Trend Micro targets 35% revenue growth in 2014

PETALING JAYA (Feb 13, 2014): Security software company Trend Micro Malaysia Sdn Bhd is targeting 35% growth in revenue this year, driven by its consumerisation, cloud and virtualisation as well as cyber threat solutions.
Its managing director for South East Asia region Goh Chee Hoh (pix), however, said the forecast revolves around a conservative estimate for its cyber threats solution, as deal sizes, ranging from a few hundred thousand to a few million US dollars, may fluctuate depending on the advance persistent threats (APT).
"If the (cyber threat) solution really kicks in and the government enforces it aggressively, we see that growth has the potential to surpass 50%. One APT can be bigger than the whole small business market," he told reporters after a Chinese New Year media luncheon here yesterday.
He said cyber threat is a huge, untapped market which is 95% unserved globally. It is also estimated to be a US$1.17 billion market by 2017 with a 42% compound annual growth rate.
Goh said the prospect in cyber threats solutions is there thanks to government initiatives, especially cyber security in the form of the country's national information infrastructure to enforce security compliance and policy on agencies, mainly financial services industry, as well as critical infrastructures like telecommunications and utility.
"This is new and people are still finding ways to deal with this. In Malaysia, we have the banking, government, mid size market using this. It involves huge investment and highly skilled partners to deploy (the solutions) and we do it in targeted approach instead of going to the mass market," he said.
Goh added that in the last couple of years, Trend Micro invested US$400 million to improve its (cloud) threat infrastructure to cater to this future attack and has a product called Deep Discovery to counter APT.
The company derives 90% of revenue from the non-consumer segment, and the remaining from its consumer business. Under non-consumer, the company derives its revenue from enterprise (60%), government (50%), mid-size market (20%) and small business (10%).
"We target for the small business segment to contribute 15% of revenue in three years from less than 10% now. We believe in the long run, the small business segment can play a significant role as there are many small businesses here. For Trend Micro, it is also an untapped market."
As the worldwide number one security provider in server, cloud and virtualisation, Trend Micro wants to continue to dominate the next generation server security business, zooming in on partnerships with entities that also control the space of virtualisation and cloud.