PETALING JAYA: Options supplier and cyber safety agency Systech Bhd, which was banking on blockchain to take the corporate ahead, now says that market acceptance for it’s “a bit difficult”.
The corporate, which fell into the crimson within the second quarter of its monetary 12 months ended March 31,2021 (FY21) plans to revert to cyber safety as its mainstay since demand for that is growing, CEO Raymond Tan mentioned.
The smallish Systech, which has a market capitalisation of lower than RM100mil, first ventured into blockchain in 2017 when it purchased a 49.99% stake in Rofarez Options Sdn Bhd, which has since been renamed Syscode Sdn Bhd.
The plan was to develop this enterprise and make it an equal revenue contributor with the corporate’s different two segments.
“However the promoting circle for blockchain is simply too small right here and competitors is an excessive amount of with some gamers being very aggressive, ” Tan, who controls over 50% of the corporate, informed StarBiz.
Blockchain is loosely outlined as a digitised, decentralised public ledger of transactions that may be traced and verified at any cut-off date by related events.
Knowledge is saved inside what is named cryptographic blocks, that are joined collectively forming a sequence of knowledge.
What this basically means is that there’s an added layer of safety and transparency for these knowledge they usually can’t be simply hacked.
Tan claimed that the majority firms at present prioritised cyber safety over blockchain and had no price range for the latter though each weren’t essentially replacements for one another.
“Cyber safety has turn out to be the lead enterprise section for the Systech Group and is anticipated to register an additional 30% progress in income for the approaching monetary 12 months, ” mentioned Tan.
He mentioned over the previous one 12 months, the corporate managed to safe cyber safety jobs from corporates equivalent to banks, insurance coverage firms and inventory brokerages.
“We even have 70% of the gross sales locked in already for the present monetary 12 months, ” he mentioned.
Tan mentioned with the continuing Covid-19 pandemic and the continued journey restrictions imposed affecting enterprise sentiment and operations, Systech Group expects the approaching monetary 12 months to nonetheless stay difficult.
“However we’re cautiously optimistic that we’ll return to the black within the brief time period, ” he mentioned, however didn’t state when.
Beginning off as a options or software program supplier greater than a decade in the past, Systech, which is in a web money place, had in 2014 purchased 51% of Sysarmy Sdn Bhd for RM255,000, marking its foray into cyber safety.Systech offers cyber safety providers to organisations, monitoring the visitors on networks of firms and elevating crimson flags if it detects something “suspicious”.
In its just lately concluded monetary quarters, its cyber safety enterprise mirrored a pick-up in demand though the software program facet of its enterprise registered a decline, contributing to the corporate’s losses.
Tan mentioned consciousness on the significance of cyber safety had been up to now 12 months growing as organisations struggled to stabilise their operations amid a spike in demand for distant working instruments.
As extra people log on for work and to do easy on a regular basis issues like banking and grocery purchasing, demand for cyber safety providers will proceed to point out an uptrend, in line with him.