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Connecting with Solution Provider in Emerging Market February 2022 | Pages 32 ¡ Northern ¡ Eastern ¡ Maharashtra ¡ Gujarat ¡ MP & Chattisgarh ¡ North East ¡ Southern ¡ UP & Uttarakhand ¡ Bihar & Jharkhand A TRULY DIGITAL BUDGET FEBRUARY 2022 1
Content COVER STORY 6 Market Changes have Blurred Lines between Brand, Partner, and Customer 20 A Truly Digital Budget Krithiwas Neelakantan, Channel & Alliances Head, Palo Alto Networks CHANNEL NEWS 24-29 n Ransomware Continues to be Relentless, Destructive: Fortiguard Labs IN CONVERSATION India to become World’s 3rd Largest Coming out of the pandemic, 2021 was about Construction Market, 66% Prioritizing Digital rebuilding, recovery, strengthening our product Transformation: Autodesk and value proposition n Salesforce Establishes Sustainability as Core Company Value; Launches Net Zero Cloud 2.0 16 n Google Chat to Replace Hangouts from March n Global AI Spending Expected to Reach $434 18 Billion in 2022 n Kaspersky Promotes Sandra Lee as Managing Director, APAC Alok Sharma, Shayak Mazumder, n India IT Industry to Adopt As-a-Service Director – Channels (India & SAARC), Autodesk CEO, Co-Founder, Eunimart Delivery & Operating Models 427 FEBRUARY 2022
COVER STORY BUDGET 2022-23 A Truly Digital Budget Under the cloud of the Omicron wave, finance minister NirmalaSitharaman presented the Budget for 2022-23, which has brought several initiatives and proposals to capitalize on the MSME and startup momentum. The Budget’s key aspects included a projected growth rate of 9.2 percent, the highest among all global countries, the creation of 60 lakh employment across 14 sectors, and great push towards digitization across the sectors. So, let’s look at how the Budget is poised to serve the MSME and Startup sectors? Amit Singh 627 FEBRUARY 2022
COVER STORY T he recent Union Budget times. She proposed several of a truly digital India. cannot emphasize enough 2022 has magnified initiatives, with technology The adoption of emerging on the importance of skilling the ‘Digital India’ as the pivot, to boost a technologies like blockchain to lead the digital disruption. vision and importance of wide swathe of sectors and artificial intelligence Initiatives to drive skilling, technology in all focus areas such as skilling, agriculture, in the RBI-backed Digital reskilling and up-skilling, like infrastructure, inclusive education, mental health, Rupee, E-Passports, digitally, will ensure we development, sustainability, logistics or bolstering small Geospatial Systems, etc. are ready for the digital sunrise industries, and and medium enterprises. will be a game-changer future much ahead of the skilling. Indeed, technology The fresh digital push in terms of strengthening curve,” secondsArundhati firms and startups focused and the reliance on green the country’s economy,” Bhattacharya, Chairperson on new-age platforms will energy and mobility are shares Dharmender Kapoor, and CEO, Salesforce India. likely be at the vanguard of seen as building blocks of Chief Executive Officer and The Union Budget the list of beneficiaries as the the government’s strategy Managing Director, Birlasoft. focuses on three pillars of Budget seeks to democratize to prepare the economy for “As we continue to inclusive welfare, digital technology in a concerted future challenges. digitally transform, the transformation and push toward digitization. “The Union Budget 2022 focus on bolstering digital sustainability and leveraging In her Budget is technology-focused and payments with a consumer- private investments. All speech, Finance Minister will be a catalyst for growth. friendly lens, will continue aimed at pivoting the NirmalaSitharaman used the It is apparent from this to augment digital adoption country from the pandemic word ‘digital’ 35 times while Budget that we are on track across regional India. As towards ‘India @100.’ ‘tech’ was mentioned 26 to achieve our objective a knowledge economy, I Aptly referred to by many FEBRUARY 2022 7
COVER STORY as the ‘Budget for Digital industry believes that the India’, the announcements government has recognized come as a welcome step technology as the key to for the tech and start-up India’s growth that will ecosystem in India. Given pave way for a tech-enabled the government’s focus on digital economy. technology across sectors, “The Budget reiterates India’s IT sector welcomed the government’s focus Union Budget 2022-23. The on new-age technologies, As we continue to digitally transform, the focus on bolstering digital payments with a consumer- friendly lens, will continue to augment digital adoption across regional India. Arundhati Bhattacharya, The adoption of emerging Chairperson and CEO, Salesforce India technologies like blockchain and infrastructure, and the start-up ecosystem will artificial intelligence in the RBI-backed comprehensive development, be the bedrock of innovation Digital Rupee, E-Passports, Geospatial which will help India and growth drivers for maintain sustainable growth the Indian economy,” Systems, etc. will be a game-changer momentum. The proposed commentsJagdishMitra, in terms of strengthening the country’s initiatives around 5G, deep Chief Strategy Officer tech, digital rupee, and and Head-Growth, Tech economy. skilling will prove to be a Mahindra. game-changer, thereby As expected, thanks Dharmender Kapoor, furthering the digital India to digital tech’s incredible Chief Executive Officer and Managing Director, Birlasoft dream. Incentives boosting support in helping India 827 FEBRUARY 2022
COVER STORY Inc. brave the pandemic, adoption of technology this year’s Budget takes across industries,” highlights a ‘digital first’ stance. A DayapatraNevatia, COO and significant focus on new President, Infogain. initiatives and progressive He further adds, “I believe policy interventions, such digital literacy will be the key as opening defense R&D, to realizing India’s 5 trillion- promoting drone start- dollar economy dream. To ups, digital university, create a digital ecosystem for giving datacenters infra skilling and focus on digital status will propel further inclusion through 5G and A significant focus on new initiatives and progressive policy interventions, such as opening defense R&D, promoting drone start-ups, digital university, giving datacenters infra status will propel further adoption of technology across industries. The Budget reiterates the Dayapatra Nevatia, government’s focus on new-age COO and President, Infogain technologies, infrastructure, and comprehensive development, which investment in technologies such as Artificial Intelligence talent in the country, thereby scaling the adoption of will help India maintain sustainable and infrastructure, new-age technologies across growth momentum. the government will continue strengthening industries.” “The announcement of the development of data centers being awarded Jagdish Mitra, entrepreneurship, an infrastructure status is Chief Strategy Officer and Head-Growth, Tech Mahindra productivity, and quality of IT truly commendable as this FEBRUARY 2022 9
