Global Mobile VPN Products Market:Meeting the Wireless Security Challenge with an Emerging VPNfor the Remote WorkerGlobalN...
2<N9B3-74>Research TeamMartha VazquezIndustry Analyst, Network Security(001) 210-247-3864Martha.vazquez@frost.comJennifer ...
3<N9B3-74>ContentsSection Slide NumbersExecutive Summary 4Market Overview 10Total Market -• External Challenges: Drivers a...
4<N9B3-74>Executive Summary
5<N9B3-74>Executive Summary• Wireless Internet connectivity has become ubiquitous during the last five years. Drivenprimar...
6<N9B3-74>Executive Summary (continued)• In 2010, the global mobile VPN products market was valued at $160 million in reve...
7<N9B3-74>Executive Summary—Market Engineering MeasurementsMarket StageGrowthMarketRevenues$160.0 M(2010)MarketUnits/Volum...
8<N9B3-74>Number ofCompanies thatExited*0(2010)Number ofCompanies thatEntered*0(2010)Number ofCompetitors19(active market ...
9<N9B3-74>Executive Summary—CEO’s Perspective2The mobile VPN market is expected toreach $382 million by 2015.3The demand f...
10<N9B3-74>Market Overview
11<N9B3-74>Market Overview—Definitions• A mobile VPN is a VPN with specific features designed to provide secure connectivi...
12<N9B3-74>Market Overview –Definitions (continued)• Application persistence - As mobile VPNs pass through different netwo...
13<N9B3-74>Market Overview—Definitions (continued)• North America refers to the United States and Canada.• Europe, the Mid...
14<N9B3-74>Market Overview—Definitions (continued)Source: Frost & Sullivan analysis.• The following list compares VPN Tech...
15<N9B3-74>Is the market growing, how long will it continue to grow and at what rate?HypothesesMarket Overview—Key Questio...
16<N9B3-74>Market Overview—Distribution ChannelsMarket VPN vendorsEnd CustomerPartnershipsVARsTotal Mobile VPN Products Ma...
17<N9B3-74>External Challenges: Drivers and Restraints—Total Mobile VPN Products Market
18<N9B3-74>Drivers and RestraintsMarketDriversMarketRestraints1-2 years 3-5 years 6-10 yearsIncrease in advanced and compl...
19<N9B3-74>Drivers Explained• Increase in advanced and complex threats drives demand for Mobile VPN solutions inorder to a...
20<N9B3-74>Drivers Explained (continued)• Explosion of mobile and wireless devices within organizations drives thedemand f...
21<N9B3-74>Drivers Explained (continued)• Compliance regulations require organizations to implement additional securityo T...
22<N9B3-74>Drivers Explained (continued)• Need for remote accessibility drives the need for secure and continuousaccess to...
23<N9B3-74>Restraints Explained (continued)• Budget concerns because of the current economic situation slows thepurchase o...
24<N9B3-74>Restraints Explained (continued)• Need to support multiple operating systems slows down mobile VPNdevelopment a...
25<N9B3-74>Restraints Explained• Costumer confusion about importance of mobile security solutions delaysspending on produc...
26<N9B3-74>Forecasts and Trends—Total Mobile VPN ProductsMarket
27<N9B3-74>MEASUREMENT NAME MEASUREMENT TRENDMarket Stage (Nascent, Growth, Mature) Growth —Market revenue(2010) $160.0 M ...
28<N9B3-74>Replacement Rate (average period of unit replacement) 18 Months ●Attachment Rate (current number of units per u...
29<N9B3-74>MEASUREMENT NAME MEASUREMENT TRENDAverage Product Development Time 15 Months ●Average R&D Spend by Product $5.5...
30<N9B3-74>Forecast AssumptionsThe forecast for mobile VPN market revenue and unit shipment prices are based onnumerous as...
31<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Market...
32<N9B3-74>Unit Shipment and Revenue Forecast Discussion• The global mobile VPN market was in a growth stage in 2010, with...
33<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Produc...
