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A Discussion of the Cyberoam Opportunity for UTM Globally and MEA

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A Discussion of the Cyberoam Opportunity for UTM Globally and MEA. Presented to Cyberoam February 13, 2011 James Brehm, Senior Consultant. Table of Contents. 1. Introduction - PowerPoint PPT Presentation
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A Discussion of the Cyberoam Opportunity for UTM Globally and MEA Presented to Cyberoam February 13, 2011 James Brehm, Senior Consultant
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Page 1: A Discussion of the Cyberoam Opportunity for UTM Globally and MEA

A Discussion of the Cyberoam Opportunity for UTM Globally and MEA

Presented to Cyberoam

February 13, 2011

James Brehm, Senior Consultant

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Table of Contents

1. Introduction

2. Overview of the MEA Business Environment and Corresponding Security Landscape (high level discussion of security technologies - endpoint/UTM/SSL VPN/FW/etc)

3. UTM Market Size and Trajectorya. UTM Market Size (Global Market Size as compared to MEA Market)b. Growth rate / trajectoryc. Drivers and restraintsd. Opportunities, challenges and threats

4. Competitive Landscape (Global as compared to MEA Market)a. Competitive Positioningb. Position Directionc. Discussion of Global Market Share and Regional Tendencies

5. Cyberoam's Future Positioning?

6. Conclusions

7. Q&A

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Who is Frost & Sullivan

•The Growth Consulting Company

• Founded in 1961, Frost & Sullivan has 50 years of assisting clients with their decision-making and growth issues.

• Over 1,500 Growth Consultants and Industry Analysts across 40 global locations

• Over 10,000 clients worldwide - emerging companies, the global 1000 and the investment community

• Developers of the Growth Excellence Matrix – industry leading growth positioning tool for corporate executives

• Developers of T.E.A.M. Methodology, proprietary process to ensure that clients receive a 360o perspective of technology, markets and growth opportunities

• Three core services: Growth Partnership Services, Growth Consulting and Career Best Practices

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Global Perspective

• 1,500 staff across every major market worldwide• Over 10,000 clients worldwide from emerging to global 1000 companies

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What stage is the MEA Network Security market in

right now?

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If the Security Market were the World Cup Tournament, What Round are we In?

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We’re Still a Long Way from Maturity

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Where are we today and why has it taken so long?

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Industry Conflict, Emerging Threats, Changing Market…

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Business Environment and Vertical Market Discussion

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First We’ll Look at the Global Market

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Then We’ll Focus on Regional Implications

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Methodology – (ISC)2 Members Survey

• A total of 7,547 (ISC)2 members were surveyed during the Fall of 2010 by Frost & Sullivan. The table below shows the sample size by region.

Sub-Region Worldwide

Region

Americas EMEA APAC

Number of Respondents 7547 4914 1748 885

Percentage 100% 65% 23% 12%

Americas

Latin America 181 2% 4% - -

North America 4733 63% 96% - -

EMEA

Africa 102 1% - 6% -

Europe 1490 20% - 85% -

Middle East 156 2% - 9% -

APAC

Asia 665 9% - - 75%

Oceania 220 3% - - 25%

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Methodology – Non-Members Survey

• A total of 2,866 non-members were surveyed during the Fall of 2010 by Frost & Sullivan. The table below shows the sample size by region.

Sub-Region Worldwide

Region

Americas EMEA APAC

Number of Respondents 2866 1619 656 591

Percentage 100% 57% 22% 21%

Americas

Latin America 131 5% 8% - -

North America 1488 52% 92% - -

EMEA

Africa 94 2% - 14% -

Europe 458 16% - 70% -

Middle East 104 4% - 16% -

APAC

Asia 539 19% - - 91%

Oceania 52 2% - - 9%

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(ISC)2 Members SurveySalary Increase or Incentive in 2010 by Region

• Three out of five (ISC)2 members received a salary increase or incentive in 2010 and 33% had no change in their salary or benefits.

• More members in the Americas reported a lower salary increase of up to 5% and 39% of members in EMEA reported no change in salary or benefits.

Q46a) Did you receive a salary increase, including benefits and incentives, in 2010?

Salary Increase or Incentive by Region

Base: All member respondents (n=7547).

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Non-Members Survey Salary Increase or Incentive in 2010 by Region

• Three out of five non-members received a salary increase or incentive in 2010 and 35% had no change in their salary or benefits.

• More non-members in the Americas reported a lower salary increase of up to 5% and 42% of non-members in EMEA reported no change in salary or benefits.

Q46a) Did you receive a salary increase, including benefits and incentives, in 2010?

Salary Increase or Incentive by Region

Base: All non-member respondents (n=2866).

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Half of Organizations Using Cloud Computing Services

• The use of cloud computing services by organizations does not differ significantly between members and non-members.

Q. 10. Does your organization currently use any of the following services?

Base: All 2010 member respondents (n=7547).Base: All 2010 non-member respondents (n=2866).

Cloud Computing Services

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New Skills Required for Cloud Computing by Region

Q. 12b) What skills will be required of information security professionals for dealing with cloud computing? Select as many as apply.

Base: All member and non-member respondents who answered (n=7744).Note: Multiple mentions.

New Skills for Cloud Computing by Region

• For (ISC)2 members and non-members that said cloud computing requires new skills, the top two skills that are required are a detailed understanding of cloud computing and enhanced technical knowledge.

• There is no significant difference by region in regards to the skills required.

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Security Concerns of Cloud Computing

• Both (ISC)2 members and non-members have the same concern regarding the exposure of confidential information, sensitive data loss and weak systems.

• Non-members have greater concern about cyber attacks and disruptions that affect the operation of the data center.

11. Thinking about the different security aspects of cloud computing as a general service, how much of a security concern is each of the following for your organization?

Security Concerns of Cloud Computing (Top and High Concern)

Base: All 2010 member respondents (n=7547).Base: All 2010 non-member respondents (n=2866).

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¾ Require New Skills for Cloud Computing by Region

Q. 12a) In your opinion, does cloud computing require information security professionals to develop new skills not previously required?

New Skills for Cloud Computing Services by Region

Base: All member respondents (n=7547).

• Just under three quarters of (ISC)2 members said that cloud computing requires new skills for security professionals.

• By region, four out of five in APAC said that cloud computing requires new skills with 71% from the Americas and 73% in EMEA.

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1/3 Have No Formal Policy for Unmanaged Mobile Device Usage

• Seven out of 10 (ISC)2 members said their organization has a formal policy for unmanaged mobile devices compared to 64% of non-members.

• By region, members were more likely to indicated their organization has a formal policy in place than non-members.

