DDoS protection "as-a-service" revenue model wins
4 January 2017
Corero Network Security plc
("Corero" or the "Company")
DDoS protection "as-a-service" revenue model wins
Corero Network Security plc (AIM: CNS), the AIM listed network security company, is pleased to announce that it has won five "as-a-service" subscription-based contracts for its DDoS protection products and technology in the final quarter of 2016, with an aggregate annualised contract value of $0.3 million.
The "as-a-service" offering was introduced in response to increasing customer interest in subscription-based contracts in contrast to the purchase of equipment under a traditional perpetual license model. This "as-a-service" offering is expected to expand Corero's addressable market and is proving popular with fast-growing Cloud hosting providers and regional service providers who can enter the market more rapidly by offsetting the costs of operating a DDoS protection solution with the monthly revenues derived from selling these high margin security services to their own customers.
This "as-a-service" sales model, which was introduced in the fourth quarter of 2016, reduces recognised revenue at the time of the initial customer order but increases the contract value and recurring revenues over the life of the deal.
Corero also enjoyed an increase in perpetual license model revenue billings in the fourth quarter of 2016.
An update on trading for the year to 31 December 2016 will be provided ahead of the full year results announcement.
Ashley Stephenson, CEO of Corero, commented:
"As reported in the Interim Results announcement in September, we anticipated an increase in customers seeking to utilise Corero's DDoS Protection products and technology via an "as-a-service" subscription-based offering, thereby increasing Corero's addressable market. We are pleased with these initial customer wins and see an increasing opportunity to add incremental subscription-based customers in 2017 which will serve to boost our recurring revenue base."
Enquiries:
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Corero Network Security plc |
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Andrew Miller, CFO |
Tel: 01895 876 382 |
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Cenkos Securities plc |
Tel: 020 7397 8900 |
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Bobbie Hilliam - NOMAD Alex Aylen - Corporate Broking |
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Redleaf Communications |
Tel: 020 7382 4747 |
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Rebecca Sanders-Hewett/David Ison/Susie Hudson |
cns@redleafpr.com |
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About Corero Network Security
Corero Network Security is the leader in real-time, high-performance DDoS defense solutions. Service providers, hosting providers and online enterprises rely on Corero's award winning technology to eliminate the DDoS threat to their environment through automatic attack detection and mitigation, coupled with complete network visibility, analytics and reporting. This next-generation technology provides a First Line of Defense® against DDoS attacks in the most complex environments while enabling a more cost effective economic model than previously available. For more information, visit www.corero.com
This information is provided by RNS
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