34<N9B3-74>Pricing Trends and Forecast Discussion• The pricing for the mobile VPN market differs somewhat from the traditi...
35<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Market...
36<N9B3-74>Revenue Forecast by RegionTotal Mobile VPN Products Market: Revenue Forecast by Region, 2007-2015Year North Ame...
37<N9B3-74>Regional Revenue Forecast Discussion• North America remained the leading geographic market for mobile VPNproduc...
38<N9B3-74>Product and Technology TrendsManagement tools: analytics/policy tools• Businesses today are looking for solutio...
39<N9B3-74>Product and Technology Trends (continued)Increasing number and types of mobile devices and operating systems• A...
40<N9B3-74>Legislative TrendsPayment Card Industry (PCI) Data Security Standard (DSS)• The PCI DSS set a minimum baseline ...
41<N9B3-74>Legislative Trends (continued)Gramm-Leach-Bliley Act• The Gramm-Leach-Bliley Act (GLB) targets the financial ma...
42<N9B3-74>Total Mobile VPN Products Market Percent of RevenueDistribution by Vertical MarketTelecommunications30.0%Govern...
43<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Produc...
44<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Produc...
45<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Produc...
46<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Produc...
47<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Produc...
48<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Produc...
49<N9B3-74>Vertical Market Revenue Forecast Discussion• Telecommunications and the government were the largest verticals f...
50<N9B3-74>Vertical Market Revenue Forecast Discussion(continued). • The healthcare vertical generated $16 million in reve...
51<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Produc...
52<N9B3-74>Distribution Channel Revenue Forecast Discussion• Key distribution channels for mobile VPN products include: pa...
53<N9B3-74>Market Share and Competitive Analysis—Total Mobile VPN Products Market
54<N9B3-74>Competitive Analysis—Market ShareNote: All figures are rounded. The base year is 2010. Source: Frost & Sullivan...
55<N9B3-74>Market Share AnalysisThe top five mobile participants contributed 55.1percent of total market revenue. NetMotio...
56<N9B3-74>Competitive EnvironmentSource: Frost & Sullivan analysis.Total Mobile VPN Products Market: Competitive Structur...
57<N9B3-74>Top CompetitorsCompany Strengths Weaknesses Opportunities ThreatsNetMotionWirelessProven and solidsolution, str...
58<N9B3-74>Top Competitors (continued)Company Strengths Weaknesses Opportunities ThreatsColumbitech Solid mobile VPNproduc...
59<N9B3-74>Competitor Growth AnalysisGrowthrate2009-2010NetMotion WirelessRevenue ($ Million)CiscoBirdstepTechnologiesSmit...
60<N9B3-74>Competitive Factors and AssessmentSource: Frost & Sullivan analysis.Tier AnalysisBirdstep Technologies, Radio I...
61<N9B3-74>InnovationStrategy ImplementationCheck PointColumbitechSource: Frost & Sullivan analysis.CiscoNetMotionWireless...
62<N9B3-74>Competitive Factors and Assessment (continued)Source: Frost & Sullivan analysis.Company PartnershipsNetMotion W...
63<N9B3-74>Competitive Factors and Assessment (continued)Source: Frost & Sullivan analysis.Company Current Client Operatin...
64<N9B3-74>NetMotion Wireless ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• Mobility XE 9....
65<N9B3-74>Competitor Opportunities• NetMotion is a solid competitor, but itlacks visibility into other geographicareas.• ...
66<N9B3-74>Cisco ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• Cisco’s mobile VPN includes...
67<N9B3-74>Cisco Strengths• Cisco is a well-known establishedinformation security vendor andintegrator. The company is a s...
68<N9B3-74>SmithMicro Software ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• SmithMicro of...
69<N9B3-74>SmithMicro Strengths• SmithMicro offers a broad portfolio ofsoftware solutions for the enterprisemarket.• Smith...
70<N9B3-74>Columbitech ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• Columbitech offers Co...
71<N9B3-74>Columbitech Strengths• Columbitech offers an innovative mobileVPN product and diverse platformsupport.• The Col...
72<N9B3-74>IBM ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• IBM offers its IBM Lotus Mobi...