COVER STORY move will be a major thrust global data center hub,” to data localization. The says Paresh Shah, CEO, Allied new status will enable the Digital. data center sector to get Rajesh Maurya, Regional credit at competitive rates Vice President, India and and on a long-term basis SAARC, Fortinet underlines with enhanced limits. This that the Government has move will also be a catalyst made a strong economic in realizing India’s vision of statement with its focus attaining the position of a on public investments to Forward looking and catering to an aspirational Digital India the Budget lays its emphasis on technology with the launch of Digital Currency using blockchain, Digital University for education in different Indian languages, The announcement of data centers roll out of 5G and boost to Start-ups. being awarded an infrastructure status Rajesh Maurya, is truly commendable as this move will Regional Vice President, India and SAARC, Fortinet be a major thrust to data localization. spur growth. “Forward Digital University for It will be a catalyst in realizing India’s looking and catering to an education in different Indian vision of becoming a global data center aspirational Digital India languages, roll out of 5G hub. the Budget once again lays its emphasis on technology and boost to Start-ups,” he explains. with the launch of Digital Further, the government’s Paresh Shah, Currency using blockchain, proposal of setting up 75 CEO, Allied Digital 27 10 FEBRUARY 2022
COVER STORY Digital Banking units in rural empowerment. The 75 districts of the country government’s continuous and providing online fund focus on the digital transfer between post payments ecosystem has office accounts and bank paved the way for digital accounts will help in adding adoption amongst the further tailwinds to expand unbanked and under-banked necessary banking services population of the country to the last mile. “This especially post the outbreak enables us to take a step of the pandemic,” details further towards our goal of DilipModi, Founder, Spice financial inclusion through Money. Budget offers a fantastic boost to the MSME segment, which will help this sector increase its contribution closer on 40 percent of India’s GDP. Rajarshi Bhattacharyya, Co-Founder, Chairman and MD, ProcessIT Global Big Boost for MSMEs the revival of MSMEs but also giving the sector a The extension of the ECLGS With India coming out gradually from the much-needed boost. As a scheme will be of immense help for reeling impact of Covid-19 sector that is responsible for around 45 percent MSMEs as it will give the much-needed pandemic, the MSME sector of the country’s total welcomed the Union Budget impetus for new businesses to come wholeheartedly. In fact, manufacturing output, 40 percent exports, and almost to the fore. the worst-hit MSME sector 30 percent of the national stands to benefit most from the Budget announcements. GDP, there’s no doubt the Joginder Rana, The Union Budget seems MSME sector deserves to be a top priority. intent on not just prioritizing Vice Chairman and MD, CASHe FEBRUARY 2022 11
COVER STORY Over the next five years, extended up to March 2023. the government intends Additionally, the guaranteed to roll out Rs 6,000-crore- cover amount will be worth program to rate expanded by Rs 50,000 crore MSMEs. As part of this right up to a total cover of rollout, the Emergency Rs 5 lakh crore. Aside from Credit Line Guarantee facilitating faster recovery Scheme, or ECLGS, will be of the sector, these moves The capping of surcharge at 15 percent on Long-Term Capital Gains (LTCG) tax for all listed and unlisted corporations responds to a long-standing demand for new-age businesses. The Indian tech startup space continues to witness steady growth, Kavitha Subramanian, accounting for 70 unicorns with most Co-Founder, Upstox of them in the IT/knowledge-based will be instrumental to to come to the fore,” ensure MSMEs are provided statesJoginder Rana, Vice sectors. The provisions outlined in this with the time and funding Chairman and MD, CASHe. year’s Budget will provide them a game- they need to establish their The Union Budget has ground. also taken into consideration changing economic transformation “The extension of the the need for an infusion of opportunity. ECLGS scheme will be of funds into the sector. Credit immense help for MSMEs as guarantee trust for MSMEs Suman Reddy, it will give the much-needed impetus for new businesses are set to see a revamp and will ensure the allocation Managing Director and Country Head, Pegasystems India 27 12 FEBRUARY 2022
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COVER STORY of Rs 2 lakh crore more to provide additional credit of digital initiatives within in today’s time. The Union the growth of the sector. Rs 2 lakh crore. the inter-department and Budget has offered a This would also help MSME- “We are looking at encouraging a complete booster to the start-ups in dedicated lenders to have a fantastic boost to the transformation in the the form of an extension confidence to expand credit MSME segment, which will financial sector,” elaborates of the tax incentives by to MSME sector basis the help MSME increase its Rajarshi Bhattacharyya, Co- another year i.e. through credit guarantee of trust. contribution closer on 40 Founder, Chairman and MD, 2023. On similar lines, revamping percent of India’s GDP. Most ProcessIT Global. “Extending the tax of the Credit Guarantee importantly, the government Further, Raising and holiday for another year Trust for Micro and Small is actually spending a Accelerating MSME till March 2023 will help Enterprises (CGTMSE) will lot of money in terms of Performance (RAMP), an businesses endure the initiative to resuscitate the economic slowdown MSME sector and help it inflicted by the Covid-19 recover from the impact outbreak. This will also of the pandemic has also mean more significant been announced as part activity in the investment of the Union Budget. landscape, enabling robust In continuation of their early-stage venture funding attempts to help the MSME possible for start-ups,” sector revive and come up shares delighted Rana of to speed, the government CASHe. has decided to extend “The Indian tech custom duty exemption on startup space continues the import of steel scrap by to witness steady growth, a year. accounting for 70 unicorns These announcements with most of them in within the Union Budget the IT/knowledge-based are very much in tandem sectors. The provisions with the government’s outlined in this year’s Atmanirbhar Bharat Budget will provide imperative and will help them a game-changing the sector recover from the economic transformation blow it has been dealt by opportunity,” highlights the pandemic. The Rs 6,000 Suman Reddy, Managing crore allocation goes out Director and Country Head, to show massive support Pegasystems India. Finance Minister’s announcement on for the sector and will help The focus on start-ups support future programs for and Fintech in this year’s the allotment of funds through NABARD to the acceleration of MSME Budget is a fantastic step performance. that will help this segment finance start-ups for agriculture and rural grow further, says Kavitha enterprises is a great move towards the Multi-Faceted Support Subramanian, Co-Founder, Upstox. She further adds, development of the agriculture sector as for Startups “The introduction of 5G and The government has well as for supporting nanopreneurs. time and again recognized the spread of optical fiber to villages would provide and acknowledged that Dilip Modi, the start-ups are drivers for a boost to the Fintech industry. It encourages Founder, Spice Money growth and the economy 27 14 FEBRUARY 2022
