2013 Frost & Sullivan Asia Pacific ICT Awards Network Security Vendor of the Year
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1 2013 Frost & Sullivan Asia Pacific ICT Awards Network Security Vendor of the Year
2 2013 Frost & Sullivan Asia Pacific Network Security Vendor of the Year Frost & Sullivan s Global Research Platform Frost & Sullivan leverages over 50 years of experience in business with 1,800 analysts and consultants who monitor more than 300 industries and 250,000 companies. The Company s research philosophy originates with the CEO s 360 Degree Perspective, which in turn serves as the foundation of its TEAM Research methodology. This unique approach enables us to determine how best-in-class companies worldwide manage growth, innovation and leadership. Based on the findings of this Best Practices research, Frost & Sullivan is proud to present the 2013 Frost & Sullivan Asia Pacific ICT Award for Network Security Vendor of the Year to Fortinet. Asia Pacific Network Security Market Overview 2012 saw a huge increase in the severity and number of threats attacking networks, applications and data, resulting in the Network Security market in Asia-Pacific gaining momentum and recording a healthy growth rate of 11.4 percent as compared to Most of markets in the region experienced positive growth in the year, particularly in Japan and some Southeast Asia markets which saw growth of more than 20 percent year-over-year. In Japan, the second largest security market in Asia-Pacific, numerous attacks were experienced in 2012 by government organisations, leading to increased spending by this segment. In contrast, some of the markets such as China and Malaysia saw a relatively sluggish performance in the year, particularly in the government vertical due to general elections and leadership transitions. In many ways, growing concerns surrounding the sophisticated threat landscape, especially with the advent of cloud computing and BYOD, helped to direct security adoption to more advanced levels and stimulate security spending. Requirements remained relatively heterogeneous in the region, with the mature markets looking at advanced capabilities and greater dynamic threat intelligence. For instance, a growing number of enterprises in these markets are looking closely at solutions or capabilities in the area of DDoS protection, advanced persistent threat (APT) protection or application-fluent firewall. In contrast, the emerging markets were more focused on pricing and the value propositions offered by vendors Frost & Sullivan 2 We Accelerate Growth
3 The global macro-economic uncertainties remained a key restraint, with some enterprises preferring to take a more cautious approach towards spending. In addition, some upcoming elections will dampen the growth in these markets in the short-term. The Asia Pacific network security market is expected to grow at a CAGR of 8.9 percent in the forecast period, reaching a total market size of US$4.0 billion in The market is expected to maintain a steady growth in the next three years before it reaches its peak in 2015 in terms of growth. As the number of cyber attacks in the region continues to rise, investment in network security solutions will remain strong as network security is considered the most fundamental component of information security, especially for the Firewall segment. The Asia-Pacific Firewall/IPSec VPN segment is expected to record a CAGR of 8.4 percent in the forecast period, reaching a total market size of US$2.8 billion in In terms of form factors, integrated appliances are expected to dominate in the Asia-Pacific Firewall segment, with a forecasted CAGR of 9.9 percent. The software format, however, will experience significant growth due to trends like virtualization and software-defined networks (SDN). The Service Provider (SP) vertical expanded its leadership in network security investment in 2012, growing its revenue at a robust Year-on-Year (YoY) growth of 16.1 percent. Countries like Japan, South Korea and many of the ASEAN markets experienced a strong boost from their SP vertical in 2012 compared to One of the reasons that many these SPs increased their investment in network security is the growing interest in the managed security services in the market. A growing adoption level of security services be it managed security services or security-as-a-service drove SP segment revenues and shifted SMBs' buying preference from security products to security services. The BFSI and government verticals experienced similar YoY revenue growth rates in 2012, accounting for 19.9 percent and 19.8 percent respectively in the overall Asia-Pacific market. Security is of paramount importance in these two verticals and is also mandated in the regulations set by the countries or verticalspecific regulatory bodies.. Other peripheral verticals, such as healthcare, transportation, oil & gas and retail all witnessed strong growth in 2012 for security product investment. This reflects these sectors' growing reliance on ICT in their business operations Frost & Sullivan 3 We Accelerate Growth
4 Award Description The 2013 Frost & Sullivan ICT Award for Network Security Vendor of the Year recognizes the exemplary growth and performance of solution providers in the network security market in The contenders of this award will be evaluated based on the following key criteria: Revenue and Revenue Growth Product Portfolio/ Diversity Regional Coverage Key Innovations/Achievements Methodology Creating a shortlist of nominees The companies short-listed for each of the Frost & Sullivan Awards were selected by our analysts, based on their expert knowledge and analysis of the market. The companies were typically studied on their revenues, product/service innovation, capabilities, and overall contribution to the industry. The short listed companies were interviewed, and the analysts compared the data collected with proprietary Frost & Sullivan resources, as well as secondary research available from public sources. Selecting the Award recipient The companies profiles were presented to an independent panel of judges to determine the most deserving recipient for each Frost & Sullivan Asia Pacific ICT Award Frost & Sullivan 4 We Accelerate Growth
