Top 6 Real-life Micro Segmentation Examples in 2026
Source: IC31
Cybercrime cost U.S. organizations $12.5 billion in 2023, a 21% jump from the previous year, according to the FBI’s IC3 report. Traditional perimeter security isn’t cutting it anymore.
Micro segmentation divides networks into isolated zones, each with its own security policies. Instead of protecting just the network edge, it creates barriers between applications, workloads, and user groups. An attacker who breaches one zone can’t easily move to others.
Here’s how seven organizations across different industries implemented micro segmentation to solve specific security problems.
1. California Department of Water Resources
CDWR manages California’s water delivery and flood protection systems with 3,500 employees, 5,500 servers, and 2,600 applications spread across multiple data centers.
The problem: Service requests took five days to complete because administrators manually configured policies across thousands of endpoints. The team couldn’t automate security rules across their mix of hardware, software, and cloud environments.
What they did:
CDWR deployed micro segmentation to divide business units into separate network zones. Each zone has its own communication rules and security policies.
For their pipeline facilities, they set up a software-defined perimeter (SDP) that only allowed pipeline operators to access facility data during work hours. The system automatically blocked access outside those parameters; no manual intervention is needed.
Results:
Service delivery dropped from 5 days to 30 minutes. Instead of waiting nearly a week for network changes, requests now complete the same day.
Operational technology (OT) segmentation enabled administrators to automate policy control. They could segment industrial systems separately from IT networks and create role-based access without touching individual servers.2
2. Frankfurter Bankgesellschaft
This Swiss private bank operates in Zurich and Frankfurt, serving Sparkassen-Finanzgruppe, Germany’s largest retail banking network.
The problem: The bank ran three different web proxies from three manufacturers. Administrators had to configure, test, and troubleshoot each one separately. This tripled the workload and created security gaps.
Their IT teams in Zurich and Frankfurt couldn’t share infrastructure or communicate on the same platform. When Switzerland’s financial regulator (FINMA) tightened IT audit requirements, the bank faced compliance issues across both locations.
What they did:
Frankfurter Bankgesellschaft replaced its fragmented setup with a single microsegmentation platform and a single system integrator. They moved to an application-centric network architecture that treats applications, not IP addresses, as the basis for security rules.
Their firewall now connects to the microsegmentation platform via an API. When an application needs to communicate with another service, the system dynamically updates firewall rules based on risk assessment rather than static IP lists.
Results:
Centralized management meant one team could control servers, networks, and storage across both locations from a single interface.
Lateral security improved through workload-level monitoring. The bank can now detect exploitation attempts, unauthorized tool transfers, and session hijacking between applications.
Engineers shifted from administrative tasks to actual engineering work. Automation freed up roughly 30% of their time, according to the case study.
FINMA compliance became manageable. The bank can now audit cloud services, map regulatory requirements to internal systems, and document security controls, all requirements under Swiss banking law.3
3. Flex
Flex manufactures technology and industrial products across 30 countries. They needed better security for remote workers and cloud services spread across regional data centers.
The problem: Standard firewalls couldn’t provide the granular control Flex needed. They lacked intrusion prevention, URL filtering, and sandboxing capabilities as attacks grew more sophisticated.
Remote access was the bigger issue. Flex had employees in dozens of countries accessing company systems through various networks, creating security blind spots.
What they did:
Flex partnered with a security vendor to implement microsegmentation with zero-trust principles. They isolated network resources based on user role, location, and context.
Customer data and intellectual property can now be accessed only by CISOs and specific administrators; even if someone else gains network access, they hit a wall when trying to access sensitive data.
For remote workers, Flex analyzed network threats and filtered out risky URLs before they reached the company’s infrastructure. They applied these controls to 20,000 remote users in one week.
Results:
Zero-trust segmentation stopped lateral movement. Attackers who compromise one system can’t pivot to others because each segment requires separate authentication.
Remote access controls were deployed in 7 days for 20,000 users. The system blocked malware from home networks before it could spread to operational systems.
Automation reduced manual security rule updates. Engineers respond to threats by adjusting platform policies rather than manually updating hundreds of firewall rules.4
4. Children’s Mercy Kansas City
Children’s Mercy runs a pediatric medical center in Kansas City with thousands of interconnected medical devices.
The problem: Medical devices stayed on the network for years without security updates. Many devices ran outdated firmware with known vulnerabilities, but the hospital couldn’t patch them without risking disruptions to patient care.
Responsibilities were unclear. Was biomedical engineering responsible for device security? Clinical engineering? IT? Medical billing? Nobody owned the problem.
What they did:
Children’s Mercy created a risk-scored inventory of every connected medical device. They identified which devices had vulnerabilities, which were critical to patient care, and which could be safely segmented.
They used security group tagging to assign device privileges. For example, only medical billing clerks can access financial patient information clinical staff can’t, even though they work on the same network.
Results:
Automated policies generated device-specific security rules. Instead of manually configuring thousands of devices, the system applies the right policy based on device type and function.
Role assignments eliminated confusion. Biomedical engineering now manages device connectivity, clinical engineering handles medical functionality, and IT controls network access. Each team knows its scope.
