Corero Network Security has won five 'as-a-service' subscription-based contracts for its DDoS protection products and technology in the final quarter of 2016, with an aggregate annualised contract value of $0.3 million.
The 'as-a-service' offering was introduced in response to increasing customer interest in subscription-based contracts in contrast to the purchase of equipment under a traditional perpetual license model.
This 'as-a-service' offering is expected to expand Corero's addressable market and is proving popular with fast-growing Cloud hosting providers and regional service providers who can enter the market more rapidly by offsetting the costs of operating a DDoS protection solution with the monthly revenues derived from selling these high margin security services to their own customers.
Corero also said enjoyed an increase in perpetual licence model revenue billings in the fourth quarter. An update on trading for the year to 31 December will be provided ahead of the full year results announcement.