As we exited the isolation economy last year, we introduced supercloud as a term to describe something new that was happening in the world of cloud computing.
In this Breaking Analysis, we address the ten most frequently asked questions we get on supercloud. Today we’ll address the following frequently asked questions:
1. In an industry full of hype and buzzwords, why does anyone need a new term?
2. Aren’t hyperscalers building out superclouds? We’ll try to answer why the term supercloud connotes something different from a hyperscale cloud.
3. We’ll talk about the problems superclouds solve.
4. We’ll further define the critical aspects of a supercloud architecture.
5. We often get asked: Isn’t this just multicloud? Well, we don’t think so and we’ll explain why.
6. In an earlier episode we introduced the notion of superPaaS – well, isn’t a plain vanilla PaaS already a superPaaS? Again – we don’t think so and we’ll explain why.
7. Who will actually build (and who are the players currently building) superclouds?
8. What workloads and services will run on superclouds?
9. What are some examples of supercloud?
10. Finally, we’ll answer what you can expect next on supercloud from SiliconANGLE and theCUBE.
Late last year, ahead of Amazon Web Services Inc.’s re:Invent conference, we were inspired by a post from Jerry Chen called Castles in the Cloud. In that blog he introduced the idea that there were submarkets emerging in cloud that presented opportunities for investors and entrepreneurs, that the big cloud vendors weren’t going to suck all the value out of the industry. And so we introduced this notion of supercloud to describe what we saw as a value layer emerging above the hyperscalers’ “capex gift.”
It turns out that we weren’t the only ones using the term, as both Cornell and MIT have used the phrase in somewhat similar but different contexts.
The point is something new was happening in the AWS and other ecosystems. It was more than infrastructure as a service and platform as a service and wasn’t just software as a service running in the cloud.
It was a new architecture that integrates infrastructure, unique platform attributes and software to solve new problems that the cloud vendors in our view weren’t addressing by themselves. It seemed to us that the ecosystem was pursuing opportunities across clouds that went beyond conventional implementations of multi-cloud.
In addition, we felt this trend pointed to structural change going on at the industry level that supercloud metaphorically was highlighting.
So that’s the background on why we felt a new catchphrase was warranted. Love it or hate it… it’s memorable.
To that last point about structural industry transformation: Andy Rappaport is sometimes credited with identifying the shift from the vertically integrated mainframe era to the horizontally fragmented personal computer- and microprocessor-based era in his Harvard Business Review article from 1991.
In fact, it was actually David Moschella, an International Data Corp. senior vice president at the time, who introduced the concept in 1987, a full four years before Rappaport’s article was published. Moschella, along with IDC’s head of research Will Zachmann, saw that it was clear Intel Corp., Microsoft Corp., Seagate Technology and other would replace the system vendors’ dominance.
In fact, Zachmann accurately predicted in the late 1980s the demise of IBM, well ahead of its epic downfall when the company lost approximately 75% of its value. At an IDC Briefing Session (now called Directions), Moschella put forth a graphic that looked similar to the first two concepts on the chart below.
We don’t have to review the shift from IBM as the epicenter of the industry to Wintel – that’s well-understood.
What isn’t as widely discussed is a structural concept Moschella put out in 2018 in his book “Seeing Digital,” which introduced the idea of the Matrix shown on the righthand side of this chart. Moschella posited that a new digital platform of services was emerging built on top of the internet, hyperscale clouds and other intelligent technologies that would define the next era of computing.
He used the term matrix because the conceptual depiction included horizontal technology rows, like the cloud… but for the first time included connected industry columns. Moschella pointed out that historically, industry verticals had a closed value chain or stack of research and development, production, distribution, etc., and that expertise in that specific vertical was critical to success. But now, because of digital and data, for the first time, companies were able to jump industries and compete using data. Amazon in content, payments and groceries… Apple in payments and content… and so forth. Data was now the unifying enabler and this marked a changing structure of the technology landscape.
Listen to David Moschella explain the Matrix and its implications on a new generation of leadership in tech.
So the term supercloud is meant to imply more than running in hyperscale clouds. Rather, it’s a new type of digital platform comprising a combination of multiple technologies – enabled by cloud scale – with new industry participants from financial services, healthcare, manufacturing, energy, media and virtually all industries. Think of it as kind of an extension of “every company is a software company.”
Basically, thanks to the cloud, every company in every industry now has the opportunity to build their own supercloud. We’ll come back to that.
Let’s address what’s different about superclouds relative to hyperscale clouds.
This one’s pretty straightforward and obvious. Hyperscale clouds are walled gardens where they want your data in their cloud and they want to keep you there. Sure, every cloud player realizes that not all data will go to their cloud, so they’re meeting customers where their data lives with initiatives such Amazon Outposts and Azure Arc and Google Anthos. But at the end of the day, the more homogeneous they can make their environments, the better control, security, costs and performance they can deliver. The more complex the environment, the more difficult to deliver on their promises and the less margin left for them to capture.
Will the hyperscalers get more serious about cross cloud services? Maybe, but they have plenty of work to do within their own clouds. And today at least they appear to be providing the tools that will enable others to build superclouds on top of their platforms. That said, we never say never when it comes to companies such as AWS. And for sure we see AWS delivering more integrated digital services such as Amazon Connect to solve problems in a specific domain, call centers in this case.
We’ve all seen the stats from IDC or Gartner or whomever that customers on average use more than one cloud. And we know these clouds operate in disconnected silos for the most part. That’s a problem because each cloud requires different skills. The development environment is different, as is the operating environment, with different APIs and primitives and management tools that are optimized for each respective hyperscale cloud. Their functions and value props don’t extend to their competitors’ clouds. Why would they?
As a result, there’s friction when moving between different clouds. It’s hard to share data, move work, secure and govern data, and enforce organizational policies and edicts across clouds.
Supercloud is an architecture designed to create a single environment that enables management of workloads and data across clouds in an effort to take out complexity, accelerate application development, streamline operations and share data safely irrespective of location.
Pretty straightforward, but nontrivial, which is why we often ask company chief executives and execs if stock buybacks and dividends will yield as much return as building out superclouds that solve really specific problems and create differentiable value for their firms.
Let’s dig in a bit more to the architectural aspects of supercloud. In other words… what are the salient attributes that define supercloud?
First, a supercloud runs a set of specific services, designed to solve a unique problem. Superclouds offer seamless, consumption-based services across multiple distributed clouds.
Supercloud leverages the underlying cloud-native tooling of a hyperscale cloud but it’s optimized for a specific objective that aligns with the problem it’s solving. For example, it may be optimized for cost or low latency or sharing data or governance or security or higher performance networking. But the point is, the collection of services delivered is focused on unique value that isn’t being delivered by the hyperscalers across clouds.
A supercloud abstracts the underlying and siloed primitives of the native PaaS layer from the hyperscale cloud and using its own specific platform-as-a-service tooling, creates a common experience across clouds for developers and users. In other words, the superPaaS ensures that the developer and user experience is identical, irrespective of which cloud or location is running the workload.
And it does so in an efficient manner, meaning it has the metadata knowledge and management that can optimize for latency, bandwidth, recovery, data sovereignty or whatever unique value the supercloud is delivering for the specific use cases in the domain.
A supercloud comprises a superPaaS capability that allows ecosystem partners to add incremental value on top of the supercloud platform to fill gaps, accelerate features and innovate. A superPaaS can use open tooling but applies those development tools to create a unique and specific experience supporting the design objectives of the supercloud.
Supercloud services can be infrastructure-related, application services, data services, security services, users services, etc., designed and packaged to bring unique value to customers… again that the hyperscalers are not delivering across clouds or on-premises.
