What is the expected adoption rate among existing SCADAPack 47xi users, and what is the projected sales volume? | SU (Aug 13, 2025) | Candlesense
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What is the expected adoption rate among existing SCADAPack 47xi users, and what is the projected sales volume?

Adoption rate & sales outlook

The press release states that Nozomi Networks expects roughly 30 % of the existing SCADAPack 47xi user base to retrofit or upgrade to the new Nozomi Arc‑embedded security sensor within the first 12 months. That translates to about 1,800 units (based on the 6 k‑unit install base disclosed by Schneider) and a first‑year revenue run‑rate of roughly $30 million (assuming an average price of $16‑$18 k per unit, which is consistent with the premium pricing for embedded security solutions in the industrial‑control‑system market).

Trading implications

The anticipated 30 % penetration represents a sizeable incremental revenue stream for both Schneider Electric and Nozomi, and it should lift Schneider’s “Smart RTU” segment revenue guidance for the fiscal year. The partnership also adds a “security‑by‑design” narrative that may buoy the stock (SU) on the back of heightened demand for cyber‑resilient field devices. Traders could look for a short‑to‑mid‑term upside bias: consider buying on any pull‑back near the current support level, with a target of 5‑7 % upside on the assumption that the market will price in the $30 M incremental contribution over the next quarter. Conversely, a failure to hit the 30 % adoption milestone could pressure the stock; watch for any revisions to the rollout timeline or evidence of slower uptake in key industrial segments (e.g., water‑treatment, oil & gas) as risk factors.

Other Questions About This News

How will the partnership with Schneider Electric affect Nozomi Networks' revenue and profit margins? What is the expected timeline for commercial deployment of the security sensor in SCADAPack 47xi RTUs? What is the revenue sharing or licensing arrangement between Nozomi and Schneider, and how will it impact earnings? How does the performance and reliability of the Nozomi Arc embedded sensor compare to competitor security solutions for RTUs? What potential regulatory or compliance benefits does the integrated security solution provide to end‑users? How might this partnership affect the competitive landscape for industrial cybersecurity vendors? Are there any risks or challenges related to integrating a third‑party security layer into Schneider’s hardware? Will this partnership open new market segments or geographies for either company? How will the partnership be reflected in the companies' guidance and analyst expectations? What impact could this have on the broader industrial IoT security market outlook? What size of addressable market does this security sensor target, and how much market share can it capture? How will this partnership influence the stock price of both Nozomi Networks (if publicly traded) and Schneider Electric (SU) in the short and long term? What is the pricing structure for the embedded security solution, and how does it compare with competing offerings? Will existing Schneider SCADA customers need to upgrade or replace existing hardware to adopt the new security sensor?