Speaker 1: There's kind of this misnomer that in cybersecurity we all
Speaker 1: wear black hoodies, you know, kind of hacking. We are
Speaker 1: the largest pure play global cybersecurity company in the world.
Speaker 1: We have the largest threat intelligence service, so governments all
Speaker 1: around the world depend on us. You would think within
Speaker 1: five eyes that the communication is so amazing and perfect.
Speaker 1: One of the strategies though, of bad actors is they
Speaker 1: don't always see them happening.
Speaker 2: Hi, there, welcome to Shared Lunch, brought to you by Chezy's.
Speaker 2: My name's Lake and Roberts, and I'm one of the
Speaker 2: co founders and co CEOs here at Cheesy's. Today we're
Speaker 2: talking about cybersecurity and AI with California based Palao tournic Works.
Speaker 2: They are listed on the nasdack though one of the
Speaker 2: largest global cybersecurity solution providers in the world, with a
Speaker 2: market cap of approximately one hundred and twenty seven billion dollars. Today,
Speaker 2: I'm joined by the New Zealand managing Director, Misty Landtroup.
Speaker 2: But before we get started, here's some important information. Involves
Speaker 2: the risk you might lose the money you start with.
Speaker 2: We recommend talking to a licensed financial advisor. We also
Speaker 2: recommend reading product disclosure documents before deciding to invest. Everything
Speaker 2: you're about to see and here is current at the
Speaker 2: time of recording. Welcome missie, Thanks so much for joining
Speaker 2: us today.
Speaker 1: Awesome, great to be here, Laton, thank you.
Speaker 2: Yes, so let's get started, as we always do, like
Speaker 2: a little bit get to know you. In a bit
Speaker 2: of my LinkedIn reading last night is a former Fox
Speaker 2: News reporter caught my attention, and you worked at Microsoft
Speaker 2: in the US. You've got a history as an angel investor.
Speaker 2: It's a very varied career. So how did you end
Speaker 2: up in cybersecurity and also why New Zealand.
Speaker 1: I always wanted to be a journalist. What I realized though,
Speaker 1: really quickly, was that I enjoyed the storytelling and I
Speaker 1: enjoyed being part of all that, in the excitement and
Speaker 1: those types of things. I didn't like being on air.
Speaker 1: And also I also liked to just put a disclaimer
Speaker 1: the whole Fox thing. It was a Warner Brothers affiliate,
Speaker 1: it got bought by Fox. This is way, this is
Speaker 1: a long time ago. I'm going to age myself. This
Speaker 1: is in the late mid to late nineties, and when
Speaker 1: I was on air then I just don't want to
Speaker 1: make anyone too impressed by that, because I really do
Speaker 1: think our local prison was probably our biggest audience, and
Speaker 1: so it was a great training ground for me. We
Speaker 1: do and what I really loved is we had a
Speaker 1: campus journal. I went to Texas A and M University,
Speaker 1: which I'm very proud alumni of that and I also
Speaker 1: worked for one of my professors in taught video editing.
Speaker 1: So I've always been kind of a geek. So that's
Speaker 1: what led me to eventually to Microsoft, and never dreamt
Speaker 1: that I would end up in New Zealand. It's a
Speaker 1: very long, corporate, boring story of a bunch of people
Speaker 1: that thought they knew what was best for me. However,
Speaker 1: I'm super grateful so landed here in late two thousand
Speaker 1: and nine, fresh off the boat, had never set foot
Speaker 1: in the country, and now I'm super proud to say
Speaker 1: that both my daughter Abby and I are dual citizens
Speaker 1: as of twenty seventeen, and this is very much our
Speaker 1: adopted home and country.
Speaker 2: So cool.
Speaker 1: I don't know that I answered how I got into
Speaker 1: cyber I just got recruited, and actually I tried to
Speaker 1: talk my boss who's still my boss today, who recruited me.
Speaker 1: I basically said, you've got to. I just don't know
Speaker 1: that that's transformational enough. I didn't get it that cyber
Speaker 1: was going to be involved in every single thing that
Speaker 1: we do. There's kind of this misnomer that in cybersecurity
Speaker 1: we all wear black hoodies and we're sitting behind in
Speaker 1: the you know, kind of hacking or out trying to
Speaker 1: go and go after the bad actors of the hackers
Speaker 1: and things like that. So what I've seen happen over
Speaker 1: the last I've almost been at my Palatin Networks for
Speaker 1: six years is unbelievable and transformational just globally as well.
Speaker 2: It's a long way from one of those software we
Speaker 2: used to use. It just used a meat scape worker magafee,
Speaker 2: this ones it just to annoy you every time you
Speaker 2: turned your computer on. But yeah, very much a mess
Speaker 2: of trend and post COVID in particular, which we'll talk
Speaker 2: about soon. I'd imagine the storytelling expect which you mentioned
Speaker 2: right at the start the year, has served you pretty
Speaker 2: well in the Korea.