COVER STORY digital investment platforms plans to launch delivery of like ours to expand their hi-tech services for farmers services, resulting in an including the use of Kisan increase in retail activity Drones is a great move in Tier 2-Tier 3 cities and towards the development towns. The Central Bank of the agriculture sector Digital Money (CBDC) as well as for supporting will help to enhance the nanopreneurs,” says Modi digital economy by making of Spice Money. currency management more Interestingly, it has also efficient and less expensive. been proposed that R&D for The capping of surcharge the defense sector will also at 15 percent on Long-Term be opened up for industry, Capital Gains (LTCG) tax start-ups and academia with for all listed and unlisted 25 percent of the defense corporations responds to a R&D Budget earmarked for long-standing demand for this. new-age businesses.” Further, the Government In addition, the finance recognizes that the growth minister proposed to of the start-up ecosystem boost the start-ups for is dependent upon the agriculture and rural venture capital and private Among the many incentives enterprise which are equity investments, with relevant for farm produce approximately Rs 5.5 lakh proposed in the Budget is the reduction value chain. For such start- crore being invested last of voluntary exit, where the government ups, a fund with blended year. In view to scale up capital (raised under the the investments, it has has allowed the closure of a private co-investment model) is been proposed that an limited company in 6 months of non- proposed to be facilitated expert committee will be through the National set up in order to examine functioning. Bank for Agriculture and the regulatory challenges Rural Development (which being faced by the investor Amit Singal, has invested in AIFs that community, and to suggest General Partner, Fluid Ventures contribute to the capital of appropriate steps to the enterprises working for overcome such challenges. the benefit of agriculture “Startups have got a but encourage them to Bottomline experiment. Earlier they had Overall, this Budget is and rural development). boost in this year’s Union to run the company for 18 forward-thinking and well- Further, it is proposed Budget. Among the many months, even after closure, balanced. The emphasis on to promote start-ups to incentives proposed in the to avail of the benefit of the growth, digitization, and facilitate ‘Drone Shakti’ Budget is the reduction of Fast Exit facility. In addition, technology outlines the through varied applications voluntary exit, where the the surcharge on Long Term government’s commitment and for Drone-As-A-Service. government has allowed the Capital Gain (LTCG) has to cohesive development “Finance Minister’s closure of a private limited been capped to 15 percent, and long-term growth. announcement on the company in 6 months of which is again a good move Hence, Budget 2022 allotment of funds through non-functioning. This will to bring more HNIs into will play a crucial role in NABARD to finance start- not only help accelerate and startup Angel investment,” bolstering India’s growth ups for agriculture and rural provide relief to startups says Amit Singal, General story. enterprises along with the wanting to shut a business Partner, Fluid Ventures. FEBRUARY 2022 15
IN CONVERSATION India to become World’s 3rd Largest Construction Market, 66% Prioritizing Digital Transformation: Autodesk Alok Sharma, Director – Channels (India & SAARC), Autodesk, in a conversation with itVARnews, shares his thoughts on growth, achievements and new business model of Autodesk,amidst the ongoing pandemic and generative design platform vendor Spacemaker. Upchain: The addition of Upchain to the Autodesk portfolio accelerates our mission to deliver the next- generation software platform for design and manufacturing and creates more value for customers by removing collaboration barriers and increasing efficiency and resiliency. Innovyze: Our acquisition of Innovyze positions Autodesk Alok Sharma, as a leading global provider of end-to-end Director – Channels digital solutions from (India & SAARC), design to operations Autodesk of water infrastructure, accelerates Autodesk’s digital twin strategy, and creates a clearer path to a more sustainable and digitized water industry. Spacemaker: The acquisition of Spacemaker provides Please talk about to embrace and prioritize As part of our overall Autodesk with a digital transformation to business strategy, over the the highlights of your drive growth, efficiency, and past two years Autodesk powerful platform to achievements in terms sustainability, generating has acquired cloud-based drive modern, user- of business growth, strong demand for Autodesk’s product lifecycle management centric automation and customer acquisitions platform. This is demonstrated and product management accelerate outcome- and new innovations in in the financial results of the solutions provider Upchain; based design capabilities for architects, urban 2021. first three quarters of the water infrastructure design designers and planners. Our customers continue current fiscal year. company Innovyze and AI 27 16 FEBRUARY 2022
IN CONVERSATION Please talk pandemic, what are leveraging these. But now machines replacing humans. with changing scenario, over This is the arrival of about few major the changes you see in 85 percent of our ecosystem augmented intelligence, in developments in your the relations between has a digital presence. We which cognitive computing business processes/ brands, channels, and have seen some focused capabilities help humans model which enabled customers? digital campaigns come from make better decisions, improvement in The pandemic has some of our India partners faster. European sporting business in 2021. demonstrated that we need during the pandemic. Two goods retailer Decathlon, for We’ve built a robust and to be flexible, agile, and great examples of this example, is now using AI to resilient subscription business be able to adapt quickly include: One partner focusing design and manufacture its which has provided flexibility as things unfold. The most on solution selling with a performance bicycles more and have now focused on important thing has been customer focus, utilizing their efficiently, making them our Cloud offerings, therefore to stay connected with customer’s story to build lighter, more durable, and enabling work-from-home our channel eco system out a campaign, as well as faster while slashing design- with ease. This has allowed and retain those strong another partner who created phase emissions. our customers to not be relationships we were able to an industry competition that In construction, India impacted by us working build prior to the pandemic. created social awareness and is expected to become remotely. Leveraging technologies created enormous impact in the world’s 3rd largest Completely