73<N9B3-74>IBM Strengths• IBM has a broad product portfolio in thesoftware, hardware, and security market.IBM is a well-kn...
74<N9B3-74>Radio IP ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• Radio IP offers two type...
75<N9B3-74>Radio IP Strengths• Radio IP has experienced largedeployments in verticals, such as in thegovernment and utilit...
76<N9B3-74>Birdstep Technology ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• Birdstep offe...
77<N9B3-74>Birdstep Strengths• Birdstep has experienced largedeployments in verticals, such as thegovernment and healthcar...
78<N9B3-74>Cryptzone ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• Cryptzone offers variou...
79<N9B3-74>Crtyptzone Strengths• Cryptzone has a broad product portfolioin the network security market, offeringmore than ...
80<N9B3-74>NCP ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• NCP offer a holistic remote a...
81<N9B3-74>NCP Strengths• NCP continues grow partnerships withmany Tier I carriers and informationsecurity providers.• NCP...
82<N9B3-74>Juniper ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• Juniper offers Junos Puls...
83<N9B3-74>Competitor Opportunities• Juniper is more focused within theenterprise market, on organizations with1000 plus u...
84<N9B3-74>Check Point Software Technologies ProfileProduct Profile Pricing StructureKey Features Market Strategy• As part...
85<N9B3-74>Check Point Strength• Check Point has a broad portfolio ofsecurity solutions; its endpoint umbrellaof solutions...
86<N9B3-74>North America Breakdown
87<N9B3-74>North America Breakdown• North America refers to the UnitedStates and Canada.• The North American region has th...
88<N9B3-74>Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.2007 2008 2009 2010 201...
89<N9B3-74>North America Unit Shipment and Revenue ForecastDiscussion• The North American market remains the leading geogr...
90<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Key Takeaway: Telecommu...
91<N9B3-74>North America Vertical Market Revenue ForecastDiscussion• Telecommunications and the government are the top two...
92<N9B3-74>Europe, Middle East, and Africa (EMEA) Breakdown
93<N9B3-74>EMEA BreakdownSource: Frost & Sullivan analysis.• EMEA includes countries in Europe(including Eastern Europe), ...
94<N9B3-74>Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.2007 2008 2009 2010 201...
95<N9B3-74>EMEA Unit Shipment and Revenue Forecast Discussion• In 2010, EMEA generated $16.3 million in revenue, represent...
96<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.EMEA Market Revenue For...
97<N9B3-74>EMEA Vertical Market Unit Shipment and RevenueForecast Discussion• Regulations and compliance standards complia...
98<N9B3-74>APAC Breakdown
99<N9B3-74>APAC BreakdownSource: Frost & Sullivan analysis.• APAC refers to countries in East andSoutheast Asia and Austra...
100<N9B3-74>Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.2007 2008 2009 2010 20...
101<N9B3-74>APAC Unit Shipment and Revenue Forecast Discussion• In 2010, the APAC region totaled $16.8 million in revenue....
102<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.APAC Market Revenue Fo...
103<N9B3-74>APAC Vertical Market Unit Shipment and RevenueForecast Discussion• Meeting regulatory and compliance standards...
104<N9B3-74>Latin America Breakdown
105<N9B3-74>Latin America BreakdownSource: Frost & Sullivan analysis.• Latin America refers to Mexico, Centraland South Am...
106<N9B3-74>Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.2007 2008 2009 2010 20...
107<N9B3-74>LATAM Unit Shipment and Revenue ForecastDiscussion• In 2010, the LATAM region totaled $8.0 million in revenue....
108<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.LATAM Market Revenue F...
109<N9B3-74>LATAM Vertical Market Unit Shipment and RevenueForecast Discussion• Within LATAM, the government vertical gene...
110<N9B3-74>The Last Word
111<N9B3-74>The Last Word—Three Big Predictions2Partnering with integrators, telecom and managed security providers(MSSPs)...
112<N9B3-74>The Last Word—ConclusionsCentralConclusionThe increase in usingvarious operating systemsin the market will dri...
