CRWD killer?

Because MSFT bundles security with their other offerings, it’s argued they don’t need to be as good as CRWD to win.

I don’t know…

https://security-economics.com/2020/02/12/the-security-vendo…

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it’s argued they don’t need to be as good as CRWD to win.

Ask those companies who experienced ransomeware and saved by CRWD !!

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This is a great point and thanks for bringing it up.

Undoubtedly Windows Defender ( now Microsoft Defender) is perhaps the biggest competitor to CRWD. However, it may not be correct to label it or call it a CRWD killer.

Though I was never a fan of Security companies, I decided to include CRWD in my portfolio a few months back after looking at their growth and some research. I’ve also been thinking about this competition from MSFT very seriously for quite some time. Technically, there are similarities and differences in how the two products work. However, without delving into technical details ( email me if you’re interested in them), there are two fundamental reasons why I’m invested in CRWD and don’t see Microsoft Defender eating CRWD’s lunch. These may appear simple but do tilt the balance.

1. Best of breed + current user base: This makes a lot of difference. CRWD is the first endpoint protection platform built for the cloud and is seeing huge adoption. (Think ZM vs the rest of the video conferencing tools out there. Think DDOG vs other application and service monitoring tools.) When it comes to competing with the tech giants in the present times, the only successful way I see is this…“focus on a single problem and build the best solution. This is going to ward of competition from your similar sized peers. The tech giants ( only a handful now) may see a profitable market and bundle together what you’re offering for free with some other software/service to capture some market or they may acquire you. Well, if that doesn’t happen, then you’re the winner.”

2. Advanced EDR (endpoint detection and response): CRWD beats any competition in this area. For e.g. “Falcon Overwatch” might appear like a simple 24x7 human threat detection extension but it’s a key differentiator when you think in terms of the $$ cost/minute when a service/company comes under attack. ( Digressing… To understand the cost of the recent spike in DDOS attacks since the WFH trend started, read the findings of Cloudfare (NET), another company I really like and am invested in.)

I think CrowdStrike’s CEO George Kurtz said that by 2021 the security cloud total addressable market should reach $29 billion. I personally feel that the effects of this pandemic is going to significantly increase that market ( OKTA’s recent report about “network security” being a major growth area in the past couple of months clearly spells this out.)

Hope that helps a little.

Cheers!

ron

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ron -

Your posts have been a great addition to the board. Clear, concise and very informative.

I know thank yous with nothing else added can sometimes clutter things up, but the public acknowledgement is well deserved in this case.

Keep ‘em coming.

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This falls into ‘pure plays vs the Microsoft or Amazon or Google or Apple or…’. The threats are grouped into 2: 1. the latter actually go in seriously and do it forming potential competition, or 2. there is some new(er) competitive threats that is also in some sense pure plays but with a different tack. I think group 2 is the one we should pay more attention to. The threat from group 1 is definitely possible if they don’t have better things to do. There is also an advantage in starting earlier. That is how disruption could occur.

But I guess it is highly dependent on the case. SMAR vs Microsoft. WORK vs Microsoft. Zoom vs Cisco Webex or Google Meeting or… MDB vs Amazon. PAYC vs ADP. CRWD vs Microsoft and many others…etc…

TWLO vs ? Bandwidth? Twilio seems to not have much competition given that they are doing much better than the stated competition in Bandwidth. Their API seems to have the network of developers behind it and they are winning market share. Again…why did you sell Twilio a couple of quarters back, Saul? Because you saw a softening of their growth and you thought that would be the trend? In fact in their latest quarter, they accelerate back to mid-50% growth overall (SendGrid incl.). You also said something about Lawson been disingenuous. Do you still think that? Would you jump back into TWLO?

tj

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Gartner on Crowdstrike vs Microsoft Defender
https://www.gartner.com/reviews/market/endpoint-protection-p… Crowdstrike wins

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