Q. 33. Does your organization have a formal policy covering unmanaged mobile device usage?

Formal Policy for Unmanaged Mobile Device Usage by Region

Base: All 2010 member respondents (n=7547).Base: All 2010 non-member respondents (n=2866).

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Half Consider Social Media Important

• Non-members place greater importance on the use of social media tools for information security than members.

• Both members and non-members in APAC place the highest importance on social media tools.

Q. 37. How important is the use of social media tools to you as an information security professional?

Importance of Social Media Tools by Region

Base: All 2010 member respondents (n=7547).Base: All 2010 non-member respondents (n=2866).

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(ISC)2 Members SurveyPotential Security Threats For Their Organization

27. Thinking about your own organization, please rate the following potential security threats on the degree of concern you have for each.

Base: All member respondents (n=7547).Note: Percentages less than 5% are not displayed.

• Security threats related to application vulnerabilities, mobile devices, internal employees and virus attacks are of the greatest concern reported by (ISC)2 members.

• Organized crime, cloud-based services, cyber terrorism and contractors are not as great a concern to members.

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(ISC)2 Members SurveyPersonal Use of Sites During Work Hours

Q. 35a) Which of the following are employees allowed to access for personal use during work hours? Select as many as apply.

Base: All member respondents (n=7547).Note: Multiple mentions.

• Two thirds of (ISC)2 members said that employees are allowed to access LinkedIn during work hours.

• Just over half reported that personal use of blogs and Facebook is allowed during work hours.

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(ISC)2 Members SurveyImportance of Social Media Tools by Region

Q. 37. How important is the use of social media tools to you as an information security professional?

Importance of Social Media Tools by Region

Base: All member respondents (n=7547).

• Only 12% of (ISC)2 members consider the use of social media tools as very important for information security.

• Members in APAC place greater importance on social media tools than members in the Americas and EMEA.

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(ISC)2 Members Versus Non-Members 2010Growing Demand for Training (Top 8)

• A higher proportion of members reported a growing demand for training in information risk management and security architecture and models than non-members in 2010. Non-members have a greater demand for access control systems training than members.

Q. 25. In which areas of information security do you see a growing demand for training and education? Select as many as apply Note: *New category in 2010 GISW Survey.

Base: All 2010 member respondents (n=7547).Base: All 2010 non-member respondents (n=2866).Note: Multiple mentions.

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(ISC)2 Members Versus Non-Members 2010Growing Demand for Training (Next 8)

• There is greater demand for security administration training for non-members than members. This is likely a result of non-members being more junior than (ISC)2 members.

Q. 25. In which areas of information security do you see a growing demand for training and education? Select as many as apply Note: *New category in 2010 GISW Survey.

Base: All 2010 member respondents (n=7547).Base: All 2010 non-member respondents (n=2866).Note: Multiple mentions.

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Security is a Complex Universe

Overview

EnterpriseSecurity UTM

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Vertical Markets and IT Processes

Network Security

Users, End Points, Devices, Sensors, and Controllers

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Key Vertical Markets Globally

Others

Telecommunications & Technology

Manufacturing

Healthcare

Government

Financial• This segment includes securing financial services entities such as banks,

credit unions, insurance, and brokerage firms.

• This segment includes federal, state, and local government purchases for government agencies, military, and defense projects.

• This segment includes hospitals, pharmaceutical companies, clinics, and other medical facilities.

• This segment includes companies involved in manufacturing, engineering, and industrial design.

• This segment includes telecommunications carriers and service providers.

• The others category is comprised of customers across many vertical markets such as retail, media, education, hospitality, and utilities.

• This segment includes securing financial services entities such as banks, credit unions, insurance, and brokerage firms.

• This segment includes federal, state, and local government purchases for government agencies, military, and defense projects.

• This segment includes hospitals, pharmaceutical companies, clinics, and other medical facilities.

• This segment includes companies involved in manufacturing, engineering, and industrial design.

• This segment includes telecommunications carriers and service providers.

• The others category is comprised of customers across many vertical markets such as retail, media, education, hospitality, and utilities.

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Financial16.0% Government

13.8%

Manufacturing8.0%

Telecom18.7%

Others (Education, Hospitality, Retail,

Utilities)30.6%

Healthcare12.9%

Vertical Market Distribution

Total UTM Market: Revenues by Vertical Market (World), 2009

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

The “others” category accounted for 30.6 percent of the market, indicating that the UTM market is very vertical independent and is in demand across industry sectors.

The telecommunications and technology sector accounted for the largest share of UTM sales at 18.7 percent, led by sales to communications carriers and service providers.

As is typical, the financial and government markets are the leading vertical markets in the security industry. These markets continue to account for a large amount of UTM sales, combining for 29.8 percent of market revenues.

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MEA Vertical Market Distribution

UTM Market: Revenues by Vertical Market (MEA), 2009

As is typical, the financial and government markets are two of the leading vertical markets in the security industry. These markets continue to grow, however are nearing maturity.

The telecom and energy sectors continue to be fueled by consumer demand. We expect they will continue to grow for the next few years.

The “others” category accounted for the largest percentage at over 30 percent of the market, indicating that the UTM market is very vertical independent and is in demand across industry sectors.

Education and Awareness are keys to winning “others”.

Source: Frost & Sullivan

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Vertical Market Distribution Forecasts (Contd...)

Total UTM Market: Revenue Forecasts by Vertical Market (World), 2006-2016

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Re

ve

nu

es

(%

)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Financial Government Healthcare Manufacturing Telecom Others

Others include: Education, Hospitality, Retail, and Utilities

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Market Size and TrajectoryDrivers, Restraints, Opportunities

and Threats

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Market Overview

Market OverviewMarket Overview Research MethodologyResearch Methodology

Unified Threat Management (UTM) technology emerged around 2004 as a solution that could uniquely meet many challenges plaguing network administrators and security teams. UTM integrates several security functions, such as network firewall, network intrusion prevention, gateway antimalware, gateway anti-spam, VPN, content filtering, and load balancing, into a single network appliance. This provides customers with complete, affordable, effective, and easily managed security. The UTM market has grown significantly over the years as the demand for integrated security has increased, offset primarily by the ability of point solutions to provide deeper functionality and high performance.

Unified Threat Management (UTM) technology emerged around 2004 as a solution that could uniquely meet many challenges plaguing network administrators and security teams. UTM integrates several security functions, such as network firewall, network intrusion prevention, gateway antimalware, gateway anti-spam, VPN, content filtering, and load balancing, into a single network appliance. This provides customers with complete, affordable, effective, and easily managed security. The UTM market has grown significantly over the years as the demand for integrated security has increased, offset primarily by the ability of point solutions to provide deeper functionality and high performance.

• This research service tracks and forecasts unit shipments and revenues from sales of UTM solutions.

