market research report : cyber security growth in india 2012

Cyber Security Market in IndiaCyber Security Market in India

September 2012

Executive Summary

Market

Global cyber security market has been posting a healthy growth rate of ‐% over the years 20‐‐The Indian cyber security market is growing at a considerable rate of ‐% annuallyThe concept of cyber security is evolving with myriad growth opportunities across different sectors including a prospective opportunity in SMEs which has recently emerged as a target for cyber attackscyber attacks

Drivers &

Drivers– Increased wired and wireless internet usage

Challenges–Availability of pirated software

Lack of interest in updating softwareChallenges –Rapid computerization–Presence of smart handheld devices–Growth of e‐commerce–Growth in cloud computing–Rise in cyber attacks

–Lack of interest in updating software

Rise in cyber attacks

Cyber security players foray into mobile securityCyber security body designed for power sector by Indian Government

Trends

India looking at building national cyber security architectureTraining institutes design courses on cyber security

Competition

Major Players

CISCO Fortinet Technologies Kaspersky Lab

Adoption of virtualization

2

McAfee Symantec Corporation Quick Heal

CYBER SECURITY MARKET IN INDIA 2012.PPT

•Introduction•Market Overview•Cyber Security Types•Cyber Security Best Practices•Cyber Security for SMEs•Drivers & Challenges•Government Regulations•Government Regulations•Vendor Opportunities•Trends•Major Players•Strategic Recommendation

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•Appendix


SAMPLE Global Cyber Security – Snapshots (1/2)

How do breaches occur across the world? Sectors Affected – Global

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SAMPLE As technology continues to outpace policy and enforcements, need for cyber security continues to rise

Cyber Security – Indian Market Overview

• India Inc has witnessed four fold jump in cyber attacks which states the reason why Indian companies are increasingly understanding the significance of cyber security

•Since many organizations are dependent on latest Internet technologies to enhance their competitiveness within both domestic and international markets, issue of cyber security is a reason to worry

• India has emerged as the top r1 nation in the March quarter of 20‐‐

•As internet population in India continue to rise after crossing ‐ cyber crimes are also in the rise

•A considerable percentage of r2 attacks have been on Indian brands that used the r3 domain and r4 constituted the major sector that emerged at the receiving end of these attacks

Cyber Security – Market Size & Growth Cyber Security – Segmentation (2011)

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5CYBER SECURITY MARKET IN INDIA 2012.PPT

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Security – Types prevalent in the cyber domain (1/8)

Network Security Examples

Types of Cyber Security

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• Network security can be defined as the authorization of access of data in a network which is controlled by the network administrator wherein users are assigned an ID and password that allows them to access information and programs within

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their authority• Is composed of components both of software and hardware which are designed to work in tandem to improve security and maintenance

9• Application security is the use of software

Application Security Examples

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• Application security is the use of software, hardware and procedural methods to protect applications from external threats

• Security measures built into applications along with a sound application security routine minimize the probability of manipulation of applications and

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access, steal, modify or delete of sensitive data e11


SAMPLE … as major viruses attack these small enterprises …

•SMEs are vulnerable to cyber attacks owing to the reason that they have smaller customer base along with

Cyber Security – Small and Medium Enterprises (SMEs) (2/3)

limited product lines as compared to the MNCs•They are also considered as having poor IT infrastructure loaded with problems like absence of resources, IT infrastructure and skilled manpower

• The ever‐increasing threat by cyber attacks have brought the weakness of SMEs to light and made them vulnerablevulnerable

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Threat of cyber attacks are on the rise in Indian cities

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• It is of common opinion by industry experts that average cost of the worst IT information security breaches in small companies is not a small amount

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a small amount• It is of tremendous shock that majority of such companies are not equipped with contingency plans to counter cyber attacks or even required security level to take measures against it


Drivers & Challenges – Summary

Drivers

Increased wired and wireless internet usage

Rapid computerization

Presence of smart handheld devices

Challenges

Availability of pirated software

Growth of e‐commerce

Growth in cloud computing

Lack of interest in updating software

Rise in cyber attacks


High possibility of cyber threats from the use of internet happens to be a major driver for the market

