VarioSecure

Basic Information

Stock Code
4494
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
September 2015
Listing Year
November 2020
Official Website
https://www.variosecure.net/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
FRONTEO, Digital Arts, Iole, Soliton Systems, Zenmu Tech, FFRI Security, Intertrade, JIG-SAW, SeGue Group, Cybersecurity Cloud, Cybertrust, Trend Micro, Japan Rad

Overview

VarioSecure is a technologically advanced company in the information and communications industry, established in 2015, with managed security services as its core business.

Current Situation

VarioSecure recorded sales of approximately 2.5 billion yen, operating profit of about 500 million yen, and net profit of about 260 million yen in the fiscal year ending February 2020, maintaining a stable revenue base. Its flagship managed security service leverages its in-house developed integrated security appliance VSR to differentiate from competitors. Boasting high technological prowess, it became the first Japanese company to obtain an ICSA-certified firewall and offers a wide range of optional services tailored to client needs. In recent years, it has strengthened email security and VPN services while expanding its customer base for managed services integrated with cloud services. Responding to societal demands for sustainability and enhanced information security, it focuses on sustainable growth and market share expansion. Moving forward, it will advance product development and sophisticated operational services to improve customer satisfaction and ensure IT infrastructure security. Its capital structure is stable, with the I-Sigma Business Support Fund as the major shareholder ensuring management stability.

Trivia

Interesting Facts

  • First Japanese company to obtain ICSA Corporate Firewall certification
  • VSR products feature uniqueness from in-house hardware and software development
  • Predecessor was a spin-out from PSI Net in 2001
  • Emerging security company listed on Tokyo Stock Exchange in 2020
  • Multi-homing functions offer more flexible settings than competitors
  • Product chassis adopts highly evaluated fanless design in the industry
  • Administrator tools enable centralized log management at in-house centers
  • Founding members include Chihiro Sakamaki and Eric E. Bowles
  • Aggressive expansion of cloud services from early stages
  • Mis-sending prevention tool seeing increased adoption among SMEs
  • Comprehensive lineup of in-house developed VPN dedicated devices
  • Rack-mount compatible models are central to security devices
  • 24/7 system adopted for operation and monitoring services
  • Maintained engineer-led management philosophy since founding
  • Aiming for stable management by increasing equity ratio

Hidden Connections

  • Strong industry network with former PSI Net engineers as founders
  • Major shareholder I-Sigma Business Support Fund focuses on IT venture investments
  • Email security business has adoption track record in domestic educational institutions
  • In-house VSR products deployed in networks of dozens of major domestic companies
  • Operation centers concentrated in Tokyo with strengthened disaster measures
  • Actively strengthening legal department to address changes in internet security laws
  • Partial product overlap with competitor Trend Micro, coexisting in the market
  • In-house development avoids rigidity, enabling flexible customer response as key differentiator

Future Outlook

Growth Drivers

  • Expanding demand for corporate security enhancements
  • Spread of cloud and remote work environments
  • Requirements for countermeasures against sophisticated cyber attacks
  • Strengthened security regulations by government and local authorities
  • Increasing information security investments by SMEs
  • Growth in IoT security market
  • Evolution of threat detection via AI technology
  • Demand for regulatory compliance and enhanced governance
  • 対応 to network diversification and complexity
  • Expansion of global security collaborations
  • Shift to high-value-added services
  • Rising sustainability awareness

Strategic Goals

  • Double sales of managed security services
  • Expand market share in cloud-integrated services
  • Grow into a top-tier domestic security specialist
  • Expand product lineup for diverse IT environments
  • Promote sustainable management and energy-efficient products
  • Maximize operational efficiency with AI and automation
  • Launch services in global markets
  • Enhance information security awareness internally and for customers
  • Strengthen social contributions through community coexistence
  • Acquire new customer segments and expand partnerships

