Code42 moved to a 100% channel model last fall with the launch of their Incydr solution for insider risk detection, which integrates well with SIEM, SOAR and IAM vendors, and benefits from channel partners who can bring these integrations together.
Last fall, Code42, a long-time online backup and recovery player, made a major pivot into the security space with their new Incydr offering focused around insider risk detection. They also made another major pivot, from having an opportunistic channel strategy to committing to a 100% channel strategy in the security business going forward. They further brought in channel veteran Faraz Siraj, who had been at RSA Security, Cisco and Sourcefire, as VP of channel sales. In January of this year, they executed a soft launch of the new Accelerate channel program. Today, they are formally announcing Accelerate, in tandem with strong channel momentum.
Code42 started in 2001 as an IT consultancy, and developed their first product, Crashplan, in 2007, an online backup and recovery product that competed with companies like Carbonite and Backblaze.
“Most still know us as a data backup and recovery company,” Siraj told ChannelBuzz. “We initially had a focus on consumer business as well as corporate. But the technology was strong. CrashPlan started as a cloud-native solution for Macs and evolved for all types of machines. Back then, being cloud native wasn’t easy, and Macs were difficult to develop around. Companies sometimes realize they have something that can go beyond what they are using it for, and that was the case here.”
By 2019, realizing that the technology had great potential as a security solution, the company pivoted with their Incydr offering, which came to market in September 2020.
“Incydr is a DLP [Data Loss Prevention] alternative,” Siraj said. “It’s not DLP because we don’t do any blocking, but because of our backup and recovery roots we are very effective at capturing data.”
Siraj said that Code42 and Incydr compete mainly against do-nothing approaches, because there is nothing quite like their solution on the market.
“We see ourselves as creating a new market for the way that we do this,” he noted. “It’s very innovative and very different. Customers told us that DLP wasn’t capturing all the data, was too clunky, and that they were sick of DLP not properly addressing the insider risk problem. We are a mixture of a lot of technologies, quasi-DLP, a little CASB, a little UEBA.”
Siraj also stated that the market for protection against exfiltration of data from insiders within an organization is really taking off.
“This is a market that is going to continue to explode,” he said. “Last year two-thirds of data breaches were from insiders. Companies will face greater challenges with insider risk because of COVID and the move to Work From Home, with 85% of employees being more likely to leak files than before COVID.” The data comes from Code42’s 2021 Data Exposure Report. Siraj also noted that Incydr operates fully in remote working environments.
“We already have some tremendous labels as customers, including Crowdstrike, Exabeam, Juniper and Snowflake,” he added
When Siraj came to Code42, approximately a third of the business went through the channel, including the historical backup business.
“I was recruited here to focus on the channel, and build, create and expand the business around the channel,” he said. “Today we have about 250 partners worldwide. Our focus now is security partners, who have a security practice and are focused on that market.”
A program specifically for MSPs and MSSPs is in the early stages of development.
“There is interest there to utilize our tools for discovery and day to day management,” Siraj said. “I’m still in the research stages of developing a program around that. We do see it as a very viable play.”
Since the soft launch of Accelerate in January, Code 42 has seen a 170% growth in channel business, an 80% increase in national elite partners, and a 125% increase in regional partners. They have also seen a 350% increase in total deal registrations, and a 225% increase in channel incremental registrations. Of critical importance is a 300% increase in partner sales and technical certifications.
“We offer free training and free professional services training, so partners can deliver professional services around our product and integrate us with other vendor solutions,” Siraj indicated. “Our solution is powerful and cloud based, with many open integrations for SIEM SOAR, and IAM vendors. We integrate very well with all of these. That creates a great MITCH [Meet in the Channel] opportunity. We need partners to represent all of these other technologies. We just released a great Okta integration where we can put a user categorized as high risk in a special category to watch them.”
The free training, especially around professional services, is the main feature of Accelerate.
“We have created a great rewards program – which is standard,” Siraj said. “It is a flexible membership program, with tiered options.”
Siraj also emphasized that Code42 is on track with the 100% channel goal.
“Everything in the security business has been going through the channel from January 1,” he said.