Claroty

To secure the cyber-physical systems that sustain our lives by creating a future where they are resilient from digital threats.

Claroty SWOT Analysis

Updated: October 4, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Claroty was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The Claroty SWOT analysis reveals a company at a critical inflection point. Its formidable strengths—a unified platform, elite threat research, and strategic partnerships—position it for market leadership in the burgeoning CPS security space. However, this advantage is challenged by significant weaknesses in brand awareness and sales complexity, coupled with intense competitive threats from both focused rivals and consolidating IT giants. To fulfill its mission, Claroty must leverage regulatory tailwinds and vertical expansion opportunities. The core strategic imperative is clear: simplify the platform experience to accelerate adoption, scale through the ecosystem, and use its intelligence superiority to create an undeniable moat, transforming its technological edge into enduring market dominance.

Dragos Nozomi Networks Armis Fortinet Palo Alto Networks

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To secure the cyber-physical systems that sustain our lives by creating a future where they are resilient from digital threats.

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Strengths

PLATFORM: Unified XIoT platform (xDome) is a key differentiator vs. silos
RESEARCH: Team82 provides unique threat intelligence and market credibility
PARTNERSHIPS: Deep integrations with CrowdStrike, ServiceNow drive deals
FUNDING: $735M total funding provides a long runway for growth and R&D
COVERAGE: Widest OT protocol support enables visibility in complex networks

Weaknesses

BRAND: Lacks the broad brand recognition of IT security giants like Fortinet
SALES-CYCLE: Long, complex sales process for critical infrastructure deals
COMPLEXITY: Platform can have a steep learning curve for non-specialists
PRICING: Premium positioning can be a hurdle against lower-cost competitors
IMPLEMENTATION: High dependency on partners for successful deployments

Opportunities

VERTICALS: Massive greenfield in healthcare (IoMT) and commercial IoT
REGULATION: NIS2, CISA directives create powerful, budget-backed demand
CONVERGENCE: IT/OT convergence projects mandate a unified security approach
CLOUD: SaaS delivery (xDome) lowers adoption barriers for new customers
MSSP: Managed services channel is a scalable route to the mid-market

Threats

COMPETITION: Intense pressure from Dragos, Nozomi and well-funded startups
CONSOLIDATION: IT vendors (Palo Alto, Fortinet) acquiring into the space
MACRO: Economic headwinds may delay or shrink large infrastructure projects
THREATS: Rapid evolution of ransomware and nation-state OT attack vectors
TALENT: Industry-wide shortage of skilled OT security professionals

Key Priorities

PLATFORM: Win by simplifying and unifying the XIoT platform experience
VERTICALS: Aggressively capture high-growth healthcare & manufacturing
ECOSYSTEM: Accelerate growth by scaling channel & tech integrations
INTELLIGENCE: Solidify market leadership by productizing Team82 research

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Claroty OKR

Updated: October 4, 2025 • 2025-Q4 Analysis

The Claroty OKR plan provides a masterclass in strategic execution. It translates the SWOT's complex landscape into four clear, inspiring objectives that directly address the most critical priorities. The plan excels by focusing on tangible outcomes—platform simplification, vertical wins, ecosystem scale, and intelligence leadership. The key results are sharp, measurable, and ambitious, creating a direct line of sight from every team's work to the company's core mission. This isn't just a plan; it's a focused blueprint for accelerating growth and building an enduring moat in the CPS security market.

Dragos Nozomi Networks Armis Fortinet Palo Alto Networks

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To secure the cyber-physical systems that sustain our lives by creating a future where they are resilient from digital threats.

PLATFORM DOMINANCE

Become the undisputed, easiest-to-use XIoT security platform.

ONBOARDING: Reduce average customer time-to-value from 45 days to under 15 days for core visibility
AUTOMATION: Launch an AI-driven policy engine that automates network segmentation rules for 80% of assets
UNIFICATION: Achieve a 50% reduction in clicks for the top 5 most common analyst investigation workflows
LEADERSHIP: Secure the #1 leadership position in the Gartner Magic Quadrant for CPS Security Platforms

VERTICAL LEADERSHIP

Win the healthcare and manufacturing CPS security markets.

HEALTHCARE: Increase new Annual Recurring Revenue (ARR) from the healthcare vertical by 150% year-over-year
MANUFACTURING: Launch a 'Smart Factory Security' solution bundle, securing 25 new top-tier manufacturing logos
PARTNERSHIPS: Establish a strategic go-to-market alliance with a leading medical device manufacturer
VALIDATION: Achieve the highest score in a major third-party competitive test for IoMT security efficacy

ECOSYSTEM SCALE

Make partners our primary engine for global growth.