Speaker 1: Yeah. Absolutely. The main thing I think with cyber in
Speaker 1: particular is people get quite scared of because they're like,
Speaker 1: that's a black box over there. We don't understand. We
Speaker 1: don't know what that is. So it really one of
Speaker 1: the big parts of my job is to try to
Speaker 1: demystify no pun Intendo with my name, but to try
Speaker 1: to demystify all of the things that make cyber seem
Speaker 1: more complex and more scary and so. And that's why
Speaker 1: one of the things we launched back in October is
Speaker 1: called cyber fit Nation, and it's basically from Kendy to
Speaker 1: the boardroom around educational services in US giving back for
Speaker 1: New Zealand Inc. Just around how do we keep people
Speaker 1: more safe? How do we keep them more educated? And
Speaker 1: somebody just tagged on from Kindy to the boardroom and
Speaker 1: on into retirement because as we know, a lot of
Speaker 1: people get targeted in that world of way.
Speaker 2: My uncles are regularly getting new Facebook accounts exactly.
Speaker 1: I mean, there's just it's rampant out there. It's a
Speaker 1: big business with anything to do with cybercrime and all
Speaker 1: the things that we're talking about here. It's multi trillion
Speaker 1: dollar business. So it's not going to go away anytime soon.
Speaker 2: Before we go any further, let's just define cybersecurity for
Speaker 2: anyone listening who doesn't completely capture the scope of that.
Speaker 2: So we know that it's on the rise. It's probably
Speaker 2: something that almost everyone's heard of now. But can you
Speaker 2: just give us, like a layperson's definition of cybersecurity?
Speaker 1: Sure? So, I think probably the best way to describe it,
Speaker 1: you could talk to anybody pretty much at any age,
Speaker 1: is if we most of us have devices, and so
Speaker 1: how do we make sure that we keep our information
Speaker 1: data secure on our device other than hitting the lock screen,
Speaker 1: which is going to do much for that, And so
Speaker 1: from a cyber perspective, and this might sound a little
Speaker 1: bit technical, but I do think it's important, is that
Speaker 1: it's just table stakes. Everyone should have two factor authentication.
Speaker 1: All that means is whenever you're logging into an application,
Speaker 1: which most of us are in constantly on our phones
Speaker 1: or in our browser. Lots of work done in the
Speaker 1: browser now with SaaS applications and solutions is to make
Speaker 1: sure that it's constantly being verified that you are the
Speaker 1: person that is accessing that, and that you keep that
Speaker 1: as secure as possible, to make sure that nobody can
Speaker 1: get in to get your data, to get your money,
Speaker 1: to get any of your information. Then that's probably the
Speaker 1: most simplistic way that I would describe it.
Speaker 2: Yeah, nice and two effect is a multi effect is
Speaker 2: a great way to start. Actually in a bit of
Speaker 2: a plug here, if any of our customers listening, please
Speaker 2: use it.
Speaker 1: Password managers and those types of things. I mean, those
Speaker 1: are things that I think everyone should. Yeah, that should
Speaker 1: just be something that everyone should do, just as the
Speaker 1: best practice just to keep your your everything safe.
Speaker 2: So at Palalo Networks, what do you specialize in? What's
Speaker 2: your business?
Speaker 1: So we specialize in a lot and I'm that may
Speaker 1: be an oxymoron to say you specialize in a lot. However,
Speaker 1: I will say at Palats Networks, what part of our
Speaker 1: ethos and what's ingrained in us is we don't want
Speaker 1: to be in a cybersecurity category and the categories are
Speaker 1: defined by Gartner and Forster different analysts unless we can
Speaker 1: be the best. So, just to give a quick history
Speaker 1: lesson about eighteen years ago is when Palatine Networks was
Speaker 1: born and we started off as a single product company,
Speaker 1: so it was just next generation firewall at the time,
Speaker 1: and we actually came up with the term next generation firewall,
Speaker 1: which now every other company uses that same term. You'll
Speaker 1: find the same thing with other solutions that we've done.