Business Segments

Managed Security Services

Overview
Provides comprehensive support for secure network operations and device management to corporate clients.
Competitiveness
Integrated provision of in-house developed products and services
Customers
  • Large Corporations
  • Small and Medium Enterprises
  • Public Institutions
  • Educational Institutions
  • Medical Institutions
  • Financial Institutions
  • Manufacturing
  • IT Companies
  • Distribution
  • Service Industry
Products
  • VSR Integrated Router
  • Firewall
  • IDS & ADS Service
  • Multi-Homing
  • VPN Service
  • URL Filtering
  • Virus Protection
  • LAN Monitoring Service

Email Security Services

Overview
Composite security services to enhance email safety.
Competitiveness
Advanced spam and virus detection technology
Customers
  • General Corporations
  • Small and Medium Enterprises
  • Financial Institutions
  • Medical Institutions
  • Educational Institutions
  • Public Institutions
Products
  • Vario Anti-Virus
  • Anti-Spam
  • Attachment Encryption
  • Mis-Sending Prevention Tool

Security Device Sales

Overview
Sales and installation support for security devices to corporations.
Competitiveness
High-performance and robust in-house product lineup
Customers
  • Telecommunications Providers
  • System Integrators
  • Corporate IT Departments
  • Government Agencies
Products
  • VSR Hardware Series
  • VPN Dedicated Devices
  • Load Balancers
  • Administrator Tools

Cloud Services

Overview
Cloud-based log analysis and network management services.
Competitiveness
Operation services with immediacy and flexibility
Customers
  • Small and Medium Enterprises
  • IT Companies
  • Startups
  • Educational Institutions
Products
  • Cloud-Based Log Management Service
  • Cloud-Based Network Monitoring

Consulting Services

Overview
Support from security measure planning to implementation.
Competitiveness
Proposal capabilities backed by extensive track record and expertise
Customers
  • Large Corporations
  • Public Institutions
  • Financial Sector
  • Manufacturing
Products
  • Risk Analysis
  • Security Design
  • Operation Improvement Proposals

Operation and Monitoring Services

Overview
Ensures stable network operation and security.
Competitiveness
Rapid response capabilities and technical support system
Customers
  • Corporations Across All Industries
  • Public Institutions
  • Educational Institutions
Products
  • 24/7 Network Monitoring
  • Incident Response
  • Security Log Analysis

VPN Setup Support

Overview
Design and provision of secure remote communication environments.
Competitiveness
Support for both hardware and software aspects
Customers
  • Multi-Site Corporations
  • Remote Workers
  • Government Agencies
Products
  • Site-to-Site VPN Setup
  • Remote Access VPN

Load Balancer Provision

Overview
Provision of devices for traffic load distribution and access control.
Competitiveness
High-performance and stable network operations
Customers
  • Web Service Companies
  • Telecommunications Providers
  • Financial Sector
Products
  • L4 Load Balancer
  • L7 Load Balancer

In-House Network Protection

Overview
Countermeasures against unauthorized access and viruses in organizational networks.
Competitiveness
Comprehensive integration of security devices
Customers
  • Manufacturing
  • Service Industry
  • Educational Institutions
Products
  • LAN Monitoring Service
  • Virus Protection

Email Mis-Sending Prevention

Overview
Provides verification tools to prevent email mis-sending.
Competitiveness
User-friendly interface
Customers
  • Financial Sector
  • Large Corporations
  • Government Agencies
Products
  • Email Confirm

Attachment File Security

Overview
Encryption services for attachment files.
Competitiveness
High-level encryption technology to prevent information leaks
Customers
  • Medical Institutions
  • Educational Institutions
  • Government Agencies
Products
  • Attach & Upload

ASP Security Services

Overview
Cloud-based ASP services for spam countermeasures.
Competitiveness
Easy and immediate deployment service
Customers
  • Small and Medium Enterprises
  • IT Companies
  • Public Organizations
Products
  • Cloud Anti-Spam

