Worldwide enterprise IT security

Market overview Q1 2013

Insight. Innovation. Impact.

Insight. Innovation. Impact.

Slow start to the year as investment declines

0

1,000

2,000

3,000

4,000

5,000

6,000

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

Security management Network security Content security

Worldwide enterprise IT security Q1 2012: $5,351 million Q1 2013: $5,193 million

Year-on-year growth: -3.0% Quarter-on-quarter growth: -8.2%

End-user value ($ million)

Source: Canalys estimates, IT Security Analysis, June 2013

Insight. Innovation. Impact.

North America $2,490 million

Year-on-year: -2.9% Quarter-on-quarter: -7.7%

Latin America $239 million

Year-on-year: 7.6% Quarter-on-quarter: -7.7%

EMEA $1,646 million

Year-on-year: -2.9% Quarter-on-quarter: -8.8%

APAC $818 million

Year-on-year: -5.7% Quarter-on-quarter: -8.8%

Latin America outperforms in Q1

Source: Canalys estimates, IT Security Analysis, June 2013

Total enterprise IT security Q1 2013

Insight. Innovation. Impact.

Seasonality impacts network security spend

$1,969 million Year-on-year: -1.4%

Quarter-on-quarter: -6.8%

$1,792 million Year-on-year: -9.7%

Quarter-on-quarter: -13.6%

$1,431 million Year-on-year: 4.5%

Quarter-on-quarter: -2.5%

Content security Network security Security management

Source: Canalys estimates, IT Security Analysis, June 2013

Insight. Innovation. Impact.

Vendor Market share Q1 2012

Market share Q1 2013

Value growth %

Share indicator

Total market $1,984 million $1,792 million -9.7%

Cisco 26.8% 24.9% -16.2%

Check Point 14.2% 16.4% 4.6%

Juniper Networks 10.1% 8.7% -22.2%

Fortinet 6.8% 6.5% -13.7%

IBM 4.2% 4.4% -3.7%

McAfee 5.4% 4.3% -27.5%

Palo Alto Networks 2.9% 4.1% 27.2%

HP 2.7% 3.1% 1.0%

F5 Networks 2.5% 2.9% 4.7%

Dell 2.9% 2.6% -19.4%

Check Point continues to gain market share

Source: Canalys estimates, IT Security Analysis, June 2013

Worldwide network security Q1 2013

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Network security APAC EMEA Latin America

North America Worldwide

Q1 2012 value Q1 2013 value

$337 million $299 million

$630 million $568 million

$81 million $91 million

$936 million $834 million

$1,984 million $1,792 million

Year-on-year growth Q-on-Q growth

-11.3% -12.2%

-9.9% -13.9%

13.2% -8.8%

-10.9% -14.3%

-9.7% -13.6%

Rank 1 Cisco 20.9%

Cisco 24.9%

Cisco 32.9%

Cisco 25.4%

Cisco 24.9%

Rank 2 Check Point 16.2%

Check Point 20.3%

Check Point 12.5%

Check Point 14.3%

Check Point 16.4%

Rank 3 Fortinet 12.8%

Juniper 8.2%

Fortinet 9.8%

Juniper 10.0%

Juniper 8.7%

Rank 4 Juniper 8.5%

Fortinet 6.6%

IBM 7.7%

McAfee 5.6%

Fortinet 6.5%

Rank 5 IBM 5.4%

IBM 3.8%

Dell 6.2%

Palo Alto 5.3%

McAfee 4.3%

Network security regional performances

Source: Canalys estimates, IT Security Analysis, June 2013

Insight. Innovation. Impact.

