WEBVTT

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Michael Novinson: Hello, this is
Michael Novinson with

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Information Security Media
Group. I'm joined today by Tim

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Eades. He is the CEO at vArmour.
Good afternoon, Tim. How are

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you?

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Tim Eades: Michael, so great to
see you again.

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Michael Novinson: Very nice
having you here as well. Want to

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start off with - I know, early
last year vArmour raised $58

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million from AllegisCyber and
NightDragon security. What did

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you use the money for over the
past 18 months or so.

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Tim Eades: Yeah, great question.
So we continue to invest in the

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opportunity. We're in 14
countries now around the world.

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We've expanded our R&D
department quite significantly,

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we opened up in Calgary a big
data and AI group. As we start

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to look at, you know,
understanding data giant scales,

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scale was quite interesting
because in Calgary, you have AI

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and ML schools, one of the top
in the world, because of the oil

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and gas industry. And they know
a lot about graph databases. So

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we opened up a big department
and an office there, we also

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opened up one in Lithuania for
different purpose: to build more

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connectors out and to ingest
more things into the graph. And

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so largely, it has been R&D
investment, we obviously invest

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into our sales team and
corresponding marketing team.

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But the investment largely has
been into R&D.

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Michael Novinson: What is this
international expansion done for

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you as a company?

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Tim Eades: Yeah, vArmour has
always been very quickly cut off

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the bat to be international.
Some of our first customers were

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in Denmark, or the customers
were in Japan, and stuff. So

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we've been international for a
while, but we've really pushed

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... our customers are global. We
need to be that to service them

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and look after them and drive
those opportunities. So yeah,

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the investment has taken us
global. We're in the Middle

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East, we're in Germany, we're in
Denmark, or in Czech, we're in

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Singapore, we're in Malaysia,
we're in Australia, we're all

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over the place. But it's largely
based on the verticals and the

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customers that we serve. So, you
know, the majority of our

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revenue comes from financial
institutions, which are global

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in nature, and then you go to
telco, then you go to

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governments, and then you go
into a long tail of retail, and

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are now into healthcare and
pharma. But, you know, the banks

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really took us global very
early, and then we just built on

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that.

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Michael Novinson: I'd love to
hear a little bit more about

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that. Why is banking financial
services such a good fit for the

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vArmour technology? And how did
their needs differ from some of

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the other verticals and sectors
that you also serve?

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Tim Eades: Yeah, so what vArmour
does is we look at applications

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and the relationships and
dependencies of those

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applications to understand risk
and understand resiliency on

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those things. So the sales model
that we build and the customer

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engagement model that we build
is very much of you go in and

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discover what is happening in
your environment and then look

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at what should happen. And then
look out how do you take control

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to reduce your attack surface.
So let me give you an example.

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If workload A is talking to B,
and to C to D, if B goes down,

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A, C and D are affected, they
will have relationships or have

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dependencies. So, you know, if
it's Tim and Michael's pizzeria,

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and we're selling on it, and
we're running our application on

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AWS, our salespeople can sell to
you, the product will provide

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value. But we do really well
where the customer is hybrid and

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the customer is complex. If you
look like Frankenstein, where

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you've got, you know, five
fingers probably moving from

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different hands, it's great. I
mean, one of our customers is a

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big European bank. They have
Cisco ACI, they have NSX, they

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have 100,000 agents, they have
Windows Defender, they have

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Azure, they have AWS. And they
need to understand, you know,

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those applications, there's
dependencies that run on those

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things. And so, what do we do is
we go in and we understand it.

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So banks, highly regulated, so
they have consequence. If

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something goes wrong, those
regulations drive actions,

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frankly, to purchase software
and to control that risk. And so

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that's always been home for us.
Then telco has always been a

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good place for us to learn
because again, they're very

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large with scalable challenges.
And so we fit into that market

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very well. But now, we're doing
more and more to governments.

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Michael Novinson: Very
interesting. Once you get into a

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little bit in terms of the
vArmour technology here, what

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are the biggest advancements
that you've made from a product

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or from an R&D standpoint this
year?

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Tim Eades: Yes, over the last 18
months, we went to early adopter

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customers with our SaaS
offering. We launched that was

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SOC type 2 and that allowed us
to really help them. The digital

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transformation for customers
allows us to accelerate our

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business model and drive more
value quicker for our customers.

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So that has been an endeavor.
And some of our customers are,

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air gapped customers that still
require on-prem. It's the same

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architecture wherever it works.
But the SaaS offering that we've

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rolled out, and some of the
clustering and some of the AI

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and ML-round application
behaviors has been, you know,

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something that we've invested
that has worked out really,

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really well.

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Michael Novinson: What's the
significance of being able to

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offer this on a SaaS basis to
your customers? Why is that

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important?

