Falanx Group Limited FALANX AND SOLARWINDS PARTNERSHIP UPDATE (1122E)
October 16 2018 - 1:00AM
UK Regulatory
TIDMFLX
RNS Number : 1122E
Falanx Group Limited
16 October 2018
Falanx Group Limited
("Falanx" or "the Company")
FALANX AND SOLARWINDS PARTNERSHIP UPDATE
Falanx Group Ltd ("Falanx", AIM:FLX), the global cybersecurity
and intelligence provider, is pleased to provide an update on its
partnership with SolarWinds-the circa $1bn revenue US-based
provider of software solutions for network management.
As previously announced, Falanx is the first SolarWinds(R)
Threat Monitoring Service Provider(TM) (TMSP(TM) ) in the UK and
South Africa. This partnership gives Falanx 'first-mover' advantage
with the total addressable market of over 2,000 SolarWinds Managed
Service Providers ("MSPs") within the UK. With an industry average
of 50 customers per MSP, Falanx will partner with SolarWinds to
sell its complementary services to around 100,000 SolarWinds end
customers in the UK alone.
Falanx's role as TMSP is to provide Security Operations Centre
("SOC") services in support of SolarWinds' sale of its Threat
Monitor software to its MSPs and onward to their end customers. In
the early stages, this will require Falanx to support the
installation as well as the monitoring of the new Threat Monitor.
Over time, the MSPs will take on more installation responsibility
but the monitoring role will remain the exclusive domain of Falanx.
The Board believes an entry-level price of GBP200 per month, per
end customer for the SOC service is likely to support mass
adoption. Pricing per customer will be determined by the size of
their IT estate and incremental services will be charged
separately.
Consequently, Falanx has an addressable market of over 2000
MSPs. Of these, some are sophisticated enough to support and
provision Threat Monitor themselves whilst others have customers
that currently lack the required cyber security basics in place to
consume Threat Monitor. The Company's immediate focus will
therefore be to support those MSPs whose customers have an appetite
to strengthen their current security posture. Internal estimates
suggest that this equates to approximately 20% of the addressable
market, or around 20,000 target end customers. As an illustration,
if only 2000 end user customers take up this service at entry level
pricing, this would generate GBP400k revenue per month on the
Threat Monitor SOC Services alone. Falanx will be working with the
SolarWinds network of MSP's in the coming weeks to plan, design and
implement the roll out of this extensive programme, and it is
anticipated that the delivery of these support services will
commence in the first quarter of 2019. Current sales will have a
limited impact on this year's revenue but could dramatically
benefit future periods.
Furthermore, Falanx has agreed with SolarWinds to offer the full
suite of Falanx's Cyber Security professional services to the MSP
network, for onward resale to their customers in the UK and South
Africa. The Board believes that these services will be attractive
to a significant proportion of the SOC user base, which could
generate a further GBP200k per month.
This partnership with SolarWinds reflects the Company's
successful strategy in recent years of transitioning to an indirect
'Channel' sales model, leveraging MSPs' trusted status as well as
their extensive sales reach and marketing capability, to
efficiently reach a greater number of prospective customers. This
transition has helped drive the growth in monitoring revenues by
more than 250% in the last two years.
As referenced in the annual report for 31 March 2018, the
Company has sufficient resources and committed facilities available
to meet its current plans including the commencement of this
transformational project.
Upcoming Events
Falanx will meet SolarWinds MSP's and clients at the upcoming
customer conferences;
- Manchester, 7th November 2018, at the Renaissance Manchester City Centre Hotel
- London, 8th November 2018, at the Hilton Park Lane
- Cape Town, 13th November 2018, at the Radisson Blu Hotel & Residence
- Johannesburg, 14th November 2018, at the Radisson Blu Hotel Gautrain
- Amsterdam, 15-16th May 2019, at the NH Collection Grand Hotel Kransnapolsky
https://www.solarwindsmsp.com/events/upcoming-events
https://www.solarwindsmsp.com/events/empower-msp-events-2018
Falanx will present its latest news to an audience of investors
at the UK Investor City Forum, 6pm on 16th October 2018 at No. 1
America Square, 17 Crosswall, London, EC3N 2LB
Mike Read, Chairman and Chief Executive Officer of Falanx,
commented:
"As we work ever closer with SolarWinds our partnership is
developing into a fantastic opportunity for Falanx. Combining the
marketing and sales power of a $1bn software company with our SOC
services and expertise is transformational. As the only SOC service
provider supporting the SolarWinds TM market in the UK and South
Africa, just a modest uptake of services is required to
dramatically change Falanx's financial performance. We are now very
well placed to scale Falanx into a significant leader of Cyber
Security services in the UK in the short to medium term."
Enquiries:
Falanx Group Limited www.falanx.com
Mike Read, Chief Executive Officer
SPARK Advisory Partners Limited
Nominated Adviser
Matt Davis / James Keeshan +44 (0) 203 368 3551
Turner Pope Investments (TPI)
Ltd
Broker
Ben Turner / James Pope
+44 (0) 203 621 4120
IFC Advisory Ltd
Financial PR & IR
Graham Herring / Miles Nolan
/ Zach Cohen +44 (0) 203 934 6630
About Falanx
Falanx Group Limited, is a global intelligence and cyber defence
provider working with blue chip and government clients. It operates
the MidGARD cyber monitoring platform for corporate and
governmental customers which utilises a combination of proprietary
and third-party processes and technologies. For more information:
http://www.falanx.com/
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END
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