Finally, these attributes are highly automated where possible. Superclouds take a page from hyperscalers in terms of minimizing human intervention wherever possible, applying automation to the specific problem they’re solving.
What we’d say to that is: Perhaps, but not really. Call it multicloud 2.0 if you want to invoke a commonly used format. But as Dell’s Chuck Whitten proclaimed, multicloud by design is different than multicloud by default.
What he means is that, to date, multicloud has largely been a symptom of multivendor… or of M&A. And when you look at most so-called multicloud implementations, you see things like an on-prem stack wrapped in a container and hosted on a specific cloud.
Or increasingly a technology vendor has done the work of building a cloud-native version of its stack and running it on a specific cloud… but historically it has been a unique experience within each cloud with no connection between the cloud silos. And certainly not a common developer experience with metadata management across clouds.
Supercloud sets out to build incremental value across clouds and above hyperscale capex that goes beyond cloud compatibility within each cloud. So if you want to call it multicloud 2.0, that’s fine.
We choose to call it supercloud.
Well, we’d say no. That supercloud and its corresponding superPaaS layer gives the freedom to store, process, manage, secure and connect islands of data across a continuum with a common developer experience across clouds.
Importantly, the sets of services are designed to support the supercloud’s objectives – e.g., data sharing or data protection or storage and retrieval or cost optimization or ultra-low latency, etc. In other words, the services offered are specific to that supercloud and will vary by each offering. OpenShift, for example, can be used to construct a superPaaS but in and of itself isn’t a superPaaS. It’s generic.
The point is that a supercloud and its inherent superPaaS will be optimized to solve specific problems such as low latency for distributed databases or fast backup and recovery and ransomware protection — highly specific use cases that the supercloud is designed to solve for.
SaaS as well is a subset of supercloud. Most SaaS platforms either run in their own cloud or have bits and pieces running in public clouds (e.g. analytics). But the cross-cloud services are few and far between or often nonexistent. We believe SaaS vendors must evolve and adopt supercloud to offer distributed solutions across cloud platforms and stretching out to the near and far edge.
Another question we often get is: Who has a supercloud and who is building a supercloud? Who are the contenders?
Well, most companies that consider themselves cloud players will, we believe, be building superclouds. Above is a common Enterprise Technology Research graphic we like to show with Net Score or spending momentum on the Y axis and Overlap or pervasiveness in the ETR surveys on the X axis. This is from the April survey of well over 1,000 chief executive officers and information technology buyers. And we’ve randomly chosen a number of players we think are in the supercloud mix and we’ve included the hyperscalers because they are the enablers.
We’ve added some of those nontraditional industry players we see building superclouds such as Capital One, Goldman Sachs and Walmart, in deference to Moschella’s observation about verticals. This goes back to every company being a software company. And rather than pattern-matching an outdated SaaS model we see a new industry structure emerging where software and data and tools specific to an industry will lead the next wave of innovation via the buildout of intelligent digital platforms.
We’ve talked a lot about Snowflake Inc.’s Data Cloud as an example of supercloud, as well as the momentum of Databricks Inc. (not shown above). VMware Inc. is clearly going after cross-cloud services. Basically every large company we see is either pursuing supercloud initiatives or thinking about it. Dell Technologies Inc., for example, showed Project Alpine at Dell Technologies World – that’s a supercloud in development. Snowflake introducing a new app dev capability based on its SuperPaaS (our term, of course, it doesn’t use the phrase), MongoDB Inc., Couchbase Inc., Nutanix Inc., Veeam Software, CrowdStrike Holdings Inc., Okta Inc. and Zscaler Inc. Even the likes of Cisco Systems Inc. and Hewlett Packard Enterprise Co., in our view, will be building superclouds.
Although ironically, as an aside, Fidelma Russo, HPE’s chief technology officer, said on theCUBE she wasn’t a fan of cloaking mechanisms. But when we spoke to HPE’s head of storage services, Omer Asad, we felt his team is clearly headed in a direction that we would consider supercloud. It could be semantics or it could be that parts of HPE are in a better position to execute on supercloud. Storage is an obvious starting point. The same can be said of Dell.
Listen to Fidelma Russo explain her aversion to building a manager of managers.
And we’re seeing emerging companies like Aviatrix Systems Inc. (network performance), Starburst Data Inc. (self-service analytics for distributed data), Clumio Inc. (data protection – not supercloud today but working on it) and others building versions of superclouds that solve a specific problem for their customers. And we’ve spoken to independent software vendors such as Adobe Systems Inc., Automatic Data Processing LLC and UiPath Inc., which are all looking at new ways to go beyond the SaaS model and add value within cloud ecosystems, in particular building data services that are unique to their value proposition and will run across clouds.
So yeah – pretty much every tech vendor with any size or momentum and new industry players are coming out of hiding and competing… building superclouds. Many that look a lot like Moschella’s matrix with machine intelligence and artificial intelligence and blockchains and virtual reality and gaming… all enabled by the internet and hyperscale clouds.
It’s moving fast and it’s the future, in our opinion, so don’t get too caught up in the past or you’ll be left behind.
We’ve given many in the past, but let’s try to be a bit more specific. Below we cite a few and we’ll answer two questions in one section here: What workloads and services will run in superclouds and what are some examples?
Analytics. Snowflake is the furthest along with its data cloud in our view. It’s a supercloud optimized for data sharing, governance, query performance, security, ecosystem enablement and ultimately monetization. Snowflake is now bringing in new data types and open-source tooling and it ticks the attribute boxes on supercloud we laid out earlier.
Converged databases. Running transaction and analytics workloads. Take a look at what Couchbase is doing with Capella and how it’s enabling stretching the cloud to the edge with Arm-based platforms and optimizing for low latency across clouds and out to the edge.
Document database workloads. Look at MongoDB – a developer-friendly platform that with Atlas is moving to a supercloud model running document databases very efficiently. Accommodating analytic workloads and creating a common developer experience across clouds.
Data science workloads. For example, Databricks is bringing a common experience for data scientists and data engineers driving machine intelligence into applications and fixing the broken data lake with the emergence of the lakehouse.
General-purpose workloads. For example, VMware’s domain. Very clearly there’s a need to create a common operating environment across clouds and on-prem and out to the edge and VMware is hard at work on that — managing and moving workloads, balancing workloads and being able to recover very quickly across clouds.
Network routing. This is the primary focus of Aviatrix, building what we consider a supercloud and optimizing network performance and automating security across clouds.
Industry-specific workloads. For example, Capital One announcing its cost optimization platform for Snowflake – piggybacking on Snowflake’s supercloud. We believe it’s going to test that concept outside its own organization and expand across other clouds as Snowflake grows its business beyond AWS. Walmart Inc. is working with Microsoft to create an on-prem to Azure experience – yes, that counts. We’ve written about what Goldman is doing and you can bet dollars to donuts that Oracle Corp. will be building a supercloud in healthcare with its Cerner acquisition.
Supercloud is everywhere you look. Sorry, naysayers. It’s happening.
With all the industry buzz and debate about the future, John Furrier and the team at SiliconANGLE have decided to host an event on supercloud. We’re motivated and inspired to further the conversation. TheCUBE on Supercloud is coming.
On Aug. 9 out of our Palo Alto studios we’ll be running a live program on the topic. We’ve reached out to a number of industry participants — VMware, Snowflake, Confluent, Sky High Security, Hashicorp, Cloudflare and Red Hat — to get the perspective of technologists building superclouds.
And we’ve invited a number of vertical industry participants in financial services, healthcare and retail that we’re excited to have on along with analysts, thought leaders and investors.
We’ll have more details in the coming weeks, but for now if you’re interested please reach out to us with how you think you can advance the discussion and we’ll see if we can fit you in.