Increased Wired and Wireless Internet Usage (1/2) Impact•Usage of internet makes an user highly vulnerable to cyber threats, as most of the malicious softwares are spread and activated through internet from remote locations

•Generally, individuals or business organizations tend to avoid exposure to cyber threats and hence invest in security softwares These softwares also need to get upgraded to newer and better versions, which also attract revenue generation for these vendors

• India is currently witnessing an exponential growth in the internet usage amongst its population• India is currently witnessing an exponential growth in the internet usage amongst its population Diminishing internet tariffs, easy accessibility and growing popularity of social networking sites are some of the major factors boosting internet usage amongst individuals

Companies or enterprises are also showing prominent symptoms of embracing dynamic concepts such as cloud computing and Enterprise Mobility (EM) which in turn inject growth in the internet usage

Internet Users – Growth in India

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SAMPLE IT and telecom sectors constitute the prime areas for cyber security measures and adoption

• Threats related to cyber security are on the rise wherein critical infrastructure like telecommunication and information technology has

IT & Telecommunication Sector – Overview IT/ITes Sector – Growth

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• The attacks are no longer confined to just information infrastructures and geographical boundaries but have extended to exploitation of network interconnections and navigation through i f t t

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infrastructure• Cyber security therefore becomes an essential requirement in this domain

Tele density Growth

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• India is on the lookout to establish a new body that will oversee telecom and cyber security

• The body, called p1, will be headed by the telecom secretary and will have representatives from the d f d h ll

Tele‐density – Growth

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defense and home ministries, intelligence agencies, IT department, intelligence bureau, National Security Advisor and NTRO, among others

• The body will address network security issues and also set up objectives and targets to various departments and agencies handling telecom and

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cyber security related issues 20‐‐20‐‐


Government Regulation – Summary

Government Initiatives

Participationp

Cyber Law CERT‐InCyber Law CERT In


SAMPLE Some of the statistics revealed by CERT‐In

CERT‐In (3/3)

Defacement refers to hacking or defacing sites by attacking the sites which changes the visual appearance of the sites

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Open proxy servers serve as the major sources of Spam on the Internet and are used to launch attacks on other systems


Trends – Summary

Cyber security players foray into mobile security

Cyber security body designed for power sector by Indian Government

` Adoption of virtualizationKey Trends

India looking at building national cyber security architecture

T i i i i d i b i

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Training institutes design courses on cyber security


SAMPLE Training institutes designing courses in cyber security have shaped the sector as a relevant trend

• Several courses

Training institutes design courses on cyber security

M Ohave been designed owing to the latent potential that the sector is deemed to be possessing

• ‐ is the training wing of ‐ to provide information security training

• It has categorized training programs separately for beginners, administrators, advanced and developers

• It looks at providing training on subjects including ethical h ki i l it t k it d t b

• A two‐year post graduate course in cyber security was started by ‐in Coimbatore into be possessing

• As need for cyber security increases, demand for professional hands also rises

hacking, wireless security, network security, database security, operating systems security, intrusion detection and analysis, e‐crime and computer forensics, virtualization and security, web application security, cloud computing security and others

in Coimbatore in 20‐‐ which marks it to be the first course in cyber security started in India

• The areas for research• Capitalizing on the

opportunity for security needs, training institutes have delineated courses on these

• ‐ has launched world‐class infosec education programs to provide training on information security management as well

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research included in cyber security ranges across cryptography, visual cryptography, courses on these

lines to render proper training to people who wish to embark on a career on cyber security

provide training on information security management as well as certification programs

• The ‐ is an integral part of ‐ which offers programs such as the Official (ISC)2 CISSP Review Seminar, IRCA accredited ISO 27001‐Advanced ISMS Auditing Course and Certified Ethical Hacker (CEH)

• ‐ is another offering that is a one‐year program in

multimedia security, intrusion detection, wireless security, web and internet security and