unique to during this period, moving the market. construction market, with Autodesk, we are building construction output to grow a platform to enable data on average by 7.1 percent to flow. We will extend our each year. There is more cloud services to connect We’ve built a robust and resilient government spending with multiple projects such as data experiences across solutions, igniting a new subscription business which has PMAY, Bharatmala, Bharat-net developer ecosystem. As this provided flexibility and have now Project, Jal Jeevan Mission ecosystem grows, the data and Affordable Housing in the platform will become focused on our Cloud offerings, Projectin various sectors including airports, urban and more valuable, driving more insights and users, more therefore enabling work-from-home rural infrastructure, railways, usage, and workflows which with ease. This has allowed our power and renewable energy, in turn will drive more apps irrigation, water treatment and extensions – what we call customers to not be impacted by us plants and waterways. With 66 percent of a flywheel of growth. Undeniably, now more working remotely. construction companies than ever, our largest in India prioritizing digital opportunity to create transformation, the positive impact at scale construction sector has seen is by supporting our to cloud offerings enabling What is your an increased acceptance customers in automating a smooth remote working outlook for the of digital construction transition, as well as the solutions. Research has complex processes with benefits of a common technology industry found that 20 percent of the technology they need over the next 2-3 to unlock insights, make data environment are all construction firms in the better decisions, and achieve things that have driven new years? country have implemented relationships. Government initiatives, BIM in large residential, superior outcomes to improve Assisting our partners in such as Atmanirbhar commercial and industrial the impact of everything the move to predominately Bharat, will harness the projects.As the Internet of they design, make, own, and a digital focus and how to power of connected data Things (IoT), AI and cloud- operate. Cloud solutions and better reach their customers and artificial intelligence computing technologies connected data environments has also been vital, from (AI) to help companies drive the industry’s digital fuel innovation—across a marketing and sales automate their engineering transformation, digital technology, processes, supply perspective. Prior to the and manufacturing twins are gaining traction. chains, and industries. And pandemic, our partners processes, driving push- According to McKinsey in this opportunity is growing didn’t see the value of button automation. The 2016, large projects are, on exponentially. digital and social platforms, rapid adoption of digital average, up to 80 percent with less than 10 percent technologies has generated over budget. With the ongoing a lot of speculation about FEBRUARY 2022 17
IN CONVERSATION Coming out of the pandemic, 2021 was about rebuilding, recovery, strengthening our product and value proposition Speaking about his views and outlook around technology trends and business challenges, Shayak Mazumder, CEO, Co-Founder, Eunimart elaborates on artificial intelligence, augmented reality, live streaming, omnichannel sales, and chatbots that will be dominating e-commerce in the coming 2-3 years. Please talk about the highlights of your achievements in terms of business growth, customer acquisitions, and new innovations in 2021. 2021 has been a monumental year for us as we unlocked a few milestones. First, we raised a Pre-series A round funding from LetsVenture, 9Unicorns, Loyal VC, and Supply Chain Labs. We successfully met the commitments of 3M$ funding in the past year. Second, we set up an office in The United States of America and onboarded Mr. Levi Reed as our Co-Founder along with several industry leaders as our mentors. We further launched in Saudi Arabia and UAE with success in acquiring customers in these countries. Third, Eunimart was also a part of TechStars Los Angeles, one of the country’s leading and thriving tech incubators with programs that focus Shayak Mazumder, CEO, Co-Founder, Eunimart on innovations that make 27 18 FEBRUARY 2022
IN CONVERSATION the world better. We were We have improved our AI is testament enough smartphones for online also a part of The Alchemist imaging tools. We will be that most companies shopping. The number Incubator Program, one launching and improving will use a large chunk of of smartphone users of the most renowned on the first of its kind AI their resources towards for online shopping has accelerators for startups for cataloging module digitization. This will crossed more than half of that monetize from that will be able to create further result in an the world population. The enterprises. Lastly, we were automated catalog creation increased rush in the SMEs desktop still is the primary also able to turn around for multiple geographies to turn to digital ways method for customers the recovery of 15M$. and channels of sales of conducting business for their e-commerce Improved our revenue GMV activities. This massive shopping. However, it Please talk and are on track for Series technology uptake will won’t last long, as global about a few major A raise in the last quarter of further create more likely trends in the e-commerce developments in your this year. situations for the SMEs to sector disclose that mobile business processes/ adopt digital methods or devices will be the primary technology utilized to find model which enabled out, conduct research, and improvement in buy goods/services. Virtual business in 2021. We have designed, developed, assistants are another thing Coming out of the pandemic, 2021 was and launched an exciting new of today. Today’s average smart gadgets user knows about rebuilding, recovery, warehousing and shipping solution for or uses from the many strengthening our product and value proposition. We SMEs and enterprise customers; that known virtual assistants like Google Voice Search, have had several releases makes cross-country warehousing Amazon Alexa, Cortana, that have enhanced Viv, Google Home, and product offerings. We accessible to brands of all sizes. Data Siri. Over the next few have increased the science and AI will be our key focus years, virtual assistants number of marketplaces or voice commands will (Sales channels), logistics areas in 2022. shape up to become a partnerships, and strategic usual norm and form to partnerships. We opened be a significant factor in up new marketplace even completely switch the tech innovations for partnerships globally – What are the to technology-oriented eCommerce. Metaverse, Shoppee in the Philippines top trends that will models. artificial intelligence, and India, Daraaz in Nepal shape the technology augmented reality, live and India, and Amazon industry in 2022? What is your streaming, omnichannel Saudi Arabia. We are in the In an increasingly final stages of partnering connected world, outlook for the sales, and chatbots are technology industry some of the top trends with shipping and technology has the expected to dominate