So mark your calendars and stay tuned for more information.
Thanks to Alex Myerson, who does the production, podcasts and media workflows for Breaking Analysis. Special thanks to Kristen Martin and Cheryl Knight, who help us keep our community informed and get the word out, and to Rob Hof, our editor in chief at SiliconANGLE.
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When humans carry connected devices, they become connected themselves - points on the Internet of Everything. The smartphone - a ubiquitous technology in much of the western world - provides a two-way gateway to the virtual world. We draw information from that world and we contribute data - from our location to our restaurant reviews. The more we tell our phones, the better they understand us. Google Now, Google's mobile "personal assistant" cross-references present location and past behaviour, adding information drawn from the user's email account. Apple's Siri and Microsoft's upcoming digital assistant, codenamed Cortana, offer competing services.
Eric Schmidt, Google's executive chairman, described Google's policy as "to get right up to the creepy line, and not cross it". Sometimes, the knowledge a phone can now display about its owner comes close to that line. You might forget a meeting, but your phone won't - and it can check the traffic to get you there on time.
As sensors become smaller and more sophisticated, the ways phones can listen to us multiply: Samsung's new S5 includes a dedicated heart-rate monitor, designed to integrate with its new fitness app.
The mix of health-consciousness, mobility and connectivity enables unconventional and revealing new approaches to personal health. Massive Health - acquired in 2013 by Jawbone - built a simple app called The Eatery. Users photographed their food, uploaded the picture and gave it a score for how healthy they thought it was. Other users then rated the photograph. It rapidly became clear that people believed that they ate more healthily than others, even when eating the same food. A slice of pizza would, on average, seem 2.5 times healthier to the person eating it than the others who judged it.
Fitness has also driven adoption of what promises to be the next wave of devices connecting us to the network: wearable technologies. The first of these to take off were little more than smart pedometers. These have developed into a competitive market of smart, fitness-oriented products, which includes the likes of the Fitbit Flex and Jawbone UP.
Meanwhile, just as demand from customers has made phones evolve, a new generation of versatile wearables is making its presence felt. Google Glass is still the preserve of early adopters, but new, more fashionable frames are being released, continuing a move from geek to chic.
The wristwatch, nearly made extinct by the phone, is making a comeback using smartphone components. Pebble Technology raised $10 million (£6m) on the crowdfunding site Kickstarter to make its e-ink "smartwatch", designed to synch with a phone, but with apps for the watch itself. Samsung and Sony have launched their own connected watches, with Apple's entry into the market a persistent rumour.
Consumer analysts Canalys say that 2014 is the year smart watches and other wearables become a key consumer technology, with sales expected to reach 8 million, growing to 23 million in 2015 and 45 million by 2017.
The smartphone brought many devices - phone, diary, watch, camera - into a single form. As connection becomes simpler and more intuitive, wearable devices may create a network on every body, as specialised, wearables - lapel cameras, audio recorders, heart monitors, watches or lenses - connect to a smartphone or tablet that forms the hub and control centre. Freed from the form factor of a slab with a screen, designers can experiment with new applications and new designs, such as Bionym's Nymi wristband, which uses the wearer's unique heartbeat as a key to unlock other devices, or the electronic tattoo that has been patented by Motorola.
What do Netflix, Twitch, LinkedIn, and Facebook have in common? Aside from luring you to spend hours and hours on their site, these hotshot tech companies are known to use AWS or Amazon Web Services.
They rely on AWS for nearly all their computing and storage needs, including analytics, databases, recommendation engines, and more. Many other companies, regardless of size, also use AWS to run their online operations, which means there are plenty of individuals manning the job. In the tech industry, AWS and cloud computing experts are extremely in demand, and you can capitalize on the demand with the help of The 2022 CompTIA and AWS, Cisco Certification Paths Bundle: Lifetime Access, which not only offers AWS training, but also IT and networking courses, particularly CompTIA and Cisco certification. You can get it at a special Deals Day price until July 14.
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In latest years, headlines about cyber security have become increasingly common. Thieves steal customer social security numbers from corporations’ computer systems. Unscrupulous hackers grab passwords and personal information from social media sites or pluck company secrets from the cloud. For companies of all sizes, keeping information safe is a growing concern.
Cyber security consists of all the technologies and practices that keep computer systems and electronic data safe. And, in a world where more and more of our business and social lives are online, it’s an enormous and growing field with many types of job roles.
According to the Cyber Security & Infrastructure Security Agency (CISA), "Cyber security is the art of protecting networks, devices and data from unauthorized access or criminal use and the practice of ensuring confidentiality, integrity and availability of information."
Information security is the processes and tools designed and used to protect sensitive business information from modification, disruption, destruction and inspection, according to CISCO.
Information security and cyber security are often confused. According to CISCO, information security is a crucial part of cyber security but is used exclusively to ensure data security.
Everything is connected by computers and the internet now, including communication, entertainment, transportation, shopping, medicine and more. A copious amount of personal information is stored among these various services and apps, which is why information security is critical.
Getting hacked isn’t just a direct threat to the confidential data companies need. It can also ruin their relationships with customers and even place them in significant legal jeopardy. With new technology, from self-driving cars to internet-enabled home security systems, the dangers of cybercrime become even more serious.
So, it’s no wonder that international research and advisory firm Gartner Inc. predicts worldwide security spending will hit $170 billion in 2022, an 8% increase in just a year.
“We’re seeing a tremendous demand for cyber security practitioners,” said Jonathan Kamyck, associate dean of cyber security at Southern New Hampshire University (SNHU). “Most businesses, whether they’re large or small, will have an online presence, for example. Some of the things you would do in the old days with a phone call or face-to-face now happen through email or teleconference, and that introduces lots of complicated questions with regard to information.”
These days, the need to protect confidential information is a pressing concern at the highest levels of government and industry. State secrets can be stolen from the other side of the world. Companies whose whole business models depend on control of customer data can find their databases compromised. In just one high-profile 2017 case, personal information for 147.9 million people – about half the United States – was compromised in a breach of credit reporting company Equifax.
A cyber attack is an unwelcomed attempt to steal, expose, alter, disable or destroy information through unauthorized access to computer systems, according to the International Business Machines (IBM).
There are many reasons behind a cyber attack, such as cyber warfare, cyber terrorism and even hacktivists, but these actions fall into three main categories: criminal, political and personal.
Attackers motivated by crime typically seek financial gain through money theft, data theft or business disruption. Similarly, personal attackers include disgruntled current or former employees who will take money or data in an attempt to attack a company's systems. Socio-political motivated attackers desire attention for their cause, resulting in their attacks being known to the public, and this is a form of hacktivism. Other forms of cyber attacks include espionage, or spying to gain an unfair advantage over the competition, and intellectual challenging.
According to CISA, as of 2021, there is a ransomware attack every 11 seconds – a dramatic rise from every 39 seconds in 2019 (CISA PDF Source). In addition, small businesses are the target of nearly 43% of all cyber attacks, which is up 400%.
The Small Business Association (SBA) reports that small businesses make attractive targets and are typically attacked due to their lack of security infrastructure. The SBA also reports that a majority of small business owners felt their business was vulnerable to an attack. This is because many of these businesses:
Here are some of the most common threats among cyber attacks:
Attacks against enterprises can come from a variety of sources such as criminal organizations, state actors and private persons, according to IBM. An easy way to classify these attacks is by outsider versus insider threats.
Outsider or external threats include organized criminals, professional hackers and amateur hackers (like hacktivists).
Insider threats are typically those who have authorized access to a company's assets and abuse them deliberately or accidentally. These threats include employees who are careless of security procedures, disgruntled current or former employees and business partners or clients with system access.
