Find A Market Niche For Your Managed Services
By The Business Solutions Network
Staying focused on one industry helps this MSP experience year-over-year double-digit growth and develop market expertise.
Helion Automotive Technologies
Founded:
1997
2015 Sales Growth Rate:
15%
2016 Projected Sales Growth Rate:
15 to 20%
Employees:
110
Phone:
(443) 541-150
Website:
www.heliontechnologies.com
Distributors:
Comstor, Tech Data
Verticals:
auto and heavy truck dealers
Vendors:
Autotask, Barracuda, Cisco, Kaseya, Microsoft, Webroot
How A Better Antivirus Strategy Translates To $75,000+ In Savings
It was nearly three years ago that CryptoLocker first appeared, a ransomware trojan targeting computers running Microsoft Windows. What made this malware different from the many that preceded it was its resistance to being removed from an infected computer. In fact, infected users had two options: pay the person responsible for the CryptoLocker attack to “unlock” their encrypted files or roll back their systems to a preinfected state.
Managed services provider (MSP) Helion Automotive Technologies became all too familiar with the CryptoLocker ultimatum. According to Erik Nachbahr, president of Helion, his company was receiving an average of one new CryptoLocker incident per day, which required the full-time attention of one of his senior technicians. “Not only did we incur the cost of this person’s salary to address these problems, but we had to deal with unhappy customers asking us why they are paying us each month to protect their computers and then something like this happens.”
Nachbahr knew he had to find a resolution quickly, and he began investigating new antivirus options, which led him to Webroot Secure- Anywhere, an antivirus (AV) solution that works differently from many other AV solutions he evaluated. “A lot of AV solutions are signaturebased,” he says. “The way these solutions work is that shortly after a new virus or malware variant is discovered, the AV vendor creates a new signature to protect users from that specific piece of malware. The signature is tested and then pushed out to the vendor’s customers in the form of a signature update. The problem with this approach is that it only protects users from already-known malware signatures, not the new ones, called zero-day signatures.”
Another concern with signature-based AV programs is that, as the number of signatures increases, these programs can consume multiple gigabytes of storage on users’ workstations. Even more concerning is that during system scans, the computer’s processor (i.e., CPU) and RAM (random access memory) become highly taxed as the software scans millions of signatures looking for a match on the user’s machines. Anyone who has ever tried to use a computer during a system scan can attest that any tasks beyond checking emails are likely to result in a spinning hourglass. “Even more concerning than all that is the fact that signature-based antivirus programs are becoming less effective as cyber criminals become faster at releasing new malware variants,” says Nachbahr. “This was the predicament we and our customers were in two years ago when CryptoLocker came on the scene. The AV program we were using at the time simply could not keep up with the rate of new CryptoLocker variants, and we were averaging one new CryptoLocker breach each day in 2014 and the first half of last year.”
How Cloud-Based AV Defends Against Zero-Day Malware Signatures
After switching to Webroot SecureAnywhere, Helion and its customers saw a dramatic change right away. “One of the first things that surprised us about the Webroot SecureAnywhere product is that it takes up less than 800 KB of space on a user’s computer,” says Nachbahr. “Also, system scans and software updates take less than 2 minutes and cause almost no noticeable performance drops on users’ computers and networks, which means users are far less likely to disable or tamper with the settings.”
Even more important is the way the software detects viruses. Unlike signature-based programs, Webroot analyzes every file that tries to run on a PC and feeds that data into a threat intelligence network in the cloud. This is the key differentiator that enables the software to more quickly respond to new malware (i.e., zero-day) threats.
“Since switching to Webroot, our CryptoLocker incidents have dropped from one per day to one per month,” says Nachbahr. “Now, instead of paying a senior technician $75,000+ a year to deal with antivirus problems, we can use this person to perform tasks that make our company money. Not having to explain to customers why we were not able to keep their systems up and running is equally valuable, too.”
Using short videos that explain security threats in an easy-to-understand language has proven to be an effective way to engage customers and prospects, says Erik Nachbahr, president, Helion Automotive Technologies.
Photo By Carl Caruso
When Erik Nachbahr landed his first auto dealer customer more than 17 years ago, he was immediately hooked on serving this market. Fast forward to the present, and his company’s name, Helion Automotive Technologies, says it all. Today, Helion supports 25,000 employees at more than 650 auto and heavy truck dealerships throughout the United States. Fortunately, Nachbahr’s business strategy in the auto dealer market can be adapted to the markets your company serves, too.
The Auto Dealer Industry Is More Tech-Dependent Than You Might Think
The average person may not associate a car dealer with a sophisticated IT environment, but that is the case, says Nachbahr. “Years ago, auto dealers used proprietary dealer management systems [DMSs] for all of their inventory management, customer relationship management, and billing needs. Within the past decade, however, the internet, mobility, and new business applications changed all that and led to several productivity gains.” For example, by downloading vehicle specifications and service history data on an RFIDenabled car key, sales reps no longer have to physically walk over to a vehicle, jot down notes from the data sheet taped to the window, and then get on the computer and download a CARFAX report.
Telepresence technologies have been another game changer for auto dealers, allowing them to collaborate with staff from multiple satellite locations simultaneously. Executives can join video conference sessions from their office workstations — or via their tablets or smartphones — instead of having to physically drive to other locations.
In addition to the examples mentioned above, auto dealers are using the latest cloud-computing solutions and services, e-commerce services, and wireless networking and mobility solutions and services. Despite all the good that these advanced technologies bring, however, the downside is that they are all avenues for cybercriminals to gain access to dealers’ sensitive data.
