Woe to the enterprise that pinches pennies and opts for a lax cybersecurity policy. Kaspersky Lab reported a threefold year-over-year increase in smart gadget hacks in the first half of 2018, with one malware variant managing to infect 57,000 wireless security cameras in a week. And with 30 billion devices expected to be connected by 2020, including deadbolts and office printers, the problem only stands to worsen.
Santa Clara, California-based Ordr asserts that the client-side solutions installed on workstations, laptops, and handhelds are a poor fit for today’s hyper-connected work environments. By contrast, its software-as-a-service (SaaS) platform — Systems Control Engine, or SCE — autonomously identifies, regulates, and protects local networks by classifying attached systems and applying traffic flow and access policies accordingly.
Following its emergence from stealth in February with $16.5 million in venture capital financing, Ordr recently closed a $27.5 million series B round led by Battery Ventures, with participation from existing investors Wing Venture Capital, 1011 Ventures, and Unusual Ventures. CEO Greg Murphy said the capital infusion, which comes after a year in which Ordr’s annual recurring revenue grew nearly 1,000% and customer acquisitions increased 400%, will bolster the expansion of its go-to-market activities and the growth of its enterprise sales team and technological backend.
“It’s becoming increasingly critical that enterprise organizations properly protect network-connected devices, and the network itself, from potentially nefarious activity,” Murphy added. “For far too long, these organizations have been in a reactive mode, using tools that provide only basic visibility, responding to device vulnerabilities as they are discovered. In our view, enterprises must be proactive, ensuring that their most mission-critical assets and business functions are always protected.”
Ordr’s network-level SCE taps machine learning algorithms and data analytics to build a baseline understanding of devices’ behavior and flag suspicious events in real time. It deploys in “minutes” atop of existing network and security infrastructure without adding additional overhead, and it affords admins the freedom to segment tracked systems by type, location, function, and application while playing nicely with a range of existing tools.
Ordr competes with the likes of Claroty, which recently raised $60 million for its industrial control network-targeted cybersecurity suite. That’s not to mention Red Balloon Security, an embedded systems security provider that counts HP among its clients.
But Gnanaprakasam Pandian, who cofounded Ordr with Sheausong Yang and who serves as its chief product officer, believes the company is poised for growth in key verticals such as health care, manufacturing, distribution, and retail, where mission-critical legacy networks conducive to an automated, set-it-and-forget-it solution like SCE proliferate. There’s certainly a lot of money to go around — the global cybersecurity market is expected to reach $181.77 billion by 2021, according to Zion Market Research.
“The number of devices connecting to enterprise networks will increase exponentially in the coming years, posing a clear risk to critical assets,” said Battery Venture’s Dharmesh Thakker, who plans to join the startup’s board of directors. “We believe Ordr is uniquely positioned to protect these assets proactively, compared with other solutions that are more reactive and only identify problems after they happen. Ordr’s approach has been validated by its rapid adoption by leading enterprise organizations worldwide. We are excited to partner with the top-notch Ordr management team and assist with the company’s further growth and innovation.”