REVENUE: Increase the percentage of new ARR sourced through channel partners from 60% to over 75%
ENABLEMENT: Certify 500 new partner engineers on the xDome platform through our new online training portal
INTEGRATION: Launch three new high-value API integrations with leading SOAR and asset management partners
MSSP: Onboard 10 new Managed Security Service Provider partners, driving $5M in new managed service pipeline

INTEL SUPREMACY

Solidify Team82 as the authority on CPS threats.

PRODUCT: Launch a premium 'Team82 Threat Intel' subscription feed and secure 50 paying enterprise customers
RESEARCH: Publish three groundbreaking research reports that are cited in top-tier global media over 100 times
DISCLOSURE: Maintain our #1 position in the industry for coordinated vulnerability disclosures (CVDs)
COMMUNITY: Triple active engagement in our community threat sharing portal for customers and partners

METRICS

Annual Recurring Revenue (ARR): Achieve $160M
Net Revenue Retention (NRR): Maintain >125%
Rule of 40: Exceed 40% (Growth % + FCF %)

VALUES

Customer First
One Team
Innovation
Integrity

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Claroty Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Claroty Official Website & Press Releases
Gartner Magic Quadrant for Cyber-Physical Systems Security Platforms
Crunchbase for funding and valuation data
LinkedIn for employee count and executive backgrounds
G2 for customer review data
Industry news sources (e.g., SecurityWeek, TechCrunch)

Dragos Nozomi Networks Armis Fortinet Palo Alto Networks

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To secure the cyber-physical systems that sustain our lives by creating a future where they are resilient from digital threats.

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What Went Well

PRODUCT: Successful launch and adoption of the cloud-native xDome platform
SALES: Exceeded new logo acquisition targets in the healthcare vertical
PARTNERSHIPS: Drove significant pipeline growth via CrowdStrike alliance
RETENTION: Maintained strong net revenue retention rates above 120%
RESEARCH: Team82's Pwn2Own victories generated positive market awareness

Not So Well

SALES: Longer-than-forecast sales cycles in EMEA due to economic conditions
CHANNEL: Slower-than-expected ramp-up of new MSSP partner enablement
OPERATIONS: Implementation timelines extended on complex multi-site deals
MARKETING: Struggle to differentiate message against IT security mega-vendors
HIRING: Key engineering roles remained open longer than planned

Learnings

PRODUCT: Platform simplification is the #1 driver of faster sales cycles
GTM: Vertical-specific use cases and messaging dramatically improve win rates
CHANNEL: Partners require dedicated, hands-on enablement to be productive
MARKETING: Credibility from Team82 research is our most powerful asset
STRATEGY: The unified platform message resonates strongly with CISOs

Action Items

PRODUCT: Launch an initiative to reduce platform deployment time by 30%
SALES: Create dedicated sales playbooks for top 3 manufacturing sub-verticals
CHANNEL: Build a new, streamlined online certification program for partners
MARKETING: Double down on PR and content marketing leveraging Team82 data
HR: Implement a more aggressive talent acquisition plan for senior engineers

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

Explore specialized team insights and strategies

Claroty Market

AI-Powered Insights

Claude

Gemini

GPT

Claroty Official Website & Press Releases
Gartner Magic Quadrant for Cyber-Physical Systems Security Platforms
Crunchbase for funding and valuation data
LinkedIn for employee count and executive backgrounds
G2 for customer review data
Industry news sources (e.g., SecurityWeek, TechCrunch)

Founded: 2015
Market Share: Leader in Gartner Magic Quadrant for OT.
Customer Base: 1000+ in manufacturing, healthcare, energy
Category:
CPS Security
SIC Code: 7372 Prepackaged Software
NAICS Code: 511210 InformationT
Location: New York, NY
Zip Code: 10010 New York, New York
Congressional District: NY-12 NEW YORK
Employees: 650

Competitors

Dragos View Analysis

Nozomi Networks Request Analysis

Armis View Analysis

Fortinet View Analysis

Palo Alto Networks View Analysis

Products & Services

No products or services data available

Distribution Channels

Claroty Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Claroty Official Website & Press Releases
Gartner Magic Quadrant for Cyber-Physical Systems Security Platforms
Crunchbase for funding and valuation data
LinkedIn for employee count and executive backgrounds
G2 for customer review data
Industry news sources (e.g., SecurityWeek, TechCrunch)