warehousing partnerships potential to revolutionize over the next 2-3 e-commerce in the in the US, UK, and EU and re-invent how we years? coming 2-3 years. A larger – to provide FBA-like do business. As we look Smartphones are not percentage of businesses fulfillment services. We forward and prepare for just the future but also the walking parallel with have designed, developed, a post-pandemic future, present of the Ecommerce technology will also give a and launched an exciting we’re optimistic that world. As smartphone huge rise to omnichannel new warehousing and the latest tech trends use and internet implementation. With shipping solution for SMEs can help address some penetration increase more businesses adopting and enterprise customers; of our most pressing with each passing day, the digital methods, that makes cross-country business challenges and the role of smartphones they will also begin warehousing accessible to build a more equitable, in e-commerce traffic to see the impressive brands of all sizes. Data resilient society. In 2022, is getting crucial, as results that omnichannel science and AI will be our Ecommerce will jump customers in a large implementation can bring. key focus areas in 2022. from 11% to 52%, which number are using FEBRUARY 2022 19
IN CONVERSATION Market Changes have Blurred Lines between Brand, Partner, and Customer Krithiwas Neelakantan, Channel & Alliances Head, Palo Alto Networks, spoke to Amit Singh on the company’s recent achievements, cybersecurity trends and how market trends and dynamics are changing the chemistry between brands, partners and the customers Please talk about you recent achievements. 2021 has been a solid year for our business. As enterprises, globally, focused on digital transformation and rapid cloud adoption, our business adapted to deliver prevention-based, end-to-end security via a single integrated platform. In tandem with this, we worked to ensure continuous innovation across network, cloud, and devices. Our total revenue for the fiscal fourth quarter 2021 grew 28 percentYoY to $1.2 billion, compared with total revenue of $950.4 million for the fiscal fourth quarter 2020. Our Strata, Prisma and Cortex platforms saw consistent and sizable customer transactions worldwide. We also joined the Nasdaq- 100 Index, home to the top 100 largest domestic and international non-financial companies with a substantial market capitalization. This inclusion affirmed our position as the preferred cybersecurity partner for organizations globally. These outcomes can be attributed to our product innovation, platform integration, business model transformation and Krithiwas Neelakantan, investments in our go-to Channel & Alliances Head, Palo Alto Networks market organization. 27 20 FEBRUARY 2022
IN CONVERSATION On the partner front, of Palo Alto Networks Cloud 3.0, the industry’s reams of digital data that we launched the current ongoing commitment to first integrated platform now double up in existing iteration of our partner deliver the most complete to shift security left — physical spaces. This hyper- program, NextWave 3.0, set of security services improving organizations’ connectedness will further with a focus on providing locally for India and for our entire cloud security blur the lines between our incentives and value regional customers. These posture by reducing online and offline worlds for our partners. With services will enable our security risk at runtime. 3.0 and in turn could create NextWave 3.0, we added customers to balance data offers cloud code security far-reaching consequences specialization benefit plans privacy with the ability to to embed protections on our security in the real- that gave our partners detect emerging threats, in the development world. graded benefits based on providing a seamless, process. In line with the Moreover, IoT the resources invested, streamlined security evolving business reality technologies will emerge as business growth, and solution operated and of hybrid workforce, we a critical business enabler. competencies acquired. The delivered within India. also introduced PRISMA In fact, according to a program is tuned to market SASE, an integrated recent global IoT study needs and helps partners we undertook with global address a customer’s IT decision-makers, 84 evolving cybersecurity percent of respondents frameworks. Our partners On the partner front, we launched in India have reported an are now well-positioned to leverage our investments the current iteration of our partner increase in non-business devices connecting to in building pipelines, program, NextWave 3.0, with a focus corporate networks acquiring new customers, by remote workers. A and delivering the portfolio. on providing incentives and value for whopping majority (97 our partners. percent) believed that their When it comes to India, organization’s approach the country continues to to IoT, therefore, needs drive our success story a complete overhaul. globally. With over 2,500 Please talk cloud-delivered service Smart light bulbs, diabetes customers in India and about a few major with industry-leading monitors, heart rate acquiring an average of developments in your network security and next- monitors, kettles, game 100 net new customers business processes/ generation SD-WAN to consoles, and even pet every quarter, the country ensure that organizations feeders balance the list of model which enabled remains a priority market stay secure and productive strangest devices identified for us, both in terms of improvement in while working fluidly on such networks. innovation and business business in 2021. between branch offices and As we move into 2022, opportunities and as such Recognizing that home offices. we expect this trend to we continue to invest the move to cloud will continue. Organizations dominate in the coming in the market. Earlier years, we focused on What are the will therefore look to draw this year, we unveiled growing and innovating top trends that will up a strategic approach our new multi cloud shape the technology that will provide complete location that will enable rapidly by delivering a visibility into the security comprehensive, native, industry in 2022? India-based and other The pandemic has infrastructure. A Zero Trust regional organizations to and fully integrated architecture combined platform with best- brought about decades of benefit from direct, high- technology advancements with Artificial Intelligence performance access to of-breed capabilities, (AI) capabilities can enable alongside cloud-native and digital transformations our integrated platform within a span of two enterprises to profile, solutions while allowing offerings to our customers. correlate and contextualize Following our acquisition years. Remote and hybrid storage of their logs workspaces have made and apply threat prevention within Indian borders. The of developer-first cloud tools to each connected security company our interactions with availability of the regionally smart, intuitive devices device, thus eliminating hosted services is a part Bridgecrew, in November implicit trust and validating 2021 we announced Prisma all pervasive, generating FEBRUARY 2022 21
