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CrowdStrike (CRWD) Rides on Growing Cyber Security Demand

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CrowdStrike (CRWD - Free Report) is benefiting from growing demand for its cyber-security solutions owing to a slew of data breaches and the increasing necessity for security and networking products amid the stay-at-home trend across the globe. The company’s rich experience in the security space and continued delivery of mission-critical solutions are aiding it in maintaining and growing its market share.

The company mainly focuses on selling subscription-based services. This business model generates recurring revenues and higher margins for the company than the hardware-centric model. Per Statista, the worldwide cybersecurity market is projected to reach $189.9 billion in 2023 and $266.2 billion by 2027 from $173.5 billion in 2022. Going by a Grand View Research report, the global cybersecurity market is projected to witness a CAGR of 12.3% during 2023-2030. These predictions bode well for CrowdStrike, which has a diversified product portfolio for large- and mid-sized organizations to protect their sensitive data. Its portfolio strength, mainly the Falcon platform’s 10 cloud modules, boosts its competitive edge and helps add users.

In December, CrowdStrike declared the expansion of its Falcon platform with the launch of the industry’s most complete adversary-driven external attack surface management  solution — CrowdStrike Falcon Surface. This standalone threat intelligence solution stops breaches by minimizing risk from exposed assets in real time.

CrowdStrike’s Falcon Surface pinpoints unknown, exposed Internet-facing assets so that security teams can secure their ever-evolving digital perimeter. It enables them to detect, prioritize and manage all exposed Internet-facing assets that are centralized or remote across on-premises environments and subsidiary, cloud and third-party vendors with a zero-touch approach. It features intelligent Internet mapping and association technology that continuously scans the entire Internet to automatically map companies’ known and unknown assets, discovering exposures, risks and misconfigurations within and beyond their official network ranges.

Just a few days before this launch, another cybersecurity firm, Palo Alto Networks (PANW - Free Report) revealed a similar kind of attack surface management (ASM) solution — Cortex Xpanse Active — to help organizations actively find and proactively fix their known and unknown risks in all connected systems and exposed services.

The Cortex Xpanse Active ASM from Palo Alto features an Active Discovery tool that refreshes Internet-scale database several times daily and uses supervised machine learning to accurately map any vulnerabilities back to an organization’s security team. It has an Active Learning tool, which constantly analyzes and maps the streamed discovery data to understand and prioritize top risks in real time. This keeps organizations ahead of their attackers by shutting down the riskiest exposures quickly. Its most important feature is its Active Response tool that immediately reduces the attack surface risks of an organization with built-in automated playbooks instead of merely raising IT tickets for the security analysts.

In August 2022, Microsoft (MSFT - Free Report) , one of the largest broad-based technology providers in the world, unveiled the Defender External Attack Surface Management solution that gives security teams the ability to discover unknown and unmanaged resources that are visible and accessible from the Internet. The threat intelligence product helps customers discover unmanaged resources that could be potential entry points for an attacker.

MSFT’s Defender External Attack Surface Management solution expanded its growing security portfolio, offering deeper insights into threat actors and their behaviors and helping security teams accelerate the identification and prioritization of risks.

These launches come at a time when there is a constant evolution of modern digital infrastructure under which organizations run systems on multiple cloud environments, utilize SaaS applications and prefer to work remotely, online or in a hybrid environment. CrowdStrike has been facing competition from numerous big and small companies in the security application market, which include Fortinet (FTNT - Free Report) , Check Point, Zscaler and F5 Networks.

The year 2022 witnessed a spurring need for management of expanded attack surface among leading security leaders across the globe. Hence, the security companies are at present increasing their investments on developing new attack surface management tools to identify and protect organizations from both internal and external enterprise surface risks.

Last month, Fortinet launched FortiSP5, the latest breakthrough in application-specific integrated circuit (ASIC) technology from the company, propelling a major leap in securing distributed network edges. The FortiSP5 delivers significant secure computing power advantages over traditional central processing units and network ASICs, lower cost and power consumption, and the ability to enable new secure infrastructure across branch, campus, 5G, edge compute, operational technologies and more.

CRWD has been witnessing top- and bottom-line growth for the past several quarters owing to the strong demand environment for cyber-security solutions along with its sustained focus on enhancing product offerings through in-house research and development and acquisitions. In third-quarter, the company’s revenues soared 53% year over year to $580.9 million while non-GAAP earnings jumped over two-folds to 40 cents per share from 17 cents reported in the year-ago quarter.

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