According to Singapore-based Flexxon, when it comes to its role in the cybersecurity industry, AI is often touted as an effective solution when infused with anti-virus software and firewall protection. However, the evidence of endless breaches seems to prove otherwise.

The cybersecurity company said that the efficacy of AI in the cybersecurity industry depends on the environment in which it is operating. This is why Flexxon developed what it refers to as the world’s first AI-embedded solid-state drive (SSD) for data protection–X-PHY.

The difference in these solutions is that the AI deployment lies in the hardware layer, enabling it to protect data stored in devices. According to Flexxon, the solution can be easily integrated into consumer and enterprise applications, and it has already partnered with notable names such as Lenovo, ASUS and HP to produce cybersecurity-infused laptops.

In an email interview with e27, Co-Founder and CEO Camellia Chan explains the existing gap in today’s cybersecurity approach and how the company aims to close it.

First of all, there are three problems in today’s cybersecurity approach: It is mainly software-based, reactive and overly reliant on human intervention.

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“At the external software layer, the variables that security solutions need to account for are astronomical. Thus, even if AI is applied to such solutions, it needs to contend with an immense volume of threat variables in an ever-changing environment. In addition, current external layer defences are reactive in nature and can only recognise known threats,” she writes.

“Finally, current solutions still rely heavily on human decision-making. For instance, for the user to determine if a threat is real or not, to decide if an email is legitimate or malicious and so on. This is a huge problem, and in fact, humans are responsible for over 95 per cent of data breaches. Why? Because we cannot possibly determine if a threat is legitimate or not, and even making that one mistake can lead to huge ramifications.”

This is why X-PHY SSD is believed to be more effective, as it operates in a closed environment where hackers are forced to comply with the SSD’s communication protocols; it is also proactive in nature and requires zero human intervention.

“This works because, at the SSD layer, attackers now need to play on your turf. The X-PHY SSD forces hackers to act within an enclave environment that eliminates the attacker’s ability to disguise its signature – the usual method in which software-based defences are fooled. By only communicating through a specified protocol (NVMe), the disguises of attackers are stripped down and exposed. The AI will detect these intruders and immediately lock down the device and alert the user of the intrusion,” Chan says.

“This will help users in two clear ways. Firstly, by protecting the organisation’s critical data and secondly, by also playing a part as an alarm system. Many attackers manage to stay hidden for long periods of time before any alarm bells go off, but once an attempt is made on the SSD, the X-PHY acts in real time to lock down the system and alert the user.”

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On the business side of cybersecurity

When the company began operations in 2007, Flexxon started off as an industrial NAND Flash Storage provider, specialising in the industrial, medical and automotive industries. According to Chan, these are “very niche and specialised markets” with data storage systems that are more complex than the usual consumer storage devices.

“Over time, our customers would increasingly seek our advice and expertise on strengthening security for their data. We were seeing a steady uptick in data breaches in spite of the various software solutions emerging on the market. In the late 2010s, we recognised that there was a growing problem and no one had a solution for it,” Chan points out, noting how the company eventually sees an opportunity to diversify its security product portfolio.

When it comes to the profile of its users, there are basically two types of business segments that are using Flexxon’s solutions.

There are customers of its OT business segments who have worked with Chan since her previous distributorship business in 2001. These include customers such as Datalogic, Medtronic and Honeywell.

“Our cybersecurity business is a different ballgame, however. With the X-PHY, we are refreshing deeply entrenched mindsets about cybersecurity protection. While we had a ready pool of existing customers that actually inspired the X-PHY, there remains a need to branch out and reach brand new customers – corporations that never even considered the necessity of cyber defence at the hardware level,” Chan says.

“To encompass both B2B and now B2C customers, we are building the ecosystem with partners in the computer and information technology (CIT) space. This includes Lenovo, HP and ASUS. [We also] work directly with end users that span public and private sector organisations including government, BFSI, telcos, healthcare, energy, industrial and various others.”

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For its cybersecurity business, Flexxon employs a blended revenue model that includes subscription-based, direct one-time sales, system integration, licensing, and commission-based streams.

“Collectively for the company, this means that while we continue building on our existing OT business, we are also partnering for system integration with reputable OEMs, growing our CIT channel partners, and offering a XaaS subscription-based licensing model. This hybrid approach was defined in order to cater to different end-user capacities, appetites and technical expertise,” Chan explains.

“Underpinning this, our IP strategy plays an important role in not only protecting our innovation but also expanding our commercial value and presence. Being named a winner at the World Intellectual Property Organisation’s (WIPO) global awards this year and the overall enterprise winner at last year’s WIPO-IPOS awards is a testament to our strong IP strategy and also provides extended presence and credibility to our business.”

Towards the future

Chan leads Flexxon with co-founder May Chng, who plays the role as the company’s COO.

In 2020, Heliconia Capital invested in the company’s Series A funding round. Two of its R&D projects have also been the recipient of two CSA Call for Innovation awards in 2019 and 2022. The support that it received included funding and technical and market expertise.

“As we progress with our ongoing R&D efforts to build an entire ecosystem of hardware-based cybersecurity solutions, as well as our market expansion, we are in the midst of fundraising and speaking with suitable VCs to bolster the growth that we foresee in the years ahead,” says Chan.

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The year 2023 is set to become a milestone year for Flexxon, X-PHY, and the cybersecurity industry.

“Coming up with a novel and impactful invention like the X-PHY is just one small part of larger-scale adoption. The X-PHY is the foundation piece for an entire ecosystem of products we have in the pipeline, and thus, it is essential that we educate stakeholders on the technology before moving forward with other launches. With an approach as revolutionary as ours, it takes brave and forward-thinking individuals and leaders to be our first movers, and that’s where we have our focus on in the next two to three years,” Chan closes.

The company is implementing “aggressive” education and outreach efforts across key markets such as North America, Europe, the Middle East, and Asia Pacific.

It has also incorporated a US entity this year and is setting up a base of operations in Maryland by end of 2023. In addition to housing its regional corporate office, it will also serve as manufacturing and R&D facility.

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Image Credit: Flexxon

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