Lee Mashburn and Elijah

IT Security Market OverviewSeptember 2012

Prepared by Lee Mashburn Marketing & Product Management Executive

Check out my personal website. Recently

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The IT Security Market and Competitive Landscape

• This PowerPoint presentation overviews the IT Security market. It has been developed as a

result of over 100 hours of research and analysis.

• It provides a snapshot of the various IT Security sub-markets; size, projected growth, and

competitive landscape.

• If you wish to see more detail, contact me at lee.mashburn@aol.com

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3Copyright, Cogniti, Inc.,

IT Market Overview 2012 Estimated

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Computing Hardware11%

Software7%

IT Services23%

Telecom Equipment13%

Telecom Services46%

$3.8 trillion market, $1.6 trillion excluding Telecom

6% annual growth rate expected excluding Telecom

IT security represents only 1.5% of total

IT security market expected to grow 12% through 2016

Cloud IT security will grow from 17% to 24% by 2016

 CY

2010CY

2011CY

2012ECY

2013ECY

2014ECY

2015ECY

2016E CAGRComputing Hardware $375 $404 $421 $457 $496 $553 $592 7.9%Software $244 $267 $280 $299 $319 $339 $362 6.3%IT Services $793 $845 $856 $886 $920 $956 $995 3.3%Telecom Equipment $412 $442 $473 $508 $538 $567 $593 6.0%Telecom Services $1,603 $1,704 $1,721 $1,767 $1,816 $1,861 $1,898 2.2%All IT $3,427 $3,662 $3,751 $3,917 $4,089 $4,276 $4,440 3.9%                 HW, SW, Svcs $1,412 $1,516 $1,557 $1,642 $1,735 $1,848 $1,949  IT Security $19 $22 $24          Percent of Total 1.3% 1.5% 1.5%         12.0%

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The 2012 Top Priorities of the CIO

• CIOs are increasingly in step with CEO top priorities

• Top CIO priorities:– Business intelligence and analytics– Mobility– Virtualization– Cloud computing– Business process management

• Must derive insight, competitive advantage, and tangible business benefit from the huge volumes of data available across an enterprise – how?– Master data management, customer analytics,

data warehousing, and visual information dashboards

• Must deliver information technology securely and reliably

• Must help simplify operations, business processes, products, and services

• Leverage cloud computing and outsourcing to reallocate internal resources from routine system maintenance toward more valuable tasks

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IT Security Sub-Markets

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FY 2009 FY 2010 FY 2011 FY 2012E$0

$5,000

$10,000

$15,000

$20,000

$25,000

Network access control

Identity & Access Management

Mobile device management

Content aware data loss prevention

Secure web gateway

SIEM

Unified threat management

Secure email gateways

Endpoint protection platforms

MSSP

Enterprise network firewalls

Sale

s in U

SD

(m

illions)

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IT Security – Most Google-Searched Terms, 2012

Fraud prevention

Intrusion detection system

Identity management

Computer forensics

Endpoint protection

Endpoint security

SSL VPN

Email security

Database security

Data loss prevention

Unified threat management

Managed security services

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000

No. of Google Search URLs

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Enterprise Network Firewalls

Endpoint Protectio

n Platforms

MSSP

Secure Email Gateways

UTM

IAM

SIEMSecure Web

Gateway

DLP

Mobile DeviceManagement

NAC

Key:Size of circle reflects relative 2012 market size

Vertical placement reflects relative growth rate

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Network, Data, & Endpoint Security and

Unified Threat Management

MSSP

Managed Security Service Provider, MSSP

Gartner Magic Quadrant, Nov ‘11

Execu

tion

Vision

Dell SecureWorksVerizon AT&T

IBM

Symantec

Solutionary

Savvis

Trustwave

CSC

Wipro

Integralis

Market ShareMarket Size, Worldwide

Sale

s ($

US m

illio

n)

Enterprises that optimize their use of managed security service providers (MSSPs) can free up internal staff time for dealing with more business-critical security functions if they select. Gartner sees continued strong, if not spectacular, growth for managed security services in North America.

An MSS portfolio can include unified threat management, data loss prevention, security information and event management, log management,vulnerability scanning, and email security. Web-based portals typically serve as the primary means of communication about monitoring and management services performed for customers.

