Interview Synopsis

CrowdStrike – Product Evolution, Competitive Considerations and Growth Drivers

  • Public Equity
  • TMT
  • North America

Spending on security software, and related hardware and services, was worth USD 150bn last year, experiencing double-digit growth.* American cybersecurity company CrowdStrike has become one of a number of prominent names in the industry. According to a former product manager at CrowdStrike, there are “a tonne of opportunities that CrowdStrike can execute on”, but it faces “significant competition” from Microsoft’s security products.

Microsoft’s Defender software “worrisome” for CrowdStrike

In an Interview with Third Bridge Forum, the specialist said CrowdStrike differentiates itself from competitors such as Carbon Black, SentinelOne and Qualys by providing access to data that is “ready to go” and at a scale that others “cannot do”. In the specialist’s opinion, those who say CrowdStrike’s AI and machine learning functionality isn’t on par with SentinelOne do “not have a leg to stand on”. This is because despite SentinelOne being priced 40-70% below CrowdStrike, it is CrowdStrike that has a head-to-head win rate of at least 70-80% against SentinelOne.

The specialist said CrowdStrike’s Falcon Complete Managed Detection Response is “the most meaningful contributor” to the company’s revenue. The specialist described Falcon as a service-type offering that has endpoint and threat intelligence attach rates that are “very high”. 

CrowdStrike’s biggest competitor is likely to be Microsoft’s Defender product if “it gets its act together and starts to go full bore”. The specialist said that although Microsoft was late to invest in cybersecurity, it has a “tonne” of resources to invest in R&D. Such is Microsoft’s clout, the specialist called the company CrowdStrike’s biggest risk.

The specialist identified the integrations of its recent acquisitions as an area where CrowdStrike can improve. They also told us the company can gain market share by better execution of its existing products such as endpoint security. The vulnerability management market is also an area where the specialist says CrowdStrike has “nothing to write home about” but that there is a “tonne of opportunities” for the company here. 

CrowdStrike expects to almost double1 its TAM by 2025, it said, and the specialist agreed there is market share it can take and more markets it can grow into, such as in APAC and EMEA. But Microsoft has resources it can deploy and strategies to make Defender part of any Microsoft renewal package. This could, the specialist told us, create a potentially “worrisome” situation for CrowdStrike. 

To access all the human insights in Third Bridge Forum’s CrowdStrike – Product Evolution, Competitive Considerations & Growth Drivers Interview, click here to view the full transcript.

* Gartner

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The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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