Global Privileged Identity Management Market. technavio insights

Transcription

1 Global Privileged Identity Management Market technavio insights

2 Global Privileged Identity Management Market Table of Contents 01. Executive Summary List of Abbreviations Scope of the Report Market Overview Product Offerings Market Research Methodology Market Research Process Research Methodology Introduction Market Description Structure of Privileged Identity Management Advantages of Privileged Identity Management Components of Privileged Identity Management Identity Management Authorization Services Authentication Services Privileged User Account Management Types of Privileged Identity technavio insights

3 Global Privileged Identity Management Market 06.5 Deployment Model for Privileged Identity Management On-premises Cloud Hybrid Cloud Operating Environment of Privileged Identity Management Market Landscape Market Overview Market Size and Forecast Global Identity and Access Management Market Market Share of Privileged Identity Management in Global Identity and Access Management Market Five Forces Analysis Market Segmentation by Product Global Privileged Identity Management Market by Product Global Privileged Identity Management Market by Product Global Privileged Identity Management Software Licenses Market Market Size and Forecast Global Privileged Identity Management Services Market Market Size and Forecast technavio insights

4 Global Privileged Identity Management Market 09. Market Segmentation by End-user Global Privileged Identity Management Market by End-user Global Privileged Identity Management Market by End-user Global Privileged Identity Management Market in Large Enterprises Market Size and Forecast Global Privileged Identity Management Market in SMEs Market Size and Forecast Global Privileged Identity Management Market in Government Organizations Market Size and Forecast Geographical Segmentation Global Privileged Identity Management Market by Geographical Segmentation Global Privileged Identity Management Market by Geographical Segmentation Market Attractiveness Market Attractiveness by Product Segmentation Market Attractiveness by End-user Segmentation Market Attractiveness by Geographical Segmentation technavio insights

5 Global Privileged Identity Management Market 12. Buying Criteria Market Growth Drivers Drivers and their Impact Market Challenges Impact of Drivers and Challenges Market Trends Trends and their Impact Vendor Landscape Competitive Scenario Key News Mergers and Acquisitions Competitive Analysis Other Prominent Vendors Key Vendor Analysis Beyond Trust KetFacts Business Overview Business Segmentation Geographical Presence Recent Developments SWOT Analysis CA Technologies Key Facts Business Overview Business Segmentation by Revenue technavio insights

6 Global Privileged Identity Management Market Business Segmentation by Revenue 2012 and Geographical Segmentation by Revenue Business Strategy Recent Developments SWOT Analysis CyberArk Key Facts Business Overview Key Products Business Segmentation Recent Developments SWOT Analysis IBM Key Facts Business Description Business Segmentation Revenue Segmentation by Business Segment Revenue Segmentation by Business Operation Revenue Comparison of Business Segments 2012 and Revenue Segmentation by Geography Business Strategy Key Developments SWOT Analysis Lieberman Software Key Facts Business Overview Key Products technavio insights

7 Global Privileged Identity Management Market Business Segmentation Recent Developments SWOT Analysis Assumptions Other Reports in this Series technavio insights

8 Global Privileged Identity Management Market List of Exhibits Exhibit 1: Exhibit 2: Exhibit 3: Exhibit 4: Market Research Methodology... 5 Structure of Privileged Identity Management... 9 Components of Privileged Identity Management. 11 Types of Privileged Identity Exhibit 5: Deployment Model for Privileged Identity Management Exhibit 6: Operating Environment of Privileged Identity Management Exhibit 7: Operating Environment of Privileged Identity Management Exhibit 8: Global Privileged Identity Management Market (US$ million) Exhibit 9: Global Identity and Access Management Market (US$ million) Exhibit 10: Share of Privileged Identity Management in Global Access and Identity Management Market Exhibit 11: Market Share of Privileged Identity Management in Global Access and Identity Management Market Exhibit 12: Global Privileged Identity Management Market by Product Exhibit 13: Global Privileged Identity Management Market by Product Exhibit 14: Global Privileged Identity Management Software Licenses Market (US$ million) technavio insights

9 Global Privileged Identity Management Market Exhibit 15: Global Privileged Identity Management Services Market (US$ million) Exhibit 16: Global Privileged Identity Management Market by End-user Exhibit 17: Global Privileged Identity Management Market by End-user Exhibit 18: Global Privileged Identity Management Market in Large Enterprises (US$ million) Exhibit 19: Global Privileged Identity Management Market in SMEs (US$ million) Exhibit 20: Global Privileged Identity Management Market in Government Organizations (US$ million) Exhibit 21: Global Privileged Identity Management Market by Geographical Segmentation Exhibit 22: Global Privileged Identity Management Market by Geographical Segmentation Exhibit 23: Global Privileged Identity Management Market by Geographical Segmentation (US$ million) Exhibit 24: Market Attractiveness of Global Privileged Identity Management Market by Product Segmentation Exhibit 25: Market Attractiveness of Global Privileged Identity Management Market by End-user Segmentation Exhibit 26: Market Attractiveness of Global Privileged Identity Management Market by Geographical Segmentation 44 Exhibit 27: List of Major Vendors in Global Privileged Identity Management Market Exhibit 28: BeyondTrust: Business Segmentation Exhibit 29: BeyondTrust: Geographical Presence technavio insights

10 Global Privileged Identity Management Market Exhibit 30: CA Technologies: Business Segmentation by Revenue Exhibit 31: CA Technologies: Business Segmentation by Revenue 2012 and 2013 (US$ million) Exhibit 32: CA Technologies: Geographical Segmentation by Revenue Exhibit 33: Exhibit 34: Exhibit 35: Exhibit 36: Exhibit 37: Cyber Ark: Key Products CyberArk: Business Segmentation IBM: Business Segmentation IBM: Revenue Segmentation by Business IBM: Revenue Segmentation Exhibit 38: IBM: Revenue Comparison of Business Segments 2012 and 2013 (US$ million) Exhibit 39: Exhibit 40: IBM: Revenue Segmentation by Geography Liberman Software: Key Products Exhibit 41: Liberman Software: Business Segmentation technavio insights

11 1 01. Executive Summary Market Size Market Growth Rate 2014: US$ million 2019: US$1, million 2014: percent 2019: percent CAGR percent Key Geographies Americas: percent EMEA: percent APAC: percent Key Customer Segments Key Market Drivers Key Market Challenges Key Market Trends Key Buying Criteria Key Vendors Large Enterprises Government Organizations SMEs Increased Use of Mobile Devices Need to Protect Enterprises from Security Breaches and Data Loss Need to Secure Government Organizational Data Improved Employee Productivity Lack of Efficiency Complexity of Network Infrastructure Increased Competition among Vendors Low Adoption in Developing Regions Popularity of SaaS-based Privileged Identity Management Solutions Increased R&D Spending by Vendors Focus on Integration with Other Security Components High Market Consolidation Accuracy Cost Ease of Use Integrity and Scalability BeyondTrust Software Inc. CA Technologies Inc. CyberArk Software Ltd. International Business Machines (IBM) Corp. Lieberman Software Corp.

12 2 02. List of Abbreviations APAC - Asia Pacific DBA - Database Administrator EMEA - Europe, Middle East, and Africa EU - European Union MEA - Middle East and Africa SaaS - Software-as-a-Service SME - Small and Medium-sized Enterprise YoY - Year-on-Year

13 3 03. Scope of the Report 03.1 Market Overview The report covers the present scenario and the growth prospects of the Global Privileged Identity Management market for the period To calculate the market size, the report considers the revenue generated from the following: Software licenses Services The report also provides a detailed analysis of the following end-user segments of privileged identity managed solutions: Large Enterprises: This segment includes organizations with more than 10,000 employees and that generate revenue of more than US$100 million Government Organizations: This segment includes all government agencies and institutions that are funded and managed by government authorities SMEs: This segment includes organizations with less than 10,000 employees and that generate revenue of less than US$100 million The report also presents the vendor landscape and a corresponding detailed analysis of the top five vendors in the market. It provides a geographical segmentation and forecast of the market and discusses the major drivers that influence the growth of the market. It also outlines the challenges faced by vendors and the market at large, as well as the key trends emerging in the market.