Speaker 1: We're typically the trailblazer not always, but typically, and then
Speaker 1: others will follow. So today, if you fast forward into
Speaker 1: twenty twenty five, then we have a platform approach, and
Speaker 1: when we think about that, then we look at network security,
Speaker 1: so that means data centers, anything on your devices. We
Speaker 1: have again I don't want to get into two technical
Speaker 1: of language, but it's called Secure Access Service EDGE and
Speaker 1: what that means our SASE. To make it sound a
Speaker 1: little bit cooler, it's SASE, and basically that is at
Speaker 1: any device on the edge, anything that you're doing out there,
Speaker 1: then that is staying secure. So that would go in
Speaker 1: kind of our network security platform. And then we also
Speaker 1: have cloud. Over eighty percent of attacks are now in
Speaker 1: breaches are now happening in the cloud. And so for
Speaker 1: any company that's a cloud board in the cloud business
Speaker 1: that has applications and things going on in the cloud,
Speaker 1: it's developing things in the cloud, all that needs to
Speaker 1: be looked at quite specifically. And then the third one
Speaker 1: would be around security operations and so this is all
Speaker 1: around automation. So for those of you who have ever
Speaker 1: been into a security operations center, which I'm not sure
Speaker 1: if you have or haven't, Basically you think about you
Speaker 1: it's kind of like a control tower of if you're
Speaker 1: doing for airplanes, you've got lots of screens everywhere. So
Speaker 1: what we've come up with is an automation piece with that,
Speaker 1: so by using machine learning and artificial intelligence, so that
Speaker 1: that is what is kind of doing all that. And
Speaker 1: i'd also just say from the beginning, even with our
Speaker 1: original kind of groundbreaking next generation firewall back almost twenty
Speaker 1: years ago, then we started off using machine learning from
Speaker 1: the beginning. And so I know everyone likes to talk
Speaker 1: about mL and AI and this and that right now,
Speaker 1: but it's actually, as we both know, it's been around
Speaker 1: for ages and that's just what our company was built on.
Speaker 2: Another thing that was really interesting in one of the
Speaker 2: articles I read was which I'd like you to tell
Speaker 2: us a little bit about your computers in that space,
Speaker 2: but also a specific comment that to achieve what we
Speaker 2: need to achieve, like we need to work really closely
Speaker 2: with computers and can't hold which I imagine is an
Speaker 2: very interesting conflict for a commercial company.
Speaker 1: And not everybody agrees with me on this, I will say, however,
Speaker 1: I do firmly believe that our leadership is very pro
Speaker 1: doing this. There's an organization a global organization called this
Speaker 1: Cyber Threat Alliance, and we're actually one of the founding members.
Speaker 1: So the premise behind it is we all should stand
Speaker 1: together to fight bad actors. One hundred percent. How we
Speaker 1: do that in our IP that's our competition. That's different
Speaker 1: when somebody's in trouble. However, then I could name so
Speaker 1: many competitors right now that we help in the background.
Speaker 1: Because we are the largest pure play global cybersecurity company
Speaker 1: in the world. We have the largest threat intelligence service,
Speaker 1: so governments all around the world depend on us. We
Speaker 1: find out stuff before other people find out, just because
Speaker 1: for the biggest and we've got the most investment in that,
Speaker 1: and so we absolutely have to help our competitors when
Speaker 1: they're in trouble. And we would never I would be
Speaker 1: super disappointed if I ever saw anything online from anybody
Speaker 1: within my organization that was saying anything negative about a
Speaker 1: competitor when they're in troubled times. It's just not okay.
Speaker 1: And so we are here together to help, and specifically
Speaker 1: within New Zealand. I won't be able to get into
Speaker 1: the details. However, all the usual things that everyone knows
Speaker 1: that have happened over the last few years, absolutely we've
Speaker 1: been in shouldered shoulder armed arm with our competitors. It's
Speaker 1: not always doesn't always translate sometimes to some people specifically
Speaker 1: in New Zealand, who are maybe more on the sales side,
Speaker 1: but when we're talking about the practitioners and the people
Speaker 1: that are actually helping in the background. So I'm super
Speaker 1: proud of that and I will always be an advocate
Speaker 1: for that one percent.
Speaker 2: What about government presumably a pretty close relationship.
Speaker 1: There as well. Yeah, yeah, absolutely, And again that's another one.
Speaker 1: You know, we try to share as much as we
Speaker 1: possibly can. Again with the way I mean we're competing
Speaker 1: for business. However, when a catastrophe or a breach or
Speaker 1: something hits and we all want to try to share
Speaker 1: our threat intelligence so that we can help as well.
Speaker 1: So and NCC is tied into everybody as well as
Speaker 1: when we bring over our experts from the US from ART.
Speaker 1: So our threat intelligence team is called Unit forty two,
Speaker 1: and so that it's great. I know, it's a great name.
Speaker 2: I get a lot of security team would be a
Speaker 2: good place.
Speaker 1: We get a lot of comments on that, and when
Speaker 1: we bring over I always say that they're like our ninjas.
Speaker 1: They're amazing. They are very highly skilled folks, and lots
Speaker 1: of the conversations I can't even be in because they're
Speaker 1: too highly classified. With government, however, it is a partnership,
Speaker 1: so obviously part of five and making sure that everything
Speaker 1: is buttoned up. One thing that's really interesting with bad
Speaker 1: actors because you would think within five eyes that the
Speaker 1: communication is so amazing and perfect that if one country
Speaker 1: gets hit with something, then all the rest of them
Speaker 1: know immediately. We try to help with that. One of
Speaker 1: the strategies though, of bad actors is they don't always
Speaker 1: see that happening, so they might hit the US one day,
Speaker 1: and then Canada the next, and then Australia and nobody
Speaker 1: even knows what's going on. So it's quite interesting, and
Speaker 1: I think there's just a bit of work to be
Speaker 1: done around how to tighten that up a bit so
Speaker 1: that we can always have so much defense and defense
Speaker 1: and depth as kind of are saying that we say
Speaker 1: around that, so yeah, nice.
