The Cybersecurity Ecosystem: A Deep Dive

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Pleased to unveil this cybersecurity ecosystem map! After 100+ hrs of meeting w/ experts, I created this deep-dive framework for operators / investors who want to learn about cybersecurity. I disagree w/ many frameworks used today. We need to go back to basics. Let's dive in!

First, some context: Cybersecurity is a $200B Industry with over 3500+ vendors in 40+ sub-categories w/ TAMs above >$1B! The pure-play market leader only has a 4% market share, and <10 companies have created >$10B market value! Making it fragmented / complex for new beginners

However, if we boil things down to basics using first principles, the modern enterprise corporation is made of: 1. People / users 2. Hardware / computers, devices, etc 3. Software / infrastructure / Apps 4. Network / interconnecting point 5. Data / managing risk across 1-4

Building upon this foundational layer of the enterprise, Cybersecurity products are layered upon each part! As attackers find more loopholes within this structure, more cybersecurity solutions / startups are created. This leads to the current proliferation of point solutions!

Let's briefly go over each major component! Network: The network is the central point and core layer that connects hardware + software + people. This partly explains why $PANW & $FTNT are some of the largest compounders in security because of their critical role.

Hardware: Endpoint security is responsible for protecting computers, servers & users against attacks. Modern endpoint studies how users act on these devices. It's important to note that there are other parts, including IoT/OT security, asset mgmt, and unified endpoint mgmt.

Software: This category is responsible for protecting the infrastructure (the cloud) and all underlying components that are built on it. Sub-markets include application security, software supply chain. app security testing, WAF/API security. More explanation in the deep dive!

People: These are both users (most vulnerable link) + security protectors! This category includes: 1) Identity security: Verifying users and their access 2) Internal protectors: Security Operations, & related tools like SIEMs) 3) External advisors: MDR, MSSPs, & consultants

Data & Risk: How do you manage risk and protect your data across all 4 areas discussed? This category solves it: 1) Data Security: Includes the sexiest market (GenAI/LLM Security) 2) Governance, Risk & Compliance (GRC): With Gov't playing a bigger role in security, GRC is huge!

To summarize everything, I believe cybersecurity can be boiled down into these five categories despite the current fragmentation and complexity within the industry. Here is my deep-dive that goes into more depth: softwareanalyst.substack.com/p/the-beginners-guide-to-cybersecurity

This is a primer / introductory piece for those wanting to expand their security knowledge. It's a sneak peek into our cybersecurity bootcamp, where we go into more depth covering these categories and companies. Only 3-days left. You're welcome to join! maven.com/saas101live/saasbootcamp

The framework is meant to serve as a guide - hope it's helpful! Thanks for reading / open to your thoughts!