Strategy & Vision

Market overview

The growing number and variety of connected devices as well as digital services continues to create security challenges for both businesses and individuals. Combined with the increasing complexity of IT systems, these trends are driving demand for security services. While dedicated cyber attacks are becoming more prevalent and advanced, criminals are targeting companies of all sizes along with consumers by taking advantage of vulnerabilities in popular software and online services. Apart from pure criminal activity, governments and hacktivists are abusing vulnerabilities and malware e.g. for espionage and surveillance.

Companies and other organizations increasingly seek for managed security services and cloud-based delivery to help them maintain control of their security. Larger organizations are interested in securing their mobile device fleets and the demand for incident detection and response services remains very high, as attacks often remain unnoticed for months.

The consumer security software market continues to be impacted by the changing device landscape. Global PC shipments declined by 5.2% in the second quarter of 2016 (Gartner, July 2016). The decline is anticipated to be reflected in the market for security products, but there are nonetheless opportunities to capture market share from the competition. Furthermore, the number of connected smart home devices is growing rapidly. It is expected that there are over 4 billion connected "things" in the consumer market by the end of 2016, which opens opportunities for new innovative security products (Gartner, November 2015).

In 2015, the worldwide security software market was worth USD 22.9 billion. The consumer security software market was worth USD 5.1 billion in 2015, and it is expected to grow by 2.8% annually in 2015-2020. The security services market for enterprises was worth USD 49.6 billion in 2015, and it is expected to grow by 9.9 % annually in 2016-2019. Within this, the IT outsourcing market including managed security services was worth USD 15.6 billion in 2015 and it is expected to grow by 14.9 % annually in 2015-2020. All expected growth rates are in constant US dollars. (Gartner, May 2016)

Strategy 2016–18

F-Secure aims to capitalize on the next phase of the internet and connected world. The Company's strategy reflects the fast growing number of internet-connected devices, the changes in the ways business is done amid increasing digitalization, and the concurrent increase in cybercrime. Execution of the strategy will further speed up F-Secure's transformation from an end-point antivirus company to a broader provider of cyber security products and services.

The key driver behind the strategy is F-Secure's aspiration for growth. F-Secure is continuing to increase its investments in the fastest growing markets within corporate security. These include managed endpoint security services sold through the reseller channel as well as the cyber security services business. Investments in consumer security are continued at a level that targets profitable growth.

F-Secure also aims to maximize the commercial impact of its technical expertise and multiple sales channels for further growth in its chosen key market segments. These include cyber security offerings to large enterprises in Northern Europe and in selected verticals comprising financial industry, gaming and gambling companies, aviation, defence, law enforcement, and certain global brands. In corporate security the focus is on the reseller channel in Europe and Japan. In consumer security, F-Secure continues with its existing sales channels through operators, e-commerce and retail partners.

To enable execution of the growth strategy, F-Secure is actively recruiting highly skilled security professionals, rising cyber security talents and capable sales personnel. The Company also aims at growing through M&A.

The overall key strategic target for F-Secure is to become the leading European cyber security company.