14 Product Offerings Some of the products offered by the major vendors in the Global Privileged Identity Management market are listed below: Company Products Offered BeyondTrust CA Technologies CyberArk PowerBroker Servers Enterprise PowerBroker UNIX and Linux PowerBroker for Windows Desktops and Servers PowerBroker for Virtualization and Cloud PowerBroker for Databases CA Identity Suite CA Privileged Identity Manager CA Identity Manager CA Shared Account Manager CA Identity Governance CA Privileged Identity Manager for Virtual Environments CA Identity Manager SaaS Enterprise Password Vault SSH Key Manager Privileged Session Manager Privileged Threat Analytics Application Identity Manager On-demand Privileges Manager IBM IBM Security Privileged Identity Manager Lieberman Software Enterprise Random Password Manager

15 5 04. Market Research Methodology 04.1 Market Research Process TechNavio has collected key data related to the Global Privileged Identity Management market and analyzed these data using a variety of methods. The market dynamics have been ascertained following a detailed study of the micro, meso, and macroeconomic indicators of the market Research Methodology This report is based on in-depth qualitative and quantitative analyses of the Global Privileged Identity Management market. The quantitative analysis involved the application of various projection and sampling techniques. The qualitative analysis involved primary interviews, surveys, and vendor briefings. The data gathered as a result of these processes were validated through experts' opinions. Exhibit 1: Market Research Methodology Global Privileged Identity Management Market Source: TechNavio Analysis

16 6 Based on the research results and technical insights thus gathered, TechNavio analysts have provided a comprehensive analysis of the varied aspects of the market. The impact of global economic conditions and other macroeconomic indicators was also considered when assessing the market.

17 7 05. Introduction Privileged identity management is a secure password management solution that manages administrator activity in critical environments such as applications and databases and network equipment such as routers, switches, and security appliances. Privileged identity management solutions are widely used by end-users to secure, audit, manage, and monitor all activities associated with privileged accounts. This solution secures the privileged users' accounts that exist on a network appliance, server, and operating system of an IT infrastructure. It is mainly used as a tool for governance and information security and helps companies in meeting various regulations and prevents security breaches through the use of privileged accounts. The Global Privileged Identity Management market is expected to grow at a CAGR of percent over the period The market was dominated by the Americas in 2014, with a share of percent. It was followed by the EMEA region with a market share of percent. Currently, the share of the APAC region is low. However, the market in this region is witnessing steady growth. BeyondTrust, CA Technologies, CyberArk, IBM, and Lieberman Software are the major vendors in the market. The growth of the Global Privileged Identity Management market is driven by several factors. One of the major drivers in the market is the increased use of mobile devices. Increased usage of mobile devices and tablets has given rise to many identification issues. Employees can access confidential information such as corporate s and critical business information using these devices. To overcome this, companies need a security solution to restrict employees from misusing confidential data through fraudulent activities. Also, increased use of portable devices has made corporate networks more susceptible to hacking. Hence, companies are adopting privileged identity management solutions to secure their network and provide safe access. The need to protect enterprises from security breaches and data loss is another major driver for the Global Privileged Identity Management market. However, the growth of the Global Privileged Identity Management market is curtailed by some serious challenges. Lack of efficiency in security solutions is one of the major challenges in the market. With advances in technology, security threats are evolving. Viruses, hacking, spyware, and even spam are becoming complex and difficult to detect and control. Identifying and preventing security threats and breaches from infecting a network continues to be a major challenge in the market. The increased complexity of network infrastructures is another major challenge in this market.

18 8 The Global Privileged Identity Management market is expected to grow moderately during the forecast period; this is because of the presence of certain emerging trends that could negate the effect of the challenges to a certain extent. The popularity of SaaS-based privileged identity management solutions is one such trend. Advances in technology have forced vendors to offer SaaS-based privileged identity management solutions to increase their market share. Companies from different sectors are increasingly adopting privileged identity management solutions because of benefits such as low investment costs and the availability of pay-per-use models. Increased R&D spending is another major trend in the market. Thus, the combined effect of various drivers and emerging trends is expected to have a positive impact on the Global Privileged Identity Management market during the forecast period.

19 9 06. Market Description 06.1 Structure of Privileged Identity Management Exhibit 2: Structure of Privileged Identity Management Source: TechNavio Analysis External vendors, internal users, auditors, and developers are the major privileged account users. These users are authorized to access the critical data and information of an organization. As these accounts are highly sensitive, they are password protected. When a user wants to access information through the privileged account, the request goes through a process whereby the access request is evaluated and the user is redirected to either the device or database. These devices or databases can either be on-premises or on cloud. Once the data and information are retrieved, they can be used for identification, monitoring, or directory management.

20 Advantages of Privileged Identity Management Some of the advantages of privileged identity management solutions are listed below: Secure, manage, and monitor privileged accounts and activities associated with data center management, whether on-premises or cloud, using effective password management tools Eliminate insider threats by protecting and controlling access to all privileged accounts and make credentials invisible to only IT staff and administrators Reduce IT overhead cost with more efficient control and less human errors Easily integrate with other IT systems and assets in organizations for more accountability and operational efficiency Offer limited and controlled access to sensitive data Mitigate risk and increase data integrity Provide diverse usability needs of different operating systems, data administrators, auditors, and external users Offer application and service credential management

21 Components of Privileged Identity Management Privileged identity management comprises certain essential components. Identity management, authorization services, authentication services, and privileged user account management are the various components of privileged identity management solutions. Exhibit 3: Components of Privileged Identity Management Source: TechNavio Analysis Identity Management Identity management manages user identities throughout the life cycle and provides timely and appropriate access to data and applications. It is carried out through individual user accounts. These user accounts consist of user details and data access powers Authorization Services Authorization means to grant permission to the user to perform certain tasks or obtain certain information. Authorization services identify, understand, and authorize a user to access data and information from the system. Authorization services can be either completely automated or can be performed through the internal authority in an organization.

22 Authentication Services Authentication services identify and authenticate a user to access data and information from the system. In this scenario, the user will already be authorized to access data by the system or the internal management of the organization. Authentication services identify the user's data access limits and control the access Privileged User Account Management Privileged accounts enable users to have unlimited access to programs and data. If these accounts are not properly secured and controlled, they represent a high risk to an organization. Privileged user account management has become necessary to provide access control with the help of user identification and offer centralized management and auditing of all privileged identities.

23 Types of Privileged Identity Types of Privileged Identity Technology is increasingly changing in every aspect of business. The adoption of new technology is necessary to achieve growth and success in business operations. Privileged identity management is a security solution that helps to improve business security, compliance, and productivity by mitigating risks from internal and external threats. Exhibit 4: Types of Privileged Identity Generic Accounts Privileged Personal Accounts Application Accounts Emergency Accounts Service Accounts Source: TechNavio Analysis The different categories of privileged identity include: Generic accounts: These accounts exist in every device and software application that are shared among several users such as UNIX root user and Windows administrator Privileged personal accounts: These accounts are used by IT administrators and business users such as database administrators Application accounts: These accounts are used to access the database and also connect to other applications. They have high privilege to access all the business information from the database Emergency accounts: These accounts are generic accounts that are used by enterprise users for urgent purposes such as disaster recovery and fire calls Service accounts: These accounts provide security while executing any process and require privileged login IDs and passwords for access. These processes might be related to file servers, web servers, and servers

24 Deployment Model for Privileged Identity Management Privileged identity management can be deployed through on-premises, cloud, and hybrid cloud solutions. Exhibit 5: Deployment Model for Privileged Identity Management Source: TechNavio Analysis On-premises In an on-premises deployment model, the software is purchased and installed in the hardware servers at the user's location. It is maintained by the IT department and is also known as on-site. This requires high capital expenses and also consolidation of end-user resources. In such a case, the flexibility and scalability of resources according to need can lead to high operational costs for the end-user Cloud In a cloud deployment model, the software is installed and run on computers at the vendor's data center. It is also known as a hosted service or SaaS. The use of a hosted server involves the purchase of a subscription model and SaaS refers to the renting of software. In this case, it eliminates the infrastructure cost for end-users and improves end-users' flexibility and data scalability.