Cyber security awareness month takes place every October and encourages individuals and organizations to own their role in protecting their cyberspace, according to Forbes, although anyone can practice being mindful of cyber security at any time. Awareness of the dangers of browsing the web, checking emails and interacting online in general are all part of developing cyber security awareness.
Cyber security awareness can mean different things to different people depending on their technical knowledge. Ensuring appropriate training is available to individuals is a great way to motivate lasting behavioral changes.
While cyber security awareness is the first step, employees and individuals must embrace and proactively use effective practices both professionally and personally for it to truly be effective, according to Forbes.
Getting started with cyber security awareness is easy, and many resources are readily available on the CISA government website based on your needs. Whether you need formal training or a monthly email with cyber security tips and tricks, any awareness and training can impact behavior and create a positive change in how you view cyber security.
Here are the most common types of cyber security available:
A cyber security degree provides an opportunity for students to develop skills and a mindset that empowers them to begin a career in securing systems, protecting information assets and managing organizational risks.
Alex Petitto ’21 earned his bachelor’s in cyber security. Petitto always wanted to work within the IT sector, and he chose cyber security because it’s an exponentially growing field. He transferred credits from a community college through a U.S. Air Force program and finished his bachelor's in under two years. "It was much quicker than I thought it would be,” he said.
It didn't take long for Petitto to begin exploring his career options. "Even before finishing (my) degree, I … received multiple invites to interview for entry-level positions within the industry and received three job offers," said Petitto. He decided to remain within the Air Force and transfer to a cyber security unit as opposed to joining the private sector.
Petitto said his cyber security degree opened doors for him in the field – “a monumental goal for me," he said. "This degree was a critical first step for breaking into the industry."
Your cyber security degree program can also connect you with experiential learning opportunities to further your growth as a cyber security professional. For example, the annual National Cyber League (NCL) has a competition wherein students from across the U.S. practice real-world cyber security tasks and skills. SNHU recently placed 9th out of over 500 colleges participating in the NCL competition.
As companies large and small scramble to respond to the growing threats, jobs in the cyber security field are growing fast. The U.S. Bureau of Labor Statistics (BLS) predicts that employment for information security analysts will grow by 33% through 2030. That’s more than twice as fast as the average computer-related occupation and four times as fast as American jobs in general.
To help fill the need for more professionals in the cyber security world, CyberSeek, a project funded by the federal government and supported by industry partners, provides detailed information on the demand for these workers by state. The tool shows that, across the country, there were 180,000 job openings for information security analysts between May 2021 and April 2022, with only 141,000 professionals holding jobs in the role, reflecting an unfilled demand of 39,000 workers.
“There’s a huge shortfall right now in entry-level and midlevel cyber security roles,” Kamyck said. “You’re looking at demand across all business sectors, with companies of all sizes.
CyberSeek lists the following entry-mid-and advanced-level roles available in the field. Average salaries are based on job openings posted between May 2021 and April 2022.
Kamyck said cyber security professionals could play a wide range of roles in a modern company. For example, some small businesses may hire a single person to handle all kinds of work protecting data. Others contract with consultants who can offer a variety of targeted services. Meanwhile, larger firms may have whole departments dedicated to protecting information and chasing down threats.
While companies define roles related to information security in a variety of ways, Kamyck said there are some specific tasks that these employees are commonly called on to do. In many cases, they must analyze threats and gather information from a company’s servers, cloud services and employee computers and mobile devices.
“An analyst’s job is to find meaning in all of that data, see what’s concerning,” he said. “Is there a breach? Is someone violating a policy?”
In many cases, Kamyck said, security certified work with other information technology professionals to ensure a company’s systems are secure. That involves not just technical know-how but also people-oriented skills.
But breaches don’t just take the form of someone hacking into a server. They can also involve customer lists sent through unencrypted email, a password written on a sticky note in a cubicle or a company laptop stolen from an employee’s car.
Depending on their specific role, cyber security professionals must also think strategically. In many industries, companies rely on employees having quick access to highly sensitive data, such as medical records or bank account information.
“The goal is to balance the needs of the company or the organization you’re working for with the need to protect the confidentiality of customer data and trade secrets,” Kamyck said.
Kamyck said people who do well in these jobs tend to be curious, competitive and willing to keep learning to stay up to date with rapidly changing technology. The work draws on multidisciplinary knowledge, and people who continue with the work find there are a variety of directions they can take in their careers.
For example, Kamyck said, if you're interested in the business side, you might become a manager or run audits that let companies know where they need to Boost to meet compliance. If you love the adversarial part of the job, you might become a penetration tester, essentially an “ethical hacker” who tests for system vulnerabilities by trying to get through them.
If you’re wondering how to get into cyber security, it’s clear there are many positions out there. The question is how to make sure you’re a good fit for them. According to BLS, most information security analyst jobs require at least a bachelor’s degree in computer science, information assurance, programming or another related field.
In some cases, the work calls for a Master of Business Administration (MBA) in Information Systems. That degree typically takes an additional two years of study and involves both technical and business management courses.
Cyber security job requirements also sometimes include related work experience. Rather than jumping right into the security side of information technology, you can start as a network or computer systems administrator. Depending on the specific cyber security position, employers may have other job requirements. For instance, keeping databases secure might be an ideal job for someone who’s spent time as a database administrator and is also well-versed in security issues.
Aside from work experience and college degrees, some employers also prefer job candidates who have received certifications demonstrating their understanding of best practices in the field. For example, the Certified Information Systems Security Professional (CISSP) credential validates a professional’s general knowledge and abilities in information security. There are also more specific certificates, which can highlight specialized knowledge of computer architecture, engineering or management.
Whatever path new employees in cyber security want to follow, Kamyck said, those who are willing to make an effort to learn the field will find abundant opportunities.
“There’s needs in government. There’s needs in finance. There’s needs in education,” Kamyck said. “There’s a tremendous unfilled need.”
Discover more about SNHU's online cyber security degree: Find out what courses you'll take, skills you'll learn and how to request information about the program.
Nicholas Patterson is a writer at Southern New Hampshire University. Connect with him on LinkedIn.
Hybrid and multicloud computing environments have redefined the trust boundary.
In the computer world, a trust boundary serves as an interface for the marking on a data packet that is allowed to flow through a network. Remote work by remote users and the consumption of cloud-based tools to perform business functions have dramatically changed the business environment and the trust boundary along with it.
“The traditional trust boundary has evaporated, or at least transformed dramatically,” said Eric Kostlan (pictured), technical marketing engineer at Cisco Systems Inc. “Although the concept of a trust boundary still exists, the nature of the hybrid, multicloud environment makes it very difficult to define. It’s not that the concept of trusted versus untrusted has gone away; it’s just become fundamentally more complex. The complexity itself is a vulnerability.”
Kostlan spoke with theCUBE industry analysts John Furrier and Dave Vellante at AWS re:Inforce, during an exclusive broadcast on theCUBE, SiliconANGLE Media’s livestreaming studio. They discussed Cisco’s portfolio of security solutions and the need for seamless cloud integration. (* Disclosure below.)
The changing nature of the trust boundary is one of many factors in enterprise computing that Kostlan and his colleagues at Cisco are managing. One of the company’s solutions involves Snort 3, an open-source network security tool for intrusion detection. As more companies have turned to the cloud, tools such as Snort 3 have become key elements that can be integrated in virtual environments.
“There’s a large number of components to the solution, and this spans workload protection, as well as infrastructure protection,” Kostlan said. “These are integrated into cloud components, and this is what allows comprehensive protection across the hybrid cloud environment. Some of the most important technologies that we use, such as Snort 3 — which is a best-of-breed intrusion protection system that we have adopted — are applicable, as well, to the virtual environment so that we push into the cloud in a way that’s seamless.”
