Cylance Inc.’s security software was lauded recently by federal officials for playing a key role in discovering and mitigating one of the largest government data breaches in U.S. history.
The U.S. Office of Personnel Management deployed CylancePROTECT on April 17 of last year, a day after the agency that manages civil services discovered suspicious activity on its networks.
The product identified the “advanced persistent threat” and stopped the attack, but not before the personal information of 21 million current, former and potential federal employees was compromised, including security clearances, background checks and fingerprint records, according to a report by the House Committee on Oversight and Government Reform that blamed the Office of Personnel Management for failing to implement proper safeguards and ignoring warnings for years that it was susceptible to attacks.
Agency Overhaul
The breach, which has been linked to the Chinese military, led to the resignation of Director Katherine Archuleta last year and a security overhaul of the agency.
The report chastised the department’s leaders for failing to quickly deploy Cylance’s security software that fuses machine learning, artificial intelligence algorithms, and the cloud to thwart new and evolving threats and cyberattacks before they hit servers, desktops and virtual desktops.
The software is used by a growing base of more than 1,000 customers, fueling sales that eclipsed $81.7 million in the 12 months through June, up a whopping 1,996% from two years earlier.
The percentage leap gives Cylance claim to the top spot among midsized companies—those with between $10 million and $100 million in annual sales—on the Business Journal’s Fastest-Growing Private Companies list this week (see lists on page 32, 36 and 50; related stories on pages 1, 26).
“Our explosive growth is due to the pent-up demand for cybersecurity products that actually work,” Cylance Chief Executive Stuart McClure told the Business Journal after a trip to Washington, D.C., to discuss the congressional findings. “With the application of AI to the problem of cyberattacks, we finally have a robust and insanely effective way of preventing attacks on the endpoint.”
Malicious Malware
The company’s software prevents between 1,500 and 2,000 attacks every week, according to McClure, including malicious malware such as advanced persistent threats in which an unauthorized person gains access to a network and remains undetected for long periods of time, typically with the goal of stealing data rather causing damage to IT infrastructure.
The Business Journal has reported that Cylance’s next push is in the consumer market as it aims to forge partnerships with service providers, such as banks and internet and cable providers, which have millions of app users and customers.
McClure envisions a scenario where a bank customer’s drive is infected with malware intended to siphon funds, and instead of simply receiving a notification that the account is temporarily blocked, the user can tap a button to clean up the breach immediately.
He believes the company can attract more than the $39 to $89 consumers typically pay annually for such services, particularly as smartphones continue to evolve as a key tool of daily life, activating products from door locks and lighting to home entertainment systems and smart sensors.
The consumer service should roll out next year.
The move toward the consumer market follows several developments at Cylance, which raised $100 million in June in a Series D round led by Blackstone Tactical Opportunities that also included strategic investor Citi Ventures, the venture and innovation arm of New York-based Citigroup Inc., the third largest bank in the U.S. with $1.77 trillion in assets.
Cylance has raised $177 million since its inception in 2012.
Strong demand and funding has led to a big expansion and hiring push, both locally and globally. The company has doubled employment in the past year to more than 500 globally, with additional offices in Portland, Ore.; London; Tokyo; and Sydney. It recently expanded offerings to the Nordic countries, Canada and Japan.
The software maker’s headquarters at 18201 Von Karman Ave. is nearly filled to capacity with 175 employees, a mix of customer service, technical support, quality and assurance, IT personnel, and a threat guidance team that produces industry reports on burgeoning, active and disabled cybersecurity threats. A hiring blitz prompted the company to take an additional floor in the building and office space for its marketing team at nearby 18500 Von Karman Ave.
New HQ
Cylance also is building out a few floors at 18200 Von Karman Ave., which appears to be slated as its new headquarters.
Retaining employees, a challenge for most OC tech companies with the allure and perks of nearby Silicon Valley, hasn’t been an issue.
“I think it’s a lot easier for retention because normally when you get into cybersecurity you really, really love it,” McClure said in an earlier interview. “It’s like a test of wits, a test of skill, mettle. It’s like a big chess match.”