Security group tagging enforced least-privilege access. Devices and users connect only to the systems they need, nothing more.5
5. MaterDei Hospital
MaterDei operates one of Brazil’s largest hospital networks in Minas Gerais with a complex mix of Windows, Linux, MacOS, Kubernetes, Docker, and cloud applications.
The problem: Each platform needed different security controls, but MaterDei couldn’t implement granular policies across all of them. They particularly struggled with API-level security.
An IT employee with database access could modify any API content because there were no permissions at that level. The system checked if they could access the database, not what they could do once inside.
Cost was another concern. MaterDei wanted flexible features without overpaying for capabilities they didn’t need.
What they did:
MaterDei deployed micro segmentation and reconfigured their network security in under three weeks. They segmented workloads across multiple cloud data centers and set granular permissions for each network zone.
Administrators can now see exactly who accesses each system and what actions they perform. For example, they created a zone for “sales department IT administrators with limited permissions” and restricted what those users can modify.
Results:
Granular control across multi-state hospital network. MaterDei reduced their attack surface by isolating patient services and internal systems.
Real-time visibility into all network segments. Administrators see cross-segment traffic patterns, access attempts, and policy violations as they happen.
Flexible policy management across hybrid infrastructure. The team controls who accesses each system and what they can do, down to specific API endpoints and database operations.6
6. Modern Woodmen
Modern Woodmen provides financial services and insurance through a self-service website where members manage accounts and pay bills.
The problem: Their data center product only controlled virtual infrastructure About 80% of their network. Physical devices, roughly 20% of infrastructure, remained unmanaged and unsegmented.
East-west traffic (communication between internal systems) lacked segmentation. Database replication, file transfers, and inter-process communication all happened on the same network without barriers. If an attacker compromised one system, they could access everything.
The management dashboard was too complex to monitor traffic at scale, leading to gaps in their micro-segmentation implementation.
What they did:
Modern Woodmen upgraded to a microsegmentation solution that works across virtual, physical, cloud, and data center environments from a single interface.
They implemented east-west firewalling using tags. All API services got an “API” tag, enabling the company to control exactly which sources and targets could communicate across applications, hardware, and user endpoints.
Results:
Complete network control across virtual and physical infrastructure. The previous product left 20% of systems unmanaged; the new solution covers everything through one GUI.
Tag-based traffic monitoring stopped lateral movement. By labeling services and monitoring connections in real-time, Modern Woodmen can detect and block unauthorized traffic between internal systems.
East-west segmentation closed the security gap. Database replication and file transfers now occur through controlled pathways rather than through open internal networks.7
7. Sani Marc
Sani Marc manufactures and distributes cleaning and sanitation products from 16 locations in Canada and one in Europe. Their IT team has six people.
The problem: Firewalls and endpoint detection tools secured the perimeter but didn’t protect against lateral movement once someone got inside. With dozens of data centers and warehouses, Sani Marc needed application-level security that a small team could manage.
According to IT Manager George Henderson, most threats came from users clicking malicious email links or URLs. The company needed internal barriers to stop attacks from spreading.
Their existing security systems required too much manual work. With only six IT staff, they couldn’t maintain complex solutions or spend weeks on implementation.
What they did:
Sani Marc deployed micro segmentation across all clients and servers in 30 days using a “95% hands-off” automated process.
The platform’s AI generated security rules automatically. The team spent 2-3 days fine-tuning the AI’s recommendations, then let it create and enforce policies without ongoing manual adjustments.
After 30 days of observing network connections, they deployed multi-factor authentication (MFA) across all ports, protocols, and applications.
Results:
AI-driven automation eliminated most manual rule management. The system learned normal traffic patterns and created appropriate security policies with minimal human input.
Network transparency after one month. By observing connections for 30 days, Sani Marc mapped every communication pathway and knew exactly what needed protection.
$150,000 saved over three years. The microsegmentation platform replaced their externally hosted zero-trust identity system, reducing licensing and maintenance costs.8
For guidance on choosing the right tool or service, check out our data-driven sources: network security policy management (NSPM) tools and open-source incident response tools.
What These Examples Show
These seven organizations share common patterns:
Automation is essential for small teams. Sani Marc’s six-person IT team and Children’s Mercy both emphasized automated policy generation. Manual configuration doesn’t scale.
Visibility comes before segmentation. MaterDei, Modern Woodmen, and Sani Marc all spent time mapping their networks before applying policies. You can’t segment what you can’t see.
Role-based access beats IP-based security. Children’s Mercy, MaterDei, and Frankfurter Bankgesellschaft moved from “who can access this IP address” to “which roles can perform specific actions.” This works better for modern, dynamic networks.
Implementation speed varies by complexity. Sani Marc will be deployed in 30 days. Flex secured 20,000 remote users in 7 days. CDWR took longer because it had to integrate with operational technology systems. Know your infrastructure before estimating timelines.
Reference Links
Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE and NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and resources that referenced AIMultiple.
Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised enterprises on their technology decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.
He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.
Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.
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