The Burger King Effect: Proliferation of Content Security Form Factors Lets Customers Have it Their Way
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1 The Burger King Effect: Proliferation of Content Security Form Factors Lets Customers Have it Their Way Presented by: Paula Musich, Senior Analyst Date: July 28 & 29, 2010 Washington DC / Paris
2 Agenda Demand in content security shifts from software to appliances and Security as a Service Market Impact: Consolidation and the rise of hybrid architectures Who buys which form factors and why? The fate of software and a market outlook Q&A 2 2
3 Demand swings from software to appliances and SaaS Growth stats (like mileage) varies Infonetics: SaaS security revenue up 70% in 2009 Infonetics: content security appliances to grow 58% to $1.9 billion by 2013 IDC: Web security SaaS revenue to grow 47% in 2013 IDC: Web security appliance revenue to grow 20% in 2013 Cisco: ScanSafe hosted web security grew 110% year over year Behind the numbers, a perfect storm Shrinking IT budgets Web becomes a giant bulls eye Spam becomes targeted and more sophisticated Server-based software costs more to own and operate 3 3
4 Appliances: The Plusses and Minuses Appliance advantages over software Ease of installation, configuration Highly competitive pricing Good support Appliance advantages over hosted services For secure messaging, greater control, privacy For web security, lower latency Appliance disadvantages Limited reporting No real-time threat protection Inflexible policy and scanning 4 4
5 Hosted services: The Plusses and Minuses Hosted services advantages Lower installation costs Fast deployment Pay per use pricing No unexpected appliance upgrades Fast response to new threats Documenting the TCO savings Proofpoint: 40% to 70% savings, depending on use case Websense: 40% savings across the board Hosting services disadvantages Loss of control Less secure Outages give hosting service providers a bad rap 5 5
6 The appliance acquisitions Acqurier Acquiree Price Paid Data Announced Cisco Ironport $830 Million January 2007 McAfee Secure Computing $465 Million September 2008 Symantec Mi5 N/A April 2009 M86 Security Finjan N/A November
7 The SaaS acquisitions Acqurier Acquiree Price Paid Data Announced Google Postini $625 Million July 2007 Symantec Message Labs $695 Million October 2008 McAfee MXLogic $140 Million July 2009 Barracuda Purewire N/A October 2009 Cisco ScanSafe $183 Million October
8 The Hybrid Model Secure Messaging Advantages Cloud-based filtering reduces load for on-premises appliances Fewer appliances required on premises Lower WAN bandwidth utilization reduces operational costs On-premises appliances protect sensitive data, block spyware phone-home messages from infected machines Web Advantages Centralized policy control over all users/locations Local content caching in remote sites improves application performance Cloud-based filtering allows faster response to new threats 8 8
9 Hybrid Integration Progress Barracuda and PureWire Threat database, agent and appliance integration done Common policy model due later this year Blue Coat WebPulse provides some cloud-based filtering SaaS web security service available by year s end Cisco and ScanSafe (and IronPort) Threat intelligence integration, common UI in progress Meaningful hybrid offering due next year McAfee and MX Logic (and Secure Computing) Hybrid secure messaging in place Threat intelligence integrated Former IronMail and WebWasher managed by epo 9 9
10 Who buys which form factor? SMBs buy SaaS more often, but For web security, highly distributed enterprises get a bigger bang for the buck with SaaS Organizations with both lots of small remote sites and handful of locations with lots of users favor hybrid No consensus on vertical markets Enterprises that must comply with complex regulations tend to favor appliances 10 10
11 Market outlook Software s future Secure messaging software still makes up half the market Inertia/bigger problems to solve will keep a portion of users on renewal treadmill Virtual Machine instances, or virtual appliances, are the new software Predictions Web security s addressable market expands to new endpoints not covered before Acceptance of the hybrid form factor will take off and come to dominate some market segments Enterprises over the next few years will replace SMBs as the primary consumer of SaaS-based web security 11 11
12 Questions? 12 12
13 Thank You Insert Photo For more information, please contact [Paula Musich] [Senior Analyst] [ ] Washington, D.C Signal Hill Plaza, Suite 200 Sterling, VA 20164, United States Phone Toll free Fax Paris, France Bureaux de Sèvres - 2, rue Troyon Sevres Cedex, France Phone +33 (0)
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