Speaker 2: So who are your computer is?
Speaker 1: I mean the usual suspects in kind of the firewalls
Speaker 1: space tra digital firewall space would be Fortinet and Checkpoint.
Speaker 1: You've got crowd Strike is a great company, and.
Speaker 2: The recently yeah, exactly one biggest company. I want to
Speaker 2: hear it also saying how many of these companies that
Speaker 2: probably don't you know immediately spring to mind.
Speaker 1: Well, it's interesting as well as what translates into the public.
Speaker 1: And so when the whole thing happened with CrowdStrike, I
Speaker 1: was Friday evening for US. I went in next morning
Speaker 1: Saturday to my gym and there was a sign on
Speaker 1: the door that said, we apologize our systems are slow
Speaker 1: because of the Microsoft outage, and I was like, oh,
Speaker 1: and I was like, well, I mean it was a
Speaker 1: little bit because I'm still proud. I mean, I've been
Speaker 1: a Microsoft for a long time. I was like, there
Speaker 1: wasn't actually what happened, and that is actually not But
Speaker 1: that's just what translates though into the public, and I
Speaker 1: think in any of those situations, it gives people a
Speaker 1: bit of a pause around just reevaluating what they have
Speaker 1: and kind of what's moving forward. There are so many
Speaker 1: cybersecurity companies in the world, it is unbelievable, and there's
Speaker 1: more and more popping up every day. One of the
Speaker 1: things we get lots of feedback from customers around is
Speaker 1: it's just too many. If you can imagine, like in
Speaker 1: the US sometimes on average sixty companies that they're trying
Speaker 1: to keep their company safe by trying to get sixty
Speaker 1: different solutions to talk to each other. I'd say in
Speaker 1: New Zealand that we're probably around fifteen to twenty, which
Speaker 1: is still too many, and trying to get all of
Speaker 1: that to stitch together so that you can get a
Speaker 1: clear view of am I safe or am I not safe?
Speaker 1: Or how safe am I?
Speaker 2: The more complexity, the more gets one hundred percent.
Speaker 1: And so that's why, as I said earlier, we don't
Speaker 1: want to be in a security category unless we can
Speaker 1: be the best. And we're trying to build platforms that
Speaker 1: resonate with our customers so that they can get on
Speaker 1: and do what they need to do to run their
Speaker 1: business and that they are secure. And so that's why
Speaker 1: our platformization strategy is resonating. It's interesting in the actually.
Speaker 2: Big part of the strategy for the business now one
Speaker 2: hundred percent.
Speaker 1: And that is, you know, we just had our earnings
Speaker 1: call last week and one thing that's being highlighted that's
Speaker 1: really fueling that is around platformation. So instead of a company,
Speaker 1: I know, I know it's a bit so our CEO,
Speaker 1: I'm pretty sure he made it up. I'm not I'm
Speaker 1: not definitely for sure. And he came out with it
Speaker 1: about a year ago, and at first I think everyone
Speaker 1: was kind of like, whoa, what is this? What is
Speaker 1: that word? And what does it mean? And in the
Speaker 1: past you'd hear a lot about consolidation. I think the
Speaker 1: magic around platformization is really being able to use that
Speaker 1: as your superpower to progress, where consolidation in the past
Speaker 1: one of the top targets was just completely cost out,
Speaker 1: so it wasn't really thinking about being strategic. With platformization,
Speaker 1: excuse me, you can be strategic and have cost out
Speaker 1: and have the highest security postures. So it's like the
Speaker 1: nirvana of everything that you need.
Speaker 2: We're going to get way more too that and the
Speaker 2: earning school very shortly. But firstly, love to hear a
Speaker 2: bit about who your customers are at the moment, the
Speaker 2: types of customers, type of industries, and also target we
Speaker 2: were you hitting with.
Speaker 1: It sure in New Zealand. Then when I was brought
Speaker 1: on in mid twenty nineteen, basically it was to invest
Speaker 1: in the New Zealand market for the listener toil job. Yes,
Speaker 1: well in building the business basically, yeah, from at the time,
Speaker 1: we had a couple of people that were based in
Speaker 1: New Zealand, but they were managed out of Australia, which
Speaker 1: New Zealand companies love it when you US multinationals come
Speaker 1: in and do that. So I got an opportunity to
Speaker 1: come in and basically build that. So we had a
Speaker 1: couple of people. Now we've got about twenty and we
Speaker 1: it's mainly sales and marketing functions and then also professional services, delivery,
Speaker 1: customer success and some other engineering type roles. So with
Speaker 1: our current customers all B to B so we're not
Speaker 1: a consumer company, so all the usual suspects of industry.
