2012 North American Content Security Product Differentiation Excellence Award

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1 North American Content Security Product Differentiation Excellence Award 2012 Frost & Sullivan 1 We Accelerate Growth

2 Product Differentiation Excellence Award Content Security North America, 2012 Frost & Sullivan s Global Research Platform Frost & Sullivan is in its 50th year of business with a global research organization of 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 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 2012 North American Product Differentiation Excellence Award in Content Security to Proofpoint, Inc. ( Significance of the Product Differentiation Excellence Award Key Industry Challenges security vendors face ever-evolving customer demands regarding malware detection/prevention, the blocking of targeted phishing s, and meeting government compliance and data protection regulations. One of the major challenges security vendors face is the lack of technological variance within their solutions. Despite slight variances within security solutions, weak product differentiation remains a current restraint in today s Content Security market. Customers are unsure which solutions will rapidly meet compliance while providing strong and dependable security against modern day attacks. To gain market strength and customer satisfaction, most security vendors are developing new strategies from internal research and development labs or acquiring smaller security firms in order to differentiate their solutions from their competitors. However, evolving malware URLs, social engineering tactics, and targeted spam attacks make up all new key challenges that today s security companies must tackle. Frost & Sullivan considered many key factors in determining which vendor exhibited the strongest product differentiation. Meeting rigorous customer demand by providing best-inclass benefits, features, quality, product mix, product branding, and services are key factors in determining a company s product differentiation leadership position. As part of its evaluation, Frost & Sullivan considered all on-premise software/appliance, virtual, and cloud security providers. After careful analysis, Frost & Sullivan concluded that Proofpoint achieved the strongest product differentiation within In recognition of its success in achieving this ranking, Proofpoint is recognized with the 2012 North American Product Differentiation Excellence Award in Content Security Frost & Sullivan 2 We Accelerate Growth

3 Key Benchmarking Criteria for the Product Differentiation Excellence Award For the Product Differentiation Excellence Award, the following criteria were used to benchmark Proofpoint s performance against key competitors: Unique Features/Functionality Quality/Complexity Customization Matched to Target Markets Needs Brand Perception Decision Support Matrix and Measurement Criteria To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Matrix (DSM). The DSM is an analytical tool that compares companies performance relative to each other with an integration of quantitative and qualitative metrics. The DSM features criteria unique to each Award category and ranks importance by assigning weights to each criterion. The relative weighting reflects current market conditions and illustrates the associated importance of each criterion according to Frost & Sullivan. Fundamentally, each DSM is distinct for each market and Award category. The DSM allows our research and consulting teams to objectively analyze each company's performance on each criterion relative to its top competitors and assign performance ratings on that basis. The DSM follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are shown in Chart1. Chart1: Performance-Based Ratings for Decision Support Matrix This exercise encompasses all criteria, leading to a weighted average ranking of each company. Researchers can then easily identify the company with the highest ranking. As a final step, the research team confirms the veracity of the model by ensuring that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies Frost & Sullivan 3 We Accelerate Growth

4 Chart2: Frost & Sullivan s 10-Step Process for Identifying Award Recipients Best Practice Award Analysis for Proofpoint The Decision Support Matrix, shown in Chart3, illustrates the relative importance of each criterion for the Product Differentiation Excellence Award and the ratings for each company under evaluation. To remain unbiased while also protecting the interests of the other organizations reviewed, we have chosen to refer to the other key players as Competitor 1 and Competitor 2. Chart3: Decision Support Matrix for Product Differentiation Excellence Award Measurement of 1 10 (1 = lowest; 10 = highest) Award Criteria Unique Features/Functionality Quality/Complexity Customization Matched to Target Markets Needs Brand Perception Weighted Rating Relative Weight (%) 20% 20% 20% 20% 20% 100% Proofpoint Competitor Competitor Frost & Sullivan 4 We Accelerate Growth

5 Criterion 1: Unique Features/Functionality Proofpoint Targeted Attack Protection is a cloud security solution that offers unique protection against spear phishing, malware, and targeted spam for customers corporate systems. Unique features include big data analysis techniques, URL interception, and malware sandboxing techniques to provide full content security protection while providing follow-the-sun protection, whether users are on corporate online/offline networks, mobile devices or public terminals. Frost & Sullivan firmly believes that these key product differentiators set Proofpoint apart from its competitors. Proofpoint s comprehensive cloud-based Targeted Attack Protection solution defends against modern-day attacks by employing four key security strategies. First, proprietary behavioral correlation techniques that detect low-volume, targeted attacks are implemented to detect complex attacks designed to bypass traditional security solutions. Advanced Persistent Threats (APT), as an example, are one of the most dangerous threats facing organizations today, which Proofpoint s Targeted Attack Protection solution now addresses. Second, robust classification analysis provides ubiquitous tagging of suspicious throughout corporate networks. Blocking features that include reputation, signature, behavior, and static malware analysis techniques ensure rapid, accurate prevention of realtime attacks. Finally, incident response management tools provide administrators and security personnel with real-time attack analysis, auto-remediation services, and identification of attack using time sequence dashboard views. Criterion 2: Quality/Complexity Proofpoint leverages three core competencies that apply to all of its content security solutions (which include Proofpoint Enterprise Protection, Proofpoint Enterprise Privacy, Proofpoint Encryption and Proofpoint Targeted Attack Protection), including content scanning and classification technologies, secure communications, and information availability. With content scanning technologies that use a highly advanced machinelearning engine, Proofpoint provides high quality malware attack analysis on corporate systems. Secure communication technologies use flexible policy and enforcement features, along with core encryption tools, end-user controls, and a simplified user interface, optimized for mobile devices. Information assurance is applied on high volume, sensitive content while reducing complex management overhead. Compared to its competitors, Proofpoint offers enterprise-class performance, scalability, and reliability across its Software-as-as-Service (SaaS), hybrid, and on-premise deployment options. Proofpoint s SaaS solutions offer consistent uptime and availability features, ensuring business protection continuity throughout a customer s infrastructure. Key benefits include quick responsiveness and robust performance, as well as a high Return-on- Investment. With hybrid and on-premise options, IT security professionals benefit from ease-of-administration and high visibility dashboards Frost & Sullivan 5 We Accelerate Growth

