 from Boston, Massachusetts. It's theCUBE, covering WTG Transform 2019. Brought to you by Winslow Technology Group. Welcome back, I'm Stu Miniman, and we're here at WTG Transform 2019. Happy to welcome to the program first-time guest, Marty Sanders, who is the Chief Security Services Officer at Arctic Wolf. Marty, thanks so much for joining us. Thank you, Stu. All right, Arctic Wolf's a partner, but before we get there, I have to say welcome back. Thank you, thank you. You're familiar with this event quite well. You have a background at Compellent, which of course, we're just talking to Scott Winslow, is where his company started, so just give the audience a little bit, thumbnail of your background. Perfect, so Scott and I go back a long time. We actually started back working together at Xyotec back in the late 90s. After we left Xyotec, we actually went to Compellent. We started building Compellent back in 2002 as a company, we wanted to start a new philosophy, really sit down with customers prior to actually releasing products. So we actually built a customer council. We started that in Minneapolis, and then what we wanted to do is take it to the next level. We wanted to replicate that out to other parts of the country, and the first person we called was Scott. So we started to do it with Scott, and started back in 2004, had the first meeting here at the Commonwealth, actually with a handful of customers, and now it's grown into this. So it's unbelievable what he's done with the company and just when I look at what he does, he provides a tremendous amount of value to the customers and just sells them exactly what they want but what they need as well. Yeah, we always know in certain segments of the market that degree of separation you look on LinkedIn is like one and a half. Oh yeah, absolutely. Everybody knows each other. We all run around some of the same circles. So bring us up to speed. Arctic Wolf, I believe you're the first person we've had on from the company. So it gives a little bit kind of the who and the what and the why. Perfect. And again, thank you very much for inviting us out to this as well. Arctic Wolf has been around since 2012, started off in the SOC as a service. Obviously in that small, medium business, they didn't have the capabilities to do a lot of the security work. Actually, Brian Nesmith, our CEO, started the company with his other founder, Kim Tremblay. They worked at Bluecoat. They understood the security world but understood that there was a big hole in that space in that small, medium enterprise business. So they were actually way ahead of their time. I mean, you look at from 2012 to 2015, it was a little bit slow growth. But now you start to look at where we're at and the adoption of that having a SOC as a service seven by 24 hasn't been adopted very well. Yeah, I thought it was rather telling actually in the keynote this morning, some people were asking about security and they're like, wait, you know, how do I do? If I do this hybrid cloud stuff, how does that work? And I'm like, yeah, I go to too many events. It's like, I have, you know, ingrained in my system now, security is everyone's problem. There is no such thing as a moat. You know, you assume that they are going to get in. So therefore I need to build it every level of the stack I need to get in. But, you know, I'm the industry watcher. The people that are doing, you know, what's their mindset? You know, what's working well for them, you know, security, how's Arctic well for them? And you want to take that premise. I mean, one of the things that we do is we actually assign a concierge security team to that customer. So we want to be the extension of their environment. I mean, in fact, as we started to talk to some of the clients that we have here, they're repeating the words. They feel like, you know, my team is part of their team. And it's just, it makes it so much easier. So you're not dealing with somebody fresh every time that you call in. If you have any, you know, type of event that is, you know, validates that there's somebody trying to break in, you want to have that person that understands your environment, understands exactly where you've been, you know, making sure that you're up to speed on their network, all their ingress, egress points that they can come into. So it makes it so much easier if you have that consistent face that you're dealing with. Okay, Marty, what is, you know, is there a typical customer of Arctic Wolf? You know, is it, you know, where do you fit kind of in the WTG, you know, their customer base? Yeah, and that's a great question. I mean, when you look at where we really fit is, the first questions that we want to ask is, do you have a security team? Do you have it seven by 24? I mean, that's where we really want to make sure that we're augmenting that. I mean, when you look at, you know, a lot of the companies, they might have that office admin that became the IT person that became the security person. What we want to do is make sure that we're providing the true level of high security for those companies seven by 24. Because obviously the bad guys know that there's going to be a hole after your hours or whatever it's going to be. So that's when they want to go in. So we want to make sure that we're covering that. So Scott and his clients are kind of in that medium, small, medium business, moving up into the small enterprise and it fits really well with them. Yeah, so you're saying most of them don't have an entire security SWAT team waiting to, you know, seven by 24 to do that. Walk us through, I don't know, maybe if you have a customer example or kind of a generic size version that you can share. What does an engagement look like from when they first plug into, you know, when they're fully engaged? Perfect, so typically what we do is we actually, once the deal is closed, what we want to do is sit down with the customer, understand exactly all their different applications, all