Speaker 1: So we've taught. We touched on government and public sectors,
Speaker 1: so that's a big market for us, specifically education within
Speaker 1: New Zealand. And we did announce recently that we have
Speaker 1: gone into partnership with the Network for Learning, which provides
Speaker 1: cybersecurity and IT solutions for twenty six hundred primary and
Speaker 1: secondary schools in New Zealand and so we are now
Speaker 1: their primary technology partners. So we're very excite. Matter of fact,
Speaker 1: this week we're doing our first pilot schools cutover onto
Speaker 1: pilots Networks. I think I'm okay to say that it's
Speaker 1: all of an and ounce, so sores what we're doing
Speaker 1: in there. So education is big, tertiary education, the polytechs
Speaker 1: and those types of things, so that's super important to us.
Speaker 1: Healthcare is one that's very important in top of mind,
Speaker 1: and I would also say everyone's important on top of mind.
Speaker 1: But those two when I think of specific verticals, and
Speaker 1: then we've been super strong in financial services as well.
Speaker 2: These are global viticals as well.
Speaker 1: These are all global verticals. However, what I'm mentioning then
Speaker 1: we're super strong in New Zealand as well, so those
Speaker 1: are probably in thecreical infrastructure, and so those are the
Speaker 1: ones that come top of mind. And then overall I
Speaker 1: did mention government when I say public sector, that's just
Speaker 1: there's so many bullet points that go beyond that. However,
Speaker 1: we have a very very strong public sector team globally
Speaker 1: as well, and so that's a very tight end. When
Speaker 1: I mentioned what we're doing with the five eyes and
Speaker 1: what we're doing with all the different usual suspects within
Speaker 1: the top shelf of the governments around the world, that's
Speaker 1: a very very important market for us, just from.
Speaker 2: A I suspect. The unit forty two some pretty higher information.
Speaker 1: Yeah, they do, they do, yeh know. It's great, It's
Speaker 1: actually really good. And I'm super excited because we have
Speaker 1: just hired somebody. I can't announce who it is yet,
Speaker 1: but we've just hired a Unit forty two director to
Speaker 1: be based in New Zealand and it's going to be
Speaker 1: huge for us. That's one of our fastest growing parts
Speaker 1: of our business is around providing instant response in proactive
Speaker 1: service and deep dark web monitoring and things like that.
Speaker 1: So I am I am absolutely over the moon to
Speaker 1: bring this person on board.
Speaker 2: Hearing more maybe or maybe not.
Speaker 1: Maybet a waste, No no, no, no, it'll be out there.
Speaker 1: We'll get it out there.
Speaker 2: Great. Well, it's earning season, so let's talk about some numbers.
Speaker 2: So last week you released the Q two results. Revenue
Speaker 2: was up fourteen percent year on year, so two point
Speaker 2: three billion. In the next Gen Security annual recurring revenues
Speaker 2: that are grew thirty seven percent year on year four
Speaker 2: point eight billion. So what's the primary thing driving those numbers?
Speaker 1: So a couple of them we've already touched on. Definitely
Speaker 1: think platformization is resonating globally.
Speaker 2: Yeah, presumably the recurring revenue aspect and the growth here
Speaker 2: as a target aspect for you as well.
Speaker 1: Yeah. Absolutely. And one of the things that's interesting about
Speaker 1: our platformization approach I didn't mention earlier is let's say
Speaker 1: I've got a customer and they're like, hey, mistee, we
Speaker 1: want to go all in with you guys. However, we've
Speaker 1: got this contract with these other vendors. They don't expire
Speaker 1: for another six months, twelve months, eighteen months, twenty four months.
Speaker 1: What we do in those situations is we work on
Speaker 1: a strategy where we can buy out those contracts because
Speaker 1: our philosophy is if the customer's ready to move and
Speaker 1: we're ready to get them on to this strategy that
Speaker 1: we think is going to be a better security posture
Speaker 1: for them longer term, and we can help take the
Speaker 1: cost out so they're obviously not having to pay for
Speaker 1: two vendors at the same time, then that's a better strategy.
Speaker 1: Does it cost us something on the front end, Absolutely
Speaker 1: it does. There's an investment on our part. However, in
Speaker 1: the long run, we firmly believe that we're building customers
Speaker 1: for life. So if we can take a short term
Speaker 1: loss for a long term five to ten plus year gain,
Speaker 1: then that is a very easy decision for us.
Speaker 2: Yeah, how like long are what's the normal contract life
Speaker 2: cycle in the space. I kind of mention people are
Speaker 2: wanting to switch often, but the actual contracted Like.