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Tim Eades: Because I can't go
after Tim and Michael's

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pizzeria. The significance of
delivering it as a SaaS offering

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really accelerates the
engagement model of the customer

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and the simplicity. One of our
customers, for example, is a

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large retail store, very famous
retail store, you know. They

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kicked off testing our software
one Sunday afternoon, and they

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will were completely live, and
so all of the application flows

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by like Monday lunchtime. And
then map delegates policies, you

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know, against in that case is
very PCI-orientated and deliver

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very quickly. So it's a time to
value for the customer and

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accelerate it because it's just
easier for us to do it for them.

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Michael Novinson: What's the
fastest growing part of the

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vArmour portfolio today and why?

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Tim Eades: The fastest part or
the growing part of the

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portfolio of vArmour is
government. The government

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business for us has really
started to take off. Parts of

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the government don't understand
what we would refer to as their

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terrain. If you like the
application terrain,

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understanding, you know, the
relationships, the dependencies,

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the consequences if they go
down. And with Jen Easterly in

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the greater position in the CISA
to understand that and control

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that has been exceptional for
us. We're seeing that really

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take off. That's the fastest
part by a mile.

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Michael Novinson: What
investments have you made at

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vArmour to support this
continued growth in the

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government space? So when you
say government, are you

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referring specifically to the
U.S. government or are you also

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supporting other governments
across the globe?

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Tim Eades: We do it. We do some
European governments, but mainly

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the U.S. government is our kind
of core focus. We are starting

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to see some stuff in Australia
and New Zealand via some of our

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long-standing investors and
partners. But the investments

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that we're doing there is it's
largely people at the moment,

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it's making sure that we have
the right sales teams, the right

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suppliers in place to service
the opportunity. The tech that

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we have is very portable. So if
you have a large bank in

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Manhattan, or your government
institution, it's the same tech.

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We're not obviously building
anything specific. But I do

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think you have to have the
people with the right clearances

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to get into the right
conversations. And we spend a

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lot of time and investment on
that and with the right

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suppliers to service the
opportunity.

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Michael Novinson: How do the
needs and requirements of the

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U.S. government differ from your
heritage, the customers you've

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served historically in the
banking and financial services

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arena?

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Tim Eades: Truthfully, they
don't differ too much. The scale

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is obviously gigantic for some
of the parts of the government.

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But some of the large banks and
the lifestyle business that we

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service and supply in North
America are pretty big too. So

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we look after some of the
largest telcos in the States,

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and in some of the largest banks
in North America, so they look

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like each other, which is
fortunate because you don't want

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to build things specifically for
people. And the U.S. government

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has its own parts in a slightly
different, but generally

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speaking, you know, the tech
that they've been supplied and

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the applications that they run.
It's all the same kind of stuff

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to us.

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Michael Novinson: When you look
at the market landscape, if

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you're in a competitive bid
situation, who are you coming up

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against the most often against
vArmour? What do you feel

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differentiates your approach
from your biggest rivals?

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Tim Eades: That's a great
question. So, the market is

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maturing significantly. So let's
talk about the market for a

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second. Gartner would refer to
as exposure management. So you

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break exposure management into
two. Exposure management is

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divided into EASM (external
attack surface management),

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which great companies like
Synack and CyCognito and some

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great companies out there tried
to understand the external

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attack surface. Then you look at
the internal attack surface.

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First it was CAASM (cyber asset
attack surface management), and

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in that space, that space is
maturing quite significantly. It

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started off with just the
devices people, the manage and

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unmanaged devices people. So
think of Axonius, Forescout.

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There's clarity in that space
doing IT and OT kind of

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understanding. Those devices are
fantastic, the companies are

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fantastic. But they don't
understand the business context.

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And they don't have any
knowledge of the applications

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that are running on those
devices. So that market ... that

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attack surface is playing out
and that's a great market. On

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top of that now, to understand
how attack surface goes into

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applications, the application
knowledge kind of gets broken

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down into, you know, do you
understand your application,

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you're working on a A goes to B
to C to D. So that's what we do.

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Axonius and people say, "Well,
that's a device," but they don't

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know that that device is
communicating to a billing

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application, or the cafeteria,
they can't tell the difference.

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So that's why that market to
understand your attack surface

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has to include not just devices
managed and unmanaged, but it

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has to include application
knowledge, because that way you

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actually have the business
context to the risk that you're

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trying to control. So the
competitors that we see in that

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space, you see some of the
observability people, right? But

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observability people that don't
understand policy, and that

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can't take control of it,
because you also have to enforce

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the policy won't actually win
because nobody actually wants to

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be a system of insight anymore.
They want to be a system of

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action. Otherwise, you're just
another screen - a noisy screen.