their environments, understand all their ingress, egress points that they have coming in. We want to make sure that we're maximizing coverage and what we want to do is triangulate anything that comes into that. Understand all the attack vectors that the bad guys may try to come in. So it takes us about 30 days to go through all of that. So once we get them onboarded, we assign that concierge security team going to be a senior and a less senior person dedicated to that team. And basically they're going to go through and review that environment, make sure that they understand, you know, all the different applications. Is it Office 365? Is it, you know, any cloud apps that we need to hook up to it? All the different servers to make sure that we're getting all that information. We want to provide more quiet service. We don't want to be, you know, anytime someone knocks on the door, we don't want to be calling little red hand type stories. We want to make sure that anything that we actually report on is going to be actionable for those customers. So that's that trusted confidant. That's where we build that strong relationship rather than sending out a note and retracting it as a false positive or anything like that. Okay, Marty, I heard you mentioned some SaaS applications in their kind of infrastructure environment. Is public cloud included in that also? Absolutely. And what we want to do is make sure that we understand, like you said, and like Joe and Rick went through and talked about, there's going to be that private and public cloud. We want to make sure that we're capturing everything internally, but also if you're using those SaaS applications on the outside, whatever they may be, we want to make sure that we're capturing all that information so that we can help with that. Okay, and, you know, Billing, is this, you know, is there multi-year commitments or how does the financial piece of this work? It can be MRR, I mean, we're going to go through on a monthly basis and we'd like to get at least a year commitment. It can be something that they sign up for a couple months or they sign up for a year and pay monthly, whatever they need to do. But typically what we want to do is provide that level of service. And when you think about it, if you were to go and buy a security team to cover seven by 24, it's at least a minimum of six, seven people to do that. So when you look at the price point, we want to be, you know, less than that. We want to provide that high level of value. You know, when you think about a single team going out and trying to do something, the typical threat has been in their environment for at least a hundred days before they notice it. What we want to do is get it down to minutes. We want to make sure that any threat that's coming in, we're notifying on it immediately. We want to make sure that we're going to capture all those things. All right, so Marty, when I talk to the big enterprises, you know, security, it's not only top of mind, it's often a board level discussion. When you come down to kind of the mid-sized to small companies, you know, where does security fit in their overall pictures? What are some of the, you know, the biggest things on their mind? So it's very interesting. When you start to think about it, one of the things that is challenging, you look at some of the places that we're having the greatest adoption rate, are those companies that have the biggest threats. You know, you look at where the money is, you look at in the healthcare environments, the smaller healthcare, or you look at the legal side of things. I mean, people know where there's money and where they need to have that data. So when you look at it, it's becoming a higher topic and it's becoming every conversation. And we don't like to say that, you know, the conversation gets highlighted after a breach or whatever it's going to be, but it does. I mean, we'll be in the middle of some discussions and you'll hear about somebody that just got hit in a similar environment. And that's how it gets brought up. Oh boy, sounds like almost, you know, all the discussion is data is the new oil. Well, those bad actors out there know where the oil is. Absolutely. And therefore, that's a security risk for them. Absolutely. And I mean, and the thing that you look at is, you hear about some of the, you know, where some of the, you know, Atlanta and some of the other cities that were hit. I mean, they go after the localities and the municipalities of making sure that they're going after. And they know that they're going to pay very quickly because how incredibly important that data is to do that. And even some of the, you know, sitting talking to some of the customers here today, manufacturing, you know, just the ability to go in and steal, you know, the IP that they have to make their business a little bit unique, that's where the people are concentrating because they want to take that and find that uniqueness in that business. All right, Marty, want to give you the final word, WTT Transform 2019. Talk about the partnership, talk about the customers and final takeaways. So the partnership, I mean, obviously Scott and I've known each other for a long time, the entire sales team. I know Scott, Rick Gowan actually was a customer of ours at Travelers Insurance. Scott hires great people, great employees. They partner, they take care of their customers better than anybody that I know. I mean, I just love the passion. In fact, some of the customers that we started with back in 2004 are still here, still using the same products, but they continue to look at, you know, what provides the most value for them. Marty Sanders, the CSSO of Arctic Wolf. Thanks so much for joining us. Thank you, Stu. And I appreciate all the updates. Thank you. All right, full day of coverage here in the shadow of Fenway Park, Boston, Massachusetts, the East Coast team's home game, as we like to say. I'm Stu Miniman. Thanks so much for watching theCUBE.