• The base year is 2009, and the forecast period is for 2010 to 2016.

• Vertical markets covered include financial, government, telecommunications and technology, manufacturing, healthcare, retail, utilities, media, hospitality, and education.

• The UTM market is segmented horizontally by small office/home office (SOHO), remote office/branch office (ROBO), small and medium-sized businesses (SMB), and enterprise.

• Geographic regions covered include North America, Asia Pacific (APAC), Latin America, and Europe, the Middle East, and Africa (EMEA).

• This research service tracks and forecasts unit shipments and revenues from sales of UTM solutions.

• The base year is 2009, and the forecast period is for 2010 to 2016.

• Vertical markets covered include financial, government, telecommunications and technology, manufacturing, healthcare, retail, utilities, media, hospitality, and education.

• The UTM market is segmented horizontally by small office/home office (SOHO), remote office/branch office (ROBO), small and medium-sized businesses (SMB), and enterprise.

• Geographic regions covered include North America, Asia Pacific (APAC), Latin America, and Europe, the Middle East, and Africa (EMEA).

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Market Overview (Contd…)

Product DefinitionProduct Definition Deployment OptionsDeployment Options

• To avoid double counting of revenues, only product sales from the original solution provider will be counted, including OEM product licensing to other companies.

• To qualify for inclusion, the solution must be a single appliance that offers multiple network security functions.

• UTM vendors offer various security applications in their solutions, but at a minimum, solutions should include firewall, IPsec VPN, and intrusion prevention capabilities.

• UTM vendors offer modular security applications to extend the capabilities of the core product as the customer requests.

• To avoid double counting of revenues, only product sales from the original solution provider will be counted, including OEM product licensing to other companies.

• To qualify for inclusion, the solution must be a single appliance that offers multiple network security functions.

• UTM vendors offer various security applications in their solutions, but at a minimum, solutions should include firewall, IPsec VPN, and intrusion prevention capabilities.

• UTM vendors offer modular security applications to extend the capabilities of the core product as the customer requests.

• Network appliances are the preferred method of sale for UTM solutions. This solution is relatively easy to deploy and manage.

• Some UTM vendors offer a software version of their product via ISO image or other physical media. These solutions allow customers to deploy the product on their own choice of hardware. This method of deployment is counted as a unit sale in this report.

• Select UTM vendors offer a virtual UTM appliance based on VMware.

• Network appliances are the preferred method of sale for UTM solutions. This solution is relatively easy to deploy and manage.

• Some UTM vendors offer a software version of their product via ISO image or other physical media. These solutions allow customers to deploy the product on their own choice of hardware. This method of deployment is counted as a unit sale in this report.

• Select UTM vendors offer a virtual UTM appliance based on VMware.

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Market Engineering Measurements, Analysis, and Trends

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

Measurement Name Measurement Trend

Market stage High Growth Stage Increasing

Revenues (2009) $1,971.8 million Increasing

Potential revenues (2015) $7,009.1 million Increasing

Base year market growth rate (2008) 21.0% Decreasing

Forecast period market growth rate (CAGR) 19.9% Stable

Average base price $6,868 Decreasing

Price range $300 - $250,000 Increasing

Price sensitivity Medium Stable

Competitors (active market competitors in base year) 42 Decreasing

Market concentration (percent of base year market controlled by top five competitors)

51.3% Decreasing

Total UTM Market: Market Engineering Measurements (World), 2009

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Market Engineering Measurements, Analysis, and Trends(Contd...)

Market StageMarket Stage Price SensitivityPrice Sensitivity

Competitor Market Entry/ExitCompetitor Market Entry/Exit Market ConcentrationMarket Concentration

The UTM market has been in a stage of high growth. During the difficult economic climate of 2009, UTM vendors showed double digit growth rates. For many large vendors, the growth of UTM product lines offsets losses in other areas. Although growth was diminished compared to previous years, the market is expected to rebound with strong growth rates in the near future.

The UTM market has been in a stage of high growth. During the difficult economic climate of 2009, UTM vendors showed double digit growth rates. For many large vendors, the growth of UTM product lines offsets losses in other areas. Although growth was diminished compared to previous years, the market is expected to rebound with strong growth rates in the near future.

UTM products range from $300 for SOHO/ROBO solutions to $16,000 for large enterprise customers. The average sale price for UTM products in 2009 was $6,868, due primarily to the large number of small and medium-sized businesses. Customers in the SMB range are most price sensitive, while large enterprise customers focus more on overall value than price.

UTM products range from $300 for SOHO/ROBO solutions to $16,000 for large enterprise customers. The average sale price for UTM products in 2009 was $6,868, due primarily to the large number of small and medium-sized businesses. Customers in the SMB range are most price sensitive, while large enterprise customers focus more on overall value than price.

The integrated security strategy is an important one for many vendors, and market exits are rare. 3Com discontinued its UTM product line, as did a small niche participant, freedom9. Overall, the market size has been very stable at 40+ competitors.

The integrated security strategy is an important one for many vendors, and market exits are rare. 3Com discontinued its UTM product line, as did a small niche participant, freedom9. Overall, the market size has been very stable at 40+ competitors.

There are many niche vendors that focus solely on providing UTM products. These vendors have steadily grown in market share over the years. Despite this growth, the top five competitors still accounted for 51.3 percent of market revenues in 2009.

There are many niche vendors that focus solely on providing UTM products. These vendors have steadily grown in market share over the years. Despite this growth, the top five competitors still accounted for 51.3 percent of market revenues in 2009.

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0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Rev

enu

es (

$ M

illi

on

)

0

200

400

600

800

1,000

1,200

Un

it S

hip

men

ts (

Th

ou

san

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Revenues ($ Million) Unit Shipments (Thousand)

Market Size and Forecasts (Contd...)

Total UTM Market: Revenue and Unit Shipment Forecasts (World), 2006-2016

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

In 2009, UTM vendors shipped 287,100 products, earning $1,978.1 million in revenues. This is forecasted to reach $7,009.1 million in revenue by 2016, representing a healthy compound annual growth rate (CAGR) of 19.9 percent.

In 2009, UTM vendors shipped 287,100 products, earning $1,978.1 million in revenues. This is forecasted to reach $7,009.1 million in revenue by 2016, representing a healthy compound annual growth rate (CAGR) of 19.9 percent.

Page 40: A Discussion of the Cyberoam Opportunity for UTM Globally and MEA

40

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Rev

enu

es (

$ M

illi

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)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Rev

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ate

(%)

Revenues ($ Million) Revenue Growth Rate (%)

Market Size and Forecasts (Contd...)

