Early days here yet even a cursory sift through cyber news points to the potential of how big the WHK cyber exchange could become with a little time.
A cyber attack costs the average SME 2.2 million (USD) - that's only for SME's, too (Ponemon Institute, 2017).
An attack for the average company costs 3.8 million (USD) according to Microsoft. However, Juniper Research expects this to exponentially skyrocket to a whopping 150 million average by 2020!
Not sure how much they expect these costs to grow re: SMEs, but it would be reasonable to assume it will also grow exponentially.
As it stands, 43% of cyber criminals choose SMEs as their targets and 60% of SME's affected will GO OUT OF BUSINESS due to the inability to recover
within 6 months (CyberDot, June 2018).
It appears there are 30 million SMEs in America alone. A massive 86% of SMEs are currently underfunding cyber security according to eSecurity Planet.
This is the opportunity for WHK: shift businesses from current complacency and their legacy minimal antivirus solutions, to solutions with stronger and more modern endpoint protection.
I had a look around on the WHK exchange this morning; the most expensive product is $328,000 (USD) and there are no less than 11 products above $50,000.
I then went to the "smart" exchange and plugged in a few modest numbers for a basic 3 person small enterprise. They offered 3 choices: a basic bundle (bare minimum) for $125, a balanced bundle for $9,475, or the advanced for $32,840.
No idea on what their "clip of the ticket" is on these products, but there is no advertising (other than the cyber insurance per the announcement), nor do they allow receipt of funds for prime positioning to my knowledge, so this clip is their revenue stream.
Going back to that figure of 30 million SMEs and 86% are currently vulnerable, any figures I enter even conservative ones are eye opening.
Let's say they can get a small percentage of that market to purchase via their exchange, say around 3% (1 million customers) and the average customer goes for the mid-range $9,475 bundle. I don't know WHK's revenue model, but again - let's go very low and say a 1% clip of the ticket, so they are making close to $100 per customer, which would equate to close to 100 million in revenue.
Given these revenues would be largely one-offs, though then again upgrades would remain a strong possibility in a highly complex and ever evolving industry.
Thoughts?
Imho and of course Dyor
(20min delay)