Problem

Risk of downtime in critical infrastructure
Lack of visibility into connected assets
IT security tools don't work for OT/CPS

Solution

Unified platform for XIoT asset visibility
CPS vulnerability & threat management
Secure remote access for OT environments

Key Metrics

Annual Recurring Revenue (ARR)
Net Revenue Retention (NRR)
Customer Acquisition Cost (CAC)

Unique

Team82 threat and vulnerability research
Deepest industrial protocol support
Unified platform for OT, IoT, and IoMT

Advantage

Proprietary data from global deployments
Extensive tech alliance ecosystem
Strong brand in the OT security community

Channels

Direct enterprise sales force
Value-Added Resellers (VARs) & SIs
Managed Security Service Providers (MSSPs)

Customer Segments

Critical Infrastructure (Energy, Water)
Manufacturing (Discrete, Process)
Healthcare (Hospitals, Device Mfgs)

Costs

R&D for platform and research
Sales and Marketing expenses
Cloud infrastructure hosting (SaaS)

Claroty Product Market Fit Analysis

Updated: October 4, 2025

Claroty secures the cyber-physical systems that run the world. By providing complete visibility and protection for industrial, healthcare, and commercial environments, the platform ensures operational resilience, enhances safety, and enables unified governance. This empowers organizations to defend against threats and safely pursue digital transformation, preventing costly downtime and protecting critical assets.

RESILIENCE: Maximize uptime and safety

VISIBILITY: See and secure every asset

GOVERNANCE: Unify IT/OT security policy

Before State

Blind to critical OT/IoT/IoMT assets
Unmanaged risk in connected devices
Siloed IT and OT security operations

After State

Full visibility into all XIoT assets
Proactive vulnerability management
Unified IT/OT security governance

Negative Impacts

Production downtime from cyber attacks
Safety incidents and compliance fines
Inability to secure digital initiatives

Positive Outcomes

Increased operational resilience & uptime
Improved safety and regulatory compliance
Accelerated secure digital transformation

Key Metrics

Net Revenue Retention (NRR)

Est. >120%

NPS

Est. 50-60

User Growth Rate

Est. 40%+ YoY

Customer Feedback/Reviews

140+ on G2

Repeat Purchase Rates

High via expansion

Requirements

Deep packet inspection of OT protocols
Integration with existing IT security
Actionable alerts, not just noise

Why Claroty

Deploy network sensors and collectors
Integrate with SIEM, SOAR, and CMDB
Utilize secure remote access for vendors

Claroty Competitive Advantage

Broadest protocol support in industry
Team82's zero-day vulnerability research
Unified platform avoids vendor sprawl

Proof Points

Gartner MQ Leader for OT Security
Protecting 20% of Fortune 100
Disclosed over 1000 OT vulnerabilities

Claroty Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Claroty Official Website & Press Releases
Gartner Magic Quadrant for Cyber-Physical Systems Security Platforms
Crunchbase for funding and valuation data
LinkedIn for employee count and executive backgrounds
G2 for customer review data
Industry news sources (e.g., SecurityWeek, TechCrunch)

Strategic pillars derived from our vision-focused SWOT analysis

Win with the unified XIoT security platform

Dominate healthcare, manufacturing & energy sectors

Scale growth via channel and technology alliances

Lead the market with proprietary threat research

What You Do

Secure all Cyber-Physical Systems (XIoT)

Target Market

Critical infrastructure & enterprises

Differentiation

Unified platform for OT, IoT, IoMT
Proprietary threat research (Team82)
Deep protocol coverage

Revenue Streams

SaaS Subscriptions (xDome)
Appliance sales
Professional services

Claroty Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Claroty Official Website & Press Releases
Gartner Magic Quadrant for Cyber-Physical Systems Security Platforms
Crunchbase for funding and valuation data
LinkedIn for employee count and executive backgrounds
G2 for customer review data
Industry news sources (e.g., SecurityWeek, TechCrunch)

Company Operations

Organizational Structure: Functional with regional sales teams
Supply Chain: Software-based; hardware appliances via JDM
Tech Patents: Multiple patents in OT/IoT discovery
Website: https://claroty.com/

Top Clients

Board Members

Claroty Competitive Forces

Threat of New Entry

MEDIUM: High R&D costs and deep protocol expertise are significant barriers, but a well-funded startup could still emerge.