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security is another offering that is a one year program in Information Security Management

security and others


SAMPLE Public: Foreign Company – Company 1 (1/3)

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of IncorporationPlace

Products and Services

Ticker Symbol

Stock ExchangeHead Office

Key People


Category Products/Services

Services/ Products S1, s2

N D i tiName Designation

P1 D1

P2 D2

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i i l S h K iFinancial Snapshot Key Ratios

Net Profit/LossTotal Income ProfitINR mn

RevenueINR mn

zyxw

Particulars y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating Margin ‐1.27 16.29% 17.56% 17.60% 12.80%

20112010200920--

w Net Margin ‐2.34 9.52% 11.86% ‐109.45% 6.81%

Profit Before Tax Margin ‐2.52 11.20% 13.72% ‐106.50% 10.35%

Return on Equity ‐2.82 12.88% 15.70% ‐163.64% 3.74%

Return on Capital Employed ‐1.20 12.97% 14.17% 15.31% 5.39%

Return on Working Capital ‐268.80 ‐145.70% 123.10%3141.67

%‐588.51%

Return on Assets ‐1 69 4 66% 6 36% ‐63 79% 2 27%

Financial Summary

• The company incurred a net profit of INR ‐mn in FY 2011, as compared to net profit of INR ‐mn in FY 2010

• The company reported total income of INR ‐mn in FY 2011, as compared to INR mn in FY 2010

Return on Assets 1.69 4.66% 6.36% 63.79% 2.27%

Return on Fixed Assets ‐18.76 56.48% 75.24% ‐697.43% 40.93%

Cost RatiosOperating costs (% of Sales) 1.26 83.60% 82.34% 82.26% 86.87%

Administration costs (% of Sales)

3.00 48.43% 45.43% 44.37% 47.04%

I t t t (% f S l ) 0 15 2 31% 2 16% 2 03% 2 03%compared to INR ‐mn in FY 2010

• The company earned an operating margin of ‐ % in FY 2011, a decrease of ‐ percentage points over FY 2010

• The company reported debt to equity ratio of ‐ in FY 2011, a decrease of ‐ % over FY 2010

Interest costs (% of Sales) 0.15 2.31% 2.16% 2.03% 2.03%

Liquidity RatiosCurrent Ratio ‐20.54% 0.92 1.15 0.94 0.98

Cash Ratio ‐25.62% 0.62 0.83 0.60 0.68

Leverage RatiosDebt to Equity Ratio 19.89% 1.76 1.47 1.57 0.65

Key Financial Performance Indicators

Indicators ValueMarket Capitalization (INR mn) ‐

Total Enterprise Value (INR mn) ‐EPS (INR) *

Debt to Capital Ratio 3.41% 0.30 0.29 0.30 0.17

Interest Coverage Ratio ‐13.37% 7.10 8.19 8.73 6.48

Efficiency RatiosFixed Asset Turnover ‐6.52% 5.90 6.31 6.32 5.86

Asset Turnover ‐8.67% 0.49 0.53 0.58 0.32

Current Asset Turnover 0 31% 1 38 1 38 1 87 1 57

16

EPS (INR) * ‐PE Ratio (Absolute) * ‐

Improved Decline

Current Asset Turnover 0.31% 1.38 1.38 1.87 1.57

Working Capital Turnover ‐247.39% ‐15.21 10.32 ‐28.47 ‐84.31

Capital Employed Turnover 2.15% 1.34 1.32 1.48 0.54



Key Business Segments Key Geographic Segments

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Description Details

Overview

• ‐ provides security, storage, and systems management solutions internationally

• ‐markets and sells its products through distributors, retailers, direct marketers, Internet‐based resellers, original equipment manufacturers, system builders, and Internet service providers; and its e‐commerce channels, as well as direct sales force, value‐added and large account resellers, and system integrators

Most Recent Auditor • ‐


SAMPLE Private: Domestic Company – Company 2 (1/3)

Company Information Offices and Centres – India

Registered Address

Tel No.

