Business Units or Product Lines

Verisign Inc. primarily operates through two main product lines: Domain Name Registry Services and Infrastructure Assurance Services. The Domain Name Registry Services include the operation of top-level domains (TLDs) and providing registration and management services for domain names. Infrastructure Assurance Services involve providing network infrastructure for stability, security, and the resiliency of internet connectivity.

Business Models for Each Product Line

In the Domain Name Registry Services segment, Verisign generates revenue from domain name registrations and renewals. The company charges registration and renewal fees for domains registered under TLDs like .com and .net. Major expenses include technology infrastructure costs, personnel costs, and costs associated with maintaining registry operations. Infrastructure Assurance Services revenue comes from services aimed at ensuring the stable and secure operation of the internet infrastructure, with costs mainly in technical personnel and infrastructure maintenance.

Future Opportunities for Growth

Future growth opportunities for Verisign include expansion in global internet usage driving increased demand for domain names, potential new gTLDs, and increasing focus on internet security which might require enhanced infrastructure services. Additionally, leveraging partnerships and collaborations to expand its internet infrastructure footprint could be beneficial.

Potential Major Risks

Major risks include regulatory changes affecting domain name pricing or governance, potential security breaches impacting service reliability, competitive pressures in the domain registration market, and dependency on .com and .net domains for a large portion of revenue. Additionally, changes in internet usage patterns or technologies may impact demand for current business lines.