25 Hybrid Cloud A hybrid cloud is a cloud infrastructure that uses two or more public and private clouds to provide for an organization's computing needs. It refers to the infrastructure that keeps some of its server operations on-premises, while utilizing the services of a cloud provider for its other operations. Enterprises are increasingly using the hybrid cloud model as they might host critical applications on private clouds and applications with less security concerns than on the public cloud. In recent years, the growing adoption of cloud-based applications by organizations has increased the demand for privileged identity management solutions. Growing awareness of cloud computing among channel partners and intense competition in the Global IT market are pressurizing companies to provide on-demand cloud-based services. Some of the benefits associated with the transition of any organization to the cloud are the following: With the use of cloud computing, the requirements associated with efficient management and maintenance of the IT environment are shifted from internal IT departments to cloud service providers In traditional delivery models, organizations need to spend a lot of time and money to establish connections with the different systems existing in an organization and its partner systems to achieve an integrated flow of information. However, in a cloud model, vendors offer various benefits such as the availability of a pay-per-use model, and thus, in-house IT departments are relieved of the burden of setting up their own IT infrastructure

26 Operating Environment of Privileged Identity Management The availability of various operating systems such as Mainframe, UNIX, Linux, and Windows enables vendors to offer privileged identity management solutions that are compatible with multiple operating systems for better interpretational efficiency and scalability. For improved operational efficiency, large companies use different operating systems to run enterprise applications. Exhibit 6: Operating Environment of Privileged Identity Management 2014 Source: TechNavio Analysis In 2014, the most commonly used operating environments for privileged identity management were Windows 32 and 64 bit systems. They accounted for the highest share of percent in Windows 32 and 64 bit operating systems offer high security and better compatibility with the different types of hardware present in the IT infrastructure of organizations. The demand for Windows 32 and 64 bit systems is expected to increase by the end of 2019 because of their userfriendly graphical user interfaces and the technical expertise to support advanced and new technologies. The UNIX operating system accounted for percent of the market share in The Windows and UNIX operating systems together accounted for a percent share of the Global Privileged Identity Management market in However, the market share of the UNIX

27 17 operating system is expected to decrease by 2019 because of the difficulties associated with working with it. Embedded platforms are the third most popularly used operating environment for privileged identity management solutions. Embedded platforms accounted for percent of the market share in 2014 and are expected to increase by 2019 as they can support the virtual environment and address the demands of changing business requirements. They also offer easy installation of application-oriented systems, which provide higher scalability, functionality, reliability, and cost-effectiveness compared to other systems. Exhibit 7: Operating Environment of Privileged Identity Management Source: TechNavio Analysis Linux operating environment accounted for a 7.83 percent share in 2014 and is expected to reach percent by Linux is an open-source development and is witnessing increased adoption because of its free support and reduced operational costs. Low cost of ownership, minimal security threats, lack of piracy-related issues, and a strong online support community are

28 18 the main growth drivers for the Linux operating environment for privileged identity management solutions. The mainframe operating environment accounted for a 6.03 percent share in 2014 and is expected to reach 4.01 percent by The expected decrease in share is because of the lack of in-house skills or knowledge to manage a complex mainframe environment. Other host/server systems, i5 and OS/400 systems, and other single user systems are expected to lose their share during the forecast period. This can be attributed to the high adoption rate of advanced Windows and other operating environments.

29 Market Landscape 07.1 Market Overview The Global Privileged Identity Management market is expected to witness strong growth with the increased usage of privileged identity management solutions in SMEs, large organizations, and government organizations to improve their business operations and productivity. The entry of new vendors in the marketplace is also a major reason for its strong growth rate. Although there is high adoption of privileged identity management solutions among enterprises, the introduction of cloud-based privileged identity management solutions will drive SMEs to adopt such solutions as these solutions eliminate the need for infrastructure and help organizations to run business operations efficiently. In addition, the scope for the growth of the Global Privileged Identity Management market in the Americas and the EMEA region is limited. However, the scope of the growth of markets in other regions such as the APAC region and Latin America is high. In the current scenario, advances in technology have brought frequent changes and challenges to the IT infrastructure. It has become necessary for enterprises to stand in a competitive environment by upgrading their IT infrastructures with the best technology. As businesses are expanding globally, the outsourcing partners, vendors, and end-users are responsible for secure access to the network and critical data to avoid disruption in business continuity. Also, with technological developments, several open-source solutions have entered the market, posing stiff competition for vendors. This open-source software can be downloaded and run on all platforms. As purchasing and licensing costs of commercial privileged identity management solutions are high, several micro and small-scale enterprises and individual users prefer opensource products that are freely available on the internet. The presence of open-source privileged identity management vendors such as ManageEngine, ObserveIT, and OpenIAM are expected to offer stiff competition to pure-play and other large privileged identity management vendors.

30 Market Size and Forecast The Global Privileged Identity Management market was valued at US$ million in 2014 and is expected to reach US$1, million by 2019, growing at a CAGR of percent. The major driver contributing to the growth of this market is the growing stringent compliance requirements. Although complying with certain regulations or requirements applies to different industries and sectors, sectors such as Financial Services are the most affected as they often have to comply with multiple regulatory requirements. Further, companies have to abide by external and internal compliance requirements. Failure to comply with such requirements not only attracts a hefty penalty, but also results in loss of reputation. This loss might further result in the loss of customers and prospective customers, thus affecting a company's growth. Hence, buoyed by growing strict compliance requirements, companies are adopting privileged identity management solutions. Exhibit 8: Global Privileged Identity Management Market (US$ million) Source: TechNavio Analysis The Global Privileged Identity Management market is expected to witness significant growth during the forecast period. Increased cyber threats and an increase in IT security spending by enterprises to prevent data loss are the major factors influencing the market growth. However, spending on privileged identity management solutions among SMEs needs to be increased by creating awareness about the dangers posed by cyber threats. Moreover, vendors can offer a wide range of options in deploying privileged identity management solutions, helping increase

31 21 their market share. As most privileged identity management solutions are integrated with solutions such as access and identity management and are available in the market as a single security solution, it increases demand, and thus, contributes to the growth of the market.

32 Global Identity and Access Management Market The Global Identity and Access Management market was valued at US$9, million in 2014 and is expected to reach US$17, million by 2019, growing at a CAGR of percent. Exhibit 9: Global Identity and Access Management Market (US$ million) Source: TechNavio Analysis Growing concerns over security in organizations globally is a major factor contributing to the growth of the Global Identity and Access Management market in recent years. Organizations worldwide have been increasingly adopting private cloud data centers and advanced technologies such as virtualization, which has increased security and compliance risks. Furthermore, with the adoption of advanced technologies, organizations are tending to lose control over their data and systems. This has led to unauthorized access to networks and resources, causing serious disruption of business operations and financial loss, thereby affecting brand loyalty. Therefore, organizations are under pressure to strengthen their security while reducing costs and managing their business operations. To overcome these security issues, identity and access management solutions have emerged as the most feasible solution for businesses. With technological growth and changing corporate work cultures, many users are bringing their own devices such as iphones, Android phones, and tablets to work and using them for professional purposes. This has raised the need for securing corporate data or business-critical information. Hence, organizations are implementing identity and access management solutions

33 23 that identify and provide access to third-party devices. This helps organizations in managing and controlling the growing multiplicity of users who require access to IT resources, while complying with the regulations.

34 Market Share of Privileged Identity Management in Global Identity and Access Management Market The Privileged Identity Management segment accounted for only a small proportion of the overall Global Identity and Access Management market. In 2014, it accounted for 3.92 percent of the Global Identity and Access Management market. Exhibit 10: Share of Privileged Identity Management in Global Access and Identity Management Market 2014 Source: TechNavio Analysis The demand for privileged identity management solutions is expected to increase significantly during the forecast period. One of the major reasons for this is the need to increase the level of security in organizations. It increases operational efficiency and overall IT security by managing privileged user and service accounts. It also enables end-users to prevent unauthorized users from accessing systems.

35 25 Exhibit 11: Market Share of Privileged Identity Management in Global Access and Identity Management Market Source: TechNavio Analysis The market has witnessed increased adoption of privileged identity management solutions among all sizes of enterprises because they enable enterprises to avoid security breaches and protect against insider and external threats. The Privileged Identity Management segment accounted for a 3.92 percent share in 2014 and is expected to reach 7.03 percent by The market share is expected to increase by 2019 because of its increased adoption among sectors such as Telecom, Banking and Financial Services, Retail, and Pharmaceuticals. These sectors adopt privileged identity management solutions as they reduce the cost of operations and can be easily integrated with existing identity management solutions, security operations, vulnerability assessment tools, and other enterprise systems.