113<N9B3-74>Legal DisclaimerFrost & Sullivan takes no responsibility for any incorrect information supplied to us bymanufa...
114<N9B3-74>Appendix
115<N9B3-74>Market Engineering MethodologyOne of Frost & Sullivan’s coredeliverables is its Market Engineeringstudies. The...
116<N9B3-74>Partial List of Companies Interviewed• Birdstep Technologies• Cisco• Check Point Software• Columbitech• Crypto...
117<N9B3-74>Additional Sources of Information on Network Security• Network Security Subscription• Market Engineering Resea...
118<N9B3-74>Learn More—Next Steps Request a proposal for or Growth Partnership Services or Growth Consulting Servicesto s...
119<N9B3-74>Table of Acronyms UsedAPAC Asia-PacificCAGR Compound annual growth rateEMEA Europe, Middle East, AfricaIPSec I...
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Frost & Sullivan Global Mobile VPN Products Market

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Frost & Sullivan Global Mobile VPN Products Market

  1. 1. Global Mobile VPN Products Market:Meeting the Wireless Security Challenge with an Emerging VPNfor the Remote WorkerGlobalN9B3-74September 2011
  2. 2. 2<N9B3-74>Research TeamMartha VazquezIndustry Analyst, Network Security(001) 210-247-3864Martha.vazquez@frost.comJennifer BatesDirector of Consulting & Network Security(001) 940-455-7475Jennifer.Bates@frost.comAlpa ShahVice President of Research, ICT(001) 650-475-4556Alpa_Shah@frost.com
  3. 3. 3<N9B3-74>ContentsSection Slide NumbersExecutive Summary 4Market Overview 10Total Market -• External Challenges: Drivers and Restraints 17• Forecasts and Trends 26• Market Share and Competitive Analysis 53North America Breakdown 86Europe, Middle East and Africa (EMEA) Breakdown 92Asia Pacific (APAC)Breakdown 98Latin America Breakdown 104The Last Word (Conclusions and Implications) 110Appendix 114
  4. 4. 4<N9B3-74>Executive Summary
  5. 5. 5<N9B3-74>Executive Summary• Wireless Internet connectivity has become ubiquitous during the last five years. Drivenprimarily by lower cost access and integrated connectivity in devices, such as laptops,tablets, and smartphones, wireless Internet has become a viable option for remoteemployees.• As a result, many businesses and government entities have built remote Internetcapabilities into their operating fabrics.• Employees are utilizing mobile devices to perform transactions directly at customerworksites. Protecting these transactions and providing secure connectivity back to thecentral office is a critical concern.• While many mobile security technologies exist, mobile virtual private network (VPN)technology allows organizations to enhance productivity and operate more effectivelyand efficiently by providing secure and persistent connections for remote workers.• The mobile VPN products market is an emerging market. The Mobile VPN market isgaining traction because of the explosive growth of mobile devices and the increasinglystringent regulatory requirements facing organizations.Source: Frost & Sullivan analysis.
  6. 6. 6<N9B3-74>Executive Summary (continued)• In 2010, the global mobile VPN products market was valued at $160 million in revenue,with a compound annual growth rate (CAGR) of 18.4 percent. The North Americanregion represents the highest percentage of the global market, at 79 percent and$126.9 million in total revenue.• In 2010, the top two vertical markets for mobile VPN products were thetelecommunications segment and the government segment. Both of these verticalshave a large number of remote employees with access to sensitive information andlarge field service teams.• The mobile VPN market is forecasted to show solid growth throughout the forecastperiod. The market consists of a wide variety of vendors ranging from dedicatedsoftware vendors, such as NetMotion Wireless and Columbitech, to large vendors thatoffer a breadth of networking products, such as Cisco and Juniper. Source: Frost & Sullivan analysis.