IN CONVERSATION every stage of digital across categories. This is involved. partners work with vendors interaction. applicable to the channel to prioritize on a platform As cybersecurity sphere as well where The current approach that delivers challenges evolve, we will adaptability has become pandemic has changed end-to-end security across also see a cultural mindset a key business enabler. the expectations and the entire expanse of a shift that will help build a Partners are broadening purchasing behavior digital ecosystem - which certain shared responsibility their horizons and are will be crucial for efficiently of customers, which is between employees and servicing customers with securing hybrid and remote employers to stay secure. varied products instead of forcing many channel workers around the world. Businesses will work one specialized offering. firms to reconsider towards educating their In essence, they have their business model. What is your workforces on evolving moved up from being According to you, what outlook for the threats and bad actors value-added resellers can channels do to technology industry while enterprises will look to full-fledged business reinvent themselves? over the next 2-3 at integrated platform consultants that provide In a threat landscape where attack vectors years? capabilities to monitor security for the long- Cybersecurity is fast threats and access to term. On the customer are multiplying daily, it becoming a boardroom networks. Additionally, front, demands are on an is essential for channel issue for organizations enterprises will also uptick and not exclusive partners to pinpoint across industries, pushing have to look at creating to security. Adopters are areas where they can add executives to look at it levels of segmentation to looking to secure their real value for customers. not as a cost but as an safeguard employees and investment. Additionally, the organization’s most considering how attack valuable assets. We are also seeing great potential surfaces have expanded We will also see in the hybrid work an accelerated pace in the technology and business era, this mindset of of automation across enterprises, along with opportunities in Secure access being proactive about cybersecurity is gradually the emergence of tech- service edge (SASE), Cloud, and taking form within the first companies that are security-conscious, Machine Learning (ML)/Artificial general consumer as well. Therefore, we at Palo revitalizing the Intelligence (AI). Alto Networks believe cybersecurity space in India. that in the coming years, We are also seeing great it will be crucial for potential in the technology both organizations and and business opportunities systems and networks, In addition, building individuals to remain in Secure access service and maintain respectable a diverse and current cognizant of emerging edge (SASE), Cloud, and levels of convenience and portfolio of offerings trends. Machine Learning (ML)/ automation to deal with a instead of working with Artificial Intelligence (AI). digitally transformed world. a handful of specialized Here are the 5 key These market changes products can provide a trends we see emerging With the ongoing have blurred the lines competitive edge. But the from a cybersecurity pandemic, what are between brand, partner, buck cannot stop at just standpoint over the next the changes you see in and customer, giving rise delivering these products; few years: the relations between to stronger partnerships partners must look at across the board. The integrating them within brands, channels, and their own operations. This The meteoric rise shared responsibility notion customers? of cybersecurity has now can aid in the maturing of bitcoin will create a The pandemic has well-funded adversary: gained more popularity of their infrastructures, forced enterprises to relook Cryptocurrency will fuel and has opened new lines scaling new markets, at their operations on a the rise and evolution of of communication between and delivering optimal global scale which has the ransomware industry, vendor and end-user, customer experiences. It is pushed brands to innovate with larger attacks on greatly benefiting all parties also important that channel and deliver new offerings important infrastructure, 27 22 FEBRUARY 2022
IN CONVERSATION while calls for its regulation Attackers will set their have switched their focus differentiator for financial gain traction. Because of eyes on countries’ critical from targeting corporate institutions. With the rise its decentralized character, digital infrastructure: offices to attacking of open-banking and hyper it will be difficult for Cyberattacks on essential individuals. To contend growth of Fintech, poor regulators to track down infrastructure, with with this new reality, programming or security the perpetrators. As a confidential and lucrative enterprises will have misconfigurations at result, businesses must data, worldwide, are on to evolve beyond their the application interface concentrate on enhancing the rise. These attacks corporate networks, deploy levels (API) could provide their cybersecurity posture have revealed that the remote work solutions cybercriminals with and determining their implementation of and bring unified security greater opportunities to level of preparedness cybersecurity protocols is policy management carry out identity theft, for an attack, as well significantly slower than to remote employees. fraud, and unauthorized as conducting tabletop the rate of digitalization This will take form in data collection. Public- exercises to identify any across countries. With the deployment of new private participation security weaknesses hackers aiming to dent integrated solutions like through awareness and that must be fixed. the critical infrastructure, Secure Access Service Edge educational programs Collaboration between there is a need to fast- (SASE). Combining security, would be central to every cybersecurity providers, track improved global networking, and digital security strategy. Special cloud providers, and policies and regulatory experience management, focus would have to be telecommunications collaboration. Governments SASE solutions will given to groups like the providers will help disrupt and businesses must be critical in bringing elderly, who may be more successful attacks and susceptible to fraud as new impose real costs on users of digital banking attackers. platforms. Simultaneously, Cryptocurrency will fuel the rise enterprises will need As physical and to adopt DevSecOps, digital lines blur, who and evolution of the ransomware which will ensure their or what we trust will industry, with larger attacks on infrastructure is tested for impact our security security problems before it even more: Increased important infrastructure, while calls for goes public, allowing their interactions with smart, its regulation gain traction. IT teams to plan for any intuitive devices with security issues that might sensory triggers will create appear after deployment. reams of digital data that In addition, organizations will double up in existing should implement API physical spaces. Given this encourage the creation of about both security and security to their inventory hyper-connectedness of safeguards against complex