Claroty records huge growth for the first half of 2020
Claroty has recorded significant revenue growth in the Asia Pacific region including Japan (APJ) in the first half of 2020, due to increasing demand for critical infrastructure security in the region.
The operational technology (OT) security company has stated the company experienced octuple annual recurring revenue (ARR) growth year-over-year.
Claroty's business grew in almost all markets across APJ, including Australia, Korea, Taiwan, and the ASEAN region, where spending on cyber security is exponentially rising and is expected to triple over the next five years to some $5 billion by 2025.
The Claroty Research Team's Biannual ICS Risk - Vulnerability Report (1H 2020) revealed that more than 70% of industrial control system (ICS) vulnerabilities disclosed in 1H 2020 can be exploited remotely, noting that energy, critical manufacturing, and water and wastewater infrastructure were the most impacted sectors.
Claroty researchers also recently disclosed vulnerabilities in VPN products commonly used in field-based industries, such as oil and gas, and utilities, which could lead to a complete security breach of industrial control networks.
These discoveries underscore the importance of protecting internet-facing ICS devices and remote access connections.
The company gained exceptional momentum in the ANZ region specifically, with ARR growing tenfold from 1H 2019 to 1H 2020, the company states. The majority of this growth occurred in the key industries of water and waste management, mining, and electrical distribution.
Contributing to Claroty's growth is the Australian government's increased investments in cybersecurity for critical infrastructure, as well as surging demand for secure remote access solutions during the COVID-19 pandemic.
Another growth driver is the company's partnership with Deloitte, which combines Claroty's software with Deloitte's expertise to boost cybersecurity in industrial technology systems across Australia, China, Hong Kong SAR, and Singapore.
According to the company, Claroty's growth aligns with the Australian's 2020 Cybersecurity Strategy, which prioritises the protection of the country's essential services and sets out a new security framework with obligations for critical infrastructure providers.
According to the Australian Cyber Security Centre, in the year preceding 30 June 2020, more than a third (35%) of all reported cyber incidents impacted critical infrastructure providers, which are responsible for delivering essential services including healthcare, education, water, communications, transport, and energy.
As a result, $66.5 million of the Australian government's $1.67 billion investment in cybersecurity will go directly to assisting Australia's major critical infrastructure providers to assess vulnerabilities to enhance their cybersecurity posture.
Remote access will also remain a priority for the rest of 2020 in Australia, with the recent highly-publicised cyber-attacks on Australia's hospital system and logistics giant TOLL Group still front in mind.
Consequently, despite overall budget cuts this year, organisations are still spending on critical infrastructure to secure their most critical assets, whereas spending on fleet deals that cover the entire enterprise has been somewhat curtailed.
Furthermore, with mandatory lockdowns in place across most of Australia this year, securing remote access to industrial networks has become a significant priority.
As a result, Claroty has seen increasing demand for its Secure Remote Access (SRA) solution, which helps critical infrastructure operators to enable staff to work from home while deploying sufficient resources to protect their infrastructure.
Unique to Claroty, SRA provides a single, secure and clientless interface through which all external users connect prior to performing software upgrades, periodic maintenance, and other support activities on assets within OT networks.
Claroty regional vice president Business APJ, Eddie Stefanescu, says, “Even in today's unprecedented global health and economic challenges, the strength of Claroty's portfolio and go-to-market capabilities has enabled us to achieve incredible growth in our core markets, as well as satisfy customers in new verticals of national interest.
Stefanescu says, “Overall, we're seeing remarkable growth because our customers are prioritising the protection of remote access to their critical infrastructure.
"They see value in Claroty's solutions, as they can be rapidly deployed to integrate seamlessly their own IT security tools. This means that we can help protect their OT without entailing a steep learning curve.