Total UTM Market: Revenue Forecasts (World), 2006-2016

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

The UTM market generated revenues of $1,971.8 million in 2009. This market was characterized by high growth rates before 2009, such as a 32.2 percent growth rate in 2008. However, due primarily to economic recession, the growth rate dropped to just 20.1 percent in 2009. As the market rebounds, growth rates are expected to increase in 2010 and 2011, before leveling off.

The UTM market generated revenues of $1,971.8 million in 2009. This market was characterized by high growth rates before 2009, such as a 32.2 percent growth rate in 2008. However, due primarily to economic recession, the growth rate dropped to just 20.1 percent in 2009. As the market rebounds, growth rates are expected to increase in 2010 and 2011, before leveling off.

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SOHO/ROBO16.5%

SMB37.1%

Enterprise46.4%

Market Metrics

Total UTM Market: Sales by Customer Size (World), 2009

Key HighlightsKey Highlights

• UTM vendors have traditionally targeted SMB and SOHO/ROBO networks. In 2009, these segments accounted for 53.6 percent market revenues. Total market revenues are expected to shift towards the enterprise market, as UTM products improve in functionality and reliability.

• The cost effectiveness of UTM solutions is the primary reason for the market’s focus on the SMB segment.

• Enterprise customers with large but distributed networks often invest in UTM solutions for their cost effectiveness and ease of management. This is common with customers in the retail and hospitality industries, but can apply to any enterprise organization with remote offices and branch offices.

• The largest deployments are in the telecommunications vertical with carriers who need to secure their own data center or to service providers who want to protect their clients’ data.

• However, a select few UTM vendors are able to meet the demanding performance needs of these customers.

• UTM vendors have traditionally targeted SMB and SOHO/ROBO networks. In 2009, these segments accounted for 53.6 percent market revenues. Total market revenues are expected to shift towards the enterprise market, as UTM products improve in functionality and reliability.

• The cost effectiveness of UTM solutions is the primary reason for the market’s focus on the SMB segment.

• Enterprise customers with large but distributed networks often invest in UTM solutions for their cost effectiveness and ease of management. This is common with customers in the retail and hospitality industries, but can apply to any enterprise organization with remote offices and branch offices.

• The largest deployments are in the telecommunications vertical with carriers who need to secure their own data center or to service providers who want to protect their clients’ data.

• However, a select few UTM vendors are able to meet the demanding performance needs of these customers.

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

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Channel93.7%

Direct 6.3%

Market Metrics (Contd...)

Total UTM Market: Sales by Distribution Method (World), 2009 Key HighlightsKey Highlights

• With 93.7 percent of revenues coming from the distribution channel, most vendors can identify a direct correlation between their growth and their ability to find effective value-added resellers (VAR) and systems integrators (SI) to partner with.

• VARs and SIs must deal with many different solution providers. This can confuse sales teams and increase overhead costs. Channel partners have embraced UTM solutions because these solutions reduce the number of total supplier partners.

• In the UTM market, direct sales are typically reserved for the largest customers due to the high volume of sales.

• With 93.7 percent of revenues coming from the distribution channel, most vendors can identify a direct correlation between their growth and their ability to find effective value-added resellers (VAR) and systems integrators (SI) to partner with.

• VARs and SIs must deal with many different solution providers. This can confuse sales teams and increase overhead costs. Channel partners have embraced UTM solutions because these solutions reduce the number of total supplier partners.

• In the UTM market, direct sales are typically reserved for the largest customers due to the high volume of sales.

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

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Market Dynamics

High

Impa

ct

Mar

ket D

river

sM

arke

t Driv

ers

Mar

ket R

estr

aint

sM

arke

t Res

trai

nts

Impa

ct

Low

High

Low

High

Source: Frost & Sullivan.

Network Infrastructure Upgrade and

Replacement Cycle

Short Term Mid Term Long Term

Total UTM Market: Market Drivers and Restraints with Timeframe (World), 2010-2016

Evolution of Enterprise Network

Environments

Penetration into Enterprise Market

Shift Towards Consolidated

Solutions

Regulatory Compliance

Improved Services Capabilities

Customers are Past the Hype Stage

Lack of Acceptance in the Enterprise

Market

Point Solutions Outperform

Consolidated Solutions

Currently Deployed Network Security

Applications

Customer Budgetary Constraints

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Impact of Industry Challenges with Timeframe

Rank Restraint1 - 2

Years3 - 4

Years5 - 7

Years

1 Capitalize on Economic RecoveryVeryHigh

Medium Very Low

2 Offer Best-of-Breed FunctionalityMedium-

HighHigh High

3 Target the Appropriate Customer Base Medium Medium Medium

4 Focus on Next-Generation Technologies Low Medium High

Total UTM Market: Industry Challenges Ranked in Order of Impact (World), 2010-2016

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

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Analysis of Industry Challenges

Capitalize on Economic RecoveryCapitalize on Economic Recovery Offer Best-of-Breed FunctionalityOffer Best-of-Breed Functionality

Target the Appropriate Customer BaseTarget the Appropriate Customer Base Focus on Next Generation TechnologiesFocus on Next Generation Technologies

The information security industry has proven to be very resilient in the harsh economic climate of 2009, and UTM vendors reported growth for the year. Limited IT budgets swayed interest away from expensive point products and towards cost-effective UTM solutions. This interest will carry over into 2010, but vendors must be prepared to compete against best-of-breed solutions as well.

The information security industry has proven to be very resilient in the harsh economic climate of 2009, and UTM vendors reported growth for the year. Limited IT budgets swayed interest away from expensive point products and towards cost-effective UTM solutions. This interest will carry over into 2010, but vendors must be prepared to compete against best-of-breed solutions as well.

A critical area of improvement for UTM vendors is in product performance. Customers will not value a product that cannot provide effective security. UTM’s value proposition lies in its ability to integrate a wide breadth of security applications. However, customers will value best-in-class security functionality the most. Vendors cannot take a check mark approach to security.

A critical area of improvement for UTM vendors is in product performance. Customers will not value a product that cannot provide effective security. UTM’s value proposition lies in its ability to integrate a wide breadth of security applications. However, customers will value best-in-class security functionality the most. Vendors cannot take a check mark approach to security.

As simple as it may sound, many SMB-focused UTM vendors are attempting to penetrate the enterprise market while enterprise-focused vendors are planning for the SMB. The requirements for the two segments are vastly different, and few UTM vendors have truly succeeded in both. Vendors are cautioned to weigh the costs of attempting this expansion.

As simple as it may sound, many SMB-focused UTM vendors are attempting to penetrate the enterprise market while enterprise-focused vendors are planning for the SMB. The requirements for the two segments are vastly different, and few UTM vendors have truly succeeded in both. Vendors are cautioned to weigh the costs of attempting this expansion.