Step Up Your Security Game
By accepting credit and debit payments and offering financing services, auto dealers have a lot of sensitive data that is of interest to cybercriminals, and these criminals have gotten a lot more sophisticated in recent years. “Remember the emails from the dethroned princes from Nigeria?” says Nachbahr. “Hardly anybody fell for those, but many employees are falling for the tactics being used today. We’re seeing a rise in malware infections, internal breaches, and e-commerce breaches leading to massive financial losses. In one instance, a dealer employee downloaded malicious code that got past the antivirus software and led to the compromise of 200 customers’ data before being discovered.” This incident ultimately cost the dealer more than $150,000.
Helion has also seen incidents of dealers falling victim to typo squatting, which occurs when a dealer employee accidentally mistypes a character in a legitimate company’s URL, which leads to a bogus site that looks similar to the original one. “In one situation, an accountant inadvertently visited a bogus e-commerce site for the dealership’s bank and sent a $450,000 wire transfer to a phony website,” says Nachbahr.
The MSP witnessed a big spike in security attacks and breaches in 2014, shortly after the CryptoLocker ransomware virus emerged. What started out as a trickle of attacks quickly grew to become a steady stream. “It got to the point we were averaging one customer a day falling victim to CryptoLocker,” says Nachbahr. “Dealing with this issue became the full-time job of one of our senior technicians. As an MSP that charges its customers a flat monthly fee, we took a big hit every time we had to deal with these issues, not to mention the heat we took from our customers.”
In 2015, Helion stepped up its security game, starting with evaluating new security tools to better protect its customers. This led to replacing its signature-based antivirus tool with a cloud-based solution from Webroot, which had an immediate impact on thwarting CryptoLocker breaches. (Check out the sidebar on page 16 to learn how Webroot protects users against CryptoLocker and other zero-day threats.)
Another change Helion made was adding a free network assessment service, which it now makes available to all new dealer prospects. “The assessment starts with gathering basic information about the dealer, such as active vendors, billing and payroll services, company size and number of locations, current IT spend, and any known IT problems,” says Nachbahr. From there the MSP analyzes the prospect’s IT environment, paying close attention to red flags such as outdated/consumergrade wireless access points, unsupported operating systems, unpatched applications and servers, and poorly configured routers/firewalls. “After gathering the data and performing the analysis, we put together an action plan for the dealer,” says Nachbahr.
Another key aspect of Helion’s improved security focus entailed ramping up its educational efforts. “You can have the best security technology and services available, but if customers are not following smart security practices, you’re still going to have problems,” says Nachbahr. Part of the challenge of educating customers and prospects about good security practices is that IT professionals and end users tend to speak a different language. “We made sure to avoid technical jargon and industry speak when we created our educational materials, and we even incorporated lots of visuals and cartoon drawings to make it less intimidating for our audience,” he says.
In addition to developing more than a dozen blogs, white papers, and infographics that address a variety of security topics, Helion created more than half a dozen video resources. In a recent video statistics report from Invodo, it was revealed that 52 percent of marketing professionals worldwide name video as the type of content with the best return on investment. Additionally, video in email can boost open rates by 20 percent and increase click-through rates by up to 300 percent.
“The growing importance of video as a way to engage customers is difficult to deny,” says Nachbahr. “Even our customers are using video walkthroughs when prospects call them about specific vehicles to generate interest and get prospects to visit.”
Helion’s educational efforts have also led to Nachbahr becoming more involved in industry events. Starting last year, he spoke at the annual NADA (National Automobile Dealers Association) convention, and he was asked to speak again at this year’s event. Earlier this year, he was appointed as a new member of the Automotive Resource Network (ARN) Auto Retail Committee. The committee is charged with delivering auto retail educational programs and in-house customized training and will give Nachbahr several opportunities to educate auto dealer decision makers through conferences, roundtables, trainings, and presentations. He also presented this year at the CBT Automotive Conference and Expo’s inaugural event in Atlanta. “Getting involved in these organizations and being more proactive in our marketing and education has had a significant positive impact on referrals,” he says. “In fact, between the interest generated in our marketing and the referrals we receive from our customers, we no longer have to do any cold calling or go out knocking on doors.”
“We’re seeing a rise in malware infections, internal breaches, and e-commerce breaches leading to massive financial losses.”
Erik Nachbahr, president, Helion Automotive Technologies
Some Growth Requires Stepping Outside Your Industry
While remaining hyper-focused on the auto industry has created several advantages for Helion over the years, Nachbahr admits he has received some invaluable assistance from an organization outside the auto industry and outside of the IT industry — CEO IQ. “Some of the CEOs are from companies with 50 employees and others oversee more than 1,000 employees,” he says. “The industries each represents are all across the board, too. One is from a franchise of childcare centers, another runs a printing company, and another operates a mutual insurance company. The group meets once a month, and each meeting includes a talk about a specific business best practice. Each meeting is eye-opening and has played a role in changing my perspective on a few HR-related issues, including how we attract and retain talent. Through my affiliation with CEO IQ, I’ve become more focused on creating a positive and productive culture throughout the organization.”
On Helion’s Facebook page, you can see examples of what Nachbahr is alluding to, such as duckpin bowling night and a catered omelet breakfast, events that bring employees together and celebrate new customer wins and other company milestones. “Another change we implemented was our review process,” he says. “We used to do them annually, and now we do them quarterly. We’ve found this to be much better at addressing problems and rewarding work performance compared with the old method. We also have made it a more engaging process by having a manager or HR person personally meet with the employee to give them feedback and learn about their goals. We’ve seen a reduction in turnover and improvement in employee job satisfaction, which we attribute to listening to our employees and engaging with them on just about everything. This also is creating positive momentum for our next initiative, which is hiring ahead of our business growth. It is a little scary to take this approach, but the net result is that it keeps our existing customers happy because they continue to experience the same level of attention and support as we continue to grow. Plus, it makes it easier when onboarding new customers when you already have the staff in place to service their needs.”