36 Five Forces Analysis Bargaining Power of Suppliers (Low) Most of the vendors present in the market use their own resources and are least dependent on suppliers. Hence, the bargaining power of suppliers is low Threat of Substitutes (Low) There is no immediate substitute for privileged identity management solutions in the Global Privileged Identity Management market. Hence, the threat of substitutes is low Threat of Rivalry (High) The market is highly fragmented with the presence of a large number of vendors. Moreover, there is intense competition among the vendors to gain more market share. Hence, the threat of rivalry is high Bargaining Power of Buyers (High) Buyers have many options because of the presence of many vendors with similar product offerings. Buyers are attracted toward low-cost privileged identity management solutions. Hence, the bargaining power of buyers is high Threat of New Entrants (High) The market is still in its growing stage and the percentage of potential customers is high. This could attract many IT companies to enter the market

37 27 Key The impact of the five forces is graded on the basis of the intensity and duration of their influence on the current market landscape. The magnitude of the impact has been categorized as described below: Low - Negligible or no impact on the market landscape Moderate - Medium-level impact on the market Moderately High - Significant impact on the growth of the market High - Very high impact, with radical influence on the growth of the market

38 Market Segmentation by Product Global Privileged Identity Management Market by Product 2014 On the basis of application, the Global Privileged Identity Management market can be categorized into two segments: Software Licenses and Services. Exhibit 12: Global Privileged Identity Management Market by Product 2014 Source: TechNavio Analysis In terms of revenue, the Services segment dominated the Global Privileged Identity Management market in 2014 and accounted for a revenue share of percent. The Software Licenses segment accounted for a revenue share of percent in Although both segments are expected to experience an impressive growth rate, the Services segment is expected to experience the most significant growth during the forecast period.

39 Global Privileged Identity Management Market by Product Exhibit 13: Global Privileged Identity Management Market by Product Source: TechNavio Analysis The revenue generated from the Privileged Identity Management Software Licenses segment is expected to reduce in the Global Privileged Identity Management market and is expected to account for a revenue share of percent by Companies that do not have the capability to maintain an IT infrastructure prefer to outsource their IT services and administration to third-party providers. This trend is common in sectors such as the Financial Services and Marketing. However, companies prefer to control administrative rights and employ their own IT staff to manage administrative passwords, which require strong password and account management solutions to allow limited and selected access to privileged sections.

40 Global Privileged Identity Management Software Licenses Market Market Size and Forecast The Global Privileged Identity Management Software Licenses market was valued at US$ million in 2014 and is expected to reach US$ million by 2019, growing at a CAGR of percent. Exhibit 14: Global Privileged Identity Management Software Licenses Market (US$ million) Source: TechNavio Analysis The Global Privileged Identity Management Software Licenses market is expected to experience moderate growth during the forecast period. This market is expected to grow at a moderate rate because of the high adoption of privileged identification management software licenses by enterprises and government organizations. The privileged identity management software licenses are considered to be highly secure as there is no third-party interference. Customization and high data security offered in software licenses are some of the factors responsible for the growth of the market.

41 Global Privileged Identity Management Services Market Market Size and Forecast The Global Privileged Identity Management Services market was valued at US$ million in 2014 and is expected to reach US$ million by 2019, growing at a CAGR of percent. Exhibit 15: million) Global Privileged Identity Management Services Market (US$ Source: TechNavio Analysis The Global Privileged Identity Management Services market is expected to witness an impressive growth rate during the forecast period. One of the major reasons for this is the high adoption of privileged identity management solutions. As the demand for privileged identity management solutions is increasing, services related to its management and maintenance are also expected to increase significantly during the forecast period.

42 Market Segmentation by End-user 09.1 Global Privileged Identity Management Market by End-user 2014 On the basis of end-user, the Global Privileged Identity Management market is categorized into the following segments: Large Enterprises Government Organizations SMEs Exhibit 16: Global Privileged Identity Management Market by End-user 2014 Source: TechNavio Analysis There is an increased adoption of privileged identity management solutions in the aforementioned end-user segments because of the growing confidentiality of internal data and the increased need to prevent data breaches. Other end-users of the Global Privileged Identity Management market include home office users, educational institutions, non-profit organizations, and healthcare. The Large Enterprises segment contributed percent to the Global Privileged Identity Management market in 2014 and is expected to contribute a share of percent by The usage of privileged identity management solutions in large enterprises is expected to decline by 2019 because of market saturation.

43 Global Privileged Identity Management Market by End-user Exhibit 17: Global Privileged Identity Management Market by End-user Source: TechNavio Analysis The Large Enterprises segment is the major adopter of privileged identity management solutions because these solutions enable consistent administration of threats and cyber-attacks across systems, no matter where they reside, in a traditional data center, a private cloud, or on public cloud. The second major revenue contributing segment is SMEs. Privileged identity management solutions in SMEs contributed percent in 2014 to the Global Privileged Identity Management market and this segment is expected to contribute a share of percent by SMEs are increasingly adopting this solution because of the rise in cases of data theft. Government organizations are adopting privileged identity management solutions to maintain audit trails of privileged user activities to ensure that compliance standards are maintained and data are secured everywhere within an organization. The increased adoption of privileged identity management solutions has also been observed in educational institutions because they help IT departments in educational institutions to costeffectively minimize the threat of security breaches, reduce IT workload and costs, and meet compliance requirements. Privileged identity management solutions are adopted in the Healthcare sector because of the easy collaboration and sharing of medical and patient information, which ensures more effective treatment.

44 Global Privileged Identity Management Market in Large Enterprises Market Size and Forecast The Global Privileged Identity Management market in Large Enterprises was valued at US$ million in 2014 and is expected to reach US$ million by 2019, growing at a CAGR of percent. Exhibit 18: Global Privileged Identity Management Market in Large Enterprises (US$ million) Source: TechNavio Analysis Large enterprises were the major consumers of privileged identity management solutions in Large enterprises are those companies with operations in multiple geographical locations, with employee strength of more than 1,000, and generating revenue of more than US$100 million. As large enterprises have widespread operations and multiple regulatory requirements, and are targets of frequent attacks, they are among the most prominent users of privileged identity management solutions.

45 Global Privileged Identity Management Market in SMEs Market Size and Forecast The Global Privileged Identity Management market in SMEs was valued at US$ million in 2014 and is expected to reach US$ million by 2019, growing at a CAGR of percent. Exhibit 19: million) Global Privileged Identity Management Market in SMEs (US$ Source: TechNavio Analysis One of the main reasons for the low contribution from the SMEs segment in 2014 is the absence of strict regulatory requirements in SMEs. The APAC region comprises some of the fastest developing economies of the world, including India and China. However, the governments of most of the countries in the APAC region are slow to adopt advanced technologies, and, thus, have still not adopted privileged identity management solutions. A growing number of Asian small companies, particularly in India and China, are enjoying high growth figures and are expected to substantially grow in the future. Moreover, SMEs have been witnessing increased investment in the IT sector.

46 Global Privileged Identity Management Market in Government Organizations Market Size and Forecast The Global Privileged Identity Management market in Government Organizations was valued at US$ million in 2014 and is expected to reach US$ million by 2019, growing at a CAGR of percent. Exhibit 20: Global Privileged Identity Management Market in Government Organizations (US$ million) Source: TechNavio Analysis One of the major reasons for the wide adoption of privileged identity management solutions in the Government sector is that this sector is one of the most frequently attacked destinations. Among governments worldwide, the US government is the most extensive user of privileged identity management solutions. The US government alone accounts for more than 50 percent of the revenue contribution in the Government Organizations segment. The governments of the EU are also experiencing an increase in insider theft cases, thus driving them to adopt privileged identity management solutions.