Few UTM vendors have developed a strategy that incorporates virtualization or managed services. Identifying these future trends and capitalizing on them will greatly improve a company’s share of the total market.

Few UTM vendors have developed a strategy that incorporates virtualization or managed services. Identifying these future trends and capitalizing on them will greatly improve a company’s share of the total market.

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Asia Pacif ic16.4%

Europe, Middle East, Africa

36.4%

North America45.3%

Latin America1.8%

Regional Revenue Distribution

Total UTM Market: Revenues by Geographic Region (World), 2009

Key HighlightsKey Highlights

• Adoption of UTM products has been very strong in the North America region. This area accounted for 45.3 percent of market revenues in 2009.

• Currently, large multinational security and technology companies are prime contributors to growth in the Asia Pacific (APAC) region.

• Europe, Middle East, and Africa (EMEA) contributed 36.4 percent of total market revenues. This region was led by UTM vendors headquartered in the developed countries of Western Europe.

• Latin America is still developing as a suitable market for UTM vendors with 1.8 percent of total market revenues.

• Adoption of UTM products has been very strong in the North America region. This area accounted for 45.3 percent of market revenues in 2009.

• Currently, large multinational security and technology companies are prime contributors to growth in the Asia Pacific (APAC) region.

• Europe, Middle East, and Africa (EMEA) contributed 36.4 percent of total market revenues. This region was led by UTM vendors headquartered in the developed countries of Western Europe.

• Latin America is still developing as a suitable market for UTM vendors with 1.8 percent of total market revenues.

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

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Asia Pacif ic16.4%

Europe, Middle East, Africa

36.4%

North America45.3%

Latin America1.8%

Regional Revenue Distribution

Total UTM Market: Revenues by Geographic Region (World), 2009

Key HighlightsKey Highlights

• Adoption of UTM products has been very strong in the North America region. This area accounted for 45.3 percent of market revenues in 2009.

• Currently, large multinational security and technology companies are prime contributors to growth in the Asia Pacific (APAC) region.

• Europe, Middle East, and Africa (EMEA) contributed 36.4 percent of total market revenues. This region was led by UTM vendors headquartered in the developed countries of Western Europe.

• Latin America is still developing as a suitable market for UTM vendors with 1.8 percent of total market revenues.

• Adoption of UTM products has been very strong in the North America region. This area accounted for 45.3 percent of market revenues in 2009.

• Currently, large multinational security and technology companies are prime contributors to growth in the Asia Pacific (APAC) region.

• Europe, Middle East, and Africa (EMEA) contributed 36.4 percent of total market revenues. This region was led by UTM vendors headquartered in the developed countries of Western Europe.

• Latin America is still developing as a suitable market for UTM vendors with 1.8 percent of total market revenues.

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

MEA equates to 7.3% of global sales

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Europe, Middle East, and Africa: Unit Shipments and Revenue Forecasts

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

YearUnit Shipments

(Thousand)

Unit Shipment Growth Rate

(%)Revenues

($ Million)

Revenue Growth Rate

(%)2006 49.0 -- 352.5 --2007 62.0 26.6 452.5 28.42008 84.0 35.6 596.6 31.92009 104.5 24.4 717.7 20.32010 127.7 22.2 882.1 22.92011 159.2 24.7 1,087.2 23.22012 188.3 18.3 1,306.7 20.22013 224.9 19.4 1,565.5 19.82014 266.3 18.4 1,875.5 19.82015 311.3 16.9 2,220.4 18.42016 356.6 14.6 2,579.4 16.2

19.2% 20.1%Compound Annual Growth Rate(2009-2016):

UTM Market: Revenue and Unit Shipment Forecasts (Europe, Middle East, Africa), 2006-2016

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0

500

1,000

1,500

2,000

2,500

3,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Rev

enu

es (

$ M

illi

on

)

0

50

100

150

200

250

300

350

400

Un

it S

hip

men

ts (

Th

ou

san

d)

Revenues ($ Million) Unit Shipments (Thousand)

Europe, Middle East, and Africa: Unit Shipments and Revenue Forecasts (Contd...)

UTM Market: Revenue and Unit Shipment Forecasts (Europe, Middle East, Africa), 2006-2016

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

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Europe, Middle East, and Africa: Market Summary

The Europe, Middle East, and Africa (EMEA) region includes many highly developed countries such as the United Kingdom, Germany, France, and Israel. Many European organizations are showing interest in UTM because of international regulations and the importance of telecommunications for commercial activities. Newly industrialized countries such as Turkey and South Africa are also contributing to UTM sales in EMEA.

The Europe, Middle East, and Africa (EMEA) region includes many highly developed countries such as the United Kingdom, Germany, France, and Israel. Many European organizations are showing interest in UTM because of international regulations and the importance of telecommunications for commercial activities. Newly industrialized countries such as Turkey and South Africa are also contributing to UTM sales in EMEA.

UTM solutions have gained much traction in the EMEA region, led by highly developed countries such as the United Kingdom, Germany, and Israel. UTM product sales in EMEA generated $717.7 million in revenues in 2009. For the year, the EMEA region accounted for 36.4 percent of total UTM market revenues. This market is forecasted to grow to $2,579.4 million by 2016, representing a strong calculated annual growth rate of 20.1 percent. The EMEA share of the UTM market will gradually increase to 36.8 percent by 2016.

UTM solutions have gained much traction in the EMEA region, led by highly developed countries such as the United Kingdom, Germany, and Israel. UTM product sales in EMEA generated $717.7 million in revenues in 2009. For the year, the EMEA region accounted for 36.4 percent of total UTM market revenues. This market is forecasted to grow to $2,579.4 million by 2016, representing a strong calculated annual growth rate of 20.1 percent. The EMEA share of the UTM market will gradually increase to 36.8 percent by 2016.

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Middle East and Africa: Market Summary

When we separate Europe from the EMEA regional breakout, the Middle East and Africa (MEA) sub-region includes a mix of highly developed countries and many emerging countries who have yet to develop economically, industrially or technically. Countries on the Arabian Peninsula have strong economies and are showing interest in UTM because of international regulations and the importance of telecommunications for commercial activities. Likewise, newly industrialized countries such as Turkey and South Africa are contributing to UTM sales in MEA. Emerging countries in sub-Saharan Africa are struggling to develop and may look to implement basic security products as they mature, however other technologies will play a disruptive roll.

Demand: MEDIUM TO STRONG

Growth: 25-32% CAGR

Size: Less than 1/4 of total EMEA salesaccounting for $143M in revenue (est).