  7. 7. 7<N9B3-74>Executive Summary—Market Engineering MeasurementsMarket StageGrowthMarketRevenues$160.0 M(2010)MarketUnits/Volume832.9(000)(2010)Average PricePer Unit$192.1Market Size atEnd of ForecastPeriod$522.0 M(2015)Base YearMarket GrowthRate21.2%CompoundAnnual GrowthRate18.4%(CAGR)Customer PriceSensitivity5(scale:1 [low] to 10 [High])MarketConcentration38.5%Degree ofTechnicalChange6(scale:1 [low] to 10 [High])Market OverviewTotal Mobile VPN Products Market: Global, 2010For a tabular version click here.Stable IncreasingDecreasing(% of market share held bytop 3 companies)Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.
  8. 8. 8<N9B3-74>Number ofCompanies thatExited*0(2010)Number ofCompanies thatEntered*0(2010)Number ofCompetitors19(active market competitors inbase year)AttachmentRate1(current number of units peruser - Base Year)Executive Summary—Market Engineering Measurements(continued)Competitor OverviewStable IncreasingDecreasingTotal Addressable MarketReplacementRate18Months(average period of unitreplacement)CurrentPotential Users3.1 M(Revenue/ Average SalesPrice)Total Addressable MarketIndustry AdvancementMarketingSpend as aPercent ofMarket Revenue5.5%Average R&DSpend byProduct$5.5MMaximumAttachmentRate2(maximum potential numberof units per user)•Companies with revenue > $1M revenue. Note: All figures are rounded. The base year is 2010.Source: Frost & Sullivan analysis.AverageProductDevelopmentTime15Months
  9. 9. 9<N9B3-74>Executive Summary—CEO’s Perspective2The mobile VPN market is expected toreach $382 million by 2015.3The demand for mobile VPNtechnologies is increasing asbusinesses adopt more mobile devices.4Mobile VPNs will be integrated intoother security solutions instead ofremaining a separate product.5The adoption of mobile VPN productscontinues to grow outside the telecomand government verticals.1The mobile VPN market is in a growthstage, with a CAGR of 18.4 percent.Source: Frost & Sullivan analysis.
  10. 10. 10<N9B3-74>Market Overview
  11. 11. 11<N9B3-74>Market Overview—Definitions• A mobile VPN is a VPN with specific features designed to provide secure connectivity andpersistence over wireless networks. While other technologies, such as mobile Internet protocol(IP), IPSec, or Secure Sockets Layer (SSL) VPNs, provide similar functionality, mobile VPNs unifypersistence and security features into a single product built for wireless coverage.• A mobile VPN allows devices to work across a variety of public or private networks, wired orwireless. These networks include wired local area networks (LAN), Wi-Fi networks, hotspots, andmany varieties of wireless wide area networks (WANs) provided by different wireless carriers andsatellite networks.• A mobile VPN solution may also include additional reporting, management, and control features.Frost & Sullivan also sees many traditional network access control (NAC) vendors partnering withvendors in this space, and some mobile VPN vendors have developed their own NAC solutions.• Frost & Sullivan requires the following features to be present in a mobile VPN solution forinclusion in this study:o Session Persistence - Traditional VPN users lose connectivity once they roam into differentwireless networks, whereas mobile VPN users do not. The virtual IP address for eachmobile VPN client remains the same, even when the IP address changes. The networkconnection is always on through a persistent IP address.Source: Frost & Sullivan analysis.
  12. 12. 12<N9B3-74>Market Overview –Definitions (continued)• Application persistence - As mobile VPNs pass through different networks, the applicationsessions are sustained, even when connectivity is lost.• Traditional VPNs lose application sessions, which causes data loss and forces users to restartapplications.• Network transparency - When switching networks, the mobile VPN is transparent to the user anddoes not compromise security or privacy. The application interface remains the same.• Bandwidth optimization - Mobile VPNs use a variety of optimization features to reduce networkconsumption and to lower bandwidth constraints thus lowering costs for organizations.Source: Frost & Sullivan analysis.
