Designing Category Smashing Businesses with Oliver Friedrichs (Phantom, Pangea)

Security Voices

For the second episode in a row, we’ve caught a seasoned entrepreneur at that perfect moment when they’ve started a new company but still have time for a conversation before their new adventure kicks into high gear. Oliver Friedrichs, founder of several security companies including Immunenet and Phantom, joins us to talk product strategy as he embarks on a new journey to disrupt the security industry once again with his new venture Pangea.
The most critical, first question for any young company is “what are we making”? And equally important is the follow-on question of what category does the offering fit into or how should people think about it? Is it a better version of something that exists? A new type of something that’s meaningfully different? Or is it an entirely new category of product they’ve never seen before?
Oliver and Dave discuss examples of each type of strategy from their own experience and the industry in general. The “better mousetrap” approach is covered with examples from antivirus and more recently cloud security posture management. We discuss when it is a good time to “next gen” a category to revitalize it and return it to growth. Examples here include Palo Alto Networks firewall and Vulnerability Management (from its early days as vulnerability assessment). Oliver and Dave call out the fatal mistake so many market incumbents make that result in them missing out on a refresh cycle.
Creating new categories dominates our conversation and we explore Oliver’s case study of Phantom in depth. We start by explaining the core principles of a new category and lay bare some indicators that a product group hasn’t yet made the leap to a full blown category. Oliver then shares the spark of idea that led him to found Phantom as the first SOAR followed by how he built the boundaries for their product and ultimately the companies that followed their lead as the first mover. While most of our time is spent discussing what worked and didn’t from a product perspective, Oliver also shares his go-to-market playbook, including what he will avoid this time around and what he intends to do again with Pangea.
We wrap up with a quick look at the future of SOAR and Oliver shares an early peek at what he’s building now at his new company. This episode is perfect for early cybersecurity companies looking for product advice, product professionals wrestling with category questions, or anyone who wants to listen in on a dialogue between 2 industry veterans geeking out on product.
Bio
Friedrichs serves as Founder and CEO of Pangea. Prior to Pangea, Friedrichs served as Vice President, Security Products at Splunk, driving the vision and direction of Splunk’s security portfolio. With a record in building four successful enterprise security companies over the past two decades, Friedrichs founded and served as CEO of Phantom (creators of the SOAR category, acquired by Splunk), founder and CEO of Immunet (early innovators in the cloud EDR category, acquired by Sourcefire/Cisco), co-founder of SecurityFocus (creators of Bugtraq and DeepSight, the world's first Internet early warning system, acquired by Symantec), and Secure Networks (one of the industry's first vulnerability management solutions, acquired by McAfee). Friedrichs also architected and developed a prototype of the first commercial penetration-testing product, SNIPER, acquired by Core Security Technologies in 2001 and further developed into CORE IMPACT. He attended the University of Manitoba and is the co-author of three security books and a recipient of 33 patents.