Supplier Power

LOW: Key suppliers are commodity hardware vendors and cloud providers (AWS, Azure), where Claroty has significant negotiating power.

Buyer Power

MEDIUM: Large enterprise customers have significant negotiating leverage, but high switching costs for deployed security tools mitigate this.

Threat of Substitution

MEDIUM: Customers could opt for a suite of disparate tools or rely on network vendor security features, though less effective.

Competitive Rivalry

HIGH: Intense rivalry from specialists (Dragos, Nozomi) and large IT security vendors (Fortinet, Palo Alto) entering the space.

Analysis of AI Strategy

Updated: October 4, 2025 • 2025-Q4 Analysis

The Claroty AI SWOT analysis underscores that artificial intelligence is not merely a feature but the strategic fulcrum for future growth. Claroty's unparalleled proprietary data from diverse cyber-physical environments is its ultimate unfair advantage—a deep moat that competitors cannot easily replicate. The primary opportunity lies in translating this data into predictive intelligence and autonomous response, fundamentally simplifying CPS security. However, this potential is constrained by the global war for AI talent and the high cost of infrastructure. The critical path forward is to focus AI development on a security copilot that automates complex tasks and leverages the data moat to deliver insights no competitor can match, solidifying Claroty's position as the intelligent choice for securing critical infrastructure.

Dragos Nozomi Networks Armis Fortinet Palo Alto Networks

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To secure the cyber-physical systems that sustain our lives by creating a future where they are resilient from digital threats.

Strengths

DATA: Massive, proprietary dataset of OT/IoMT/IoT network traffic
EXPERTISE: Deep domain knowledge to create context-aware AI for CPS
PLATFORM: Integrated platform to deploy and operationalize AI insights
RESEARCH: Team82 can identify AI-driven attack patterns before rivals
CUSTOMERS: Access to diverse real-world environments for model training

Weaknesses

TALENT: Fierce competition for top-tier AI/ML engineers and data scientists
INFRASTRUCTURE: High cost to build/maintain GPU clusters for model training
SCALE: Ensuring AI models perform accurately across thousands of customers
EXPLAINABILITY: Difficulty in explaining AI-driven alerts to OT operators
LATENCY: Processing massive data streams for real-time AI inference

Opportunities

PREDICTIVE: AI models to predict asset failure and prioritize vulnerabilities
AUTOMATION: AI-driven policy generation and automated threat response
ASSISTANT: GenAI-powered SOC analyst assistant for faster investigations
SIMPLIFICATION: AI to automate deployment, tuning, and health monitoring
INSIGHTS: Uncover novel operational insights from network traffic data

Threats

ADVERSARIAL: AI-powered attacks designed to evade current detection models
COMMODITIZATION: Competitors using open-source AI to quickly add features
BIAS: Models trained on limited data may miss novel or targeted attacks
REGULATION: Emerging AI governance and data privacy regulations create risk
COST: Runaway cloud compute costs for inference at scale could kill margins

Key Priorities

DATA-MOAT: Build predictive AI models using proprietary CPS traffic data
AUTOMATION: Develop AI-driven response to reduce SOC burden and human error
COPILOT: Launch a GenAI security copilot to simplify platform operation
EFFICIENCY: Use AI internally to optimize R&D and customer support costs

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Claroty Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Claroty Official Website & Press Releases
Gartner Magic Quadrant for Cyber-Physical Systems Security Platforms
Crunchbase for funding and valuation data
LinkedIn for employee count and executive backgrounds
G2 for customer review data
Industry news sources (e.g., SecurityWeek, TechCrunch)

Profit: Private company, not disclosed.

Market Cap: Private, last valued at $2B (Feb 2024)

Annual Report: Not publicly available.

Debt: Minimal; venture-backed.

ROI Impact: High; prevents costly downtime/breaches

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Leader

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Claroty's high ambition to secure societal infrastructure is balanced by solid, yet challenging, achievability. Its strong upside in platform and research is nearly offset by intense competitive pressure. The OKRs are well-formed and category-shaping. The primary drivers are its clear core strategy and significant AI potential based on its unique data moat. The growth multiplier is tempered by the high-stakes, competitive environment, reflecting a challenging but achievable path to market dominance.

SWOT Factors

Upside: 83.3 Risk: 76.7

OKR Impact

AI Leverage

Top 3 Strategic Levers

PLATFORM: Win by simplifying the unified platform experience

AI DATA MOAT: Build predictive models from proprietary CPS data

ECOSYSTEM: Accelerate growth by scaling channel integrations

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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