47 Geographical Segmentation 10.1 Global Privileged Identity Management Market by Geographical Segmentation 2014 In 2014, the Americas, one of the early adopters of the technology, accounted for a market share of percent and is expected to account for percent by The US is the largest contributing country in the Americas. The availability of adequate infrastructures, a high frequency of cyber-attacks, the presence of numerous global financial institutions and large companies, stringent government regulations, and increased adoption of technologies among organizations are the major factors contributing to the market growth in the Americas. Exhibit 21: Segmentation 2014 Global Privileged Identity Management Market by Geographical Source: TechNavio Analysis

48 Global Privileged Identity Management Market by Geographical Segmentation The Americas was followed by the EMEA region, which accounted for percent of the total market revenue in 2014 and is expected to reach percent by Western Europe is the major revenue contributor in the region. Countries such as the UK, France, and Germany are the major adopters of privileged identity management solutions. The increase in the number of regulatory requirements and the increase in frequency of complex security threats are driving the adoption of privileged identity management solutions in this region. Large enterprises and government organizations are the major adopters of these solutions. These segments have a strong presence in the EMEA region, leading to significant market growth. Exhibit 22: Global Privileged Identity Management Market by Geographical Segmentation Source: TechNavio Analysis

49 39 The EMEA region was followed by the APAC region, which accounted for a market share of percent in 2014 and is expected to reach percent by Although the contribution from the APAC region is currently low, the market in this region is expected to contribute significantly in the future, because of the growing demand for privileged identity management solutions in developing countries such as Japan, China, and India. Strict regulations aimed at protecting an organization's network from security threats are currently driving the adoption of privileged identity management solutions in this region. Likewise, the improving economic conditions in the APAC region are also expected to lead to an increase in the contribution from this region. Exhibit 23: Global Privileged Identity Management Market by Geographical Segmentation (US$ million) Source: TechNavio Analysis In 2014, the Privileged Identity Management market in the Americas was valued at US$ million and is expected to reach US$ million by 2019, growing at a CAGR of percent. Some of the reasons for this are the strict compliance regulations and the high frequency and complexity of attacks in the country. As a huge number of large financial enterprises are concentrated in the Americas, the adoption of privileged identity management solutions is expected to increase. In addition, the Government sector is one of the most prominent users of

50 40 privileged identity management solutions in the Americas. For instance, the US government is one of the largest consumers of privileged identity management solutions. The Privileged Identity Management market in the EMEA region was valued at US$ million in 2014 and is expected to reach US$ million by 2019, growing at a CAGR of percent. One of the key factors contributing to this market growth is the increased focus on improving business productivity and efficiency. These solutions help identify employees and securely grant permission to access data. With the implementation of privileged identity management solutions, employees can overcome the difficulty of multiple log-ins for different business processes. Privileged identity management solutions support globally federated identities, enabling employees to easily manage their identity in an organization spread across various locations. Therefore, privileged identity management solutions provide seamless access to cloud applications and services through a single sign-on identity solution, thereby reducing the operation time. The APAC region contributed revenue of US$72.91 million in 2014 and is expected to reach US$ million by 2019, growing at a CAGR of percent during the forecast period. Although the market is dominated by the Americas in terms of revenue, the APAC region is expected to lead the Privileged Identity Management market in terms of growth rate during the forecast period. One of the main reasons for the low contribution from the APAC region is the absence of strict regulatory requirements. In addition, the governments of most of the countries in the APAC region are slow to adopt advanced technologies, and, thus, have still not adopted privileged identity management solutions. Moreover, the absence of small local players has limited the reach and adoption rate, further reducing the adoption of privileged identity management solutions. However, the introduction of several large organizations and SMEs in this region is expected to support the growth of the market during the forecast period. It has been observed that organizations in the APAC region, especially in India and China, are gradually developing their current IT landscape and are looking for technologies and new capabilities to extract the full potential of the existing systems incorporated in their organizations. Several vendors have started their operations in the developing countries of the APAC region such as China and India, which helps them capitalize on the opportunity of growing with these countries' fast-growing economies.

51 Market Attractiveness 11.1 Market Attractiveness by Product Segmentation The Global Privileged Identity Management market consists of two major product segments: Software Licenses and Services. It has been observed that the Services segment is one of the fastest growing segments in the Global Privileged Identity Management market. Exhibit 24: Market Attractiveness of Global Privileged Identity Management Market by Product Segmentation Source: TechNavio Analysis X-axis: Market Size in 2014 Y-Axis: Market Size in 2019 Size of Bubble: CAGR of Respective segments

52 42 The Services segment includes the subscription fees charged by vendors. The adoption of privileged identity management solutions in the Services segment will be observed initially in SMEs and then in large enterprises. The Software Licenses segment is also expected to grow during the forecast period with a CAGR of percent. Software licenses include the cost of the applications and the additional expenses incurred by organizations to monitor, maintain, upgrade, and provide training and support to end-users. Software licenses are installed and run on an organization's premises. Large companies are giving prominence in the adoption of software licenses because of their biggest advantage of ensuring complete control over the critical data of organizations.

53 Market Attractiveness by End-user Segmentation The Large Enterprises segment is the major adopter of privileged identity management solutions. In large enterprises, privileged credentials and accounts are more prone to exploitation by external threats and malicious insiders, which leads to data loss and service disruption. Large enterprises are adopting privileged identity management solutions to mitigate risk, ensure compliance, and maintain security of data. Exhibit 25: Market Attractiveness of Global Privileged Identity Management Market by End-user Segmentation Source: TechNavio Analysis X-axis: Market Size in 2014 Y-axis: Market Size in 2019 Size of Bubble: CAGR of Respective segments

54 44 It has been observed that SMEs are also increasingly adopting privileged identity management solutions because of the constant changes in the technology and business operations to sustain a position in a competitive business environment. The Government Organizations segment is also giving prominence toward the adoption of privileged identity management solutions because there has been a substantial increase in the number of cyber-attacks on government departments and installations. Further, government departments such as intelligence, defense, and finance deal with critical data, the theft of which could threaten national security. Hence, to secure their respective countries, governments are installing strong security measures, including privileged identity management solutions Market Attractiveness by Geographical Segmentation Currently, the Americas and the EMEA region are the major revenue contributors to the Global Privileged Identity Management market because of their early adoption of advanced technologies. However, the market in the APAC region is expected to grow during the forecast period. Exhibit 26: Market Attractiveness of Global Privileged Identity Management Market by Geographical Segmentation Source: TechNavio Analysis

55 45 X-axis: Market Size in 2014 Y-axis: Market Size in 2019 Size of Bubble: CAGR of Respective Segments The market attraction of privileged identity management is expected to be high in the APAC region during the forecast period. The reason for this is the decrease in prices of privileged identity management solutions, which is leading to the high rate of adoption. In addition, the growing awareness of cyber threats and the need for advanced security in the Government and BFSI sectors are leading to an increase in market attraction in this region. The EMEA region is also expected to witness high market attraction during the forecast period. The major reason for this is the increase in the number of threats and the growing awareness about the advantages of privileged identity management solutions. Also, the growing price wars among vendors are increasing the demand for privileged identity management solutions because of the decrease in prices. The market attraction of the Americas is expected to be low during the forecast period because of the saturation of this market. As the Americas is an early and fast adopter of security solutions, the growth of privileged identity management solutions in this region is expected to be low during the forecast period.

56 Buying Criteria Parameter Details Customer Segments Significance Attached Accuracy Privileged identity management solutions should be highly accurate in managing the access and security of IT applications SMEs Large Enterprises Government Organizations Low High Low High Low High Cost Initial investment cost of the product and its maintenance and upgrading costs should be reasonable SMEs Large Enterprises Government Organizations Low High Low High Low High Ease of Use Privileged identity management solutions should be user-friendly in all operating environments SMEs Large Enterprises Government Organizations Low High Low High Low High Integrity and Scalability The solution should be able to perform consistently, even under high workloads, and integrate well with other security solutions SMEs Large Enterprises Government Organizations Low High Low High Low High Key The impact of the buying criteria is graded on the basis of the intensity and duration of their influence on the current market landscape. The magnitude of the impact has been categorized as described below: Low - Negligible or no impact on the market landscape Moderate - Medium-level impact on the market High - Very high impact, with radical influence on the growth of the market

57 Market Growth Drivers Some of the major drivers in the Global Privileged Identity Management market are discussed below: Increased Use of Mobile Devices Need to Protect Enterprises from Security Breaches and Data Loss Need to Secure Government Organizational Data Improved Employee Productivity Increased Use of Mobile Devices With the growing need for uninterrupted connectivity between a corporate network and the employee, employees are using their personal portable devices such as cellphones, tablets, and PCs to gain access to confidential information. The increased usage of mobile devices has led to the increased storage and accessing of critical information, which has further increased the need to protect them. The rise in employee mobility is also leading to the increased use of mobile devices. As these devices are generally not secure, it is easy for hackers to gain access to mobile devices and gain unauthorized access to corporate networks, which may lead to fraudulent activities and misuse of corporate and business-critical data. Therefore, enterprises are increasingly adopting privileged identity management solutions to secure their networks from the growing security threats and provide their employees with secured access to confidential information. Need to Protect Enterprises from Security Breaches and Data Loss In the current scenario, organizations are highly vulnerable to security threats related to privileged identities. There is a need for organizations to securely manage and track the activities of privileged users to reduce the risk of breaches and ensure accountability. With the rise of social media, cloud computing, and mobile devices, it becomes easy for malicious attackers to extract privileged information from vulnerable users. Approximately percent of security breaches are estimated to be insider frauds/security breaches. These factors are driving companies to adopt privileged identity management solutions in their organizations.

