Strategy & Vision

Market overview

The security software business is in transition. The Software-as-a-Service business model and cloud-based delivery are rapidly disrupting the marketplace. While PCs continue to play an important part in the device landscape, especially in business use, the majority of the growth in new device sales will come from post-PC mobile devices and Internet of Things. These changes continue to transform the security markets, as well. The short-term growth in PC-centric security is challenging. However, there are substantial mid-and-long-term business opportunities due to this ongoing transition.

The growing variety of connected devices and services creates increasing complexity for both business and individuals. The threat landscape is becoming more sophisticated and threats to online security have grown and evolved considerably. Online criminals are following users to social media and mobile devices. In addition to traditional malware, government surveillance, espionage and targeted cyber-attacks are a reality.

According to a recent study by the Pew Research Center Internet Project, 91% of adults in the survey agreed that consumers have lost control over how their personal information is collected and used by companies. Since the Snowden revelations, consumers have become more aware that they may be revealing the most intimate details of their lives through their connected devices. The need for security has never been greater.

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).

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.

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.