6 Criterion 3: Customization Proofpoint s SaaS content security solutions eliminate the complexities of implementation, configuration, and operation, while negating the need for extensive training and professional services. Customers benefit from low total cost of ownership, increased flexibility, and increased configuration features. Proofpoint Encryption, the company's policy-based encryption solution, enables end-user interface, appearance, and configuration levels to be adjusted to adhere to customer specific branding. Proofpoint s Targeted Attack Protection solution includes granular sensitivity controls for alerting and dashboard/reporting features. For customers requiring deeper customization and professional services, Proofpoint offers remote, one-day implementation and training services such as data importing, design, installation, customizations, and advanced reporting using video conferencing tools. Criterion 4: Matched to Target Markets Needs Proofpoint addresses Financial Services and Healthcare needs by offering an integrated suite of on-demand protection options, spanning threat protection, regulatory compliance, archiving and governance, and secure communication. Customers such as Guaranty Bank, AON Corporation, Grant Thornton, Zions Bank, Amalgamated Life, and Wedbush rely on Proofpoint s ability to meet their demanding security requirements. Proofpoint s customer base includes four of the five largest US retailers, four of the five largest US defense contractors, and three of the five largest global pharmaceutical companies. Proofpoint recognizes the importance of protecting valuable and sensitive data (including intellectual property), and the security architecture of its Targeted Attack Protection continues to evolve to meet all vertical market-specific requirements. Criterion 5: Brand Perception Customer service and satisfaction are Proofpoint s prime focus for strong brand perception. Focus has been strong on Fortune 1000/Global 2000 companies while extending its sales reach to existing customer bases. Proofpoint s global reach continues to expand with increasing market penetration in Asia-Pacific, Europe, the Middle East, Africa, and Latin America. Entry into the public markets (Proofpoint recently listed on the Nasdaq exchange) has created greater brand awareness for the company with the large, publicly-traded enterprises that form the core of its target market in these regions. Proofpoint has diligently invested in building brand awareness. Over 150 new opportunities in the first quarter of 2012 involving Proofpoint s SaaS solutions were a result of targeted, direct response mailings to IT security executives. Most of these wins resulted from competitive bids against other major security vendors. In addition, Proofpoint increased its investment in customer marketing to expand its offerings in protection, privacy, archiving, 2012 Frost & Sullivan 6 We Accelerate Growth

7 and governance solutions. This demonstrates Proofpoint s commitment to grow brand perception as a product differentiation leader. Conclusion Proofpoint has exhibited strong product differentiating factors as compared to competing security vendors. Its Targeted Attack Protection solution offers robust and unique features that address current threats affecting all vertical markets. Proofpoint s highly advanced malware attack analysis ensures rapid detection and mitigation against threats using auto remediation services. Financial and Government markets benefit the most from Proofpoint s content security solutions. With its focus on improving security technologies and improving brand perception, Proofpoint has positioned itself as a leader in product differentiation. Based on Frost & Sullivan s independent analysis of the North American Content Security market, Proofpoint is recognized with the 2012 Product Differentiation Excellence Award. The CEO 360-Degree Perspective TM - Visionary Platform for Growth Strategies The CEO 360-Degree Perspective model provides a clear illustration of the complex business universe in which CEOs and their management teams live today. It represents the foundation of Frost & Sullivan's global research organization and provides the basis on which companies can gain a visionary and strategic understanding of the market.the CEO 360-Degree Perspective is also a must-have requirement for the identification and analysis of best-practice performance by industry leaders. The CEO 360-Degree Perspective model enables our clients to gain a comprehensive, action-oriented understanding of market evolution and its implications for their companies growth strategies. As illustrated in Chart 4 below, the following six-step process outlines how our researchers and consultants embed the CEO 360-Degree Perspective into their analyses and recommendations Frost & Sullivan 7 We Accelerate Growth

8 Chart4: The CEO's 360-Degree Perspective Model Critical Importance of TEAM Research Frost & Sullivan s TEAM Research methodology represents the analytical rigor of our research process. It offers a 360-degree view of industry challenges, trends, and issues by integrating all seven of Frost & Sullivan's research methodologies. Our experience has shown over the years that companies too often make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Frost & Sullivan contends that successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. In that vein, the letters T, E, A and M reflect our core technical, economic, applied (financial and best practices) and market analyses. The integration of these research disciplines into the TEAM Research methodology provides an 2012 Frost & Sullivan 8 We Accelerate Growth

9 evaluation platform for benchmarking industry players and for creating high-potential growth strategies for our clients. Chart5: Benchmarking Performance with TEAM Research About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan 9 We Accelerate Growth

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