58 48 Need to Secure Government Organizational Data Recently, various countries have been adopting privileged identity management solutions to ensure high-level data security. For instance, various IT and IT-related government departments are increasingly adopting these solutions to secure critical data compiled in their financial reports to prevent fraudulent or negligent use. In addition, government departments worldwide are currently shifting from manual processes of securing data to advanced technologies such as privileged identity management solutions to manage and control their data. Therefore, the need for high-level data security has led to the increased adoption of privileged identity management in the Government sector. Improved Employee Productivity Privileged identity management solutions play a major role in enhancing employee productivity, especially with the implementation of single sign-on and federated identities for the usage of multiple applications. These solutions help identify employees and securely grant permission to access data on an as-needed basis. With the implementation of privileged identity management solutions, employees can overcome the difficulty of multiple log-ins for different business processes. Privileged identity management solutions support globally federated identities, enabling employees to easily manage their identity in an organization spread across various locations. Therefore, privileged identity management solutions provide seamless access to cloud applications and services through a single sign-on identity solution, thereby reducing operational time.

59 Drivers and their Impact Driver Impact on Key Customer Category SMEs Large Enterprises Government Organizations Increased Use of Mobile Devices Low High Low High Low High Need to Protect Enterprises from Security Breaches and Data Loss Need to Secure Government Organizational Data Low High Low High Low High Low High Low High Low High Improved Employee Productivity Low High Low High Low High Driver Impact on Geography Americas EMEA APAC Increased Use of Mobile Devices Low High Low High Low High Need to Protect Enterprises from Security Breaches and Data Loss Need to Secure Government Organizational Data Low Low High High Low Low High High Low Low High High Improved Productivity Employee Low High Low High Low High Key The impact of the drivers is graded on the basis of the intensity and duration of their influence on the current market landscape. The magnitude of the impact has been categorized as described below: Low - Negligible or no impact on the market landscape Moderate - Medium-level impact on the market High - Very high impact, with radical influence on the growth of the market

60 Market Challenges Some of the major challenges in the Global Privileged Identity Management market are discussed below: Lack of Efficiency Complexity of Network Infrastructure Increased Competition among Vendors Low Adoption in Developing Regions Lack of Efficiency Cyber threats and malicious attacks have been on the rise in terms of both frequency and intensity in recent years. Security attacks such as viruses and spywares are evolving into more complex attacks and are becoming more difficult to detect and control. A few notable advanced security threats include Flame, Stuxnet, and Zeus. The recent internet breach at the University of Wisconsin in the US is another example of this threat. However, in most of these cases, the threats were only detected after the attack had occurred. Vendors are finding it increasingly difficult to develop efficient security solutions that can counter such sophisticated cyber-attacks. Complexity of Network Infrastructure The enterprise network infrastructure in an organization is a combination of various security solutions. The network infrastructure sometimes faces compatibility issues. For instance, some of the security solutions are not compatible with the network infrastructure, leading to an increase in the complexity of the network infrastructure, which is one of the major challenges faced by privileged identity management vendors operating in the market. With increased complexities of network infrastructure, it becomes difficult to identity and provide access to authorized users. This affects the reliability of privileged identity management solutions and may hinder their adoption. Further, companies are likely to shift to in-house solutions, which could affect the adoption of privileged identity management solutions, thereby hampering the growth of the Global Privileged Identity Management market.

61 51 Increased Competition among Vendors Vendors are constantly competing in terms of offering privileged identity management solutions at lower prices than their competitors. In addition, many new vendors are entering the market because of its huge growth potential. The entry of new vendors has had a negative impact on the profitability and market share of the existing vendors. Further, as a result of the increased competition, vendors are compromising on quality to reduce costs. This is expected to hamper the growth of the Global Privileged Identity Management market. Low Adoption in Developing Regions Although compliance requirements play a major role in driving the adoption of privileged identity management solutions, the limited regulatory requirements in developing regions is slowing down the adoption of privileged identity management solutions in these regions. Moreover, the compliance requirements in these regions are relatively less stringent compared to the US and the EU. As a result, several companies do not follow such regulatory guidelines in these regions. Further, regulations such as the Health Insurance Portability and Accountability Act and regulations for companies operating in the Financial Services sector are relatively less stringent in the APAC region. Factors such as these result in the low adoption of privileged identity management solutions. Moreover, companies operating in regions with low or relaxed regulatory requirements are protecting their content with in-house solutions.

62 Impact of Drivers and Challenges Key The impact of the drivers and challenges is graded on the basis of the intensity and duration of their influence on the current market landscape. The magnitude of the impact has been categorized as described below: Low - Negligible or no impact on the market landscape Moderate - Medium-level impact on the market Moderately High - Significant impact on the growth of the market High - Very high impact, with radical influence on the growth of the market

63 Market Trends Some of the major trends emerging in the Global Privileged Identity Management market are discussed below: Popularity of SaaS-based Privileged Identity Management Solutions Increased R&D Spending by Vendors Focus on Integration with Other Security Components High Market Consolidation Popularity of SaaS-based Privileged Identity Management Solutions Advances in technology are forcing vendors to offer SaaS-based privileged identity management solutions to customers. Companies are increasingly adopting these solutions because of the various benefits such as the availability of pay-per-use models and the provision of instant access. SaaS-based privileged identity management solutions automatically update their products, thereby enabling them to respond to the latest security threats. The growing requirement of companies is increasing the demand for SaaS-based privileged identity management solutions. Furthermore, the increase in demand for SaaS-based privileged identity management solutions has also outpaced the demand for traditional software and servicebased privileged identity management solutions. Increased R&D Spending by Vendors In recent years, the vendors in the Global Privileged Identity Management market have increased their R&D spending. The leading vendors, such as BeyondTrust, CA Technologies, CyberArk, IBM, and Lieberman Software, have increased their investment in the R&D of identity and access management. For instance, they are partnering with suppliers and value-added resellers by investing significantly in R&D. The R&D process is helping vendors introduce inexpensive and advanced solutions for customers. Further, the increased focus on R&D has resulted in the introduction of products with better accuracy and more integration ability. Thus, high integration ability, high accuracy, and low price are expected to lead to high adoption of privileged identity management solutions during the forecast period. Thus, the trend of increased spending on R&D is expected to augur well for the growth of the market.

64 54 Focus on Integration with Other Security Components The increase in security threats is witnessing an increase in demand for seamless integration of privileged identity management solutions with other security solutions. The integration with other security solutions such as identity manager and event manager enables better control such as better provisioning and de-provisioning, total access control, and password management. Further, integration with forensics solutions is likely to help investigate user behavior, providing a more granular approach. Factors such as these have driven the major privileged identity management vendors such as BeyondTrust, CA Technologies, and IBM to provide solutions that allow easy integration. For instance, solutions from CA Technologies provide integration capability with CA Security Management Solutions, thus providing benefits such as rapid provisioning and de-provisioning. Therefore, the increased focus on integration with other security components is a major trend that is expected to contribute to the growth of the market. High Market Consolidation Currently, there are numerous vendors offering various platforms in the Global Privileged Identity Management market. Many pure-play companies in this market are either being acquired or being approached for acquisition by large corporates for their technological capabilities in security solutions. This will help these vendors to increase their presence in various technological markets, gain technological expertise, and enhance their product portfolios. This trend is expected to prevail during the forecast period as large corporations want to make the most of the significant growth opportunities in the Global Privileged Identity Management market.

