This was an interesting chat. I'd never really looked at archTIS before, but a few things peaked my interest. Mainly the fact that they seem to be steadily gaining traction across some notable refence clients.

Some key points from the discussion, which i used AI to summarise from transcript: AR9 Transcript.pdf

Big picture / what archTIS does

• Provides secure, data-centric collaboration software that controls who can access what data, when, and under what conditions.
• Customers include governments, military, defense contractors, and law firms.
• Addresses the problem that data is often only protected at the network boundary (firewalls, antivirus), leaving it exposed once breached.
• Their approach protects the data itself using attribute-based access control (ABAC), combining factors like user identity, location, device, network, and security clearance to set dynamic access rights.

How it works

• Example: A user may access secret information on a corporate laptop in the office but only unclassified info on public Wi-Fi.
• Access controls travel with the data — forwarding a document doesn’t bypass restrictions.
• Integration is invisible to end users and works inside platforms like Microsoft 365, Teams, and SharePoint.
• Supports both new and legacy systems, strengthened by the acquisition of Direktiv, which adds integration and middleware capabilities.

Market and growth drivers

• Zero-trust, data-centric security is the fastest-growing area in cybersecurity.
• Geopolitical tensions (US, NATO, Taiwan, Middle East) are driving demand for secure joint force integration across allied militaries.
• US Department of Defense (DoD) and other defense agencies are mandating zero-trust architecture adoption by 2027.
• Strong network effects: winning one department or country opens doors across allied forces and industries.

Business strategy

• Founded in 2006 as a consulting and systems integration firm; transitioned to product focus after listing in 2018.
• Revenue is shifting from roughly 50% services to more software licensing and recurring revenue (ARR).
• Main products: Trusted Data Integration (TDI), NC Protect (for Microsoft business apps), and Kojensi (original flexible platform).

Scaling challenges and opportunities

• Company is at an inflection point, moving from early reference customers to large-scale deployments, such as within the US DoD.
• The US defense market is the largest in the world, accounting for about 40% of global defense spending.
• Plans to expand the US team, including additional hires and 24/7 support, to capture this opportunity.

Financial goals and profitability

• Targeting gross margins of 80–85% in line with SaaS business models.
• Recent $7.5 million capital raise will fund US expansion, global strategic partnerships, and continued product development.
• Intentionally moving away from low-margin service work toward high-margin software licensing.

AI integration

• Using AI internally to help customers simplify policy management and improve usability.
• Exploring how to help clients deploy AI securely in classified or sensitive environments, preventing data leaks.

Competitive position

• Big players like Microsoft, Palo Alto, and Cisco focus on network and application security, but archTIS specializes at the data level.
• The company has a defensible niche in high-value, security-critical markets and partners with larger firms to extend reach.
• Strategic focus on alliances and OEM opportunities to accelerate adoption.

Key takeaways

• archTIS has moved through the long early phase and is positioned for non-linear, S-curve growth.
• Management is focused on repeatability, profitability, and scalable growth.
• Leadership emphasizes staying disciplined and focused, avoiding distraction from its core mission.
• The company aims to become the dominant player in secure, data-centric collaboration for defense and critical industries.