Category Visionaries How the ex-White House CIO turned around a failing cybersecurity company by fixing the product first | Tony Scott
Tony Scott brings an unparalleled perspective to cybersecurity leadership, having served as CIO of the federal government, VMware, Microsoft, General Motors, and Disney before taking the helm at Intrusion during a critical turnaround phase. When Scott joined Intrusion three and a half years ago, the company was in crisis—running out of money, facing SEC investigations, and dealing with shareholder lawsuits after poor leadership decisions. Today, Intrusion has stabilized its technology, raised sufficient capital, and carved out a unique position in the Applied Threat Intelligence category, focusing on real-time packet-level network analysis that stops zero-day attacks and command-and-control communications that bypass traditional security tools.
Topics Discussed:
- Scott's transition from government service to cybersecurity investment and eventual CEO role
- The crisis state of Intrusion when he joined and the turnaround strategy implemented
- Intrusion's pivot from direct sales to a managed service provider (MSP) go-to-market strategy
- The challenge of creating a new category in Applied Threat Intelligence
- Building and rightsizing the marketing and sales teams during the turnaround
- The realities of running a public company versus private enterprises
- Intrusion's unique packet-level network analysis technology versus conversation-based monitoring
GTM Lessons For B2B Founders:
- Do your homework before the meeting: Scott's biggest frustration as a buyer was vendors who showed up unprepared, asking generic questions like "what keeps you up at night?" without understanding the organization or its priorities. He literally had a secret signal with his assistant to escape these meetings. B2B founders must research prospects thoroughly, understand their specific challenges, and craft relevant value propositions before requesting meetings. Generic discovery calls are a waste of everyone's time and destroy credibility.
- Fix the product before scaling sales: The previous CEO at Intrusion hired dozens of salespeople to sell a product that wasn't ready, resulting in zero sales during his tenure. Scott prioritized fixing scalability, reliability, and feature gaps before rebuilding the go-to-market engine. B2B founders often face pressure to hire sales teams early, but selling a broken product destroys market credibility and wastes resources. Product-market fit must precede sales-market fit.
- Find the right distribution channel for your product: Intrusion's breakthrough came when they stopped trying to sell directly to end customers and focused on managed service providers and managed service security providers. This channel strategy worked because Intrusion's solution enhances existing security stacks rather than replacing them, making it perfect for MSPs serving SMBs that can't afford enterprise-level security expertise. B2B founders should carefully analyze whether their solution is better suited for direct sales, channel partnerships, or hybrid approaches based on customer buying behavior and implementation complexity.
- Embrace being in a category of one: Despite pressure from analysts and customers to fit into existing categories, Intrusion discovered they occupy a unique position in Applied Threat Intelligence. While this creates messaging challenges, it also eliminates direct competition. Scott worked with Gartner and other analysts to establish that no other company does exactly what Intrusion does. B2B founders shouldn't force themselves into existing categories if their technology is truly differentiated—creating a new category can be more valuable than competing in crowded ones.
- Leverage legal training for crisis management: Scott's law school background taught him to analyze situations from a 360-degree perspective, understand all stakeholder positions, and develop comprehensive strategies. This skill set proved invaluable during Intrusion's turnaround and his previous crisis management roles. B2B founders facing difficult situations should adopt this approach: clearly define the problem, gather multiple perspectives, identify all stakeholders, and develop a theory of the case for moving forward.
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