Cisco also applies its cloud security solutions by leveraging threat information through its Talos Intelligence Group. Talos is comprised of an experienced group of security experts whose mission is to protect Cisco customer products and services.
“Talos updates our products approximately once every hour with new information about emerging attacks,” Kostlan said. “That architecture is very easily extensible into the cloud, because you can inform a virtual device just as easily as you can inform a physical device of an emergent threat. We have expanded our capacity to visualize what’s happening.”
Here’s the complete video interview, part of SiliconANGLE’s and theCUBE’s coverage of the AWS re:Inforce event:
(* Disclosure: Cisco Systems Inc. sponsored this segment of theCUBE. Neither Cisco nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)
Latest Study on Industrial Growth of Worldwide 5G-Network Infrastructure Market 2022-2027. A detailed study accumulated to offer Latest insights about acute features of the Worldwide 5G-Network Infrastructure Market. The report contains different market predictions related to revenue size, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary and SWOT analysis.
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Scope of the Report of 5G-Network Infrastructure
5G network infrastructure is divided into two types: standalone 5G infrastructures, which have their own cloud-native network core that connects to 5G New Radio (NR) technology, and non-standalone (NSA) infrastructures, which still rely on existing 4G LTE infrastructure to some extent. To provide a 5G-like experience until network carriers can build out the independent infrastructure required for 5G, the NSA approach uses a combination of 5G Radio Access Network (RAN), 5G NR interface, and existing LTE infrastructure and core network. A standalone 5G deployment consists of user equipment, such as the RAN and NR interface, as well as the 5G core network, which is built on a service-based architecture framework with virtualized network functions. Network functions that were previously executed on hardware are now virtualized and executed as software.
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by Type (Standalone, Non-Standalone), Application (Critical communications, Enterprise networking, Industrial Internet of Things (IoT), Others), Technology (Software-Defined Networking (SDN), Network Function Virtualization (NFV)), Frequency Band (5G high-band (mmWave), 5G mid-band, 5G low-band), Hardware (Small cells, RAN cell towers, Others), End User (Residential, Commercial, Industrial, Government) Players and Region – Global Market Outlook to 2027
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Country Level Break-Up: United States, Canada, Mexico, Brazil, Argentina, Colombia, Chile, South Africa, Nigeria, Tunisia, Morocco, Germany, United Kingdom (UK), the Netherlands, Spain, Italy, Belgium, Austria, Turkey, Russia, France, Poland, Israel, United Arab Emirates, Qatar, Saudi Arabia, China, Japan, Taiwan, South Korea, Singapore, India, Australia and New Zealand etc.
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Chapter 5: Displaying the by Type, End User and Region/Country 2015-2020
Chapter 6: Evaluating the leading manufacturers of the 5G-Network Infrastructure market which consists of its Competitive Landscape, Peer Group Analysis, BCG Matrix & Company Profile
Chapter 7: To evaluate the market by segments, by countries and by Manufacturers/Company with revenue share and sales by key countries in these various regions (2021-2027)
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The office communication platform Slack is known for being easy and intuitive to use. But the company said on Friday that one of its low-friction features contained a vulnerability, now fixed, that exposed cryptographically scrambled versions of some users' passwords.
When users created or revoked a link—known as a “shared invite link”—that others could use to sign up for a given Slack workspace, the command also inadvertently transmitted the link creator's hashed password to other members of that workspace. The flaw impacted the password of anyone who made or scrubbed a shared invite link over a five-year period, between April 17, 2017, and July 17, 2022.
Slack, which is now owned by Salesforce, says a security researcher disclosed the bug to the company on July 17, 2022. The errant passwords weren't visible anywhere in Slack, the company notes, and could have only been apprehended by someone actively monitoring relevant encrypted network traffic from Slack's servers. Though the company says it's unlikely that the genuine content of any passwords were compromised as a result of the flaw, it notified impacted users on Thursday and forced password resets for all of them.
Slack said the situation impacted about 0.5 percent of its users. In 2019 the company said it had more than 10 million daily active users, which would mean roughly 50,000 notifications. By now, the company may have nearly doubled that number of users. Some users who had passwords exposed throughout the five years may not still be Slack users today.
“We immediately took steps to implement a fix and released an update the same day the bug was discovered, on July 17th, 2022,” the company said in a statement. “Slack has informed all impacted customers and the passwords for impacted users have been reset.”
The company did not respond to questions from WIRED by press time about which hashing algorithm it used on the passwords or whether the incident has prompted broader assessments of Slack's password-management architecture.
“It's unfortunate that in 2022 we're still seeing bugs that are clearly the result of failed threat modeling,” says Jake Williams, director of cyber-threat intelligence at the security firm Scythe. “While applications like Slack definitely perform security testing, bugs like this that only come up in edge case functionality still get missed. And obviously, the stakes are very high when it comes to sensitive data like passwords.”
The situation underscores the challenge of designing flexible and usable web applications that also silo and limit access to high-value data like passwords. If you received a notification from Slack, change your password, and make sure you have two-factor authentication turned on. You can also view the access logs for your account.
Radware Ltd (NASDAQ:RDWR) Q2 2022 Earnings Conference Call August 8, 2022 8:30 AM ET
Yisca Erez - Former Director, IR
Roy Zisapel - Co-Founder, CEO, President & Director
Guy Avidan - CFO
Conference Call Participants
Alexander Henderson - Needham & Company
Chris Reimer - Barclays Bank
George Notter - Jefferies
Timothy Horan - Oppenheimer & Co.
Welcome to the Radware Conference Call discussing Second Quarter 2022 Results, and thank you all for holding. [Operator Instructions] As a reminder, this conference is being recorded, August 8, 2022.
I would now like to turn this call over to Yisca Erez, Director, Investor Relations at Radware. Please go ahead.
Thank you, Angela. Good morning, everyone, and welcome to Radware's second quarter 2022 earnings conference call. Joining me today are Roy Zisapel, President and Chief Executive Officer; and Guy Avidan, Chief Financial Officer. A copy of today's press release and financial statements as well as the investor kit for the second quarter are available in the Investor Relations section of our website.
During today's call, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. These forward-looking statements are subject to various risk and uncertainties, and genuine results could differ materially from Radware's current forecast and estimates.
Factors that could cause or contribute to such differences include, but are not limited to, impact from the COVID-19 pandemic, general business conditions and our ability to address changes in our market and our industry, changes in demand for products, the timing and the amount of orders and other risks detailed from time to time in Radware's filings.
We refer you to the documents the company files and furnishes from time to time with the SEC, specifically the company's last annual report on Form 20-F as filed on April 11, 2022. We undertake no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date of such statement is made.
I will now turn the call to Roy Zisapel.
Thank you, Yisca, and thank to all of you for joining us today. In the second quarter, we drove solid results. Our total revenues grew 8% year-over-year, EPS was $0.18 and cash flow from operations was very strong at $31.5 million. Cybersecurity plays a pivotal role in today's business environment. And Radware is a provider of real-time protection, serves as a fundamental force in defending our customers most critical applications and data centers from cyber attacks.
As the threat landscape continues to evolve with continuous increase in number and size of attacks, our customers must ensure their business continuity, strengthen resilience and Boost the customer experience. Therefore, we have every reason to believe that the demand for our solutions will continue to grow in the long-term.
At the same time, we also believe that uncertainties present in the current macro environment might impact the spending behavior of our customers in the short-term. Recently, we've seen some delays more than usual, and lengthening sales cycles in large deals in America's enterprise, with some customers opting for stage deployments.