Fax No.

WebsitePlace


Website

Year of Incorporation

Registered Address

Key People


Category Products/Services

Services S1

N D i tiName Designation

P1 D1

P2 D2

P3 D3

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SAMPLE i i l S h K i

Private: Domestic Company – Company 2 (2/3)

Financial Snapshot Key Ratios

Particulars y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating Margin ‐10.41 42.79% 53.20% 51.32% N.A.

Total Income

Profit / LossProfitINR mn

Total IncomeINR mn

o

Net Margin ‐6.36 30.25% 36.61% 34.58% N.A.

Profit Before Tax Margin ‐9.93 44.66% 54.58% 52.70% N.A.

Return on Equity ‐22.48 26.91% 49.39% 50.10% 56.25%

Return on Capital Employed ‐34.01 43.18% 77.19% 72.57% 0.00%

Return on Working Capital ‐35.02 66.48% 101.50% 81.20% 64.71%

Return on Assets ‐19.08 26.87% 45.94% 44.26% 51.51%

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Financial Summary

Return on Fixed Assets ‐1.18 261.72% 262.90% 330.43% 272.32%

Cost RatiosOperating costs (% of Sales) 10.35 56.40% 46.05% 47.96% N.A.

Administration costs (% of Sales)

N.A. N.A. N.A. N.A. N.A.

Interest costs (% of Sales) N A N A N A N A N A

20‐‐20‐‐20‐‐

• Company incurred a net profit of INR ‐mn in FY 2011, as compared to net profit of INR ‐mn in FY 2010

• It reported total Income of INR ‐mn in FY 2011, registering a decrease of ‐% over FY 2010

Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.

Liquidity RatiosCurrent Ratio 0.49% 4.37 4.35 6.74 8.62

Cash Ratio 156.18% 3.62 1.41 2.43 1.34

Leverage RatiosDebt to Equity Ratio N.A. N.A. 0.07 0.13 0.09

• Earned an operating margin of ‐% in FY 2011, a decrease of ‐ percentage points over FY 2010

Debt to Capital Ratio N.A. N.A. 0.07 0.11 0.08

Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.

Efficiency RatiosFixed Asset Turnover 19.89% 8.49 7.08 9.42 0.00

Asset Turnover ‐29.57% 0.87 1.24 1.26 0.00

Current Asset Turnover ‐21 00% 1 66 2 11 1 97 0 00

19

Current Asset Turnover 21.00% 1.66 2.11 1.97 0.00

Working Capital Turnover ‐21.12% 2.16 2.73 2.32 0.00

Capital Employed Turnover ‐34.38% 0.87 1.33 1.43 0.00

Improved Decline


SAMPLE Private: Domestic Company – Company 2 (3/3)

Key Recent Developments

Description News

•Operates as a leading provider of Internet Security tools and is hailed as being the leader

Overview

•Operates as a leading provider of Internet Security tools and is hailed as being the leader in z1 in India

• Boasts of employing more than 450 people across 22 branches in India

•Operates through a network of dealers and channel partners in more than 50 countries across the global platform

•Has recently bagged the award of ‐ Award 2012‐2014

• Its products can be categorized based on the end users and primarily caters to home ll d d

Productsusers, small‐medium companies, corporate, ISP and OEMs

• Recently it has launched a mobile security suite for ‐ in Mar 2012•Has also launched unique laptop tracker in case of laptop theft

Certifications •Has been awarded the prestigious z2 operating system for its z3• Z4, z5 and z6 are certified in multiple categories through z7 certification


Thank you for the attention

Phone: +91 33 4064 6214

The Cyber Security Market – India 2012 report is a part of Netscribes, Inc.’s Information Technology Industry Series.For more detailed information or customized research requirements please contact:

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Disclaimer: This report is published for general information only Although high standards have been used in the preparation “Netscribes” is

21

Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction.


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market research report : cyber security growth in india 2012

Technology

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countriesaffected countries

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sample sectorsaffected