoing nature to it. … We are retaining about 73 percent on a trailing 12-month basis of the revenue that we generated one year ago. … Revenue retention of 70-plus percent, we think, is a clear indication that our customers like what we have done for them in the past and would like for us to continue doing that for them in the future.”
Haugli noted the importance he places on responding to the needs of an underserved market and the benefits that may result for his company, commenting that the “mid-market” companies whose financial budgets may not be large enough to allow them to efficiently maintain full-time chief information security officers still collectively account for $8 trillion in revenues.
“The same risks exist at enterprises that exist at mid-market and vice versa,” Haugli said. “We’re seeing attacks increase. We’re seeing the costs of these attacks increase over time. And we’re seeing them change.”
Security Magazine recently noted a report by Check Point Research stating cyber attacks increased 38 percent globally during 2022, with North America and Latin America at the leading edge of geo-political regions experiencing the attacks — 52 percent and 29 percent, respectively (https://ibn.fm/NF0XI).
SideChannel’s webcast stated some 200,000 cyber attacks occurred in 2022 and that the average cost of recovering from a breach was $4.5 million per company.
“Where we step in is, obviously, identifying and knowing what can slow (the attackers) down, what can stop them, (and) what can be built at an organization that allows you to feel much better about your cybersecurity posture in addressing those risks and addressing regulatory concerns, and addressing the questions from your board or your C-suite — being able to put your customers’ concerns at ease,” Haugli said.
The company’s most recent financial statement shows the company brought in $5.3 million total revenue during the previous 12 months, with 26 percent sequential quarterly growth and 48 percent YOY quarterly growth, underlining Polk’s assertion that the company has tapped into a new market.
In a video that contained testimonials by SideChannel’s employees, vCISO Stephen Dye talked about his experience working with a federal contractor in Virginia and the value he finds now working with SideChannel’s clients.
“Customers that I work with are ones that really do need a security program and they’ve recognized that they need it and (that) their budgets don’t allow for that full-time CISO, which of course is our business model,” Dye said. “There’s high expectations on their behalf and of course we’re of that caliber where we can deliver to those expectations, so it is a pleasure to work with these people. … They appreciate the advice and input that we give regarding choice of tools and other third-party services to actually make the security program work.”
For more information, visit the company’s website at www.SideChannel.com.
NOTE TO INVESTORS: The latest news and updates relating to SDCH are available in the company’s newsroom at https://ibn.fm/SDCH