MX Logic Update

Here's an update on email and Web hygiene SaaS vendor MX Logic:

  • SaaS offering:
    • Virus/spam/malware control for email
    • Email archiving
    • Email disaster recovery/continuity
    • Web malware filtering
  • Main competition: Google/Postini and Symantec/MessageLabs.
  • Competitive strengths: value pricing, ease of installation and use, strong reseller channel.
  • Around 75% of sales are now through resellers; goal is to get 85% of revenues in 2009 this way, and ultimately to 90%.
  • Company now spreading its reach internationally. Has good penetration in Japan.
  • Financials: Privately held. Ferris Research estimates current revenue rate at $35M to $40M annually. VP Product Management Ryan Walsh says that the company has been profitable since February 2009.

Comments:

  • The company has a big commitment to the channel, with some 1,800 partners. It expects almost all sales to be done by third parties, including sales to large organizations. That's an interesting point of differentiation.
  • It's interesting that Microsoft's anti-virus/spamware/malware SaaS offering isn't the main competition. Microsoft has gone quiet in this regard over the last few years, presumably as it incorporates its FrontBridge acquisition.
  • Another point of differentiation is value for money. MX Logic services are priced aggressively by its resellers. End customers often pay $1 to $3/user/month, depending of course on volume and mix of services.
  • Given the current climate, it might be best if the recently achieved profitability can be maintained. That said, investment cash is available for pure startups and growing companies with a proven track record, so further fund-raising should be possible should MX Logic seek this.
  • MX Logic has built its own cloud platform and feels its multitenant scalability is a major underlying strength. We see no reason to disbelieve this, although our knowledge of the platform is currently limited.

... David Ferris

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