65 Trends and their Impact Key The impact of the trends is graded on the basis of the intensity and duration of their influence on the current market landscape. The magnitude of the impact has been categorized as described below: Low - Negligible or no impact on the market landscape Moderate - Medium-level impact on the market High - Very high impact, with radical influence on the growth of the market

66 Vendor Landscape 19.1 Competitive Scenario Privileged identity management is experiencing an impressive adoption by enterprises and endusers worldwide. Many vendors are entering the market and providing privileged access management and identity management solutions. The established privileged identity management vendors are acquiring smaller vendors to expand their product portfolio and boost their market share. Large vendors dominate the market because of their widespread operation and established customer base. Therefore, to survive and succeed in this intensely competitive environment, it becomes imperative for the vendors in the market to distinguish their products and service offerings through a clear and unique value proposition. In addition, the market is witnessing the entry of many pure-play privileged identity management providers that are competing with the large open-source privileged identity management providers. As a result, the market is becoming further fragmented, leading to the presence of a large number of vendors. Moreover, organizations are assessing the vendors based on their technical expertise about privileged identity management solutions and the degree of superiority of their product offerings. This has resulted in intense competition in the market. With the advances in technology and improvements in their offerings, vendors are successfully delivering a rich-user experience, improved performance, and increased flexibility to fulfill the expectations of end-users. Vendors operating in the Global Privileged Identity Management market can be categorized into the following groups: Large diversified IT vendors such as CA Technologies, IBM, Novell, and, Quest; these companies have presence in multiple IT verticals, large installed bases, and a wide geographical presence. These vendors are differentiated from pure-play vendors by their source of revenue; the majority of their revenue comes from the Services segment, while pure-play players draw the majority of their revenue from product/license sales Vendors such as BeyondTrust, CyberArk, Lieberman Software, and Xceedium form the second category of players. These players are either pure-play players operating in the Global Privileged Identity Management market or may have presence in other IT verticals, but their main offerings are for the Identity and Access Management market. Vendors such as CyberArk and Lieberman Software are the leading players among the high-end customers. These players generally have high product revenue and low services revenue

67 Key News November 2014: BeyondTrust acquires a new patent by the US Patent and Trademark Office for technology-specific PowerBroker for Windows solution October 2014: Lieberman Software's privileged identity management product, Enterprise Random Password Manager, is fully deployed on Microsoft Azure October 2014: Lieberman Software privilege management platform, Enterprise Random Password Manager, offers secure shell key management to manage authorization on target systems June 2014: CyberArk gets awarded Best Secure Access Solution at the 2014 NetworkWorld Asia Information Management awards May 2014: CA Technologies has been named a leader in the Global Federated Identity Management market April 2014: Defense Information Systems Agency chooses BeyondTrust's vulnerability assessment and management solutions for the US Department of Defense September 2013: IBM introduces the new privileged session recorder option, IBM Security Privileged Identity Manager V1.0 September 2013: Lieberman Software integrates its privileged identity management offering, Enterprise Random Password Manager, with QualysGuard Security and Compliance Suite Mergers and Acquisitions August 2014: IBM acquires business operations of Lighthouse Security Group, a cloud security services provider, to expand and enhance its privileged identity management offerings July 2014: IBM acquires CrossIdeas, a provider of identity governance and analytics solution, to add value to its existing IBM Security Identity Manager solution

68 Competitive Analysis Exhibit 27: List of Major Vendors in Global Privileged Identity Management Market 2014 Company BeyondTrust CA Technologies CyberArk IBM Liberman Software Description Privilege identity management, administrator access control, and security solutions provider Diversified IT major with main offerings in IT security vertical and with privileged identity management offerings Privileged identity management solutions provider Diversified IT major with privileged identity management offerings Privileged identity management solutions provider BeyondTrust is a pure-player in the Global Privileged Identity Management market and holds a significant position in the market. The company currently provides a range of privileged account management and vulnerability management software solutions capable of securing UNIX and Linux environments. Further, its solution, PowerBroker Virtualization, supports VMware, AIX, Solaris zones, and Linux partitions on mainframes. With expertise in UNIX, Linux, and Windows, the company is a leading provider of security and compliance solutions for privileged users in these three environments. The company has partnerships with Red Hat and Microsoft, and claims to have achieved more than 200 percent YoY growth for the past four years. The company s privileged identity management products allow the end-users to strengthen security, improve productivity, drive compliance, and reduce expense across physical, virtual, public, private, and hybrid cloud environments. CA Technologies is another key vendor in the Global Privileged Identity Management market. The company has widespread operations globally and an established customer base. The company's privileged identity manager solutions bring accountability and control to privileged users facing increased security challenges and complex regulatory requirements. Its identity management solutions enable organizations to secure sensitive information and critical systems without impacting the daily business and IT activities. It also enables organizations to ensure that users only have access to the critical data that are appropriate for their job function. CyberArk is a global provider of IT security solutions that protect organizations from cyberattacks. The company s products include CyberArk Shared Technology Platform, Privileged

69 59 Account Security Solution, and Sensitive Information Management Solution. The company's privileged identity management software solutions help organizations to protect privileged accounts that have become a critical target of cyber-attacks. The company's large number of customers use privileged identity management solutions to bring a new security layer into their systems to protect against compliance violations, and detect and respond to cyber-attacks to secure sensitive data. IBM is one of the leading global providers of computer products, solutions, and services. The company operates in over 170 countries in the Americas, Europe, and the MEA and the APAC regions. Several factors such as its large existing customer base, geographical diversity, offerings to a vast category of industries, and large partnership network have helped the company gain its leadership position in the market. Further, IBM's privileged identity management solutions provide complete automated end-to-end identity life cycle management, with auditing and controls that are appropriate to comply with the Payment Card Industry Data Security Standard regulations. In 2008, IBM acquired Encentuate, a leading provider of identity and access management software focused on enterprise single sign-on and integration of strong authentication technology. Liberman Software is also a prominent pure-player in the Global Privileged Identity Management market. The company provides a wide range of products and services that protect organizations against threats and other critical cyber-attacks. It maintains partnerships with some of the most renowned software and hardware leaders to deliver advanced security solutions to enterprises. However, it has limited geographical presence compared to market leaders such as CA Technologies and IBM.

70 Other Prominent Vendors Some of the other prominent vendors in the Global Privileged Identity Management market are listed below: Company Description Arcon BalaBit Centrify Dell Hitachi ID Systems MasterSAM NetIQ NRI SecureTechnologies ObserveIT Thycotic Wallix Xceedium Risk control solutions provider Advanced monitoring technologies provider Global provider of identity management solutions across cloud, mobile, and data center IT environments Provider of identity and access management solutions Global identity management and access governance, privileged access management, and password management software provider Global privilege user access management solution provider Global provider of IT system management, security management, and performance management software Global outsourcing services provider for security management, security diagnostics, and evaluation Global user activity monitoring solution provider Global web-based password management software provider Europe-based provider of privileged user management Global network security software provider and the leading provider of privileged identity management solutions for hybrid cloud enterprises

71 Key Vendor Analysis 20.1 Beyond Trust KetFacts

72 Business Overview BeyondTrust was founded in 1985 and is based in Phoenix, Arizona, US. The company is involved in developing and delivering privilege authorization management, access control, and security solutions. It offers solutions for physical, virtual, cloud, and infrastructure computing environments. It offers PowerBroker Virtualization that provides protection from the inherent associated risks. It also offers PowerBroker Servers that empower IT organizations with the ability to delegate root tasks and authorization on Linux, UNIX, and Mac OS X platforms. Further, it provides the PowerBroker Desktops 5.1 solution to secure desktops by removing administrator privileges without end-user disruption, privileged identity management solutions for Microsoft Windows-based servers, and PowerBroker Identity Services Open Edition that allows clients to leverage investment in the Microsoft Active Directory. In addition, the company offers PowerBroker DLP, a data loss prevention solution for physical, virtual, and mobile devices. Additionally, it provides BeyondTrust 2010 Sudo Vulnerability Analysis that reports vulnerabilities that are mitigated.

