In today’s rapidly evolving cybersecurity landscape, strategic partnerships and efficient distribution channels are more crucial than ever. With the majority of cybersecurity spending flowing through partners, understanding these dynamics can provide key insights into market trends and vendor strategies.
Overview of Cybersecurity Channel Spending
- The majority (over 90%) of cybersecurity spending is routed through partners, indicating a strong reliance on the channel.
- Last quarter, the cybersecurity channel grew by 8.6%, amounting to US$18.5 billion.
- Channel-based spending on cybersecurity technology accounted for 91.6% of the total $20.3 billion market.
- According to Canalys data, 67.9% of the total cybersecurity market spending went through two-tier partners via distributors.
- One-tier partners represented 23.7% of the market, while direct sales accounted for the remaining 8.4%.
Partner Updates from Leading Cybersecurity Vendors
CrowdStrike
- Entered into distributor agreements with SB&C in Japan and Ignition in the UK and the Nordics.
- Strengthened relationships with Global System Integrators (GSIs) such as HCLTech, TCS, Deloitte, EY, and Dell.
- These moves are expected to enhance CrowdStrike’s market reach and integration capabilities.
Palo Alto Networks
- Enabled partners in the EMEA and APAC regions to sell its software through private listings on the AWS Marketplace.
- Leveraged the DSOR program in collaboration with Westcon-Comstor to streamline the process.
- This approach is aimed at simplifying procurement and expanding the sales channels for Palo Alto Networks’ products.
SentinelOne
- Expanded its distributor agreement with Exclusive Networks, giving partners access to its Extended Detection and Response (XDR) offering.
- Signed a deal with Sherweb, allowing SentinelOne products to be added to Sherweb’s marketplace for Managed Service Providers (MSPs).
- These expansions are intended to enhance the distribution and accessibility of SentinelOne’s advanced cybersecurity solutions.
Sophos
- Broadened its distributor relationship with Infinigate Group to include the UK.
- This expansion is set to improve Sophos’ market penetration and support capabilities within the region.
ESET
- Updated its Partner Connect Program to include an annual rebate aimed at incentivizing renewals.
- Introduced a comprehensive 90-day onboarding and training program for new partners.
- These updates are designed to enhance partner engagement and drive sustained growth.
Zscaler
- Announced a strategic shift to an ecosystem model to evolve its partner strategy.
- The new model aims to expand the types of partners Zscaler engages with, fostering technology alliances, simplifying procurement processes, and encouraging collaborative efforts on customer projects.
- This evolution is expected to broaden Zscaler’s market impact and facilitate integrated cybersecurity solutions.
Conclusion
The latest data and partner updates from leading cybersecurity vendors highlight the critical role of the channel in driving market growth. With the majority of cybersecurity spending going through partners, the strategic moves by vendors like CrowdStrike, Palo Alto Networks, SentinelOne, Sophos, ESET, and Zscaler demonstrate a strong commitment to enhancing their partner ecosystems and expanding their market reach. These efforts not only facilitate better distribution and sales but also foster innovation and collaboration within the cybersecurity industry.
