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RSA Media & Analyst Briefing March 2-4, 2010. The CxOs Balancing Act Changing World, Changing Priorities, Increasing Danger 2 Changing WorldBusiness Priorities.

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Presentation on theme: "RSA Media & Analyst Briefing March 2-4, 2010. The CxOs Balancing Act Changing World, Changing Priorities, Increasing Danger 2 Changing WorldBusiness Priorities."— Presentation transcript:

1 RSA Media & Analyst Briefing March 2-4, 2010

2 The CxOs Balancing Act Changing World, Changing Priorities, Increasing Danger 2 Changing WorldBusiness Priorities Partner & Customer Collaboration High ROI Low TCO Workforce Effectiveness Risk Management & Compliance New & Malicious Threats Macro Economics Mobile Social Media

3 Technology Trends Impacts to Productivity & ROI 3 Infrastructure Demands:  Bandwidth  Performance  Availability  Ease of use  Manageability  Security  TCO Converged Comms Cloud/SaaS Consolidation Virtualization Web 2.0 Mobile Devices

4 2001: Network Perimeter2010: Network Expansion VOIP Users Traveling Users Remote Employees Corporate Data Centers Customers or Suppliers Remote Access External Users The Business Impact – Perimeter Contraction / Network Expansion User Protection Access Control Productivity Controls Saas, Web 2.0 Real-Time Apps Perimeter / Internal Security Business Communication Protection Beyond 2010 – More Collaboration, More Content, More Communications = More IT Challenges Partner Access WANs Extranets Collaboration Cloud/ SaaS Converged Communications

5 Employee Productivity & Security Impact Copyright 2009 SonicWALL Inc. All Right Reserved. 5  Blogging  Facebook  Twitter  IM  Streaming video  Streaming audio  Downloading files  Playing games  Webmail  Wikis 25% of office Internet traffic is non-business related (Burst Media Survey, 2008) 50% of surveyed companies said at least 30% of their bandwidth is being consumed by social networking traffic (Forrester, Feb 2009) Malware, Trojans, BotNets, Intrusions out of control

6 A Secure Future What if....  You could control, manage and protect your global network easily, automatically?  You could control different applications more easily, manage their bandwidth, and block objectionable applications?  You could receive & share threat and defense data around the world in real time?  You could secure any user, any device, using any application from anywhere?  You could scale services securely without compromising reliability?  You could access any Carrier, SaaS, or Cloud without security impact?  You could always see and know what the malicious activities are on your network?  You could do all of this and actually lower your TCO? What if....  You could control, manage and protect your global network easily, automatically?  You could control different applications more easily, manage their bandwidth, and block objectionable applications?  You could receive & share threat and defense data around the world in real time?  You could secure any user, any device, using any application from anywhere?  You could scale services securely without compromising reliability?  You could access any Carrier, SaaS, or Cloud without security impact?  You could always see and know what the malicious activities are on your network?  You could do all of this and actually lower your TCO?

7 Dynamic Security for the Global Network  Global, Distributed, Mobile and Cloud  Real-time Situational Visibility and Awareness  Communication of Shared Threats and Shared Defenses  Proactive Risk Management and Compliance  Best Economics 7

8 What's New? Introducing Portfolio of Security Virtual Appliances  Family of Virtual Appliances Focused on SECURITY  Deployed in VMware environment  Choice and flexibility for Enterprises, SMBs, and Managed Service Providers  Solutions to range from Global Management, Reporting, Security, SSL VPN  Family of Virtual Appliances Focused on SECURITY  Deployed in VMware environment  Choice and flexibility for Enterprises, SMBs, and Managed Service Providers  Solutions to range from Global Management, Reporting, Security, SSL VPN New Category of Products Focused on Application Intelligence, Control, and Security  Multi-Gigabit Appliances delivered with Application Intelligence & Control AND Intrusion Prevention  New Intuitive Visualization Tools to categorize and take action on all network activity for optimization  Flexible Deployment as the Gateway or In-Line behind a Firewall  Multi-Gigabit Appliances delivered with Application Intelligence & Control AND Intrusion Prevention  New Intuitive Visualization Tools to categorize and take action on all network activity for optimization  Flexible Deployment as the Gateway or In-Line behind a Firewall

9 Delivering Virtual Appliance Solutions 9

10 Technology Trends Impacts to Productivity & ROI 10 Converged Comms Cloud/SaaS Consolidation Virtualization Infrastructure Demands:  Bandwidth  Performance  Availability  Ease of use  Manageability  Security  TCO Web 2.0 Mobile Devices Cloud, SaaS, Consolidation, Virtualization Driven By TCO and Optimization Needs

11 Technology Trends Plus Fundamental TCO Economics Source:1. IDC, U.S. and Worldwide Server Installed Base 2007–2011 Forecast, Doc #207044, May IDC, Virtualization And Multicore Innovations Disrupt The Worldwide Server Market, Doc #206035, March Source: VMware

12 Benefits of Security Virtual Appliance Strategy AdvantageDetails Increased Security:Hardened SonicLinux Operating System; users are not able to tamper with the virtual appliance Lower TCO:The virtual appliance is a pre-configured virtual machine - there are no dedicated hardware prerequisites, no professional service fees and no hidden costs. It's all in the appliance! Higher PerformanceOptimized software and hardware architecture; no unnecessary processes active Reduced Complexity: Simplified product selection, product integration, ongoing support.

