Strategy & Vision

Market overview

The need for security and privacy has never been greater. In addition to traditional malware, government surveillance, espionage and targeted corporate cyberattacks are a reality, and threats are becoming more stealthy and sophisticated. At the same time, the growing variety of connected devices and services is creating increasing complexity for both businesses and individuals.

In the consumer security market, significant short-term growth remains challenging due to declining PC-related sales. Nonetheless, there are opportunities to capture market share from the competition. Within the operator channel business, the growth in new broadband and mobile subscriptions – a key driver for security sales - continues to decline in the western world, but churn between operators continues to create sales opportunities for value added services like security. In growing economies and developing countries, broadband and especially mobile subscriptions continue to grow rapidly. In the direct-to-consumer business app stores continue to increase their impact, which is changing the ways in which security is bought and marketed. While consumers are increasingly interested in privacy and are aware that they may be revealing the most intimate details of their lives through their connected devices, the market for modern privacy solutions is only just beginning to develop.

In corporate security the Software-as-a-Service business model and cloud-based delivery are disrupting the traditional way of selling security and providing services. Cyber threats are among the greatest risks businesses with critical IT systems face today, making those businesses an interesting growth area within security.

Overall, the security software market is worth USD 21.4 billion (Gartner, March 2015). According to Gartner (January 2015), the consumer security software market is growing to be a USD 6.3 billion market by 2018 (USD 5.3 billion in 2014). Also according to Gartner, the information security consulting market was worth USD 16 Billion in 2014 and is expected to grow by 9% annually in 2015-2019. According to IDC, the incident response and forensics market was worth USD 500 in 2013 and it is expected to grow by 15% annually in 2013-2018.

Long-term objectives and strategy summary for 2015–17

In 2014 F-Secure updated its strategy, last communicated in February 2014. The sharpened focus is on cloud security. F-Secure protects all connected devices and secures the privacy of people and corporations. The strategy is built on the following trends:

Connected devices. Mobility and the vast variety of connected devices (Internet of Things) are changing the Internet landscape rapidly. The need to protect privacy and reputations, safeguarding the digital freedom of businesses and individuals, has become even more relevant as threats to new types of connected devices emerge. 

Cloudification. In the future, most data and services will be in the cloud - or rather, many clouds. This means there will be an opportunity to solve both security and usability problems while delivering products and services (including security) from the cloud.

With the Company's strong technology assets, foresight into the security landscape, and attention to customer insights, F-Secure continues to invest in developing and bringing cloud-based privacy and security products to the market. The Company will increasingly use the cloud to power existing PC and mobile security products and to develop new products that are fully cloud-based. From the cloud, the Company can offer security to the ever-growing variety of connected devices (Internet of Things) in a scalable way. Our position in the market is strengthened by the strong Finnish legal framework for privacy.

The Company will focus on consumers and corporate customers by leveraging its current channels, and will use its operator network to sell personal cloud services as well as traditional and cloud-based security to consumers. Our reseller network in key markets will be further expanded to serve our increasing corporate customer base. The Company will employ its direct business channels in providing security and privacy products to consumers globally. Within the strategic frame, F-Secure is increasingly focusing on cyber security and the corporate market, as evidenced by the acquisition of nSense in June.

During the strategy period of 2015-2017, the Company's target towards the end of the period is to grow the overall subscriber base by tens of millions of users while seeking double-digit revenue growth. The growth is expected to come from the western hemisphere and some emerging markets like Latin America. As the Company invests in growth, the proportional profitability will remain at the current level and longer-term profitability continues to be driven by revenue growth and scalable operations.