  13. 13. 13<N9B3-74>Market Overview—Definitions (continued)• North America refers to the United States and Canada.• Europe, the Middle East, and Africa (EMEA) includes countries in Europe, includingEastern European countries and countries in Western Asia, and countries in Africa.• Asia-Pacific (APAC) refers to countries in East and Southeast Asia, including Japan andAustralia.• Latin America (LATAM) refers to Mexico, Central and South America.• This research service/study defines a unit as a single license per user sold by a mobileVPN vendor to a customer either directly or indirectly through a reseller or a channelpartner.• The average unit price is calculated by dividing the total product revenue by the number oflicenses sold.• Revenue is based on original vendor product sales and does not include resale revenue orproducts sold by original equipment manufacturer (OEM) partners.Source: Frost & Sullivan analysis.
  14. 14. 14<N9B3-74>Market Overview—Definitions (continued)Source: Frost & Sullivan analysis.• The following list compares VPN Technologies in the total global mobile VPN products market in 2010:o SSL VPN• Enables a secure remote connection through a Web browser• Addresses the needs of mobile workers, customers, and business partners to connect remotelyto their respective corporate resources• Does not need preinstalled client software but has higher bandwidth costso Internet protocol security (IPSec) VPN• Enables only fixed and site-to-site devices• IPSec addresses the need for connectivity between remote offices• Installed on only one device, so client software is needed and the solution is not persistento Mobile VPN• Enables remote site-to-site connection and seamless roaming from any wireless network• Provides a seamless connection for an application to a wireless network• Provides data compression and bandwidth optimization when working on legacy wirelessnetworks
  15. 15. 15<N9B3-74>Is the market growing, how long will it continue to grow and at what rate?HypothesesMarket Overview—Key Questions This Study Will AnswerAre the existing competitors structured correctly to meet customer needs?What are the challenges faced by the mobile VPN vendors in the market? What are the markettrends driving the mobile VPN market?What are the top growth areas, geographically and vertically for the VPN market?What are the top distribution methods in the VPN market, and which method posses the fastestgrowth? Will partnerships be a key distribution method in the future?Source: Frost & Sullivan analysis.Who are the top participants in the mobile VPN market, and is the market ripe for acquisitions?
  16. 16. 16<N9B3-74>Market Overview—Distribution ChannelsMarket VPN vendorsEnd CustomerPartnershipsVARsTotal Mobile VPN Products Market: Distribution Channel Analysis, Global, 2010Key: VARs: value-added resellersSource: Frost & Sullivan analysis.Key Takeaway: Partnerships and value-added resellers (VARs) are preferred sources ofmarket VPN products because of their ability to provide trusted technical guidance.OnlineDirect Sales10.0%
  17. 17. 17<N9B3-74>External Challenges: Drivers and Restraints—Total Mobile VPN Products Market
  18. 18. 18<N9B3-74>Drivers and RestraintsMarketDriversMarketRestraints1-2 years 3-5 years 6-10 yearsIncrease in advanced and complex threats drivesdemand for Mobile VPN solutions in order to addresssecurity on wireless devicesCompliance regulations require organizations toimplement additional securityBudget Concerns because of the currenteconomic situation slows the purchase ofmobile VPN solutionsExplosion of mobile and wireless devices withinorganizations drives the demand for Mobile VPN solutionsNeed to support multiple operating systemsslows down mobile VPN development and salesNeed for remote accessibility drives theneed for secure and continuous access tocritical dataCostumer confusion about importance ofmobile security solutions delays spending onproducts, such as mobile VPNsImpact: High Medium LowTotal Mobile VPN Products Market: Key Market Drivers and Restraints: Global, 2011-2020Source: Frost & Sullivan analysis.
  19. 19. 19<N9B3-74>Drivers Explained• Increase in advanced and complex threats drives demand for Mobile VPN solutions inorder to address security on wireless deviceso The Internet has become a universal platform for conducting business. As aresult, attackers have zeroed in on the Internet for conducting theft and fraud.Mobile devices are not immune from this trend and both consumers andorganizations are looking for products to secure transactions conducted onInternet from outside the organization.o Even though mobility allows workers to demonstrate improved productivity,organizations have become increasingly concerned with hackers accessingcorporate networks by posing as remote employees. Cybercriminals have shownthey can easily take advantage of users connecting through hot spots or throughunsecured connections, and organizations have little defense against these kindsof attacks.o Hackers are constantly looking for new vulnerabilities to exploit, and enterprisesneed to be prepared for these zero-day attacks. Using encrypted sessions andenforcing organizational policies on the mobile endpoint will help to prevent theseattacks.Source: Frost & Sullivan analysis.