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No, you have to do something
about it, which means you have

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to take your knowledge and do
something with it. So, I mean,

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we do see some of the
segmentation people around the

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world. So there's an Illumio
company that's out there. They

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do micro-segmentation. But they
leverage agents, right? So it's

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a great company, but they put
agents down inside the

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infrastructure. We try and use
and we do use the infrastructure

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that you've already bought. So
like CrowdStrike or VMware, NSX,

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or Cisco ACI, we don't want to
put more tech down, we want to

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leverage the things that you've
already bought, and still

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provide the same value or
discover what is happening, look

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at what should, and then take
control. So then, we will see

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them a little bit, we would -
mostly, the alternatives that

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the customers have is its
people, like 70% of the way that

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they try and understand their
attack surface is actually

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manual right now. So the
discoverability, observability

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people are out there, but then
you need to turn it into action.

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So it's a massive market and
maturing really quickly. Some of

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the pharmaceuticals and
healthcare companies, because of

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the regulations coming out from
the U.S. government, are really

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moving very fast to try and
understand and control attacks.

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Michael Novinson: Very
interesting. So when you fear to

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gaze into the crystal ball here,
what do you see coming down the

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pipe in 2023, in terms of R&D
roadmap, a product roadmap, what

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should customers and prospects
be watching for from vArmour in

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the coming year?

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Tim Eades: That's a great
question.  So, as I look back in

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on 2022 and 2023, I think, as
you look into that ... we are in

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tech, right? So here's where I
would go on that. So we look at

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the world like this. 10 years
ago, we looked at workload, we

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looked at application security.
Over the last five years,

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everybody's talked about
workload security, and you will

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continue to talk about workload
security but by far, the

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investment model now needs to
move toward data security. Data

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security is broken down through
loads of different ways,

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obviously, data and news, data
in motion, your data at rest

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from an encryption perspective,
then you look at data

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classification, data cataloging
from that kind of model. But

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also, you're going to look at
data traversing the

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infrastructure. As data
traverses the infrastructure,

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extremely fragile as it does. So
when you look from us, over the

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next 18 months, in particular,
we've been working with design

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partners to understand
resiliency as it relates to

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data, data lineage, data
traverse, all of the data kind

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of model. So let me give an
example. As an application with

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eyes on data, it will pull the
information across from the

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repository to serve it, right?
But as it goes through

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middleware and file systems, it
loses some of its headers. So

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when there's an outage, or when
there's an attack, you know, you

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can't see where it came from.
Think of it like Spaghetti

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Junction, a piece of data will
come into a piece of middleware,

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and it will go in five different
directions. But if there's an

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outage, you don't know where it
came from, or what caused it. So

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that's an area that we've been
investing in with some design

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partners over the last year or
so. We've been writing blogs

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about it every now and again,
but as soon as it comes to

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market, that's something we're
going to bring to market.

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Michael Novinson: Very
interesting. Let me ask you

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here, Tim, finally. I've been
very intrigued by your

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background in this conversation.
What are we looking at? What's

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its significance?

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Tim Eades: So this actually is a
cake. Believe it or not. My wife

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and I are on the board of a
non-profit called Cake for Kids.

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She's been running it for 10
years. She's currently president

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of it. And so Cake for Kids is
an organization started in in

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Northern California, where we
deliver, we bake and deliver

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birthday cakes to children at
risk, and children in foster

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homes. This is a cake made for a
young lady who likes to read,

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and it's actually called
bookworm. Every child will get a

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cake that's tailored to them. So
it's Tim and he lives in

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Oakland, and he's a Liverpool
fan, he'll get on his 14th

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birthday or whatever, in
Liverpool, a birthday cake

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delivered to his home. This
year, we'll deliver about 11,000

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birthday cakes across the
states. And it's been one of

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those interesting things. It was
growing fast prior to the

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pandemic, but during the
pandemic, it just took off like

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a rocket. Because you even turn
on the TV and get extremely

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depressed by looking at the
news. All you wanted to do

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something positive. And so prior
to the pandemic, I think we

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would do like two and a half to
3000 birthday cakes, you know.

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This year, 11,000. All across
the states we're just opening

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up. I think this week in
Raleigh, Durham, North Carolina,

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but it's gone everywhere from
Boston to Chicago to Oregon to

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Arizona. And it's really taken
off but yeah, this year, 11,000

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birthday cakes to children in
foster homes. Many of those have

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never had a birthday cake, and
you're trying to deliver smiles

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and to try to deliver
self-esteem. It's something that

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I'm extremely passionate about,
as you could probably tell.

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Michael Novinson: It's very
powerful stuff. Tim, thank you

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for sharing a little bit more
about that. Of course for

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telling us a little bit about
what's going on at vArmour. We

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really appreciate it.

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Tim Eades: Yeah, it's been
fantastic. Really appreciate

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your time.

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Michael Novinson: Absolutely.
We've been speaking with Tim

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Eades. He is the CEO at vArmour.
For Information Security Media

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Group, this is Michael Novinson.
Have a nice day.