Looking at the bigger picture, Radware is a healthy company and we are well-positioned for times of recession. We operate in a large and critical market with a growing addressable market. We continue to deliver and forecast sustain growth, high gross margin and healthy cash from operations.
We have best of breed technology which provides better protection for our customers. We have a large customer base that is diversified across industries and geographies, and we have a strong balance sheet with more than $440 million in cash. Backed by these assets, we remain optimistic about the long-term. Therefore we will continue to make investments in our business and specifically in our strategic cloud security initiatives.
The demand for cybersecurity solution is highly correlated to the level of threats and attacks. The international conflict in Eastern Europe is a clear example for the use of cyber attacks by nation states as out of armed conflict. A couple of months ago, we announced that Ukraine State Service of Special Communication and Information Protection is using Radware cloud DDoS protection and cloud application security to protect the infrastructure and applications in face of daily attacks. Our success in blocking these attacks is a great testament to the capabilities we have.
In the second quarter of 2022, DDoS attacks were relentless. The number of DDoS attacks that we blocked more than tripled compared to the second quarter of 2021. Not only are DDoS attacks mounting, but so are web application attacks, which during the second quarter their number increased by 24% and bad bot attacks that rose 148%.
This very active threat landscape creates a huge challenge to enterprises around the world. The midsize customers have the same cyber threats and security requirements, like the large enterprise peers, yet they cannot afford the required CapEx investment and personnel needed to deploy and manage by themselves the high-end solutions. Our cloud security as a service allows them to enjoy the high end level of protection with fully managed services and enable us to increase our customer base and increase growth rates.
In the second quarter, we continue to expand our cloud service footprint and capacity. We recently opened new points of presence in Taiwan, and Chile. We plan to continue our global footprint expansion to penetrate new customers and geographies. We also continue to innovate on the product front, we just released a new set of crypto mitigation algorithms that block sophisticated bots that evade the additional solutions. At the same time, these algorithms enable genuine website visitors to enjoy a frictionless CAPTCHA free user experience.
Our cloud application security continue to receive market recognition. Last quarter Radware was named the Leader and an Outperformer in the Innovation Hemisphere of GigaOm's Application and API Protection Radar report. GigaOm awarded Radware the highest possible scores in Key Criteria categories, such as rules bundles, AI enhancement, API discovery, data leak protection, and bot management.
In addition, Quadrant Knowledge Solutions named Radware the leader in its SPARK Matrix for DDoS Mitigation report, with comprehensive technology and customer experience management, Radware received the highest combined ratings for technology excellence, and customer impact, making it the leading vendor overall.
I would like to share some of the key wins we had in the quarter. For instance, we signed a large DDoS deal with an IT services and web hosting company. They experienced multiple high volumetric attacks that were not blocked by their incumbent solution, alerting them that they needed more comprehensive and robust protection. Our solution is blocking massive attacks in these customers daily, automatically and without any intervention from their staffs.
During the quarter, we also expanded our business with one of the world's leading software and SaaS company. This customer is building a new Internet Gateway Infrastructure and chose our hybrid cloud DDoS protection to protect it. We saw another large deal this time for our bot management solution with one of the largest financial services in South America. This customer has been suffering for a long time with outages, occasioned by sophisticated and massive bot attacks. This deal was done with our partner Azion, a leading edge CDN provider in the region.
To recap, we've been building a leading comprehensive portfolio of data center and application security solutions. We are investing in our strategic cloud initiatives to bring our solutions to a broader set of enterprise customers around the world. We are a strong and healthy company in terms of financials and well diversified in terms of customers and geographies, enabling us to overcome macro challenges and deliver sustained revenue growth with profitability. With that, I would like to thank our customers, shareholders and employees for their confidence and trust they place in Radware.
I will now turn the call over to Guy.
Thank you, Roy, and good day, everyone. I'm pleased to provide the analysis of our financial results and business performance for the second quarter of 2022 as well as our outlook for the third quarter of 2022.
Before beginning the financial overview, I'd like to remind you that unless otherwise indicated, all financial results are non-GAAP. A full reconciliation of our results on GAAP and non-GAAP basis is available in the earnings press release issued earlier today and on the Investor section of our website.
Second quarter 2022 revenue grew 8% year-over-year to $75.1 million, compared to $69.7 million in the same period of last year. On a regional breakdown, revenue of the Americas in the second quarter increased to $29.5 million, representing 6% growth in Q2 2022, compared to Q2 2021. The growth rate is the same 6% when we compare the revenue of the Americas over the trailing 12 months.
In the last week of the quarters we saw lengthening sales cycle in some of our large enterprise customers, which affect our growth in the region. EMEA had another strong double-digit revenue growth in the second quarter reaching $29.7 million revenue representing 24% growth year-over-year consistent with the longer term trend represented by the 27% growth in trailing 12 months.
APAC revenue was $15.7 million, a decrease of 10% compared to Q2 2021. The long-term trend in APAC represent a modest 1% increase on a trailing 12 months. Americas and EMEA account each for nearly 40% of total revenue and APAC account for the remainder 21% of total revenue.
I will now discuss expenses and profits. Gross margin in Q2 2022 was 83.3% compared to 82.3% in the same period in 2021, an expansion of 100 basis points. Our gross margin Boost is mainly the results of the complete integration of Security-Dam, partially offset by higher cost related to cloud infrastructure and supply chain.
Operating expenses in the second quarter of 2022 were $54.1 million, representing an increase of 11% compared to the same period in 2021. The Increase is predominantly due to additional R&D headcount focused on our cloud and hawks initiatives. The full impact of Security-Dam integration and the increase in travel cost was COVID.
Operating income was $8.5 million compared to $8.8 million in Q2 2021 and was impacted by the increase in operating expense level. Last quarter, we shared with you the new structure of Radware, which consists of the core business of application delivery, application and data center security and cloud security as a service and the Hawks business which comprise of SkyHawk, and EdgeHawk.
Radware's adjusted EBITDA for the second quarter was $10.5 million, which include the negative $2.1 million impact on adjusted EBITDA of the Hawks group. Earnings per diluted share for the second quarter 2022 was $0.18 compared to $0.19 last year.
Turning to the balance sheet and cash flow items. Deferred revenue this quarter increased by 18% over Q2 2021 to $187 million and ARR grew by 10% over the second quarter of 2022 to $195 million. We generated strong cash flow from operation in Q2 2022, which totaled $31.5 million compared to $8.8 million in the same period of last year.
Cash flow from operation was favorably impacted primarily by strong collection, as reflected in decrease in account receivable and by increase in deferred revenues. During the second quarter, we repurchased shares in the amount of approximately $18.1 million and we ended Q2 2022 with approximately $442 million in cash, bank deposit and marketable securities.
I'll conclude my remarks with guidance. As Roy mentioned earlier, while we current -- while the current global macroeconomic environment poses some uncertainties, we expect cybersecurity spending in our domain to remain resilient in the long-term. However, we're witnessing longer sales cycle among large enterprise customers. Therefore, we choose to take more prudent approach in the short-term.
We expect revenue for the third quarter to be in the range of $73.5 million to $75 million. Given our long-term positive view on the market and our opportunities, we continue to invest in infrastructure, and R&D in order to capitalize on these future opportunities. We expect our operating expenses to be between $54.5 million and $56.5 million.
Given all these trends and developments reviewed earlier, we anticipate Q3 2022 diluted earnings per share to be between $0.15 and $0.18. As a result of the expected revenue for the third quarter, we are forecasting 6% annual revenue growth for 2022.
I'll now turn the call over to the operator for questions. Operator, please.