When we separate Europe from the EMEA regional breakout, the Middle East and Africa (MEA) sub-region includes a mix of highly developed countries and many emerging countries who have yet to develop economically, industrially or technically. Countries on the Arabian Peninsula have strong economies and are showing interest in UTM because of international regulations and the importance of telecommunications for commercial activities. Likewise, newly industrialized countries such as Turkey and South Africa are contributing to UTM sales in MEA. Emerging countries in sub-Saharan Africa are struggling to develop and may look to implement basic security products as they mature, however other technologies will play a disruptive roll.

Demand: MEDIUM TO STRONG

Growth: 25-32% CAGR

Size: Less than 1/4 of total EMEA salesaccounting for $143M in revenue (est).

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Market Drivers

Source: Frost & Sullivan

Consolidated Solutions Offer

Customers Tremendous

Value

Evolution of Enterprise Network

Environments

Increase in Malware in MEA in

2009 and 2010

Improved Services Capabilities

Network Security Mandatory for

Regulatory Compliance

Increased Market

Penetration into the Enterprise

Customer Segment

Total UTM Market: Market Drivers Ranked in Order of Impact (World), 2010-2016

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It’s a Mobile World

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Impact of Market Drivers with Timeframe

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

Rank Driver1 - 2

Years3 - 4

Years5 - 7

Years

1 Consolidated Solutions Offer Customers Tremendous Value High High Very High

2 Network Security Mandatory for Regulatory ComplianceMedium-

HighMedium-

HighMedium-

High

3Increased Market Penetration into the Enterprise

Customer SegmentMedium High High

4 Evolution of Enterprise Network Environments MediumMedium-

HighMedium-

High

5 Improved Services CapabilitiesMedium-

LowMedium-

HighMedium-

High

6 Network Infrastructure Upgrade and Replacement Schedules LowMedium-

LowMedium

Total UTM Market: Market Drivers Ranked in Order of Impact (World), 2010-2016

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Analysis of Market Drivers

Network Security Mandatory for Regulatory Compliance

Network Security Mandatory for Regulatory Compliance

• Compliance is mandatory whether the customer’s budget allows for it or not. This will drive growth throughout the forecast period.

• Some laws apply to customers in specific vertical markets, such as Health Insurance Portability and Accountability Act (HIPAA) for healthcare.

• The Sarbanes-Oxley (SOX) Act, Gramm-Leach-Bliley (GLB) Act, and Basel II Accord regulate organizations in the financial vertical market.

• PCI applies to all organizations that process credit card information. This applies to customers across multiple vertical markets.

• Compliance is mandatory whether the customer’s budget allows for it or not. This will drive growth throughout the forecast period.

• Some laws apply to customers in specific vertical markets, such as Health Insurance Portability and Accountability Act (HIPAA) for healthcare.

• The Sarbanes-Oxley (SOX) Act, Gramm-Leach-Bliley (GLB) Act, and Basel II Accord regulate organizations in the financial vertical market.

• PCI applies to all organizations that process credit card information. This applies to customers across multiple vertical markets.

Consolidated Solutions Offer Customers Tremendous Value

Consolidated Solutions Offer Customers Tremendous Value

• The integration of multiple security applications gives UTM its greatest value proposition.

• This allows customers to more easily implement and manage their security solutions. Customers also have flexibility to easily enable certain security functions as they please.

• Investing in several point products, including installation and support, is very costly.

• Consolidating these products reduces these costs and can even help with green initiatives by reducing power consumption.

• Support and transactions are done with a single company instead of several.

• The integration of multiple security applications gives UTM its greatest value proposition.

• This allows customers to more easily implement and manage their security solutions. Customers also have flexibility to easily enable certain security functions as they please.

• Investing in several point products, including installation and support, is very costly.

• Consolidating these products reduces these costs and can even help with green initiatives by reducing power consumption.

• Support and transactions are done with a single company instead of several.

Increased Market Penetration into the Enterprise Customer Segment

Increased Market Penetration into the Enterprise Customer Segment

• The UTM market has shown considerable growth over the years, but revenues are still derived primarily from the SMB and SOHO/ROBO customer segments.

• The SOHO/ROBO market segment requires many more individual sales, more overhead, and slimmer margins.

• Several UTM vendors have identified the need to increase their presence in the enterprise space.

• Further acceptance into the enterprise segment is crucial for sustained long-term growth.

• The UTM market has shown considerable growth over the years, but revenues are still derived primarily from the SMB and SOHO/ROBO customer segments.

• The SOHO/ROBO market segment requires many more individual sales, more overhead, and slimmer margins.

• Several UTM vendors have identified the need to increase their presence in the enterprise space.

• Further acceptance into the enterprise segment is crucial for sustained long-term growth.

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Analysis of Market Drivers (Contd...)

Improved Services CapabilitiesImproved Services Capabilities

• While UTM has a strong value proposition, differentiation in this market will be crucial in order to gain market share.

• Currently, very few UTM vendors are offering managed UTM services.

• Many vendors are working to develop a cloud-based strategy for UTM.

• This strategy could also help alleviate network latency issues caused by gateway Web and e-mail security services. This would make UTM a much more viable option for customers with high network performance requirements.

• While UTM has a strong value proposition, differentiation in this market will be crucial in order to gain market share.

• Currently, very few UTM vendors are offering managed UTM services.

• Many vendors are working to develop a cloud-based strategy for UTM.

• This strategy could also help alleviate network latency issues caused by gateway Web and e-mail security services. This would make UTM a much more viable option for customers with high network performance requirements.

Network Infrastructure Upgrade and Replacement Schedules

Network Infrastructure Upgrade and Replacement Schedules

• As network infrastructure components grow outdated, customers will often use the opportunity to evaluate and implement next-generation technologies in order to future proof their investments as much as possible.

• Customers at this stage should consider investing in a UTM solution.

• As network infrastructure components grow outdated, customers will often use the opportunity to evaluate and implement next-generation technologies in order to future proof their investments as much as possible.

• Customers at this stage should consider investing in a UTM solution.

Evolution of Enterprise Network Environments

Evolution of Enterprise Network Environments

• Enterprise network environments continue to change, enabling many new attack vectors.

• The proliferation of mobile devices, wireless hotspots, and handheld computing devices (smartphones) complicates the challenge of securing and protecting valuable resources.

• The use of Web 2.0 technologies and instant messaging necessitates the use of specialized security solutions.

• Many UTM solutions combine features and functionality that address many of these challenges.

• Enterprise network environments continue to change, enabling many new attack vectors.

• The proliferation of mobile devices, wireless hotspots, and handheld computing devices (smartphones) complicates the challenge of securing and protecting valuable resources.

• The use of Web 2.0 technologies and instant messaging necessitates the use of specialized security solutions.

• Many UTM solutions combine features and functionality that address many of these challenges.

