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How Pricing Figures in FireEye’s Transformational Strategy

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Aug. 14 2017, Updated 9:37 a.m. ET

FireEye’s “holistic pricing” strategy

Earlier in this series, we discussed FireEye’s (FEYE) transformational strategy and the Helix platform’s role in it. Let’s discuss what role pricing and packaging could play in FireEye’s strategy.

FireEye aims to simplify its pricing strategy as the company shifts from hardware-based offerings to subscription-based offerings. FireEye noted that it aims to undergo “a holistic pricing review” so it can extend its reach beyond its traditional customer base of large enterprises to a broader set of companies including midmarket and SMB (small and medium enterprises).
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FireEye’s CEO, Kevin Mandia, noted during the company’s 2Q17 earnings announcement, “And in the past, I thought our products at a premium price weren’t always perfect for the channel, and sometimes they were perceived as expert systems. If you bought our products, you actually have that somebody run them, look at them. And so, I think we got the policy right, it’s unambiguous, and if we keep enforcing it, we’re going to win the channel over in time.”

FireEye is aiming to be consistent with its product pricing, including packaging, branding, and policies with partners.

FireEye’s HX platform

The key to FireEye’s strategy success is timing. The company is looking forward to delivering the remaining versions of its HX endpoint protection platform.

In 2Q17, FireEye released HX for Linux. Now, FireEye’s HX platform covers Microsoft (MSFT) Windows, Apple’s (AAPL) Mac, and Linux OS. Mandia noted that 3Q17 is a “pivotal moment for FireEye” as the company is “delivering endpoint protection wrapped with the EDR forensic capabilities and we’re pricing it for channel-led sales.” EDR refers to endpoint detection and response.

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