Michael Shinn, Atomicorp CEO
What opportunity did you recognize that led to the founding of Atomicorp?
Michael Shinn: The security industry was being challenged by the widespread migration to the cloud and cloud-based technologies. To me, it seemed like a classic second mover opportunity caused by a fairly disruptive change to the market. A lot of the existing cybersecurity solutions either couldn’t be used in these cloud environments — appliances for example — or they didn’t provide the right value to the customer. The products weren’t designed for that world. They were being bolted on and the customers weren’t happy. We saw this as an opportunity to apply some unique technology and solve the cybersecurity problems in a cloud-friendly way.
What specific value does addressing that problem provide for your customers?
Shinn: The value that customers have shared with us is a dramatic reduction in operating cost. We have been told 80% and the number has been shared with us repeatedly. That 80% is based on the fact that there are fewer security incidents they must address after installing Atomicorp. That seems like the obvious place to look for benefits for a security solution. The non-obvious benefit is the reduced dev ops costs because they don’t have to patch their systems so frequently. That has enabled dev ops to do their work without having to go through a lot of security gates.
Why aren’t current solutions addressing this problem effectively?
Shinn: For the traditional players what seems to be happening is this move to the cloud doesn’t work with their current business models. That is a substantial problem. When I talk with my peers at these companies, they are frustrated that their attempts to build cloud-based solutions have not gone well within their organizations in terms of culture, sales model, accounting and product. Cloud platforms are extremely heterogeneous. Solutions are sold by the hour. It’s not a traditional IT environment where you control the network and all of the components. The attack surface is completely different and more dynamic in a cloud environment than an on-prem environment. The problems are different. The solutions need to be different.
It’s a more challenging environment for traditional cybersecurity companies to build products and more challenging to operate their business because they need to reinvent how they operate. Something as simple as how do you account for revenue in this new model when you are accustomed to selling enterprise licenses is an issue.
For the customers, the problem is exasperated by the fact that a lot of the security products are built for security experts which doesn’t help their dev ops teams. That is not what they are looking for. They need products that are easy for non-experts to use.
What makes your approach different and better from existing approaches?
Shinn: Atomicorp products are built for cloud environments from the ground up and they are designed to be easy to use.
What about your team’s background puts you in a unique position to succeed?
Shinn: Scott and I founded Plesk in 1999 which invented a lot of the technologies that cloud providers rely on today. So we have an intimate knowledge of the technologies that make cloud possible. After we sold that company, we put a lot of thought into what we were going to do next. The idea for this company came from what we learned building those products and serving those customers. The Atomicorp product was built from experience and designed specifically for cloud providers.
You just announced a $1 million seed round. What do you plan to do with the proceeds?
Shinn: Customer acquisition and product enhancements. Priority one through five is introducing more customers to Atomicorp. We have a proven product and a lot of customers, but we are looking to introduce Atomicorp to more.
What are some of the milestones you have passed since graduating from Mach37?
- We have now earned more than we have spent
- We crossed the 1,000 customer mark.
- We have made some key executive hires such as VP of Sales.
You already had a product and customers when you entered the Mach37 program. What made Mach37 a good choice for you even though you already had some business momentum and customer traction?
Shinn: The robustness of the educational program was tremendous. That education would cost a lot of money. It is unlikely that a startup could afford it. The Mach37 program is like a compressed MBA and it is tailored to you needs. It is not abstract learning. It is deliverable based. You need to develop your messaging. You have to put together a budget, recruit people and build a real business. Doing that while you are in the program is priceless. I’m not sure there is an MBA on earth that does that.
Secondarily, I would point out the relationships. Mach37 has done a wonderful job introducing us to good hires, advisors, investors, and service providers. It’s a very good network. Finally, it’s a very supportive environment. Building a business is hard work. They are good coaches.
Learn more about Atomicorp here.
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Author Of this post: Rick Gordon