73 Business Segmentation Exhibit 28: BeyondTrust: Business Segmentation Source: TechNavio Analysis

74 Geographical Presence Exhibit 29: BeyondTrust: Geographical Presence Source: TechNavio Analysis Recent Developments Company Details Description Key Highlights November 2014: Launches Retina 5.20, new version of vulnerability assessment technology June 2014: Announces new release of Retina CS for mobile, a privilege and vulnerability solution January 2014: Announces the release of Beyond Insight, an IT risk management platform, to mitigate threats to information assets

75 SWOT Analysis

76 CA Technologies Key Facts Company Details Stock Listings Ticker Symbol Description NASDAQ CA

77 Business Overview CA Technologies was established in 1974 and is headquartered in New York, US. It designs and produces enterprise information technology solutions and software. The company specializes in service management, project and portfolio management, service assurance, and storage management. The company operates in three business segments: Mainframe Solutions, which help its customers improve mainframe capabilities and management; Enterprise Solutions, under which the company offers services such as portfolio management, security management, and application delivery; and the Service segment, which consists of training, consultation, and support services. The company employs 13,600 people and operates in more than 45 countries, providing services to Fortune 500 companies, 25 federal agencies, and the top 20 global banks. The company generated revenue of US$4,643 million in FY Business Segmentation by Revenue 2013 Exhibit 30: CA Technologies: Business Segmentation by Revenue 2013 Source: TechNavio Analysis

78 Business Segmentation by Revenue 2012 and 2013 Exhibit 31: CA Technologies: Business Segmentation by Revenue 2012 and 2013 (US$ million) Source: TechNavio Analysis Geographical Segmentation by Revenue 2013 Exhibit 32: CA Technologies: Geographical Segmentation by Revenue 2013 Source: TechNavio Analysis

79 Business Strategy Operational strategy The company works on leveraging and exploiting new business and technology trends by investing in R&D for inventing technologies, and creating new business models with these technologies. It also plans to expand market operations globally by driving new value for existing customers Recent Developments Company Details Description Key Highlights Key Mergers and Acquisitions July 2014: Announces its divestiture of data protection business, CA arcserve, to Marlin Equity Partners April 2013: Files a lawsuit against AppDynamics for patent infringement June 2013: Acquires Layer 7, a supplier of application programming interface security and management

80 SWOT Analysis

81 CyberArk Key Facts

82 Key Products Business Overview CyberArk is a leading provider of security solutions that provides enterprises with protection against cyber-attacks and helps them to protect their high-value information assets, infrastructure, and applications. The company has its offices in the US, Israel, the UK, France, Germany, the Netherlands, and Singapore and serves customers in more than 60 countries. Its privileged account security solution includes a wide range of product portfolio such as Enterprise Password Vault, SSH Key Manager, Privileged Session Manager, Privileged Threat Analytics, Application Identity Manager, and On-demand Privileges Manager. The company provides fine-grained access controls for UNIX/Linux from within a unified interface. Further, its solution is one of the best in the market with features such as remote and secure access to target systems without revealing passwords. In addition, it supports more than 50 security systems, database platforms, network devices, client and server operating systems, and enterprise applications Key Products Exhibit 33: Cyber Ark: Key Products CyberArk Shared Technology Platform Privileged Account Security Solution Sensitive Information Management Solution Source: TechNavio Analysis

83 Business Segmentation Exhibit 34: CyberArk: Business Segmentation CyberArk Products Solutions Services Source: TechNavio Analysis Recent Developments Company Details Description Key Highlights May 2014: Receives Best Advanced Persistent Threat Protection at the SC Awards Europe 2014 April 2014: Extends the CyberArk Privileged Account Security solution across public, private, hybrid cloud, and SaaS environments December 2013: Doubles the size of its corporate headquarters to sustain new employee growth November 2013: Launches Privileged Threat Analytics to detect in-progress attacks

84 SWOT Analysis

85 IBM Key Facts Company Details Description Stock Listings New York Stock Exchange Ticker Symbol IBM

86 Business Description IBM is one of the largest vendors in the Global Big Data Services market. The company offers various types of hardware, software, consulting, and infrastructure services. Its offerings find applications in various sectors such as Aerospace and Defense, Banking, Consumer Products, Electronics, Healthcare, Media and Entertainment, Retail, Education, and Government. IBM's R&D operations differentiate it from its competitors. It annually invests about US$6 billion in R&D activities. The company conducts its research works with clients and business units through 12 global labs. For the fiscal year ending December 2013, the company spent about US$6,226 million on R&D activities. IBM registered the highest number of US patents for the 21st consecutive year in April Its range of patents represents a diverse range of inventions. As of December 31, 2013, the company s manufacturing and development facilities in the US has about 18 million square feet of floor space, of which 16 million is owned and 2 million is leased. Besides this, it has similar facilities in 15 other countries, wherein, of the total 6 million square feet of floor space, 2 million is owned and 4 million is leased.

87 Business Segmentation The company conducts its business operations through the following five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. Exhibit 35: IBM: Business Segmentation Source: TechNavio Analysis IBM's Global Technology Services segment offers IT infrastructure services and business process services. This segment specializes in strategic outsourcing services, global process services, integrated technology services, and technology support services. Its Global Business Services segment offers professional and application outsourcing services, and specializes in consulting and systems integration and application management. Through its Software segment, the company offers middleware and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, semiconductor technology and products, packaging solutions, engineering and technology services, and retail store solutions. IBM s Global Financing segment offers services such as commercial financing, client financing, and remanufacturing and remarketing.

88 Revenue Segmentation by Business Segment The company generated revenue of US$99,751 million in FY2013. Exhibit 36: IBM: Revenue Segmentation by Business 2013 Source: TechNavio Analysis IBM's other segments, including corporate and other operations, accounted for 1 percent of the total revenue.

89 Revenue Segmentation by Business Operation Exhibit 37: IBM: Revenue Segmentation 2013 Source: TechNavio Analysis Revenue Comparison of Business Segments 2012 and 2013 Exhibit 38: IBM: Revenue Comparison of Business Segments 2012 and 2013 (US$ million) Source: TechNavio Analysis

90 Revenue Segmentation by Geography The company operates its business through the following three major geographies: the Americas (including North America and Latin America) and the EMEA and the APAC regions. Exhibit 39: IBM: Revenue Segmentation by Geography 2013 Source: TechNavio Analysis Business Strategy Operational Strategy IBM continuously focuses on innovative solutions, software, and infrastructure to improve client outcomes. Besides this, the company is expanding operational and geographical presence through acquisitions and associations with market leaders worldwide. In line with this, since 2000, the company has acquired over 150 companies Key Developments Company Details Key Highlights January 2014: Announces plans to sell its x86 Server business to Lenovo January 2014: Announces plans to establish IBM Watson Group, a new business unit dedicated to the commercialization and development of cloud-delivered cognitive innovations

91 81 Company Details Key Acquisitions August 2013: Adds nine new academic collaborations to its more than 1,000 partnerships with universities across the globe, focusing on big data and analytics June 2013: Enters into a definitive agreement to acquire SoftLayer Technologies, the world's largest privately held cloud computing infrastructure provider March 2014: Completes the acquisition of Cloudant, a privately held database-as-a-service provider January 2014: Completes the acquisition of Aspera, which undertakes the development of software transfer technologies for business enterprises December 2013: Closes the acquisition of Fiberlink Communications with new cloud-based capabilities September 2013: Acquires Daeja Image Systems, a leading provider of software that makes it easier for business and IT professionals to view large documents and images

92 SWOT Analysis

93 Lieberman Software Key Facts

94 Key Products Business Overview Lieberman Software was founded in 1978 and is based in Los Angeles, California. The company is a global provider of identity management and enterprise security solutions. Some of its major offerings are Enterprise Random Password Manager, Random Password Manager, User Manager Pro Suite, and Service Account Manager. The company also provides Account Reset Console, Task Scheduler Pro, COM_Manager/COM+ Manager, Server-to-Server Password Synchronizer, and Intensive Care Utilities. It serves the Government, Financial Services, Healthcare, Manufacturing, Energy and Utilities, Education, and Cloud Service industries. The company has strategic alliances with Microsoft Gold Certified Partner, Oracle Gold Partner, Dell, RSA, Raytheon, Cisco, HP Silver Business Partner, IBM, ObserveIT, Thales, VMware, ArcSight, Yubico, Novell, Red Hat, and Intel Key Products Exhibit 40: Liberman Software: Key Products Enterprise Tools Source: TechNavio Analysis

95 Business Segmentation Exhibit 41: Liberman Software: Business Segmentation Liberman Software Products Solutions Support Source: TechNavio Analysis Recent Developments Company Details Description Key Highlights May 2014: Provides privilege access for users from the cloud to on-premises June 2013: Introduces an open and scalable platform for orchestration of privileged assets in the cloud June 2013: Its Enterprise Random Password Manager receives certificate of net worthiness from the US Army May 2013: Lieberman Software partners with Odyssey Consultants to deliver privileged identity management to Southern Europe

96 SWOT Analysis