Tom Reilly President & CEO, ArcSight
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1 Tom Reilly President & CEO, ArcSight
2 ArcSight Company Background Founded May customers 500+ employees, offices worldwide NASDAQ: ARST 20% Revenue growth year over year Analyst Recognition SIEM Leader Quadrant SIX years running #1 in Market Share Last three reports #1 In-use for both SIEM and Log Management Industry Recognition
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4 Key Market Opportunities and Growth Drivers Banking Insurance Brokerage Healthcare Retail SOX Basel II FFIEC EuroSOX LOGIIC FERC DATES Utilities Telecom Transportation Financial Services Nuclear Plants Telecom Government GLBA NERC Water Oil & Gas Financial Services Healthcare Retail HIPAA PCI FISMA Pharma High Tech Consumer Electronics Telecom HITECH CAC Auto Government Red Flags FIPS Oil & Gas Government
5 Our platform protects businesses through continuous monitoring of who and what is on their enterprise IT infrastructure in order to.. Address Security Threats Monitor Compliance Controls Ensure Business Continuity
6 ArcSight: Centralized Threat and Risk Management Firewalls Firewalls/ VPN Intrusion Detection Systems Vulnerability Assessment Network Equipment Server and Desktop OS Anti-Virus Applications Anti Anti Databases Virus Virus Mainframes Sign-On Identity Management Directory Services User Attributes Physical Infrastructure Business Processes Collect Analyze & Alert Report & Archive Address Security Threats Respond Monitor Compliance Controls Ensure Business Continuity
7 Success In All Verticals & All Sizes Healthcare Finance Education Government Energy Telecommunicatio ns Manufacturing Retail
8 Ability to Execute Undisputed #1 Player in SIEM 2010 Magic Quadrant for SIEM 2008 Worldwide SIEM Revenue Share Challengers Leaders ArcSight ArcSight 19% SenSage RSA (EMC) Quest Software IBM CA Tenable Prism Microsystems LogMatrix LogLogic Symantec Q1 Labs Novell NetIQ NitroSecurity Trustwave LogRhythm TriGeo netforensics elqnetworks Other 53% EMC 10% Symantec 7% Attachmate 6% Q1 Labs 5% Niche Players Visionaries Source: Gartner May 2010 Completeness of Vision As of May 2010 Source: IDC October 2009
9 Challenges with Growth Shifting from single product to platform with multiple offerings Adding new distribution channels (Distributors, VARS, Resellers, SIs) Expanding internationally Customers requesting flexibility & new licensing models Multiple deployment options (SW, Appliance, Cloud, MSSP) Increasing frequency of software update due to threat landscape
10 Why Flexera Software Initially.. 1. Deliver software faster, cheaper, and easier for customers around the clock 2. Introduce new offerings easily 3. Controlled international expansion 4. Reduce risk of quarter close and revenue recognition
11 Traditional Enterprise Software Go-to-Market Direct Sales Model Inside Sales Field Reps & SEs Prof Services 6 month sales cycles Qualify Demos Proof of Concepts Negotiate Fulfill ASPs > $250k
12 Challenged by Disruptive Business Models ArcSight Sales & Distribution Costs Enterprise Deals SaaS Subscription Models Trial Versions Competitors Freemium Customer Base 12
13 Power of a Platform Responded within months to competitive threat Introduced new licensing model Introduced new distribution model Leverage third parties
14 Universal Log Management Strategy ArcSight $30k - $125k/appliance Log Management Competitors Freemium Appliance Deployment Options Software Use cases Security Compliance IT Operations Application Development 56% of organizations Device 1 Device 2 use multiple log management Device 3 Device 4 vendors - SANS Universal Log Management Solution
15 ArcSight Storefronts Powered by Flexera Software Logger 5.0 downloadable for $49.00 Universal Log Management Solution
16 Why Flexera Software Enabling platform for fast growing dynamic global businesses Scalable - Meet future market demands and challenges Global reach 7x24 availability Revenue assurance Flexible Innovate and deliver Respond to competitive threats Deliver new solutions on multiple platforms On-Demand Instant value and experience customers expect Fast, easy, and cheap Improved customer experience 16
17 Thank you
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