5 For this Award, the judges were: Nitin Bhat Partner and Head of Consulting Frost & Sullivan Andrew Milroy Vice President, ICT Research Frost & Sullivan Andrew Low Vice President, Solutions & Services CrimsonLogic TC Seow Editor CIO Asia Mark Winn Director, Ancillary Allied Health, Healthcare Analytics Integrated Health Information Systems Joseph Tan Chief Technology Officer Certis CISCO Security Tan Hock Hai Chief Information Officer Singapore Technologies Engineering Goh Kim Soon Senior Vice President Technology Support MediaCorp Darrel Wang Senior Director, Head of IT, Asia Pacific Quintiles 2013 Frost & Sullivan 5 We Accelerate Growth
6 Award Analysis for Fortinet Robust Growth in a Cautious Market Fortinet continued to experience a year of strong growth in the Asia-Pacific network security market during The vendor reported an impressive growth of 36.4 percent YoY despite the slow-down in the overall network security market due to the global and regional economic uncertainties. This robust growth against the backdrop of the overall market reflects an excellent mindshare of Fortinet s security products among customers. The vendor also witnessed a significant market share gain from 6.9 percent in 2011 up to 8.5 percent in More importantly, Fortinet has been evolving from a pure-play UTM player to an end-to-end security vendor. This is also reflected by their sales of non- FortiGate products, which witnessed a strong growth in Asia Pacific in Its unified security (wired/wireless), security, web application firewall, and the newly launched DDoS solutions have gained tremendous traction among businesses in the region. Along with this diversification, Fortinet has made clear 2013 Frost & Sullivan 6 We Accelerate Growth
7 inroads into the large enterprise, service provider and financial services institution spaces. The company's customer base now extends well beyond the SMB sector where it was traditionally strong in. Active Distribution Channel Strategy Fortinet s success during 2012 could be very much due to its active and strategic partnerships with its distribution channels in the region. The vendor continued to promote its partner program with APAC distributors to enhance its channel network, hence expanding its presence in the region. These programs helped the vendor ensure its distributors' outstanding commitment to its products and go-to-market strategies. Fortinet continued to enhance its strong strategic partnerships with key service providers and IT companies throughout the region, especially those in Australia, India, South Korea and Japan. These strategic partners enabled the vendor to leverage its security product and services portfolios and helped it enjoy greater mindshare among regional enterprises. At the same time, Fortinet's ability to deliver its latest technologies to customers through its channels in every country in the region, such as distributors or value-added resellers, was seen as the key factor leading to its outstanding performance during the year. Commitment to Security Innovation the Key Differentiation Fortinet showed its commitment and engagement with the security space with its outstanding technology innovations during The vendor continued to leverage its security product portfolios by releasing its operating system FortiOS 5, which was seen as a key milestone of the vendor in the effort to deliver high performance security solutions to its customers. FortiOS 5, which includes over 150 new features and enhancements, gives enterprises greater control and greater intelligence to secure BYOD environments and fight against today's sophisticated malware, including advanced persistent threats (APTs). The launch of the FortiDDoS product line in 2012 was another milestone for the vendor. The FortiDDoS family adopts an innovative hardware design that eliminates a common performance bottleneck and maintains very low latency. In addition, the support of virtual instances is a valuable feature for this product family. All in all, the introduction of FortiOS 5 and the FortiDDoS family is an excellent demonstration of the vendor s commitment to security technology innovation 2013 Frost & Sullivan 7 We Accelerate Growth
8 as well as its deep understanding of the rapidly changing security landscape faced by customers. The ability to expand its security portfolio and be committed to high performance security greatly differentiates Fortinet from its competition. At last, the ability to deliver a wide range of models catering to different market segments such as enterprises, cloud service providers, SMBs etc. also helped make Fortinet a well-recognized vendor across the board. Understanding Multiple Customers Demands One of the key factors that enabled the vendor to enjoy such great success during the year is its ability to understand the demand for advanced protection and security regulatory compliances by different customers. The vendor also realized the market trend is moving beyond the perimeter towards a more cloud-based environment. This also helped to position Fortinet favorably to capture any new business opportunities in the coming years. More importantly, Fortinet had the ability to define the right strategy for its different customer groups. The vendor adopted a very focused and verticalspecific strategy catering to the varied needs of customers, from large enterprises to small and medium businesses, which helped them to gain a growing share in key verticals such as government, service provider and FSIs. Conclusion The success of Fortinet in 2012, in many ways, was due to the vendor's efforts in promoting its mindshare, presence and recognition among Asia-Pacific enterprises. It has successfully evolved from an SMB-centric UTM player to an enterprise class end-to-end security vendor. With its channel focus, commitment to security innovation and ability to understand and respond to the changing needs of customers, Fortinet is a deserving award winner for the 2013 Asia Pacific Network Security Vendor of the Year Frost & Sullivan 8 We Accelerate Growth
9 About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? Contact us: Start the discussion 2013 Frost & Sullivan 9 We Accelerate Growth
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