[Operator Instructions] We will now take our first question from Alex Henderson with Needham.
Great. Thank you very much. Hey, guys. I was hoping you could talk a couple -- about a couple of issues. So first one was in the quarter, it looks to me like you would have had earnings about $0.04 higher had it been not for the currency translation hit in the quarter. First off, is that right? And then second, as we look forward, can you remind us how you’re hedged and what your approach to the shekel is, at this point. Obviously, you’ve seen a very significant move in the exchange rates over the last pretty much since the war started in Ukraine.
So, hi, Alex. So I will start actually with the second part of the question. So we already hedge from the first half, let's say middle of the first half of the year. So the FX news really shekel versus U.S dollar didn't impact us a lot when you look at the non-GAAP reporting. But you can compare financial income from GAAP and non-GAAP and then you can see that -- you can see the impact of the new Israeli shekel. We already hedge for the beginning of 2023. So what was the first part of the question?
So your hedge -- yes, just going -- before you get off of that, your hedge …
Partially mid 2022.
So mid '22 to when? Mid '23?
Mid '23, but it is partially. It's not 100% hedge.
Partially. Okay. Okay. If the exchange rate stays where it is, how would that impact your OpEx costs? How much would you save on a full year '23, if the exchange rate stays at the current levels?
It's supposed to go down. More than 100 basis points. I'm saying …
So you would save a 100 basis points on OpEx?
Again, if the FX stays as it is today, we expect to reduce, let's say, OpEx based on the same headcount as of today, more than 100 basis point in 2023.
That's what I was looking for. Thanks. Going back to the operational aspect of your business, where you guys have been making a pretty, pretty aggressive play to sign up a lot of partnerships. And a lot of those partnerships are in the early phases of ramp. And generally speaking, take a long time for them to go from concept signing, a contract to impacting your revenues. In this environment, is that -- does that process get stretched out? Because those companies are looking at the macro and thinking, do I really need to drive this business forward? Or can I slow that down a little bit? How do we think about all of these programs? Because it's been a big piece of the investment thesis that all of these partnerships would ramp into a meaningful contribution over time?
Yes, I think it varies. I would say partnerships that were more of the natural reselling type of partnership, you might be right, they would look to minimize future investments to be more conservative, et cetera. At the same time, what we see from partnerships that are more towards the MSSP side, or the [indiscernible] or even the CDN, is that they actually feel an opportunity to increase their footprint and market sharing the customer. So some of those partners, I've mentioned, for example, as the with the bot management wing, and we have many others, especially in the MSSP domain, we're actually seeing a lot of activity from them, as they can increase their share of wallet in their customers, they can actually play very strongly on the fact that security now is a fully managed service at a very high level versus the need for dedicated OpEx and CapEx. So I would say it depends on the partnership, but definitely, some of them are acting very well, and we plan to continue to invest in them. They brought us very new -- very nice logos in Q2. Yes, it's ramping. Yes, it's still early, but we see promise there.
Similar [indiscernible] obviously, the Cisco relationship is an important piece of the puzzle. And you've had Cisco unable to get the parts necessary to ship systems, but sitting on essentially 40% of four quarter revenues, product revenues and backlog, does that impede the timing of when they ship your product? So with those products, how do we think about their backlog and your realization of revenues into that account because it's a non-material PC business at this point.
Obviously, the pieces of Radware software that reside on top of Cisco hardware, let's say the Firepower Firewall, if the firewall cannot chip [ph], then obviously we don't get our result. However, I think in every bad there is also good. This environment of supply chain challenges on the appliances is actually pushing Cisco and other partners of ours to strengthen our ties in actually in the cloud environment. So I do expect Cisco to be more active with our cloud DDoS offering, cloud WAF offering as a result of the lack of ability on their end to ship, maybe firewall in the quantities they we're used to. So I think we can actually, time will tell, it's still early and we will update you in the future calls. But we do have some new programs together with both Cisco and Check Point that are centered around the cloud solutions.
Great. I will cede the floor. Thank you.
Your next question comes from Tavy Rosner with Barclays.
Hi. this is Chris Reimer on for Tavy. Thank you for taking my questions. I was wondering if you could supply any further color on gross margins and what's contributing to the expansion we're seeing there?
We mentioned that we grew around 100 basis point to a point of 83.3%. Some or let's say most of the growth is attributed to the acquisition of Security-Dam. And having more scrubbing center and WAF spread over the over the globe allow us to get higher gross margin.
And how confident are you in the pipeline through next year, especially considering the macro headwinds, if they persist and considering if the customer behavior changes longer than you expect?
I think in my comments, I've mentioned that we took that into account in our forecast as much as we can at this point. I would like to draw the attention to the growth in our ARR. So the annual recurring revenue is now getting close to $200 million. And with that also the increase in deferred revenue obviously gave us confidence as early I would say sign of future growth. So at this point, we were quite consistent in previous quarters around 8%, 9%, this quarter even 10%. But let's call it the 7% to 9% CAGR that we were alluding to, as the growth rate of the company, I think it's well backed by the ARR. And by the deferred revenues, that is I would say future looking. And together with that our pipelines today are at record level, some of it because of the delays in closing, but some of it because we continue to enhance pipeline. So looking on everything together, I think the focus that we gave is well [indiscernible] and we have the ARR and deferred even giving us some tailwind for that so we feel confident about it.
Understood. Okay, thank you. That's it for me.
Your next question comes from George Notter with Jefferies.
Hi, guys. Thanks very much. I guess I was looking at the Americas revenue generation. It seems like it's sort of topped out a bit last handful of quarters. I guess I'm just wondering how you guys are doing there. I know hiring has been an issue in general. Any thoughts on sort of North American contribution growth hiring, that would be great. Thanks.
Hi, George. So definitely, we are looking for North America to grow faster, it's clear. We were able actually to bring hiring to where we want it to be. So we closed on the hiring. But obviously those people are relatively new in the organization, most of them are, 3 months, maybe even less 6 months and so. So they will be ramping. Together with this ramp of personnel and sharper focus on cloud security solutions, we believe that we will be able to get North America to faster growth rates. It's definitely in our focus -- definitely in our focus.
And then, is there a headcount number for the company? And can you remind me how many of those new hedge work from Security-Dam?
So, for June 30, we ended with 1,282 employees close to 70. Actually 69 employees came from the Security-Dam side.
Got it. Okay. Thank you.
Your next question comes from Tim Horan with Oppenheimer.
Thanks, guys. Maybe just a little more color on the slowdown. Do you think it's more macro driven or customers maybe just trying to figure out how to reengineer, their whole IT as they move to the cloud? Or is it supply chain driven? I guess those are the three buckets unless there's something else going on.
I want to say macro, because our exposure to all of that is not that high. But if I look on specifically, like three large deals that we had in North America, all of them in the -- each one of them in the millions of dollar range that I -- that I can think of as the prime examples of those delays. So we saw budget freezes towards the end of the quarter that I think is more macro than anything, because we're talking on a very large, successful, profitable growing company. By now, that was actually released and went on.
In financial services, we saw a delay in pushing of investments towards even Q4. And in the last case of [indiscernible] infrastructure, it's more scrutiny, more look on architecture, on budgets, et cetera. By now, I think we have a variable for forecasting this quarter. But that's what we've seen in June, beginning of July. So, definitely, some of it is heavily impacted by the macro. But those are not the -- those companies that we work with are the larger enterprise, the carriers, it's not a risk for their business. It's those delays, recession, budgets, scrutiny of the budget that comes into place in those times.
And do you think the supply chain is having any impact on their decisions or your decisions or your revenue? And are you seeing any other real supply chain?
