Security discussions are advancing. Micro-segmentation is essential, but Advanced Threat Prevention (ATP) enables Cloud Service Providers to access higher revenue tiers.
With VMware vDefend, ATP features integrated into the hypervisor can elevate your role from a “segmentation provider” to a “threat prevention platform operator.”
For CSPs utilizing VMware Cloud Foundation, ATP is not just infrastructure overhead; it is a unique security service layer.
What vDefend ATP Includes
Advanced Threat Prevention capabilities generally encompass:
Distributed IDS/IPS
- East-West traffic inspection
- Lateral movement detection
- Inline threat prevention
Unlike perimeter firewalls, this functions at the hypervisor level, detecting threats within the data center fabric.
Network Detection & Response (NDR)
- Behavioral analytics
- Suspicious traffic pattern identification
- Anomaly-based detection
This transitions your cloud from “segmented” to “actively monitored.”
Malware & Exploit Prevention
- Signature-based detection
- Advanced exploit mitigation
- Traffic reputation filtering
Ideal for industries concerned about ransomware.
Threat Intelligence Integration
- Continuously updated threat feeds
- Automated policy enforcement
- Reduced operational burden on tenants
For many customers, this eliminates the need for multiple third-party security appliances.
Why ATP Is a Premium CSP Opportunity
Micro-segmentation is defensive. ATP is proactive. This distinction allows you to position your cloud as:
“Security Operations-ready infrastructure.”
For regulated industries and enterprise customers, this shifts the focus from compliance to resilience.
CSP Monetization Strategy for ATP Services
Here is how CSPs can integrate ATP into recurring revenue.
Managed ATP Service Tier
Instead of offering ATP as a feature, provide:
Managed Threat Prevention Service
Includes:
- IDS/IPS policy configurations and ongoing management
- Alert monitoring
- Monthly security reports
- Threat tuning & optimization
This results in:
- Recurring service revenue
- Higher customer retention
- Reduced churn
Security services are significantly more engaging than raw infrastructure.
Per-Host ATP Enablement Model
Example:
| Cluster Type | Monthly Base (example) | ATP Premium (example) |
|————–|————————|———————–|
| 4-Host Cluster | $10,000 | +$2,000–$3,000 |
| 8-Host Cluster | $18,000 | +$4,000–$6,000 |
As VM density increases, margins improve significantly.
Security-as-a-Service Bundling
Possibility – Position ATP within tiered offerings:
Secure Cloud
- Micro-segmentation
Secure Cloud Plus
- Segmentation + IDS/IPS
Secure Cloud Elite
- Segmentation + IDS/IPS + NDR + Managed SOC reporting
This transforms infrastructure into a security platform.
Beyond licensing, CSPs can offer:
- Threat policy design workshops
- Compliance audit support
- Incident response advisory
- Security posture assessments
- Quarterly executive risk reports
These are high-margin professional services.
Many CSPs rely solely on perimeter firewalls and use various bolt-on products, causing operational overhead. By leveraging ATP within VMware vDefend, you offer:
- East-West visibility
- Hypervisor-level inspection
- Distributed enforcement
- Integrated threat intelligence
This approach resonates strongly in ransomware-sensitive markets like healthcare and financial services.
Example: For a CSP hosting:
- 1,500 production VMs
- 50% ATP attach rate
- $20 average ATP uplift
1,500 × 50% × $20 = $15,000 monthly incremental revenue = $180,000 annually
This excludes managed services fees, which can double that number.
ATP is where security transitions from a compliance checkbox to a business-critical service. For CSP product leaders, especially those developing differentiated VCF-based platforms, ATP should be positioned as:
- A premium cloud tier
- A managed service offering
- A board-level risk mitigation solution
Security is no longer a defensive expense. With ATP, it becomes a recurring revenue engine.
