■Amiya ＜4258＞ Business Overview

2. business segment

(1) Data security business

The data security business is centered around the log management service “ALog Series,” which has a track record (cumulative total) of over 6,000 domestic and international contracts. Since logs can be managed not only on file servers but also in a wide range of logs from other servers and network devices, they are used to solve issues such as internal fraud countermeasures, cyber attack countermeasures, investigation of failure causes, and changes in work styles. Similar to surveillance cameras, logs play an important role as tracking materials and evidence materials after an incident. For example, logs can be used for all kinds of behavior related to corporate operations, such as monitoring data taken out by internal stakeholders, detecting cyber attacks from outside, and labor management under telework. With unique log translation conversion technology and artificial intelligence (AI) fraud prediction detection, advanced log utilization can be realized even without expertise or know-how.

The products sold in this business are security software attached to servers such as Fujitsu (6702) and Dell Technologies Co., Ltd. Therefore, hardware vendors or distributors (distributors) that resell them are the main sales agents, and indirect sales via sales agents are the main sales agents. Since both customers are major companies, it has also led to a reduction in debt collection risks.

Since sales completely transitioned from license sell-out type to subscription type from 2024/4, monthly usage fees due to annual contracts will be generated regularly and continuously. The main sales costs are development costs, labor costs for maintenance support personnel, and outsourcing costs. In addition to changing the profit structure by changing the fee structure to a subscription type, new businesses such as education businesses have also been added, and the policy is to aim for ARR 2.06 billion yen in the data security business by the 2025/12 fiscal year.

Conventional “ALog” was a log management product mainly for preventing internal fraud such as information leaks. Information leaks can be monitored and suppressed within the company by recording the operation of large-scale file servers and storage servers where important data is stored, and analyzing who has edited, deleted, and taken out the files. Recently, however, it has been mainly used as a SIEM product that acquires logs from all servers, network devices, security devices, etc. constituting corporate information systems, detects cyber attacks from the outside, and tracks intrusion routes and damage ranges. The feature is processing technology that analyzes and converts complex logs into something that can be easily understood and viewed. Most competitors' products only record and store large and complex logs as they are, but the “ALOg Series” has analysis processing technology that visualizes them. Since the corresponding log is easier to understand, it can be useful for immediate detection in the event of an emergency. Also, templates designed in advance so as not to require complicated designs are provided as standard, and cyber attack detection, attendance management under telework, etc. can be easily realized with logs. Conventional log management products are unable to effectively utilize large amounts of complex logs, but the company provides templates that organize, give meaning, and develop utilization methods for logs as standard accessories. Furthermore, it is equipped with AI and has a function to automatically determine suspicious and disturbing behavior from past logs, and it can be used to prevent fraud due to predictive detection by utilizing logs as post-event tracking.

On 2023/2/28, the log management product “ALog” began selling the SaaS version “ALog Cloud Edition” compatible with the cloud. Conventionally, customers purchased “ALog” software licenses and servers for “ALog”, and customers themselves operated “ALog” to manage logs. Therefore, major companies with system operation skills became the main sales area for “ALog.” Meanwhile, since the “ALog Cloud Edition” is provided as SaaS on the internet, there is no need for a customer to purchase a server or operate a system, and it is easy to implement even for semi-large, medium, and small to medium enterprises. Since the introduction of “ALog” has already been oligopolized mainly by major companies, the company has a policy of strengthening sales of the “ALog Cloud Edition” to semi-large, medium, and small to medium enterprises with a large number of companies. In the future, in addition to increasing product competitiveness, market share is expected to expand.

(Written by FISCO Guest Analyst Ryoji Mogi)