Speaker 1: I've got a ten year contract and I've got a
Speaker 1: one year contract. So it really depends on what's going
Speaker 1: on within the organization and what they're appetite for signing
Speaker 1: up for that particular solution. So yeah, it definitely varies
Speaker 1: from company to company.
Speaker 2: Nice and so you've had double digit growth yere on
Speaker 2: you for I didn't see exactly how many years, but
Speaker 2: look like a few expecting that to continue at the
Speaker 2: same rate.
Speaker 1: I hope. So it's the teams are working really hard.
Speaker 1: The business that the company is doing and the details
Speaker 1: behind it is unbelievable. And I think even in New Zealand,
Speaker 1: the deal sizes are getting so much larger than I mean,
Speaker 1: we're talking triple, quadruple what we used to do. And
Speaker 1: that again is being fueled because a customer's saying, I
Speaker 1: don't want to just go do this piece. More thing
Speaker 1: here and peace more thing here, give me what I
Speaker 1: can do across my estate. Yeah, we're involved in most
Speaker 1: digital transformation conversations and if we're not, we should be
Speaker 1: and or our partners should be whoever we're partnering with
Speaker 1: every single transformation business strategy that's happening in New Zealand
Speaker 1: as a cyber aspect to it. And so that is
Speaker 1: something that I feel like it's getting more prevalent that
Speaker 1: I get phone calls from not only CIOs and CDOs
Speaker 1: and sizos, chief Information Security offic server those of you
Speaker 1: don't know, but also CFOs and CEOs and so it's
Speaker 1: building those types of relationships that's absolutely critical and the
Speaker 1: trust they need to know, am I backing the right horse?
Speaker 1: Am I picking the right lane? Is palleled to networks?
Speaker 1: Is that what we need to do? So that's our
Speaker 1: job to keep them kind of on that path to
Speaker 1: make sure they understand that.
Speaker 2: One of the big learnings for me in business, I
Speaker 2: think over the last few years is being the really
Speaker 2: fine way the wind's blowing, try to get it behind you. Yeah,
Speaker 2: and cybersecurity hits the wind blowing behind it at the
Speaker 2: moment with a lot of you know, a lot more
Speaker 2: risk entering in the space as well, Like it's like
Speaker 2: certainly AI and what the what's coming in the space
Speaker 2: is introducing more risks on at least at the moment.
Speaker 1: Yeah, And that's the other thing too. Any organization that
Speaker 1: says to me, oh, we're going to kind of take
Speaker 1: a wait and see approach on all this generative AI,
Speaker 1: and I always say them, can I have your permission
Speaker 1: to do a few things a few reports, so I
Speaker 1: can just show you it's already in there. There's a
Speaker 1: lot of unsanctioned apps, You've got lots of holes in
Speaker 1: your organization that we can help you go and feel that.
Speaker 1: And that's something that I feel like we are doing
Speaker 1: again being a trailblazer in that space, to say, look
Speaker 1: at what's going on across your estate from a generative
Speaker 1: AI perspective, and what's going on with whatever you've got
Speaker 1: working on with LLMS agentative AI as well for all
Speaker 1: the agents. Then it's something that we've got the tools
Speaker 1: and the expertise to be able to go and get
Speaker 1: in front of that. And that's what will continue to
Speaker 1: invest in when we invest well over a billion dollars
Speaker 1: a year just an R and D around, So that's
Speaker 1: how we can kind of continue to be in the
Speaker 1: front of what's next.
Speaker 2: Really on that mecro space. I mean, you're can be
Speaker 2: closer to this. Most of you're saying, you're jrset is
Speaker 2: in the US New Zealand, but you're a global company
Speaker 2: listed on the US Stock Exchange, got many customers in
Speaker 2: the US as well. How's the Trump administration and the
Speaker 2: change there impacted Palo alto the company, And you're thinking, so,
Speaker 2: one thing.
Speaker 1: That's really good about cybersecurity, it's very bipartisan. So we
Speaker 1: have enjoyed we enjoyed a good relationship with the Trump
Speaker 1: administration back in twenty sixteen, the same with Biden, and
Speaker 1: then now with Trump being back in office, then we
Speaker 1: have really strong relationships and specifically within our federal government
Speaker 1: and leadership, and so we will continue to double down
Speaker 1: on the US government regardless of who's in office. And
Speaker 1: it hasn't really changed much for us, and so they
Speaker 1: all know that we're there and ready and that we're
Speaker 1: a strategic partner. And so yeah, it's it's been. I
Speaker 1: haven't really seen much of a difference in that.
Speaker 2: It's great to promat a cancer and probably expected for that,
Speaker 2: but I mean, I very much hope it has very
Speaker 2: bypassing prediction on this and certainly the investment from people
Speaker 2: going into on the on the other side of creating
Speaker 2: these scams, and it's certainly indifferent to who the administration is.
