SIEM, SOAR Security Software Companies Emphasize XDR Efforts

Like many cybersecurity companies, Securonix has added XDR (eXtended detection and response) to its branding, marketing and outreach to potential MSSP partners.

The evidence? Through the end of 2021, Securonix positioned mainly as a “Next-Gen SIEM” (security information and event management) software company. Fast forward to 2022, and every Securonix news announcement now mentions XDR right in the first paragraph.

Why XDR Branding Is Everywhere

Frankly, it’s a case of deja vu: Sumo Logic, a cloud SIEM and SOAR provider, made a similar XDR branding move in September 2021.

It’s a sign of the times as MSSPs and CISOs increasingly crave all-encompassing XDR platforms that blanket and protect endpoint, network and cloud systems. Indeed, more than nine in 10 organizations are either working on an XDR project or planning an XDR investment in the next 12 months, according to a survey sponsored by security provider Hunters and executed by ESG Research.

Eager to potentially ride the XDR wave, Vista Equity Partners recently led a $1 billion investment round in Securonix. Volition Capital and Eight Roads Ventures also participated in the round. The software company’s overall valuation was not disclosed.

Securonix: Business and MSSP Engagement Growth

Securonix was in growth mode even ahead of the funding and XDR brand positioning. Over the past 12 months, the company has generated:

  • 100% SaaS ARR (annual recurring revenue) growth;
  • 240% Year-over-Year new MSSP logo bookings growth; and
  • 100% Year-over-Year employee headcount growth, eclipsing 1,000 employees worldwide, the company said.

The growth statistics certainly look impressive — though actual revenue dollar figures were not disclosed, and we don’t know how much revenue that MSSPs influence for Securonix.

Meanwhile, M&A activity as well as investor activity across the SIEM, SOAR and XDR markets remains strong. Example deals include:

We’ll be watching to see if or how the SIEM, SOAR and XDR markets further converge.

 

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4 Comments

Comments

    Aaron Branson:

    Ah yes, the cybersecurity solution terminology wheel continues to spin. From the simple “what it is” (SIEM, Cloud SIEM, Next-Gen SIEM, SOAR, SOC) model to a “what it does” model (EDR, NDR, XDR) value-based approach to a “how it is delivered” (MDR, MXDR, SOCaaS, Managed SIEM) view, we’re all trying to find the language that best conveys the scope, expectations, and value of the solution to help the buyer sift through the sea of options. However, the result is something like this: an MDR service being delivered by a SOC-as-a-Service using a Next-Gen SIEM that encompasses UEBA and SOAR capabilities to deliver XDR. True. Oof! Can we get any wordier? And that’s still not quite complete as some providers for sure encompass more than detection & response (right of breach) and include prediction & prevention (left of breach) which we call Managed Threat Protection. Oh, but then what about Compliance use cases? Oh boy.

    Vijay Vasu:

    I agree 100% with your Aaron. And until this vendor deluge continues in Security – this situation won’t change. I believe a strong vendor consolidation on both the technology space and services space will certainly help simplify this problem and make it easier for the customers.

    While people may argue that it will disrupt innovation – I am firm believer that consolidation will foster more innovative ideas and smaller startups – since large organizations aren’t fast enough or structured to disrupt and innovate. I also believe the consolidation will help the industry fight as one group against the bad guys. Today we are split up as 1000s of smaller platoons all trying to fight the bad guys. We need consolidation and alliances to put the customer first.

    And information security industry has done a bad job at it. IS is still being treated as a money minting industry and not necessarily as a matter of national defense, global stability.

    Aaron Branson:

    Thanks Vijay. Great points!

    Al Wissinger:

    And wait… we now have “Open XDR” and yet “Native XDR”. The influence of VC $$ with marketing is driving incredible hype and ultimately confusion for clients. What’s next in the magical world of words?

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