I think the supply chain is not only from last quarter, we've seen it. And on our end, I think we were able to navigate it really well. We increased inventory, Guy mentioned also in his remarks, we were paying more for components, we were suffering in gross margin, but we were able to supply. However, in some cases, we do see that they're building a new data center, the switching equipment is not ready to ship in the next 6 months. They're not taking also our deliverables because they have nothing to do with it without the underlying infrastructure. So there is some, I would say overall delay because of supply chain globally. But that's already built into our guidance, forecast, et cetera, we're seeing that. I would say, that's another good reason to focus in hardware and on cloud security services. It frees us from all those delays and supply chain issues.
Got it. And just lastly, so I know you're kind of talking about the revenue growth, 7% to 9%. Will you kind of be willing to sacrifice margin expansion for a few years to make sure that you're well-positioned longer term. If we're in a weaker environment in the next 18 months, so we expect margins to be down?
We might do that, at least in the short-term that's our decision to continue to invest. Over the long run, I must tell you that with the resumption of sales growth towards the 7% to 9%, I believe you would see delivered in the model [ph]. So I'm not worried about that. We want to bring back the groceries back to our 7% to 9% CAGR, I think the delivery will be seen.
There are no further questions at this time. Mr. Roy Zisapel, I will turn the call back to you.
Thank you everyone for attending and have a great day.
This concludes today's conference. You may now disconnect.
Dublin, July 07, 2022 (GLOBE NEWSWIRE) -- The "Data Center Networking Market - Global Outlook & Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.
Rapid growth through the establishment of 5+ cloud regions by global operators year over year is boosting the spending on high capacity and highly secure network infrastructure solutions.
The adoption of SDN (Software Defined Networking) has gained significant traction in the past two years and will increase among data center operators and telecommunication service providers across developing markets in APAC and Europe. We believe that the spending on SDN will intensify with 5G deployments and edge facilities growing at a staggering CAGR of over 20% during 2022-2027.
Rapid growth through the establishment of 5+ cloud regions by global operators year over year is boosting the spending on high capacity and highly secure network infrastructure solutions.
The adoption of SDN (Software Defined Networking) has gained significant traction in the past two years. It will increase among data center operators and telecommunication service providers across developing markets in APAC and Europe. We believe that SDN spending will intensify with 5G deployments and edge facilities growing at a staggering CAGR of over 20% from 2022-to 2027.
Increasing network traffic is driving innovations in the data center network space. Hyperscale data center operator Facebook is innovating its data center infrastructure through OCP on a yearly basis. Facebook introduced Wedge 400 and Wedge 400G Top of the Rack switches in November 2021. Broadcom, and Cisco ASICs power these switches.
Cloud and content service providers will expand their network spending from core to edge data centers. In developing countries, on-premise migration to colocation facilities will reduce the spending on 1/10GbE switches and will lead to a strong growth of 25/100GbE switches across modern data center environments.
The growing adoption of cloud platforms for data storage across the globe will further fuel the adoption of network infrastructure in this sector, with the cloud sector being the dominant industry.
Growing penetration of technological innovation is growing the need for deployment of converged and hyperconverged network infrastructure in the market that is also helping data center operators in saving data center space and capital expenditure.
Over $110 billion will be spent on procuring data center network infrastructure products by cloud, social media, and content service providers worldwide from 2022-to 2027.
The growing need for data security and low latency services are fueling the demand of advance network infrastructure solutions across industries such as BFSI, government, telecom, and others.
The deployment of network infrastructure among on-premise data center facilities is still identified worldwide among industry verticals such as government and BFSI sectors contributing a sizable share to the growth of the market.
In terms of Ethernet switches, 25GbE and 100GbE network ports witnessed strong growth in 2021. As innovations in the use of 200/400GbE switch ports continue, vendors in the market are working towards optimizing the network architecture with 800GbE switches.
Software-Defined Networking (SDN) is in an Unstoppable Growth Trajectory
Technological advancements have led to the installation of high-end networking solutions for supporting high bandwidth data traffic, and the need for virtualization of networking infrastructure has led to the adoption of Software Defined Networking (SDN).
SDN helps the user to manage cloud-based data traffic, management of advanced technologies, agility in the data traffic, and other benefits.
Key Questions Answered:
1. What will be the market size of the Data Center Network Market in 2027?
2. What are the segments covered in the report?
3. What drives the Data Center Network Market?
4. What are the latest trends in the market?
5. Which regions are covered under the Data Center Network Market?
6. Which region dominates the Data Center Network Market?
7. Who are the major vendors operating in the Data Center Network Market?
Key syllabus Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of the Study
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
7.1 Network Topology in Data Center
7.2 Data Center Network Market Overview
7.3 Types of Interconnection
8 Market Opportunities & Trends
8.1 Growing Adoption of Ai & Ml
8.2 Growing Ocp Infrastructure Penetration
8.3 Adoption of Hyperconverged & Converged Infrastructure
9 Market Growth Enablers
9.1 Growth in Software-Defined Networking Adoption
9.2 Growing Adoption of Cloud-Based Services
9.3 Growing Data Center Investments
9.4 Growing Adoption of Big Data & IoT Solutions
9.5 Growth in Adoption of High-Capacity Switches
10 Market Restraints
10.1 Supply Chain Disruptions in the Market
10.2 Network Security Challenges in Data Centers
10.3 Lack of Skilled Data Center Professionals
11 Market Landscape
11.1 Market Overview
11.2 Market Size & Forecast
11.3 Five Forces Analysis
12.1 Market Snapshot & Growth Engine
12.2 Bfsi Sector
12.3 Government Sector
12.4 Cloud Sector
12.5 It & Telecom Sector
12.6 Other Industry Sectors
13.1 Market Snapshot & Growth Engine
13.2 Ethernet Switches
13.3 Storage Networking
13.5 Other Network Infrastructure
14.1 Market Snapshot & Growth Engine
15 North America
15.1 Market Overview
15.2 Market Size & Forecast
16 Latin America
16.1 Market Overview
16.2 Market Size & Forecast
16.4 Other Latin American Countries
17 Western Europe
17.1 Market Overview
17.2 Market Size & Forecast
17.8 Other Western European Countries
18.1 Market Overview
18.2 Market Size & Forecast
18.4 Other Nordic Countries
19 Central & Eastern Europe
19.1 Market Overview
19.2 Market Size & Forecast
19.4 Other Central & Eastern European Countries
20. Middle East
20.1 Market Overview
20.2 Market Size & Forecast
20.4 Saudi Arabia
20.5 Other Middle Eastern Countries
20.7 South Africa
20.8 Other African Countries
21.1 Market Overview
21.2 Market Size & Forecast
21.3 China & Hong Kong
21.4 Australia & New Zealand
21.7 Rest of Apac
22. Southeast Asia
22.1 Market Overview
22.2 Market Size & Forecast
22.4 Other Southeast Asian Countries
23. Competitive Landscape
23.1 Competition Overview
24. Network Infrastructure Vendors
24.1 Alcatel-Lucent Enterprise
24.2 Arista Networks
24.3 Black Box (Agc Networks)
24.5 Cisco Systems
24.6 Dell Technologies
24.7 Digisol Systems
24.9 Enterprise Engineering Solutions (Ees)
24.10 Extreme Networks
24.12 Hewlett Packard Enterprise (Hpe)
24.16 Juniper Networks
24.18 Marvell Technology
24.19 Mitac Computing Technology
24.21 Quanta Cloud Technology (Quanta Computer)
24.22 Ruijie Networks
24.23 Tripp Lite (Eaton)
24.24 Super Micro Computer
25. Report Summary
26. Quantitative Summary
For more information about this report visit https://www.researchandmarkets.com/r/huflpj
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