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Market Restraints

Total UTM Market: Market Restraints Ranked in Order of Impact (World), 2010-2016

Source: Frost & Sullivan

Restraint TextPoint Solutions Continue to Outperform

Consolidated Solutions

Customers are Moving Beyond the Hype Stage

UTM Solutions Lack Acceptance in the Enterprise

Market

Currently Deployed Network

Security Applications

Customer Budgetary Restraints

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Impact of Market Restraints with Timeframe

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

Rank Restraint1 - 2

Years3 - 4

Years5 - 7

Years

1Point Solutions Continue to Outperform

Consolidated SolutionsHigh High

Medium-High

2 UTM Solutions Lack Acceptance in the Enterprise Market High Medium Medium

3 Customer Budgetary RestraintsMedium-

HighMedium

Medium-Low

4 Customers are Moving Beyond the Hype StageMedium-

HighLow Low

5 Currently Deployed Network Security Applications MediumMedium-

LowLow

Total UTM Market: Market Restraints Ranked in Order of Impact (World), 2010-2016

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Analysis of Market Restraints

UTM Solutions Lack Acceptance in the Enterprise Market

UTM Solutions Lack Acceptance in the Enterprise Market

• UTM is considered by many to be not quite ready for acceptance in the market.

• Enterprise customers have extreme performance demands and will demand the highest quality products.

• Many UTM solutions are based on open source software security solutions. This helps keep overhead costs down but is slow to gain traction in the enterprise arena.

• Vendors can acquire commercial technology from point product vendors to improve their UTM solutions.

• UTM is considered by many to be not quite ready for acceptance in the market.

• Enterprise customers have extreme performance demands and will demand the highest quality products.

• Many UTM solutions are based on open source software security solutions. This helps keep overhead costs down but is slow to gain traction in the enterprise arena.

• Vendors can acquire commercial technology from point product vendors to improve their UTM solutions.

Point Solutions Continue to Outperform Consolidated Solutions

Point Solutions Continue to Outperform Consolidated Solutions

• While UTM provides customers with many advantages, it is criticized as not offering best-of-breed functionality.

• Furthermore, it is a challenge to enable multiple security functions on a single appliance without impeding network performance.

• Currently, it is less common for customers to use the product’s full functionality.

• UTM vendors are continually working to improve their product’s functionality and processing power to meet enterprise networking needs.

• At the same time, point solutions continue to improve and push the performance envelope.

• While UTM provides customers with many advantages, it is criticized as not offering best-of-breed functionality.

• Furthermore, it is a challenge to enable multiple security functions on a single appliance without impeding network performance.

• Currently, it is less common for customers to use the product’s full functionality.

• UTM vendors are continually working to improve their product’s functionality and processing power to meet enterprise networking needs.

• At the same time, point solutions continue to improve and push the performance envelope.

Customer Budgetary RestraintsCustomer Budgetary Restraints

• The global economic recession has resulted in very strict security budgets in 2009.

• As a result, customers are very cautious about investing in a solution and may even be waiting for a more stable economic climate.

• This effect is anticipated to decrease over the forecast period, as the economy recovers and IT budgets grow.

• However, UTM solutions will always have to compete for a limited budget against specialized security products.

• The global economic recession has resulted in very strict security budgets in 2009.

• As a result, customers are very cautious about investing in a solution and may even be waiting for a more stable economic climate.

• This effect is anticipated to decrease over the forecast period, as the economy recovers and IT budgets grow.

• However, UTM solutions will always have to compete for a limited budget against specialized security products.

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Analysis of Market Restraints (Contd...)

Currently Deployed Network Security Applications

Currently Deployed Network Security Applications

• While UTM integrates several different security applications, it also has to compete against the dedicated product version of these same security solutions.

• Often, customers already have more than one of these applications deployed in their network.

• As a result, customers may wait for multiple existing security solutions to reach the end of their life cycles.

• While UTM integrates several different security applications, it also has to compete against the dedicated product version of these same security solutions.

• Often, customers already have more than one of these applications deployed in their network.

• As a result, customers may wait for multiple existing security solutions to reach the end of their life cycles.

Customers are Moving Beyond the Hype Stage

Customers are Moving Beyond the Hype Stage

• As with many new technologies, the UTM market enjoyed a period of substantial hype and inflated expectations.

• Customers are moving beyond this stage and are evaluating UTM solutions with much more scrutiny.

• Now, customers are much more educated about UTM products and will have more realistic expectations when evaluating a UTM product.

• This is a natural part of the hype cycle, but this effect has been magnified due to strict budgets during the recession.

• As with many new technologies, the UTM market enjoyed a period of substantial hype and inflated expectations.

• Customers are moving beyond this stage and are evaluating UTM solutions with much more scrutiny.

• Now, customers are much more educated about UTM products and will have more realistic expectations when evaluating a UTM product.

• This is a natural part of the hype cycle, but this effect has been magnified due to strict budgets during the recession.

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Competitive Landscape

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Market Participants (not inclusive)

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Competitive Landscape

Total UTM Market: Competitive Landscape (World), 2009

Source: Frost & Sullivan

Fortinet

Cisco

Juniper

DeepNines

Crossbeam

ZyXEL

Check Point

SonicWALL

WatchGuard

IBM

McAfee

NETGEAR

Global DataGuard

Astaro

Trustwave

Stonesoft

Cyberoam

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Competitive Landscape

Total UTM Market: Competitive Landscape (MEA), 2009

Source: Frost & Sullivan

Fortinet

SonicWALL

Cyberoam

HP

ZyXEL

Juniper

Astaro

IBM

Cisco

NETGEAR

McAfee

CheckPointD-link

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Competitive Landscape Analysis

• Fortinet retained the market leadership position in 2009 by a slim margin over Cisco.

• Fortinet’s success is due to its ability to offer complete, end-to-end, and integrated protection for perimeter, data center, and even endpoints.

• Cisco’s experience and leadership in the networking and security industry make it a strong challenger.

• Fortinet retained the market leadership position in 2009 by a slim margin over Cisco.

• Fortinet’s success is due to its ability to offer complete, end-to-end, and integrated protection for perimeter, data center, and even endpoints.

• Cisco’s experience and leadership in the networking and security industry make it a strong challenger.

Market Leader and ChallengerMarket Leader and Challenger

• Juniper experienced positive, but diminished growth in the UTM market for 2009.

• WatchGuard is emerging as a serious contender in the UTM market with strong year-over-year growth rates.

• Check Point and SonicWALL lost market share in 2009 due to below-market-average growth.

• Cyberoam dominant in India and a top contender in MEA and APAC.

• Juniper experienced positive, but diminished growth in the UTM market for 2009.

• WatchGuard is emerging as a serious contender in the UTM market with strong year-over-year growth rates.

