Businessmodel of Malwarebytes

Customer Segments

Malwarebytes has a segmented market business model, with customers that have slightly different needs. The segments are consumers, small/medium businesses, enterprises, and non-profits.

Value Proposition

Malwarebytes offers five primary value propositions: accessibility, pricing, performance, risk reduction, and brand/status.

The company creates accessibility by offering a wide variety of options. Its solution identifies and removes malware on PCs and phones using next-generation anti-malware, anti-spyware, and anti-rootkit techology. Specific types of malware addressed include worms, rogues, bots, spyware, rootkits,  and Trojans. It integrates with a wide variety of third-party security platforms that may already be on users‘ computers. Lastly, it is available in over 30 languages, making it usable by many.

The company offers a pricing value proposition. It offers a basic version of its software for free. It also offers a 14-day free trial for its premium version. Lastly, customers who upgrade from premium to basic receive a 50% discount.

The company has demonstrated strong performance through tangible results. Its solution features a setting called “Hyper Scan Mode“ that only targets active threats, making it analyze computers at a lightning-fast speed.

The company reduces risk by maintaining high security standards. Its solution not only removes existing infections, but prevents future ones by running continuously in the background. This real-time protection enables it to easily halt attempted attacks. This task is accomplished through the use of three proprietary technologies – signature, behavior, and heuristics. Its solution also prevents malware from removing the solution itself from devices through its Chameleon technology.

The company has established a strong brand due to its success. Its software has fixed over 250 million home computers, with an average of six PCs repaired every second. It has received over 200 million downloads worldwide and removed more than five billion pieces of malware. It is used by over 10,000 companies. Lastly , it has won many honors, including the following:

• Three Stevie Awards (two gold, one silver) at the American Business Awards (2016)
• Ranking as one of America’s “Most Promising Companies“ by Forbes (2015)
• Ranking as one of the“10 Best Medium Workplaces in Technology“ by Fortune (2016)
• Recognition of Malwareby­tes Anti-Malware 2.0 as the“Best Security Product“ by CRN (2015) ### Channels

Malwarebytes’ main channels are its direct sales team and its website. The company promotes its offering through its social media pages and participation in expos and conferences.

Customer Relationships

Malwarebytes’ customer relationship is primarily of a self-service, automated nature. Customers utilize the service through the main platform while having limited interaction with employees.  The company’s website features a “Resources” section that includes tech briefs, case studies, data sheets, infographics, and webinars.

The site also features a “Support” section that includes user guides (consumer guides, business guides, legacy guides, and miscellaneous guides), and answers to frequently asked questions. Customers can also sign up for access to an e-mail newsletter.

Despite this orientation, there is a personal assistance component. The company offers three support service plans, which are as follows:

• Premium – Provides phone and e-mail support
• Premium Silver – Provides a designated Technical Account Manager (TAM) who guides clients from initial implementation through future upgrades
• Premium Gold – Provides a TAM and a Customer Success Engineer who support all aspects of clients‘ accounts and ensure clients‘ technical issues receive priority status Lastly, there is a community element in the form of a forum where clients can interact with peers.

Key Activities

Malwarebytes’ business model entails designing and developing its software for clients.

Key Partners

Malwarebytes maintains the following types of partnerships

Resellers – The company’s Partnerbytes program includes firms that sell the company’s products to their customers in order to extend its reach. Program benefits include the following:

• Access to the Malwarebytes Partner Portal app
• Competitive margins and deal registration discount
• Access to NFR licenses
• Dedicated co-branded marketing campaigns
• Sales enablement training, tools, and certification Specific partners include Zones, CDW, Optiv, and Shi.

Affiliates – The company maintains the cleverbridge, Zanox, and Commission Junction programs, through which it invites third parties to promote its offerings through their platforms (websites, mobile apps, etc.). Program benefits include the following:

• Up to 30% commission for each sale, with receipt of commission within 30 days of point-of-sale
• Access to affiliate marketing promos
• Access to affiliate e-manager
• Malwarebytes handles product billing and support Strategic Technology Partners – The company works with firms that integrate its solutions with their products and services in order to enhance their offerings. Program benefits include access to detection and remediation expertise. Specific partners include LabTech, Kaseya, and Continuum.

Key Resources

Malwarebytes’ main resources are its human resources, who include the researchers who investigate new types of security threats, the engineering employees that design and develop its software and the customer service personnel who provide support.

Lastly, as a startup it has relied heavily on funding from outside parties, raising $80 million from three investors as of January 2016.

Cost Structure

Malwarebytes has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is likely cost of services, a variable expense. Other major drivers are in the areas of product development and customer support/operations, both fixed costs.

Revenue Streams

Malwarebytes has two revenue streams:

• Subscription Revenues – Revenues it generates from subscription fees charged for annual access to its software programs
• Service Revenues – Revenues it generates from fees charged for access to its support services