NodeX raises JPY 600m in pre-Series A to evolve zero-trust data infrastructure
NodeX has raised 600 million yen in new funding from DNX Ventures and ITOCHU Technology Ventures. This brings the total amount raised to 830 million yen. With this funding, the company will further evolve its zero-trust data infrastructure for IoT and strengthen its product and delivery teams to accelerate initial customer success. The company has also changed its name, unified its brand as "NODE X," and renewed its corporate website.
Device Data Utilization Required in the AI × IoE Era
The number of edge devices surpassed mobile terminals in 2018 and is expected to expand to 275 billion units (94.5% of all devices) by 2035. These edge devices include home appliances, residences, stores, banks, roads, hospitals, airports, farmland, factories, and even national defense infrastructure. In the coming AI × IoE (Internet of Everything) era, these edge devices will be connected to the cloud, and data utilization will become commonplace.
Intensifying Security Threats
As IoE adoption progresses, cyber attacks targeting network-connected edge devices are rapidly increasing. IoT devices with insufficient security measures are becoming prime targets for attackers, increasingly used for impersonation, malware infection, and as stepping stones for DDoS attacks. Furthermore, with the sophistication of attack methods, risks are intensifying not only for individual devices but also for cyber attacks targeting entire supply chains and large-scale data breaches targeting cloud infrastructure.
Challenges in Secure Data Communication from Edge to Cloud
Until now, there has been no solution for a data infrastructure that can easily and securely transmit the vast amount of data stored in edge devices from the edge to the cloud without additional burden.
Why hasn't a secure data pathway from edge to cloud been established? The reasons lie in two points: ① limitations of traditional perimeter-based defense, and ② technical hurdles in implementing zero trust at the edge.
1) Limitations of Traditional Perimeter-Based Defense
Due to these challenges, traditional perimeter-based defense not only restricts data utilization but also makes it difficult to prevent modern security threats.
In contrast, the zero-trust approach is based on the premise of "not trusting the network" and achieves a safer and more flexible data utilization environment by verifying all devices and access requests.
Cannot fully prevent threats such as internal fraud, malware infection, and device impersonation
Requires additional equipment such as dedicated lines, firewalls, and SD-WAN, increasing implementation costs
Authentication information and policy management become complex, increasing operational burden
Data becomes siloed in various locations and cannot be fully utilized (necessary people cannot access data when needed)
Difficulty in connecting with cloud services reduces convenience and creates constraints on service deployment
Benefits of Zero Trust:
Secure utilization of internal and external data
Seamless integration with cloud services
Stronger security than traditional perimeter-based defense
However, there remain significant technical challenges in applying zero trust security to IoT systems with large numbers of connected edge devices.
2) Technical Challenges in Implementing Zero Trust at the Edge
When designing IoT systems, a wide range of security elements from edge to cloud must be considered:
Device security (device authentication, provisioning, lifecycle management of cryptographic keys and certificates)
Data security (ensuring data confidentiality, integrity, and reliability)
Cloud security (secure data transfer and storage, ensuring scalability, access control)
Building a zero-trust data infrastructure for edge devices independently would require a period of 2-3 years, initial investment of several billion yen, and securing security engineers with advanced expertise, making it difficult for many companies to implement.
Solution Provided by NODE X
NODE X solves these challenges by building a secure data pathway between edge devices and the cloud. NODE X provides the world's first zero-trust data infrastructure for edge devices, combining distributed ID and zero-trust architecture, enabling companies to quickly and easily implement zero trust and safely utilize data.
NODE X Being Utilized by Major Manufacturers
NODE X's platform has already been adopted by top-tier domestic manufacturers and is contributing to strengthening the security of edge devices and data utilization across various industries. For example, use cases leveraging NODE X as an IoT data infrastructure include developing usage-based billing services, improving maintenance operation workflows through real-time device monitoring, and developing solutions that analyze device operation data with AI to optimize energy consumption, unleashing the power of data. The company is also working on building zero-trust infrastructure in mission-critical areas such as aerospace.