Businessmodel of CyberArk

Customer Segments

CyberArk has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at organizations of all industries and sizes.

That said, its solutions are primarily utilized by firms in the energy, retail, healthcare, and financial services sectors.

Value Proposition

CyberArk offers three primary value propositions: accessibility, cost reduction, and brand/status.

The company creates accessibility by providing a wide variety of options. Its product portfolio includes features that secure, monitor, and manage privileged accounts across OT/SCADA environments, either in the cloud or on-premises. The features can be utilized individually or in combination to manage databases, operating systems, applications, network devices, hypervisors, or security appliances.

The company reduces costs in a variety of ways. It offers potential customers a free demonstration of its products that takes only 30 minutes and can be conducted at the client’s site or online. It also enables customers to try out its offerings at no cost through a free risk assessment.

The company has established a strong brand due to its success. It bills itself as the only security company that focuses on getting rid of cyber threats that use insider privileges to attack businesses. It serves over 3,075 customers, including over 45% of the Fortune 100 and over 25% of the Global 2000. Its prominent clients include AstraZeneca, Pfizer, Novartis, McKesson, and Deloitte. It maintains offices in the United States, Germany, France, Italy, the Netherlands, the United Kingdom, Spain, Israel, Australia, Japan, Turkey, and Singapore. Lastly, it has won many honors, including:

• Recognition as a 2016 Best Workplace in Technology by Fortune Magazine
• Recognition as one of the 2016 Top Places to Work by The Boston Globe
• Recognition as one of the 2016 Best Places to Work in Massachusetts by Boston Business Journal
• 2017 SC Award for Best Identity Management Solution
• 2017 Cybersecurity Excellence Awards for Best Cybersecurity Company ### Channels

CyberArk’s main channel its direct sales team. It also sells its offerings through a network of channel partners that include authorized resellers, distributors, and systems integrators.

The company promotes its offerings through its website, social media pages, and participation in webinars, summits, and conferences.

Customer Relationships

CyberArk’s customer relationship is primarily of a personal assistance nature. The company assists customers in the following ways:

Support Services - The company provides the following support programs:

• Maintenance Plus – Provides unlimited phone and e-mail technical support from 8:00 a.m. to 5:00 p.m. on weekdays to ensure that the solution is up-to-date and running efficiently
• Maintenance Plus 24x7 – Provides phone and e-mail technical support on a 24x7 basis. Support is provided by a dedicated staff of customer service managers and support engineers.

Training Services – The company operates CyberArk University, a program through which it provides classroom and online courses on the use of its solutions.

Professional Services – The company provides the following:

• Implementation Services – Provides cybersecurity professionals who plan, install, and configure client’s solutions. Service options include a Quick Start Package (three days in length), Premium Implementation Services, and Post-Implementation Follow-Up.
• Consultant Services – Provides a team of consultants that offers the following services: initial project planning, security process design and development, solution configuration and customization, integration with additional systems, post-implementation analysis, and migration services. Despite this orientation, there is a self-service component. The company’s website features a “Resource Center” that includes useful tools such as white papers, analyst reports, case studies, brochures, data sheets, eBooks, surveys, webinars, and videos.

Key Activities

CyberArk’s business model entails designing and developing its products for its customers and delivering related services.

Key Partners

CyberArk maintains the following types of partnerships:

• Channel Business Partners – The company works with resellers, distributors, and systems integrators that sell its solutions in order to extend its reach.
• Technology Partners – The company works with firms that integrate its technology into their offerings in order to provide enhanced offerings for customers. Specific partners include Brite Computers, DataSec, VANDIS, Lockstep Technology Group, Novacoast, Optiv, Trace3, Guidepoint Security, and Bedroc.

Key Resources

CyberArk’s main resources are its human resources, who include the engineering employees that design and develop its solutions, the sales employees that promote them, the training/consulting employees that provide instruction/advice, and the customer service employees that provide support.

It places a high priority on intellectual property, with several pending patents pending in the U.S.  Lastly, it has relied on funding from investors, raising $64 million as of December 2011.

Cost Structure

CyberArk has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent service enhancements. Its biggest cost driver is sales/marketing, a fixed cost.

Other major drivers are cost of revenues, a variable expense, and research/development and administration, both fixed costs.

Revenue Streams

CyberArk has two revenue streams: 1) license revenues and 2) maintenance and professional services revenues.