• Check Point and SonicWALL lost market share in 2009 due to below-market-average growth.

• Cyberoam dominant in India and a top contender in MEA and APAC.

Market ContendersMarket Contenders

Frost & Sullivan Competitive LandscapeFrost & Sullivan Competitive Landscape

The Frost & Sullivan Competitive Landscape maps the key UTM market participants on their market penetration and ability to deliver. Vendors’ market penetration is based on market share for the base year 2009, as well as the previous year, and expectations for the following year. Market share changes across these three years will determine the vendor’s lateral movement as indicated by the arrow. “Ability to Deliver” is based on analysis of vendors’ market strategy, including product strength, features, long-term technological advancements, and product line development.

The Frost & Sullivan Competitive Landscape maps the key UTM market participants on their market penetration and ability to deliver. Vendors’ market penetration is based on market share for the base year 2009, as well as the previous year, and expectations for the following year. Market share changes across these three years will determine the vendor’s lateral movement as indicated by the arrow. “Ability to Deliver” is based on analysis of vendors’ market strategy, including product strength, features, long-term technological advancements, and product line development.

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Key Industry Participants

Source: Frost & Sullivan

Vendor Product NameArkoon Network Security FAST360

Astaro Corporation Astaro Security GatewayCalyptix Security Corporation AccessEnforcer

Check Point Software Technologies Check Point UTM-1Cisco Systems, Inc. Adaptive Security Appliance (ASA) 5500 Series

Clavister Clavister Security Services Platform (SSP)Crossbeam Systems Crossbeam Next Generation Security Platform

DeepNines Technologies Secure Web GatewayD-Link Systems, Inc. NetDefend

Elitecore Technologies, Ltd. Cyberoam CRi SeriesEndian Endian Firewall

eSoft, Inc. eSoft InstaGateFortinet FortiGate

Funkwerk Enterprise Communications packetalarmGajShield GajShield UPTM Appliance

Global DataGuard UTM++, ASM, SRM Managed Security ServicesGlobal Technology Associates, Inc. GTA GB Firewall, GB-Ware

Ideco Software Ideco GatewayIBM Corporation Proventia Network Multi-Function Security

Intoto, Inc. iGateway EXiPolicy Networks iPolicy UTM AppliancesJuniper Networks Secure Series Gateways (SSG) Series, SRX Series

Total UTM Market: Database of Key Industry Participants (World), 2009

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Key Industry Participants (Contd…)

Source: Frost & Sullivan

Vendor Product NameKobelt Development, Inc. (KDI) NetSentron

McAfee, Inc. McAfee UTM Firewall, Firewall EnterpriseNETASQ NETASQ U-Series

NETGEAR ProSecure UTM SeriesNetwork Box Corporation Network Box UTM+

Panda Security GateDefender IntegraReti Corporation RetiEdge

Sarron Corporation Cygnus-300 ITMSecurepoint GmbH Securepoint UTM 10SmoothWall Ltd. SmoothWall ExpressSOHOware, Inc. BroadScan UTM Internet Security Appliance

SonicWALL, Inc. TZ Series, NSA SeriesStonesoft Corporation StoneGate

Syneto Syneto UTMTrustwave Managed Unified Threat Management

Tuxlab Netrhino UTM FirewallUntangle, Inc. Untangle Gateway

WatchGuard Technologies, Inc. XTM Firewalls, XCS Content Security

Wedge Networks BeSecure

Wiresoft Firegate Security Platform and ANAZyXEL Communications Corporation ZyWALL Unified Security Gateway

Total UTM Market: Database of Key Industry Participants (World), 2009

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MEA Market Share Analysis

UTM Market: Market Share by Vendor (MEA), 2009

Others include: Arkoon, Calyptix, Clavister, DeepNines Technologies, D-Link, Endian, eSoft, Funkwerk Enterprise Communications, GajShield, Global DataGuard, Global Technology Associates, Intoto, NETASQ, NETGEAR, Netrhino, NetSentron, Network Box Corporation, Panda Security, Reti Corporation, Sarron Corporation, Secure Point, SmoothWall, SOHOware, Stonesoft, Trustwave, Untangle, Wiresoft, ZyXEL

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Product Comparison

Source: Frost & Sullivan

Vendor AFW VoIP LB DPI QoS WiFi SSL VPNAstaro ● ● ● ● ● ●Calyptix ● ● ●Check Point ● ● ● ● ● ● ●Cisco ● ● ● ● ● ● ●Crossbeam ● ● ● ● ● ● ●Cyberoam ● ● ● ● ● ● ●Fortinet ● ● ● ● ● ● ●Global DataGuard ● ● ● ●IBM ● ● ● ● ●Juniper ● ● ● ● ●McAfee ● ● ● ● ● ●NETGEAR ● ● ● ●Panda Security ● ●SonicWALL ● ● ● ● ● ● ●Stonesoft ● ● ● ● ● ●Trustwave ● ● ● ●WatchGuard ● ● ● ● ● ● ●ZyXEL ● ● ● ● ● ●Key: AFW = Application FirewallVoIP = Voice Over Internet ProtocolLB = Load BalancingDPI = Deep Packet Inspection

QoS = Quality of ServiceWiFi = Wireless Fidelity (A, B, G, N)SSL VPN = Secure Sockets Layer Virtual Private Network

Total UTM Market: Product Feature Comparison by Vendor (World), 2009

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Why Cyberoam?

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Why Cyberoam

• Cyberoam includes identity and application based access controls to improve productivity based on roles, group, or even more granular control as customer requires.

• Cyberoam appliances allow for built in virtual wireless access points (extending security to wireless is important, since it’s easy to hack these access points, and usually there is no way to identify who is on the wireless network but Cyberoam extends the identity-based access control to even the wireless network).

• Cyberoam appliances available for enterprises of 50 to 1,500 users.

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• Cyberoam offers powerful content filtering with complete control over web surfing through user identity based policies for different levels of access controls, while HTTP virus scanning defends against new attacks.

• Many Internet users don’t access the Internet directly. The connection is channeled through a proxy server because of the many banned sites and amount of content that is blocked. Cyberoam provides support for parent proxy (HTTP proxy server configured for Cyberoam), so Cyberoam can be deployed as a HTTP proxy server. Cyberoam can be installed at places where Internet is only available through proxy.

Why Cyberoam

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Firewall VPN Web Content

Filter

Reporting

IPS

Anti-spam /

Anti-virus Bandwidth

Management

Load Balancing

and Failover

Solution

Cyberoam has all the pieces of the security puzzle and is the only Identity-based Unified Threat Management appliance that provides integrated Internet security to enterprises through its unique granular user-based controls.

Why Cyberoam

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Future Considerations?

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Thank You

Q&A?


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