2ProofPoint OverviewHQ 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 InternationallyMarket Segments: Primarily ComplianceAggressive sales; would drop price if we are competingStarted Year Strong with Venture Capital of 20M, hired a large sales team, by August terminated 30% of company
3Beating 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 defendIronMail 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 strengthLack 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 dictionariesReputation Service – PP lacks a True Reputation System.
4Postini OverviewHQ in San Carlos, CA, 300 employees, 2006 bookings: $65-75m (profitable since 2004)Main products are: Perimeter Mgr for , IM, Archives, Encryption, and WebGeography: NA and EMEAMarket Segments: mostly SMB (30,000) but creeping into enterpriseSales Strategy: Managed services only
5Beating 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 defendHigh 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 in a couple of years, then the cost is dramatically higher.Neutralizing Postini strengthsNo 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.
6IronPort OverviewHQ in San Bruno CA, 400 employees, 2005 sales $90-110mMain products are: , web and management appliancesGeography: InternationalMarket Segments: secure , complianceSales Strategy: Acquired by Cisco so their sales strategy will become channel focused
7IronPort Overview – Cisco Acquisition Info Price: $830M (cash and stock)TimetableAnnounced January 4Target close: Q3MotivationPlugs hole in “Self-Defending Networks” storyExtends Cisco’s reach in application spaceHigh growth strategy for a low-growth portfolioRisks to CiscoDe-focused sales force and R&DFailure to integrate in a timely mannerSets them up for head-to-head competition with Microsoft in unified messaging marketNo “pull” from IronPort for larger infrastructure deals so reps may ignore
8Beating IronPort How we attack IronPort Weak Content Control – only do pattern matching. They rely on Vontu partnership to do any sophisticated scanning.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 defendSenderBase 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 strengthsCisco 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.
9Beating IronPort CipherTrust/Secure Computing IronPort/Cisco Protocols ProtectedIMWebmailFTPP2PVoIPOutbound ContentPre-defined lexicons for GLBA, HIPAA, SOXPattern matchingFingerprintingAdaptive Lexical AnalysisClusteringTechnologies developed in-housePre-defined lexicons for HIPAA & GLBAContent ScanningRelies on Vontu partnershipGlobal Reputation ServiceStarted as 3rd generation sender behavior-based reputation systemFocuses on message senders as well as external sources (black lists, etc.)06/06 query of Comcast.net: 537,134 sendersRanks IP address on a scale of -255 to +255Rates senders, messages & attachmentsCatch rate of over 99%Added web scores Q1 ’04All technologies developed in-house by employee expertiseExamines over a hundred different features applies data classification algorithms such as support vector machines and clustering in real-timeStarted as basic volume and black list spam finderLarge network of senders and receivers of messages06/06 query Comcast.net: 37,147 sendersRanks IP address on a scale of -10 to + 10Only rates sendersCatch rate of 80%Added web scores Q1 ’06All technologies acquired or done through partnerships3rd Party Technology UsedAuthentium AVMcAfee AVSophos AVBrightmailOpen source MTASpam AssassinSpam CopSymantec AVSpam Silver BulletSecureEdgeNo solution