Speaker 1: Suppose they don't care. And as I said before, it's
Speaker 1: a big business, and yeah, it's relentless.
Speaker 2: So could you tell us a little bit around the
Speaker 2: trends we're seeing in cybersecurity. We've touched on UNI forty
Speaker 2: two a couple of times, but they predict this year
Speaker 2: to be the year of disruption. What does that mean.
Speaker 1: There's a statistic in our Unit forty two predictions that
Speaker 1: they talked about eighty percent of breaches are now happening
Speaker 1: in the cloud, and so I think that is going
Speaker 1: to continue to ramp up. And if you think about
Speaker 1: all the cloud service provider, so all the usual suspects
Speaker 1: of Google, Aws, Azure, and we have this what's called
Speaker 1: a shared responsibility model in that they have their own security. However,
Speaker 1: most companies also have another security that is implemented. But
Speaker 1: that whole shared responsibility model is becoming quite interesting from
Speaker 1: a cloud perspective, just because when something does go wrong,
Speaker 1: then the lines not always like let's say, as an example,
Speaker 1: you decide with share zase that you're not going to
Speaker 1: have any other security. You're just going to go all
Speaker 1: in with one of the cloud service providers, and then
Speaker 1: something happens. Chances are the cloud the CSP is probably
Speaker 1: going to say, well, it's not my problem, but we
Speaker 1: did what we did. Our part of the responsible piece
Speaker 1: for that you should have had X y Z in there.
Speaker 1: So that one's quite interesting. I'd also say the prevalence
Speaker 1: of what we were talking about earlier with jen AI
Speaker 1: and LMS and where that's going, and we have to
Speaker 1: be thinking about fighting AI with AI. If you're a
Speaker 1: company who has is doing something from a cyber perspective,
Speaker 1: and that who whatever organization that you're working with, that
Speaker 1: they have not invested in using AI and machine learning
Speaker 1: tools to have that type of automation, you're going to
Speaker 1: be in a really, really world of hurt because you
Speaker 1: cannot fight that with a human. You've got to go
Speaker 1: and make the hopefully keep the AI and machine learning
Speaker 1: and everything else smarter than what the bad actors are doing,
Speaker 1: but you absolutely have to fight AI with AI. It's
Speaker 1: quite an interesting world, this whole dark Web piece. And
Speaker 1: I've never really kind of gone down a rabbit hole
Speaker 1: into this, but what I do find is when some
Speaker 1: of our customers get themselves into a bit of a pickle,
Speaker 1: so to speak. Then it's interesting to watch the unit
Speaker 1: forty two folks who know they've got their own relationships
Speaker 1: with hackers, because that's how from a threat hunting perspective
Speaker 1: and trying to obviously we're monitoring the dark web constantly,
Speaker 1: and it's just really interesting because again, these are humans,
Speaker 1: so there's a psychology aspect behind this as well, and
Speaker 1: so it's fascinating to me just to watch how some
Speaker 1: of the things unfold and most of time it has
Speaker 1: nothing to do with our technology, but they're just a customer.
Speaker 1: And yeah, it's really interesting that it's kind of watching
Speaker 1: the Spy movie sometimes of how everything gets pieced together
Speaker 1: and what can end up happening as a result.
Speaker 2: Yeah, so what's the Is it being a big steep
Speaker 2: up and investment into the AI space.
Speaker 1: Absolutely, yeah, one hundred percent. So we've got a few
Speaker 1: different categories and within our solutions, if you're a customer
Speaker 1: then they automatically get turned on and so it's some
Speaker 1: different tag names. Not to get into too much detail
Speaker 1: of the technical pieces of it, but it's precision AI,
Speaker 1: so we've actually that's our term that we've trademarked, and
Speaker 1: from a generative AI perspective, then it's making sure that
Speaker 1: you are able to understand exactly where things are coming
Speaker 1: from and that not only the integrity of the AI
Speaker 1: is correct, but also that it's secure. And so those
Speaker 1: are the things in that we also talked earlier about
Speaker 1: cloud and developers and that whole piece that's happening, and
Speaker 1: within the solutions and tools that we have around AI
Speaker 1: that is also doing an automation piece in that too,
Speaker 1: because you'll know a lot of developers that are grabbing
Speaker 1: things to develop now through AI. So we're making sure
Speaker 1: that that's secure and that's been run through all of
Speaker 1: our runtime technology so that you can be safe and
Speaker 1: secure around that.
Speaker 2: And so it's just an expectation of them now as
Speaker 2: well from companies right that they're using these tools.