Good start to 2013 for Symantec Worldwide content security Q1 2013

Source: Canalys estimates, IT Security Analysis, June 2013

Vendor Market share Q1 2012

Market share Q1 2013

Value growth %

Share indicator

Total market $2,000 million $1,969 million -1.4%

Symantec 16.0% 16.5% 1.8%

McAfee 13.1% 12.9% -3.4%

Trend Micro 11.9% 11.3% -6.1%

Cisco 6.8% 6.5% -5.6%

Websense 5.2% 5.2% -0.3%

Sophos 3.8% 3.5% -8.0%

Kaspersky Lab 2.4% 2.7% 7.8%

Blue Coat 2.5% 2.4% -5.1%

Barracuda Networks 2.1% 2.3% 8.2%

Microsoft 2.2% 1.9% -16.0%

Insight. Innovation. Impact.

Content security APAC EMEA Latin America

North America Worldwide

Q1 2012 value Q1 2013 value

$362 million $339 million

$644 million $647 million

$96 million $99 million

$896 million $884 million

$1,998 million $1,969 million

Year-on-year growth Q-on-Q growth

-6.3% -9.2%

0.5% -8.1%

3.3% -4.9%

-1.4% -5.1%

-1.4% -6.8%

Rank 1 Trend Micro 32.8%

Symantec 12.5%

McAfee 12.3%

Symantec 21.0%

Symantec 16.5%

Rank 2 Symantec 16.4%

McAfee 12.2%

Trend Micro 8.6%

McAfee 16.3%

McAfee 12.9%

Rank 3 McAfee 5.4%

Trend Micro 9.6%

Kaspersky 7.7%

Cisco 7.0%

Trend Micro 11.3%

Rank 4 Cisco 3.9%

Cisco 8.1%

Websense 7.2%

Websense 5.9%

Cisco 6.5%

Rank 5 Websense 3.1%

Sophos 6.2%

Symantec 3.3%

Trend Micro 4.6%

Websense 5.2%

Content security regional performances

Source: Canalys estimates, IT Security Analysis, June 2013

Insight. Innovation. Impact.

Stable growth for Symantec and McAfee

0

50

100

150

200

250

Symantec McAfee Trend Micro Kaspersky Lab Sophos

Q1 2012 Q1 2013

Worldwide enterprise Client security software Q1 2012: $766 million Q1 2013: $762 million

Year-on-year growth: -0.6% Quarter-on-quarter growth: -6.5%

Top five vendors

End-user value ($ million)

Source: Canalys estimates, IT Security Analysis, June 2013

Insight. Innovation. Impact.

Websense executing well on hosted strategy

0

10

20

30

40

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60

Symantec Websense Cisco Microsoft McAfee

Q1 2012 Q1 2013

Worldwide enterprise Hosted security services Q1 2012: $293 million Q1 2013: $349 million

Year-on-year growth: 18.9% Quarter-on-quarter growth: 0.1%

Top five vendors

End-user value ($ million)

Source: Canalys estimates, IT Security Analysis, June 2013

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Direct Reseller - corporate

Reseller - online

Reseller - SMB

Reseller - specialist Retailer Service

provider Systems

integrator

72%

Distribution

Vendor

Indirect accounts for 92% of revenue

8% 19% 3% 11% 26% <1% 9% 24%

Worldwide Q1 2013 Enterprise IT security value by channels

20%

Micro (4%) Small (12%) Medium (27%) Large (44%) Service provider (13%)

Source: Canalys estimates, IT Security Analysis, June 2013

Worldwide enterprise IT security

Market overview Q1 2013

Insight. Innovation. Impact.

Americas: Suite 316, 855 El Camino Real, Palo Alto, CA 94301, US | tel: +1 650 681 4488 APAC: 2532 Wheelock Square, 1717 Nanjing West Road, Jing An District, Shanghai, China, 200040 | tel: +86 21 6157 5113

APAC: 1 Robinson Road, AIA Tower, #14-02, Singapore 048542 | tel: +65 6671 9399

EMEA: Diddenham Court, Lambwood Hill, Grazeley, Reading RG7 1JQ, UK | tel: +44 118 984 0520

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Insight. Innovation. Impact.