Negombo, Sri Lanka — Kaspersky, a global cybersecurity solutions provider, is recalibrating its strategic focus following its exit from the US market. The company is intensifying its efforts in Southeast Asia (SEA) and establishing footprint in emerging Asian markets.
Kaspersky’s pivot involves creating a new regional grouping, recruiting local talent, and launching tailored cybersecurity products to meet the unique needs of these markets.
Strategic shift to Apac
Kaspersky’s decision to shift focus to the Asia-Pacific (Apac) region comes on the heels of increasing geopolitical tensions and regulatory challenges in the United States.
“We see more opportunities in Apac,” said Yeo Siang Tiong, GM for Southeast Asia and Asia Emerging Countries. “This year, we regrouped our operations under Apac, forming a new group called Asia Emerging Countries which includes Cambodia, Laos, Myanmar, and other countries from South Asia like Sri Lanka and Bangladesh (among others).”
Yeo was focused on the SEA region until the expansion efforts began this year. He is now responsible, along with other on-ground personnel, in exploring new opportunities for the company’s Apac market expansion.
The new grouping aims to provide more focused attention to these emerging markets, which often get overshadowed by larger economies.
“In Southeast Asia, countries like Singapore, the Philippines, and Thailand are fairly mature,” Yeo said. “We have established teams there who know what to do. But in the emerging countries, we didn’t have people on the ground. By creating this new grouping, we can be more sensitive to each country’s specific needs and growth plans.”
Regional grouping and local presence
The restructuring of Kaspersky’s regional operations has been a significant undertaking. The company has reorganized its management layers and installed new sales leaders to oversee the Asia Emerging Countries group.
“We have hired people on the ground in these countries, including Sri Lanka. This local presence allows us to be more aware of what’s happening and adapt better to each country’s needs,” Yeo noted.
This focus on local presence is crucial for Kaspersky’s growth strategy.
“Instead of just having a general focus on the region, we are putting people in each country. This helps us understand the cultural and market-specific nuances better, enabling us to provide more effective cybersecurity solutions,” Yeo said.
Market segmentation and sales strategy
Kaspersky’s approach to the market is segmented into enterprise and consumer sectors. In terms of business revenue, Yeo said it is evenly distributed between enterprise and consumer sectors. But in terms of effort, more focus is needed on the enterprise side.
“Consumer (segment) sales are very channel-driven and require a lot of marketing and awareness,” he explained. “In contrast, enterprise sales involve one-to-one conversations and addressing complex requirements.”
This nuanced approach allows Kaspersky to cater to the specific needs of different market segments effectively. Enterprise customers have different departments, stakeholders, and internal politics. The company recognizes that enterprise customers have more complex requirements.
Yeo highlighted that the cybersecurity maturity varies across countries.
“In every country, there are leaders and laggards. Generally, more mature economies are ahead in cybersecurity. We always tell customers that cybersecurity should be part of their planning process. But in reality, it is often an afterthought,” Yeo explained. “Our goal is to continuously educate and assist our customers in integrating cybersecurity into their core business processes.”
Industry focus
In terms of industry focus, Kaspersky is prioritizing sectors that handle significant amounts of money and data. Industries like BFSI (Banking, Financial Services, and Insurance), government, and healthcare are critical because they have a lot of data and money to protect.
“Our solutions are designed to meet the high-security requirements of these sectors,” Yeo said.
Navigating the geopolitical landscape and regulatory environment remains a challenge for Kaspersky. The US exit, driven by geopolitical tensions, has necessitated a strategic recalibration.
“The US ban was not surprising given the current geopolitical climate. We were disappointed because we had engaged with them continuously, even inviting them to audit our software,” Yeo said. “We just focused our efforts on expanding our operations in regions like Apac.”
Government partnerships and collaborations
Building strong partnerships with governments and local agencies is the foundation of Kaspersky’s strategy in the emerging markets. The company has several collaborations with countries around the SEA region.
“We have MOUs with the National Cyber Security Agency of Malaysia and Thailand,” Yeo shared. “We have a standing collaboration with the Agency of Information Security in Vietnam.”
These partnerships are crucial for addressing cross-border cybersecurity threats. Yeo pointed out that cybercriminals operate across borders, so cross-border collaboration is essential. This is one of the primary reasons the company works closely with agencies like Interpol and Asean to share information and combat cyber threats effectively.
Product focus and innovation
As part of its strategic shift, Kaspersky is also tailoring its product offerings to meet the specific needs of emerging markets. One of the key products being promoted is the next-generation endpoint protection software, launched in June.
“We have integrated mobile security, device security, and server security into a single package. This makes it easier for customers to buy and manage their cybersecurity solutions,” Yeo explained.
In addition to endpoint protection, Kaspersky is also focusing on its Security Information and Event Management (SIEM) solution.
“We launched our SIEM product in the Philippines at the beginning of the year. Many customers in the emerging markets are just building their first cybersecurity infrastructure, and a SIEM solution is very appropriate for them,” Yeo said.
Kaspersky said it will continue to strengthen its presence in Southeast Asia and emerging markets.
“Our focus is on deepening our understanding of local markets, enhancing our product offerings, and building strong partnerships,” Yeo said. “Despite the challenges, we see tremendous opportunities in these regions and are well-positioned to capitalize on them.”
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