UK cybersecurity firm Sophos is in talks with two Brazilian government agencies to provide cloud-based cybersecurity solutions via its just opened local data structure, André Carneiro, the company’s managing director for Brazil, said at a press conference.
This local structure, the company’s first in Latin America, is a space Sophos is leasing from a datacenter of Amazon Web Services, as Oscar Chávez-Arrieta, Sophos regional sales VP, told BNamericas in February.
This local data operation went live this month.
The investment in the Brazilian AWS datacenter meets local regulatory requirements, according to which certain sensitive government and financial sector data must be located in national territory.
Sophos develops products for communication endpoint, encryption, network security, email security and mobile security. Its chief competitors include Cloudfare, Cisco, Fortinet, Palo Alto Networks, and SonicWall, among others.
By having locally stored data, Sophos believes it can increase the public sector’s share of its local revenues to around 50% from currently 15% in the coming years, Carneiro said.
He did not provide details on institutions Sophos is negotiating contracts with.
Aside from the public sector, Sophos expects to close first contracts by June with private enterprises for services backed by the local data infrastructure.
The company is also expanding its local team and launching a Brazilian center for customer support in Portuguese.
Sophos’ growing investments in the region comes amid rising cyber threats.
According to the company, 55% of around 200 Brazilian firms were hit by ransomware attacks in 2021, up from 38% in 2020.
The data is part of Sophos’ latest ransomware report, presented on Monday.
Among other findings, around 73% of Brazilian enterprises declared that having backup is the most used method for restoring data following a ransomware attack, in line with the global average, while 40% chose to pay the ransom, which cybersecurity analysts do not recommend companies do.
Worldwide, 66% of organizations assessed were hit by ransomware in 2021, compared to 37% in 2020.
Average ransom paid by companies worldwide that had data encrypted in attacks increased nearly five times in one year, to over US$812,000 in 2021.