This may help shed some light on CrowdStrike’s tailwinds, potential.
Recently CEO George Kurtz has been doing some crowing about stealing Symantec’s customers…
CrowdStrike global CEO says partners, customers joining them over Symantec
“We continue to displace Symantec customers,” Kurtz said told reporters present in the earnings call. “People are looking for platforms and they are looking for technologies that actually work and stop breaches. Ransomware has been a huge driver and signature-based AV is really not capable of dealing with sophisticated ransomware. So, people are looking to get off that.”
Kurtz added that CrowdStrike has also seen “significant demand” from channel partners, also citing the addition of former Symantec partners to its ranks.
According this Fool article from 2019…
The 10 Biggest Cybersecurity Stocks
Symantec is the world leader in cybersecurity services when using sales figures as the metric. With nearly $5 billion in revenue in the last year
Maybe a little dated but no doubt why Kurtz focusing on Symantec as the big dog. It’s market cap is below CrowdStrike’s now so it’s no secret CrowdStrike and other upstarts slowly eating away at wounded lion.
This morning in MIT’s email, “The Technology Review” they had this article…
Criminal charges reveal the identity of the “invisible god” hacker
In 2019, Fxmsp made headlines by advertising access to data from three major cybersecurity companies, reported to be McAfee, Trend Micro, and Symantec. He offered network access and source code at prices ranging from $300,000 to $1 million. US officials say victims lost tens of millions of dollars to the malware, unauthorized access, and network damage.
So big news in the security industry today that this guy was arrested and with this news it drags back into spotlight that this super-hacker stole data from Symantec itself. This is some terrible press for Symantec. (And to be fair, highlights an unusually high degree of risk in this space. One big breach can be extremely damaging to reputations.)
I know nothing about tech but it sure seems the CrowdStrike story is on track. That Kurtz would focus on tearing out those billions from Symantec makes perfect sense. When you kill the top dog others bound to follow. I can easily imagine CRWD salesman having a field day telling all prospects that they’re eating Symantec’s lunch.
Thought on Crowded Field
As others have noted, there are tons of CyberSecurity companies and many are highly rated. But this is why I love CRWD CEO, George Kurtz. I think the guy is an elite marketer/spokesperson. This race is not going to be won by the objectively proven best company. Buyers in all industries want an effective solution they can implement quickly. If you buy a car you don’t want to go through stress of test driving 10 vehicles, etc.
So if CrowdStrike is best known, has decent reputation for quality, and in the door first, that’s the solution a prospect will take. This is particularly true of Cybersecurity as the risk/reward of studying additional solutions to get a little more effectiveness is not worth remaining vulnerable to possibly catastrophic attacks. If you are one of the 50 other cybersecurity companies good luck gaining the attention CrowdStrike’s gotten. There’s a reason we have so few airlines and car companies.
So the bigger CrowdStrike gets, the more money they can pour into product dev/marketing, the bigger their client list grows, better product gets, better known they become. It’s a promising situation.
PS - Shout out to Muji for naming me in his post on Fools who’ve influenced him. A highlight of my 20-yr Fool career. Muji is on my Mt. Rushmore of Fools.