Speaker 1: Yeah, exactly one hundred percent. Because you'll hear people talk
Speaker 1: about with AI or generative AI specifically of that strategy
Speaker 1: leak versus learned. So some companies will say, I'm going
Speaker 1: to open everything up because I want my employees to learn,
Speaker 1: and we know it's coming and we know it's here,
Speaker 1: and then you've got. Other ones are like, oh, no,
Speaker 1: we're going to tighten everything down because we're afraid things
Speaker 1: are going to leak. Either strategy, you still have to
Speaker 1: have a security piece in that. And so those are
Speaker 1: the conversations that we're having mainly with the business folks
Speaker 1: and then also with security as well. But it really
Speaker 1: is a concern more at the top table. I feel well,
Speaker 1: I shouldn't say more. That's not fair. Every security practitioner
Speaker 1: and security leader out there is concerned about it as well. However, however,
Speaker 1: I think because it's so prevalent, then it's much more
Speaker 1: of an easier conversation to have with executives. And then
Speaker 1: what are we going to do about it?
Speaker 2: What is I want to see a graph on how
Speaker 2: much more how many more times that's appeared on board
Speaker 2: papers and that type of thing.
Speaker 1: Yeah, exactly, And we have it's an AI security posture assessment.
Speaker 1: So we can go into an organization and say we're
Speaker 1: going to run some tests and diagnostic through and go
Speaker 1: and do something and basically be able to come back
Speaker 1: and say this is your security pasture from an AI perspective.
Speaker 2: A couple of years ago, there was about a million
Speaker 2: new Zealands who had their data stolen through a cyber breach.
Speaker 2: It was a leaning company, personal owned company. How well
Speaker 2: placed and how much will wake up call do you
Speaker 2: think that was? And how well placed again do you
Speaker 2: think Australasian companies are for what's hitting at the moment.
Speaker 1: I don't think that we are doing enough. I think
Speaker 1: that there are still some things that we need to
Speaker 1: tighten up around our controls and being proactive and those
Speaker 1: types of things. I think Australia is a bit ahead
Speaker 1: of us if you look at some of the regulation
Speaker 1: that they have around critical infrastructure, even some of the
Speaker 1: things that they've come out with proactively around AI. And
Speaker 1: we've got some good stuff too, don't get me wrong.
Speaker 1: I just there are some things I think that we
Speaker 1: can still do to tighten that up in New Zealand.
Speaker 1: One thing in particular is because we've got quite a
Speaker 1: big presence in education and if I think about how
Speaker 1: that goes back to New Zealand Inc. Then what are
Speaker 1: we doing to make sure like that's something within our
Speaker 1: control because we've got a huge part of our business
Speaker 1: that's within there. Just as an example, but it's going
Speaker 1: to always I think we always need to be thinking
Speaker 1: of every day when we wake up, we can do better.
Speaker 1: And so one of the things of Palatin Networks is
Speaker 1: our mission is to make the world safer today than
Speaker 1: it was the day before. And I think we have
Speaker 1: to constantly be thinking like that because what we think
Speaker 1: is good right now, even a year from now, if
Speaker 1: we were sitting here, we'd be We're going to be
Speaker 1: talking about something completely different. And so that's how quickly
Speaker 1: things are changing.
Speaker 2: Great, Well, we've covered heaps of ground here, thinks much.
Speaker 2: One last question, So if you had to summarize what
Speaker 2: you think should be top of mind from Vista's for listening,
Speaker 2: we're not thinking about cybersecurity, what would that be?
Speaker 1: So one thing I haven't talked about. We do think
Speaker 1: twenty twenty five is the year of the browser. And
Speaker 1: what I mean by that is such a high percentage
Speaker 1: of work is done in a browser if you think
Speaker 1: about it. And part of one of the ways that
Speaker 1: we've addressed that is we acquired a company about a
Speaker 1: year ago and now it's been automatically integrated in so
Speaker 1: we all use it as well. It's called Prisma Access
Speaker 1: Browser and it basically can tighten down anything so within
Speaker 1: your organization, if you have contractors or you've got BYOD.
Speaker 1: Basically whenever you're from a sharesse perspective to say, okay,
Speaker 1: we know that this is safe, this is secure whenever
Speaker 1: they're working on our stuff. Because we've locked down the
Speaker 1: browser in the past, that was kind of a bit
Speaker 1: of sprawl. So if I were an investor, I'd probably
Speaker 1: be having a look around that. It's a big, big
Speaker 1: bat investor.
Speaker 2: It's just something we just trust and use, isn't it exactly?
Speaker 1: And that's the thing. It's Yeah, you're spot on. It's
Speaker 1: it's something that I think a lot of us trust
Speaker 1: our phones and trust all kinds of different things. And
Speaker 1: but yeah, just that secure your perspective, that's just something
Speaker 1: else to kind of.
Speaker 2: Think about and get to.
Speaker 1: Yes' a make sure your MFAF.
Speaker 2: Thanks so much, Mossie. It's been a real pleasure having
Speaker 2: you here, and thanks for sharing with our audience. Thank
Speaker 2: you for joining us and everyone for tuning in. You
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