13 SonicWALL GMS and ViewPoint Virtual Appliances Introduced at RSA 13

14 SonicWALL GMS Virtual Appliance  The GMS Virtual Appliance is based on SonicWALL GMS version 6.0 announced earlier this year  Flexible, powerful and intuitive solution to centrally manage and rapidly deploy all of their SonicWALL firewall, anti- spam, backup and recovery, and secure remote access solutions  Enterprises and MSPs use SonicWALL GMS to manage thousands of appliances simultaneously  Centrally create &push security policies  Provide real-time monitoring and Alerting  Intuitive compliance and usage reports from a single management interface. 14

15 SonicWALL ViewPoint Virtual Appliance  The ViewPoint Virtual Appliance provides granular reporting on one or more SonicWALL security devices, allowing administrators to closely track network utilization, monitor security activity and view Web usage. 15

16 Delivering Multi-Gigabit Application Intelligent Firewall with IPS 16

17 Technology Trends Impacts to Productivity & ROI 17 Infrastructure Demands:  Bandwidth  Performance  Availability  Ease of use  Manageability  Security  TCO Web 2.0, Converged Communications, Mobile Devices Drive Need for Dynamic Security While Maintaining Performance Cloud/SaaS Consolidation Virtualization Converged Comms Web 2.0 Mobile Devices

18 SonicWALL E-Class NSA E8500 Application Intelligence and IPS 18

19 SonicWALL NSA E8500: High Performance Application Intelligence & IPS Comprehensive Inspection W/ Ease of Use  Application Intelligence & Control  Powerful IPS, Multi-gig performance  Management of traffic  Visualization of traffic  RFDPI Technology (low latency)  SSL Traffic Inspection  “Bump in the Wire” mode or traditional gateway The Technology  16-Core, 4GB RAM  8.0 Gbps Stateful Inspection  3.5 Gbps IPS  2.0 Gbps Application Control  Detects over 1,000,000 unique threats Detects, Classifies and Controls over 1,100 Unique Applications

20 Unique Technology Approach Every bit, every protocol, every user & application 20  Scalable Engine Architecture  Re-Assembly Free DPI – at wire speed  Virtually no latency introduced  Designed for current & future protocols  Foundation for all technologies  Clustering Technology  Increased availability  Increased throughput  Massive Scalability & Bandwidth  Multi-core, parallel architectures  Unlimited data size or formats  Unlimited number of connections  Best Economical Solution  Easy to adopt, deploy and manage  Modular platform  Real-time, Deep protection  Simultaneous, proactive, multi-threat scanning & analysis  Real-time communications with SonicWALL GRID Network  Behavioral Analysis & Protection

21 Application Intelligence & Control Identify - By App - Not by Port & Protocol Categorize - By app - By Category of App - By destination - For which person or groups Control - Allow - Block - Bandwidth Prioritize Critical Business (Allocate Bandwidth) Observe, Act, React (Dig in, Take New Action) Acceptable Applications (Limit Bandwidth) Social (Allocate bandwidth to Marketing Block Social to all others) Application Chaos (So many on port 80)

22 Bringing It All Together 22 Converged Comms Cloud/SaaS Consolidation Virtualization Web 2.0 Mobile Devices Virtualized Environment Network Security Protection for Virtualized Environment

23 SonicWALL Financial Results 23

24 Use of Non-GAAP Financial Measures

25 Fourth Quarter 2009 At-a-Glance Q4 2008Q3 2009Q4 2009Seq. % Growth Y-Y % Growth Revenue $54.3$50.7$54.17% 0% Non-GAAP Gross Margin 71.3%73.3%70.7%-- Non-GAAP Op. Margin 15.5%15.8%16.2%5% Non-GAAP Net Income $5.9m$5.4m$6.0m11%2% Non-GAAP EPS $0.11$0.10$0.1110%0% Deferred Revenue $103.5m$116.7m$124.2m6%20% Cash and Investments $166.9m$203.0m$215.9m6%29% *Please see non-GAAP disclosures.

26 Momentum in Deferred Revenue

27 Momentum in Cash Flow $36 million in CFO in 2009

28 Revenue Breakdown Q4 08 Q3 09 Q % 40% 62% 38% 42% 58%

29 Total Revenue by Product Category Q4 08 Q3 09 Q % 78% 9% 10% 9% 4%

30 Product Revenue by Product Line Q4 08 Q3 09 Q % 38% 42% 41% 40% 23% 21% 22%

31 Our Vision  We believe security solutions should be “smart” enough to adapt as organizations evolve and as threats evolve, dynamically, globally.  We believe customers around the world should have the ability to control, manage and protect their global network easily and automatically.  We believe our customers should be able to receive and share threat and defense data around the world so they can anticipate and stop attacks before they happen. We want our customers to be able to secure any user, any device, using any application from anywhere so they can collaborate securely across different networks.  All this needs to be achieved with maximum ease of deployment and at the best economic value and in a compliant framework.

32 Thank You! Colleen Nichols Sr. Director, Public Relations John Gordineer Director, Product Marketing Kelly Blough Sr. Director, Investor Relations


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