Drivers: evolving compliance reporting requirements (PCI and FISMA), IT staffing and budget constraints, increased availability and adoption of IT-as-a-Service, expansion of Internet connection endpoints, the SMB market, applications to prevent data loss, and SaaS for remotely-monitored CPE.

Market Definition

Bell Canada

CompuCom

SAICHP

HCLPerimeter

Market Growth 3-Yr CAGR

FY 2009 FY 2010 FY 2011 FY 2012E$0

$2,000

$4,000

$6,000

$8,00022%

78%

0% 2% 4% 6% 8% 10%

12%

14%

16%

18%

MSSP

MSSP Market

IT Security Market

IT Security

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North America Market

10

Content-Aware Data Loss Prevention (DLP)

Gartner Magic Quadrant, Aug ‘11

Execu

tion

Vision

Symantec

McAfee

CA RSA

WebsenseVerdasys

Fidelis

GTB Technologies

Trustwave

Pallisade

Code Green

Safend

Trend Micro

2%

98%

Market Share

Content-aware DLP tools enable the dynamic application of policy based on the classification of content determined at the time of an operation. These technologies and inspection techniques are used to classify information content contained within an object – such as a file, email, packet, application, or data store - while at rest (in storage), in use (during an operation), or in transit (across a network); and the ability to dynamically apply a policy – such as log, report, classify, tag, and encrypt – and/or apply enterprise data rights management protections.They can execute responses ranging from simple notification to active blocking – based on policy settings.

DLP technologies help organizations develop, educate, and enforcebetter business practices concerning the handling and transmissionof sensitive data. Used to its full capability, DLP is a nontransparent control, which means it is intentionally visible to an end user with a primary value proposition of changing user behavior.

Market Definition

22%

12%

Market Growth 3-Yr CAGR

DLP

Market Size

Sale

s ($

US m

illio

n)

FY 2009 FY 2010 FY 2011 FY 2012E$0

$100

$200

$300

$400

$500

$600

10

DLP Market

IT Security Market

IT Security

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Security Information & Event Management (SIEM)

Gartner Magic Quadrant, May ‘12

Execu

tion

Vision

IBM Q1 LabsMcAfee NitroSecurity

HP ArcSight

NetIQ

LogRhythm

RSA (EMC)Splunk

SymantecLogLogic

SolarWinds

Trustwave

SIEM technology aggregates the event data produced by security devices, network devices, systems, and applications. The primary data source is log data but SIEM technology can also process other forms of data. Event data is combined with contextual information about users, data, and assets. The data is normalized so that events from disparate sources can be correlated and analyzed for specific purposes such as network security event monitoring, user activity monitoring, or compliance reporting. This technology combines real-time security monitoring, historical analysis, and other support for incident investigation and compliance reporting. Deployment and support simplicity is an important attribute for all use cases because of the resource constraints of most IT security organizations.

Features: behavior profiling, anomaly detection, threat intelligence, and advanced analytics – to support the early detection of targeted attacks. Drivers include real-time security monitoring and compliance reporting.

Market Definition

FY 2009 FY 2010 FY 2011 FY 2012E$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Sale

s ($

US m

illio

n)

Market SizeMarket Share

SIEM Market

IT Security Market

5%

95%

Market Growth 3-Yr CAGR

14%

12%IT Security

SIEM

SensageelQnetworks

11

12

Security Information & Event Management (SIEM)Thre

at

Inte

lligence

Inci

dent

& A

ccess

M

an

ag

em

ent

Data

Loss

Pre

ven

tion

File

Inte

gri

ty

Mon

itori

ng

En

terp

rise

R

eso

urc

e

Man

ag

em

ent

Applic

ati

on

Mon

itori

ng

Beh

avio

r Pro

filin

g

Data

base

Act

ivit

y

Mon

itori

ng

SIEM

•Ad hoc query

•Analytics

•Reporting

•Log management

Cloud is the Future

Cloud computing is a style of computing where scalable and elastic IT-related capabilities are provided “as a service” to customers using Internet technologies

Benefits

• Increased agility

• Reduced cost

• Less complexity

• Better focus on the priorities

• Enhanced collaboration

• Easier to innovate

Risks

• Security

• Transparency

• Assurance

• Lock-in

• Integration

• Financial sustainability

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Cloud Computing Hype CycleBy Gartner