Competitive Advantage

Strengths

  • Service integration through in-house developed products
  • High technological capabilities with ICSA certification
  • Integration of a wide range of security functions
  • Stable financial base
  • Adaptability to a wide range of industries
  • Rapid customer support system
  • Cloud-integrated service development
  • Experienced management team
  • Advanced network operation expertise
  • Continuous product updates
  • Flexible customization offerings
  • Combined security consulting
  • Robust VPN functions
  • Abundant operation and monitoring services
  • Reliability within the industry

Competitive Advantages

  • Thorough quality control through in-house hardware and software development
  • VSR products provide multiple functions in a single unit
  • First Japanese company to obtain ICSA firewall certification
  • Flexible response to customer needs with diverse options
  • Reduced operational burden through managed services
  • Advanced email security services
  • High reliability based on extensive implementation track record
  • Dedicated administrator tools to facilitate information sharing
  • 24/7 operation and monitoring services
  • Proactive introduction of new technologies and product improvements
  • Stable capital base supported by major shareholder
  • Consistent technology in VPN and load balancers
  • Broad customer base across industries
  • Seamless integration with cloud services
  • Operations compliant with latest security standards

Threats

  • Sophistication and diversification of cyber attacks
  • Strengthening of capital and technology by major competitors
  • Increased compliance burden from stricter security regulations
  • Risk of failing to keep pace with rapid technological innovation
  • Intensifying competition in cloud security market
  • Challenges in talent acquisition and competition
  • Price competition pressure from new entrants
  • Risk of losing deeply connected customer base
  • Adapting to rapid changes in IT infrastructure
  • Business continuity risks from natural disasters
  • Impact from customer IT budget cuts
  • Reputation damage from information leak incidents

Innovations

2023: Development and Launch of New VSR Models

Overview
Released new VSR models with gigabit compatibility and high-performance CPUs.
Impact
Achieved improved processing speed and increased customer satisfaction.

2022: Launch of Cloud Log Management Service

Overview
Began providing cloud-based log aggregation and analysis functions.
Impact
Contributed to improved operational efficiency and enhanced security monitoring for customers.

2021: Enhanced Email Mis-Sending Prevention Functions

Overview
Improved functions and UI of Email Confirm.
Impact
Reduced mis-sending risks, enhancing customer trust.

2024: Introduction of AI-Powered Threat Detection Technology

Overview
Implemented machine learning-based anomalous communication detection in VSR.
Impact
Significantly improved early threat detection accuracy.

2020: Enhanced Multi-Homing Functions

Overview
Improved load balancing algorithms in in-house routers.
Impact
Realized high network availability.

2023: Strengthened Hardware Support for VPN Encryption

Overview
Improved VPN encryption processing performance in VSR products.
Impact
Enabled high-speed, secure remote access.

2021: Improved Anti-Spam Detection Accuracy

Overview
Upgraded spam filtering technology to AI-compatible.
Impact
Reduced false positives and improved blocking rates.

2022: Development of Smart Log Analysis Tool

Overview
Developed intuitive log visualization tool for administrators.
Impact
Improved operational efficiency and reduced troubleshooting time.

2024: Initiation of IoT Security Expansion Project

Overview
Began R&D for security-integrated products for IoT devices.
Impact
Building foundation for future new market development.

2020: Launch of One-Stop Security Services

Overview
Established integrated service model from operations to management.
Impact
Improved customer convenience and reliability.

Sustainability

  • Reduced environmental impact through energy-efficient designs
  • Promotion of digitization and paperless operations
  • Enhanced internal security education
  • Support for local IT talent development
  • Thorough secure information management
  • Exploration of renewable energy use
  • Environmentally considerate waste disposal
  • Promotion of diverse work styles to secure workforce
  • Awareness campaigns on information security for local communities
  • Active participation in social contribution activities
  • Sustainable supply chain management
  • Employee health maintenance and improved work environment