operational efficiency. and assess the security networks, organizations threats, particularly We can also expect a lot of external-facing APIs. need to draw up a strategic those that target critical more harmonization, or Monitoring and addressing approach that will provide infrastructure through application rationalization, any anomalous activities complete visibility into the supply chain gaps. Time- around the all-remote- within API interactions is security infrastructure. A strapped security teams will access technologies that also vital. Zero Trust architecture benefit from technologies people use, such as VPNs, Mitigating combined with Artificial like behavioral analytics which can be complex to tomorrow’s threats Intelligence (AI) capabilities and SOAR. work out. will require a greater can enable enterprises leadership commitment, to profile, correlate and A borderless The API economy collaboration, and contextualize and apply workforce will need will usher in a new era effective communication threat prevention tools to borderless solutions: of digital fraud and to drive a mindset shift each connected device, With remote work gaining exploits: In an emerging to view cybersecurity as thus eliminating implicit long-term acceptance web 3.0 scenario, a team sport between trust and validating every and homes evolving into digital experience and governments, enterprises, stage of digital interaction. workplaces, cybercriminals banking will be a primary and individuals. FEBRUARY 2022 23
CHANNEL NEWS Ransomware Continues to be Relentless, Destructive: Fortiguard Labs F ortinet, a broad, showing an evolution to a of December, exploitation systems, often in the form of integrated, and more advanced persistent activity escalated quickly executable and linkable format automated cybersecurity cybercrime strategy that enough, in less than a month, (ELF) binaries. Linux runs the solution provider, has is more destructive and to make it the most prevalent back-end systems of many announced the latest unpredictable. To protect IPS detection of the entire networks and container-based semiannual FortiGuard Labs against this broad scope of second half of 2021. In solutions for IoT devices and Global Threat Landscape threats, organizations need addition, Log4j had nearly mission-critical applications, Report. Threat intelligence to implement AI-powered 50x the activity volume in and it is becoming a more from the second half of prevention, detection, and comparison to the well-known popular target for attackers. 2021 reveals an increase in response strategies based outbreak, ProxyLogon, that In fact, the rate of new Linux the automation and speed on a cybersecurity mesh happened earlier in 2021. The malware signatures in Q4 of attacks demonstrating architecture allowing for reality is that organizations quadrupled that of Q1 2021 more advanced persistent much tighter integration, have very little time to react or with ELF variant Muhstik, cybercrime strategies that increased automation, as well patch today given the speeds RedXOR malware, and even are more destructive and as a more rapid, coordinated, that cyber adversaries are Log4j being examples of unpredictable. In addition, and effective response to employing to maximize fresh threats targeting Linux. The the expanding attack surface threats across the extended opportunities. Organizations prevalence of ELF and other of hybrid workers and hybrid network.” need AI and ML-powered Linux malware detections IT is a focal point that cyber intrusion prevention systems doubled during 2021. This adversaries are attempting to For a detailed view of (IPS), aggressive patch growth in variants and exploit. the report, as well as some management strategies, and volume suggests that Linux Michael Joseph, Director important takeaways, read the threat intelligence visibility malware is increasingly System Engineering, India the blog. Highlights of the 2H to prioritize those threats part of adversaries’ arsenal. & SAARC, Fortinet, said, 2021 report follow: propagating most quickly in Linux needs to be secured, “Cybersecurity is a fast- Log4j Demonstrates the wild to reduce overall risk. monitored and managed moving and dynamic Dramatic Speed of Exploit Adversaries Rapidly as any other endpoint in industry, but recent threat Organizations Face: Targeting New Vectors the network with advanced events show unparalleled The Log4j vulnerabilities Across the Attack Surface: and automated endpoint speeds at which cyber that occurred in late 2021 Some lesser or low-lying protection, detection and adversaries are developing demonstrate the rapidly threats have the potential response. In addition, security and executing attacks today. increasing speed of exploit to cause bigger problems in hygiene should be prioritized New and evolving attack that cybercriminals are the future and are worthy to provide active threat techniques span the entire attempting to leverage to of watching. An example protection for systems that kill chain but especially in their advantage. Despite is newly crafted malware may be affected by low-lying the weaponization phase, emerging in the second week designed to exploit Linux threats. 27 24 FEBRUARY 2022
CHANNEL NEWS Botnet Trends Show subsided from peak levels the year. The result was a a More Sophisticated over the last year and list of the individual tactics, Evolution of Attack instead, the sophistication, techniques and procedures Methods: Threat trends aggressiveness, and impact (TTPs) the malware would demonstrate that botnets are of ransomware is increasing. have accomplished if the evolving to adopt newer and Threat actors continue to attack payloads had been more evolved cybercriminal attack organizations with executed. This high-resolution attack techniques. Instead of a variety of new as well as intelligence shows that being primarily monolithic previously seen ransomware stopping an adversary earlier and focused mostly on strains, often leaving a trail of is more critical than ever, DDoS attacks, botnets are destruction. Old ransomware and that by focusing on a now multipurpose attack is being actively updated and handful of those identified vehicles leveraging a variety enhanced, sometimes with techniques, in some situations of more sophisticated wiper malware included, while an organization could attack techniques, including Michael Joseph, other ransomware is evolving effectively shut down a ransomware. For example, Director System Engineering, to adopt Ransomware-as- malware’s methods for attack. threat actors, including as-Service (RaaS) business For example, the top three India & SAARC, Fortinet operators of botnets like models. RaaS enables more techniques for the ‘execution’ Mirai, integrated exploits for vary across global regions, threat actors to leverage phase account for 82 percent the Log4j vulnerability into but can be largely grouped and distribute the malware of the activity. The top two their attack kits. Also, botnet into leveraging three broad without having to create techniques for obtaining a activity was tracked associated distribution mechanisms: the ransomware themselves. foothold in the ‘persistence’ with a new variant of the Microsoft Office executables FortiGuard Labs observed a phase represent