ProofPoint Overview HQ in CA, 150 plus employees, 2004 sales $8.7, 2005 Sales $12m (IDC), 2005 Market Share was 3.4% as compared to ours at 17.8% Main products are: ProofPoint Protection Server with application modules; Anti-Spam, Anti-Virus, Regulatory Compliance, Digital Assets, Secure Messaging (Voltage), and Network Content Sentry (web & ftp) Geography: Stronger presence in US and growing Internationally Market Segments: Primarily Compliance Aggressive sales; would drop price if we are competing Started Year Strong with Venture Capital of 20M, hired a large sales team, by August terminated 30% of company
Beating ProofPoint How we attack ProofPoint They do not have a True Reputation capability – They do not have a reputation service like TrustedSource. Nor do they identify what was wrong with the message which required it to be quarantined or blocked. Software Upgrades – Requires their Support to log onto the backend and perform part or all of the upgrade. There are restrictions around business hours which are 7am – 7pm PST. Additional fees are charged for upgrades outside business hours. Security Vulnerabilities – Subject to vulnerabilities of Spam Assassin, OS, and Open Source MTA. How ProofPoint attacks us & how we defend IronMail Lack Clustering Capability –Enterprise class solutions require dedicated Central Quarantine and Central Management systems thus reducing the load on the message processing appliances. Weak Content Compliance – IronMail has more functionality and flexibility in its core content compliance with full Regulatory Compliance functionality for message body, header and attachments. Complex UI - Our UI represents a very deep feature set of multiple functions. Advanced features are separate from our basic feature set. Neutralizing ProofPoint strength Lack of functionality in Base Product – OEM third party for Encryption, Lacks Compliance in Base Product, PP does not support S/MIME and PGP Gateway to Gateway encryption, Unable to edit weights in preconfigured Compliance dictionaries Reputation Service – PP lacks a True Reputation System.
Postini Overview HQ in San Carlos, CA, 300 employees, 2006 bookings: $65-75m (profitable since 2004) Main products are: Perimeter Mgr for Email, IM, Archives, Encryption, and Web Geography: NA and EMEA Market Segments: mostly SMB (30,000) but creeping into enterprise Sales Strategy: Managed services only
Beating Postini How we attack Postini TCO – over 3+ years, total cost of ownership is higher than on-prem solutions. Content Filtering – only have keyword matching in message (no attachment analysis), no dictionaries or lexicons, no advanced scanning at all. Encryption and Web offerings aren’t integrated – these are separate data centers run by partners using different management consoles, differ UI and different reporting. Market Share Isn’t There – IDC only gives managed services a 25% maximum market share so most accounts aren’t available to them. Compliance Shouldn’t be Managed Off-Prem – Most companies seriously concerned about compliance won’t send messages off-net to be scanned. Weak Indirect Channel – McAfee is their only partner of any size. How Postini attacks us & how we defend High Accuracy with Low False Positives –with TrustedSource, our accuracy rates are higher. Evens out Spam Surges – With SecureEdge, we can negate spam surges. Low Initial Cost - Great, unless you’re planning on doing email in a couple of years, then the cost is dramatically higher. Neutralizing Postini strengths No Ability to Scan Outbound – Can’t help you with compliance AT ALL. Won’t scan outbound for data leakage. Margins – They charge flat fees to customers; spam surges increase their costs and erode profits.
IronPort Overview HQ in San Bruno CA, 400 employees, 2005 sales $90-110m Main products are: Email, web and management appliances Geography: International Market Segments: secure email, compliance Sales Strategy: Acquired by Cisco so their sales strategy will become channel focused
IronPort Overview – Cisco Acquisition Info Price: $830M (cash and stock) Timetable Announced January 4 Target close: Q3 Motivation Plugs email hole in “Self-Defending Networks” story Extends Cisco’s reach in application space High growth strategy for a low-growth portfolio Risks to Cisco De-focused sales force and R&D Failure to integrate in a timely manner Sets them up for head-to-head competition with Microsoft in unified messaging market No “pull” from IronPort for larger infrastructure deals so reps may ignore
Beating IronPort How we attack IronPort Weak Content Control – only do pattern matching. They rely on Vontu partnership to do any sophisticated scanning. Email only – They do nothing with IM, FTP, P2P or webmail. Reputation Service – SenderBase is nothing more than RDNS, RBL, and volume counter of domains/IPs sending mail. #2 player – In every analyst report and industry study, IronMail beats IronPort hands down. No ability to handle spam surges – they have nothing to compare with Edge. Patched together solution – Almost all of their technology is acquired or partners; no real in- house expertise. Poor Quarantine/Message Management solution – their Centralized Quarantining and Searching is very weak and requires additional hardware/software installation. How IronPort attacks us & how we defend SenderBase Scale –TrustedSource was first, does more sophisticated analysis and catches more spam, zombies and malware faster and more accurately. Customer loyalty – Secure has a 99% renewal rate. Neutralizing IronPort strengths Cisco isn’t a Security company – ~ 2% of Cisco revenue comes from security. Their motivation is to sell routers. Defocused – Their eyes will be off the ball during the merger period.
Beating IronPort CipherTrust/Secure ComputingIronPort/Cisco Protocols Protected Email IM Webmail FTP P2P VoIP Email Outbound Content Pre-defined lexicons for GLBA, HIPAA, SOX Pattern matching Fingerprinting Adaptive Lexical Analysis Clustering Technologies developed in-house Pre-defined lexicons for HIPAA & GLBA Content Scanning Relies on Vontu partnership Global Reputation Service Started as 3 rd generation sender behavior-based reputation system Focuses on message senders as well as external sources (black lists, etc.) 06/06 query of Comcast.net: 537,134 senders Ranks IP address on a scale of -255 to +255 Rates senders, messages & attachments Catch rate of over 99% Added web scores Q1 ’04 All technologies developed in-house by employee expertise Examines over a hundred different features applies data classification algorithms such as support vector machines and clustering in real- time Started as basic volume and black list spam finder Large network of senders and receivers of messages 06/06 query Comcast.net: 37,147 senders Ranks IP address on a scale of -10 to + 10 Only rates senders Catch rate of 80% Added web scores Q1 ’06 All technologies acquired or done through partnerships 3 rd Party Technology Used Authentium AV McAfee AV Sophos AV Brightmail Open source MTA Spam Assassin Spam Cop Symantec AV Spam Silver Bullet SecureEdge No solution