Great questions here. I'll elaborate below:
RealCISO is a separate company that spun out of SideChannel back in 2019/2020 timeframe. It's IP, assets, sales, expenses, and team are within that DE C-Corp, RealCISO, Inc. It is a SaaS based risk assessment and analysis platform used to qualify any organization's alignment to cybersecurity standards and compliance requirements, like HIPAA, NIST, or PCI. It has it's own sales and marketing team. RealCISO sells directly to companies it's SaaS licenses as well as via channel distribution to private equity firms, consulting firms, and resellers who then resell or use with their own client base.
SideChannel is one of those resellers and users of the platform. We resell RealCISO licenses to our clients with a profit margin just like RealCISO's other customers. We do this exactly the same way we resell other cybersecurity tools our customers need that we ourselves didn't develop; products like ProofPoint for email security and SentinelOne or Crowdstrike for end point detection and response. Reselling other products is a standard approach to servicing clients in this industry and allows us to grow our top line revenue and recognize profit.
We also have our own microsegmentation product, Enclave, that we sell direct to customers and via channel distribution. We obviously have a higher profit margin on our own product than reselling a third party product. SideChannel does not resell anything that is competitive to Enclave, why would we?
Cybersecurity conferences are an amazing time to meet prospects and gain exposure. The people at SecureWorld are mostly CISOs and their direct reports. I've been attending this SW in Boston since 2015 when I moved to the area. We had many conversations with people about Enclave and with those who were looking to better their risk assessment programs who could use RealCISO. SideChannel will resell RealCISO to those people and use that new client to introduce Enclave and our other services. Much of this industry is centered around gaining clients trust, prove value, and then provide more offerings to make them more secure.
SideChannel's mission and goal is to lead the cyber program for clients and take on as much of the delivery for them as possible. Clients let us run their programs and that allows us to introduce our other products and services.
Bullish