nearly 95 RedXOR malware, which (MSExcel/, MSOffice/), PDF consistent level of malicious percent of the observed targets Linux systems for files, and browser scripts activity involving multiple functionality. Leveraging this data exfiltration. Detections (HTML/, JS/). Such techniques ransomware strains, including analysis can have a dramatic of botnets delivering a continue to be a popular way new versions of Phobos, effect in how organizations variant of RedLine Stealer for cybercriminals to exploit Yanluowang and BlackMatter. prioritize their security malware also surged in early people’s desire for the latest The operators of BlackMatter strategies to maximize their October morphing to find news about the pandemic, professed they would not defense. new targets using a COVID- politics, sports, or other attack target organizations themed file. To protect headlines, and to then find in the healthcare sector and Protecting Against Fast- networks and applications, entryways back to corporate other critical infrastructure moving and Sophisticated organizations must implement networks. With hybrid work sectors but did so anyway. Cyber Adversaries zero trust access solutions and learning remaining Ransomware attacks remain As attacks continue to to provide least access a reality, there are fewer a reality for all organizations develop in sophistication privileges especially to secure layers of protection between regardless of industry or size. and span the entire attack IoT endpoints and devices malware and would-be Organizations need to take surface at increased speeds, entering the network as victims. Organizations must a proactive approach with organizations need solutions well as automated detection take a “work-from-anywhere” real-time visibility, analysis, designed to interoperate and response capabilities to approach to their security by protection and remediation rather than function in monitor anomalous behavior. deploying solutions capable coupled with zero trust access isolation. Securing against Malware Trends Show of following, enabling, and solutions, segmentation, and evolving attack techniques Cybercriminals Maximizing protecting users no matter regular backing up of data. will require smarter solutions “Remote Everything:” where they are located. Deeper Understanding that know how to ingest Evaluating the prevalence They need advanced security of Attack Techniques Can real-time threat intelligence, of malware variants by region on the endpoint (EDR) Help Stop Criminals Faster: detect threat patterns and reveals a sustained interest combined with zero trust Analyzing the attack goals of fingerprints, correlate massive by cyber adversaries in access solutions, including adversaries is important to be amounts of data to detect maximizing the remote work ZTNA. Secure SD-WAN is also able to better align defenses anomalies, and automatically and learning attack vector. In critical to ensure secure WAN against the speed of changing initiate a coordinated particular, various forms of connectivity for the extended attack techniques. To observe response. Point products browser-based malware were network. the malicious outcomes of need to be replaced with a prevalent. This often takes Ransomware Activity various attacks, FortiGuard cybersecurity mesh platform the form of phishing lures Still High and Continues Labs analyzed the functionality that provides centralized or scripts that inject code or to Get More Destructive: of detected malware by management, automation redirect users to malicious FortiGuard Labs data reveals detonating the malware and integrated solutions that sites. Specific detections that ransomware has not samples collected throughout work in concert. FEBRUARY 2022 25
CHANNEL NEWS Salesforce Establishes Sustainability as Core Company Value; Launches Net Zero Cloud 2.0 S Salesforce alesforce has announced accelerate towards a collective accountability, organizations’ sustainability as a net zero goal. And just last carbon data will need to be core company value, further integrates week, Salesforce announced as trusted as their financial joining its values of trust, sustainability that it is tying executive pay data. Organizations will also customer success, innovation, throughout company to environmental, social, need to know how to reduce and equality. And, to help At Salesforce, values drive and governance (ESG) emissions in a credible and organizations accelerate the company’s decision- performance, including two meaningful way. their own journeys to net making. Every employee and sustainability metrics. Net Zero Cloud 2.0 has zero emissions, Salesforce is team knows Salesforce’s been completely rebuilt also making Net Zero Cloud values and strives to live by Mandatory climate to offer trusted reporting, 2.0 — a solution that tracks them every day. deeper insights, and supplier greenhouse gas emissions — With sustainability as reporting is coming management so that Regulatory change may available globally. a core value, Salesforce is organizations can go net soon require organizations to Suzanne DiBianca, leveraging its full power zero now. With Net Zero report on ESG matters, and Chief Impact Officer, EVP to drive climate action Cloud 2.0, organizations can many countries are already of Corporate Relations, and further operationalize get sustainability insights disclosing their climate- Salesforce, said, “I’m sustainability across its with powerful Tableau CRM related financial risks and extremely proud that we entire business. This means dashboards to achieve their opportunities. will now officially count every internal organization climate goals and take action Legislatures and regulatory sustainability as a core value, incorporates sustainability into with: agencies in the United States making it part of everyone’s its V2MOM — a Salesforce • C arbon Footprint Forecast: are also considering disclosure job at Salesforce. When we alignment process that drives Organizations can find the rules. A bill that would require add a value we operationalize the company’s success. fastest path to net zero companies to disclose all it in every area of the business. Salesforce has net zero with ‘what-if’ analysis greenhouse gas emissions is In this climate emergency, emissions and has been to visualize progress and moving through the California we need every organization voluntarily reporting on its alignment to their climate legislature; and the U.S. SEC to get to net zero as fast as greenhouse gas emissions action commitments. has solicited public input on possible. Now that Salesforce since fiscal year 2012. Since • S cience-Based Targets: voluntary climate change has reached net zero that time, the company has Setting goals in line with disclosures. emissions, we want to use our continued to increase the science-based targets and technology and best practices scope of its climate action measuring progress. to help organizations reach strategy by actively engaging The next generation of • S upplier Management: their climate goals, too.” policymakers, peers, partners, Net Zero Cloud Track scope 3 emissions suppliers, and customers to In this new era of climate across the entire value 27 26 FEBRUARY 2022
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