So throughout the videos and text you have been looking at, we stress the fact that Scorpion Software enjoys a dominant position in our space by the very fact we are the leading strong authentication vendor to IT Service Providers. Well, in many cases, we are the ONLY one, especially since we provide password management, strong authentication and single sign on designed to work together as well.
However, we are not ignorant or arrogant about the fact that we are not alone. What follows is a short breakdown of the classes of competitors we have, and a discussion about several key players around the world. To be clear, there is simply no way for us to cover every single business that may or may not compete with us. We understand the type of businesses that they are, and classify them based on how it aligns against our target markets and verticals.
The biggest competitor in the world
Who would you guess? Some big enterprise player like RSA? Maybe CA? IBM? Microsoft?
Our biggest competitor is complacency. In the SMB space chances are they would know or work with very few of them. The biggest competitor is the fact that most small businesses don't believe they have a problem. Or one that requires their attention. Especially the smaller IT Service Providers. They believe they will never have a problem with staff issues relating to accessing client networks, and their own internal sensitive corporate resources. Yet as soon as a staff member leaves them in a bad spot... they call.
And the small businesses they serve aren't much better. Research has shown business owners were more willing to share their passwords or use extremely weak ones than pay for the proper safeguards, because they feel they are not at risk. Until they see how the vile and villiany of the Internet really works, they may not engage. In many cases, you can think of us in the same vein as insurance companies. No one wants to buy earthquake insurance, right up until an earthquake happens. Then the insurance companies have no problem in them listening. Of course, some will say, "I survived, and will be fine". Those are usually the ones that come back after the second earthquake and buy everything they can ;-)
In all seriousness, it's not other businesses providing solutions similar to ours that are our biggest risk. It is the businesses that fear little about their own information assets, and simply will not relate to what their peers are seeing. Or what we are saying.
The competitive landscape
Three important features characterize the competitive landscape in the information security software industry, particularly for the password management and strong authentication marketplace:
The market is still open and growing very rapidly - No single competitor, product or technology dominates the strong authentication market space for small to medium sized businesses.
Security is a process, not a product focusing on risk mitigation, and not risk avoidance - No single product can offer technical safeguards that will completely protect a business. Our products are designed to easily integrate with other vendor's products and line of business applications, strengthening the security protecting information assets while reducing the risks to acceptable levels for most small businesses.
Static reusable passwords continue to be a real problem for business; there is no shortage of business opportunities - Continuous media coverage on breaches of privacy, security, identity theft and information theft show that static passwords alone are not enough to protect critical information assets and business resources. There are plenty of opportunities out there to strengthen existing safeguards to reduce the online risk for our target market.
So with that said, let's discuss those companies we come across and compete with for business when prospects are looking at other players in the industry.
Understanding our competition in the two-factor authentication space
There are several companies that represent established and successful competitors within the strong authentication market space. RSA, CryptoCard, Verisign and Vasco are examples of just a few of these companies.
Each of them offers products with some similarities to our own, but none of them have been focusing on a business model to support small businesses that require password management, strong authentication and identity management. Most of these vendors exclusively focus on enterprise environments where they sell thousands of hardware tokens at a time, and rarely focus on the smaller businesses that need only a few.
Focused on being THE experts for helping small business integrate strong authentication into their existing business workflow, Scorpion Software is differentiating itself by being one of the only companies to dedicate resources to Microsofts entry level Small Business Server and Small Business Server Essential product lines, building a sustainable business model to service this market segment. We have a stronger value proposition for small businesses by offering a significantly higher relevant feature-to-cost ratio than any of our competitors, while offering customized solutions not previous available to this market. Where our competitors only build commercial off the shelf software (COTS), Scorpion Software has built an extendable architecture which allows us to customize our solutions to meet the needs of our clients through the introduction of web services.
On top of that, Scorpion Software is the only strong authentication vendor in the world that has been able to negotiate the use of our technology in the most popular RMM and PSA solutions that IT Service Providers and MSPs use. This differentiation allows us to deliver strong authentication to not only the IT providers, but to their own clients as well. You can see that with the integration of AuthAnvil in Kaseya, Labtech, Level Platforms, Connectwise and Autotask. This also means we get the side benefit of being able to deliver these solutions through these providers, extending our reach to the SMB space.
Understanding our competition in the password management space
Password management is most well known as a way to organize personal passwords. Typically its software designed to work for a single user. There are many popular personal password managers out there like 1Password, KeePass, RoboForm and LastPass.
Each of these offer simple password storage capabilities, but do not provide the ability to share easily with others, audit access and synchronize passwords. Some products like Secret Server from Thycotic do, but are focused on delivering this in a single networked environment, instead of offering a way to synchronize passwords on-premise and in the cloud, across multiple companies.
Understanding our competition in the single sign on space
When it comes to single sign on, there are several vendors offering enterprise class solutions costing tens or hundreds of thousand dollars. This includes RSA Federated Identity Manager, Oracle Access Manager, PingFederate and Microsoft Forefront Identity Manager. Microsoft has also recently released Active Directory Federation Services (ADFS), which is a low cost claims based SSO system. There also exists cloud based vendors like OneLogin that focus on web application SSO. Finally, companies like VMWare are working on projects like Horizon Application Manager which takes the idea of OneLogin and pushes it into infrastructure. At least theirs.
Almost all these solutions are extremely expensive and complex to set up. And they do not have the integration across password management and two factor authentication like we do with AuthAnvil Password Vault and AuthAnvil Two Factor Auth.
Why it doesn't matter
Many companies believe you have to be initimately aware of your competitors. Some texts go on to say you should spy on them and obsess about knowing what they are up to. At Scorpion Software, we think that is a wrong set of attitudes. Instead, obsess over our customers! We need to be cognizant of who are competitors are, and what they are up to... but only to gather information on market trends. How OUR mutual potential customers think.
Seth Godin has a great quote in which he said:
There are six billion people in the world. Even if your market is hand-made spoke shaves for left-handed woodworkers, there are more people in your market than you can ever hope to track down.
There is more than enough opportunity out there. Let's focus on looking forward and seizing new opportunities than fretting about our competitors. Keep up with them. Understand them. Learn from their mistakes. Do so by winning new prospects away from them before they have a chance to pursue it in the SMB! Its not about measuring our self or our business against anyone else. It is about continuing to refine whats unique about what we do. Its about zeroing in on our essential zone of genius.
Do it different. Do it better. Do it right. Solve the obvious problems with passwords that others ignore. Including our competitors.