  20. 20. 20<N9B3-74>Drivers Explained (continued)• Explosion of mobile and wireless devices within organizations drives thedemand for mobile VPN solutionso Lowered prices and higher speeds for mobile Internet drive mobile devicesinto the hands of businesses and consumers.o Organizations are leveraging the use of personal mobile devices in theworkplace. Today, most employees can access any business applicationand can connect to their corporate networks from anywhere throughmobile applications, such as smartphones, laptops, tablets, and netbooks.o Because more and more work transactions are processed through mobiledevices, security is a heighted concern. Mobile VPN technology and othermobile security products will be a crucial component as more mobiledevices enter the workplace.Source: Frost & Sullivan analysis.
  21. 21. 21<N9B3-74>Drivers Explained (continued)• Compliance regulations require organizations to implement additional securityo The instances of data breaches continue to rise, and organizations arerequired to comply with government regulations that help secure customerdata and company financial information.o As mobile devices become more prevalent and more cyber threatsspecifically targeting mobile devices are discovered, the security for mobiledevices must improve.o Regulation and compliance is a strong driver for all information securitymarkets, including the mobile VPN market. Verticals and industriescontinue to release specific guidance and regulations for informationsecurity. Influential legislation effecting mobile VPN market include: thePayment Card Industry Data Security Standard (PCI DSS), the HealthInsurance Portability and Accountability Act (HIPAA), the HealthInformation Technology for Economic and Clinical Health Act (HITECH),the Gramm-Leach Bliley Act (GLB) and Sarbanes Oxley (SOX).Source: Frost & Sullivan analysis.
  22. 22. 22<N9B3-74>Drivers Explained (continued)• Need for remote accessibility drives the need for secure and continuousaccess to critical datao For remote employees, the ability to access data at all times is critical.Businesses now expect their employees to be able to log on from anylocation. The ability to access the Internet through enhanced wirelesstechnologies has allowed for applications to be downloaded onto mobiledevices. Employees are using more applications than originally intended.As more applications are available for mobile or wireless devices,enterprises are utilizing these applications to increase efficiency and toenhance productivity.o Furthermore, falling prices for consumer devices and data plans havedriven organizations to adopt more mobile devices into the workplace.Because businesses financially benefit from constant employee mobility,keeping connections secure and persistent is a necessity.Source: Frost & Sullivan analysis.
  23. 23. 23<N9B3-74>Restraints Explained (continued)• Budget concerns because of the current economic situation slows thepurchase of mobile VPN solutionso Since 2008, the global economy has experienced slow growth, causingmany businesses to cut spending. In a majority of organizations, IT hasbee hit hard by spending cuts. As a result, sales cycles have slowed,which has slowed growth in the overall information security market and fornew security products, specifically.o Starting in 2010, the economy started to recover, but IT administratorsremain cautious about spending on new security technologies. Frost &Sullivan believes that the need for mobile device security will outpace thecurrent hesitation and this market will show steady growth through theforecast period.Source: Frost & Sullivan analysis.
  24. 24. 24<N9B3-74>Restraints Explained (continued)• Need to support multiple operating systems slows down mobile VPNdevelopment and saleso Mobile devices of the past were Windows laptops and personal digitalassistants (PDAs), but the recent mobile-device market explosion hasresulted in an array of mobile devices. Employees are no longer limited toWindows devices, but are using Macs, iPhones, Androids, Blackberries,and Symbian devices to connect to corporate networks.o Mobile VPN vendors are now scurrying to offer solutions for these broad-based platforms. This restraint will decrease as mobile VPN vendors offera larger portfolio for these diverse operating systems. Many mobile VPNvendors have support on the roadmap or in development for theseplatforms, and this restraint will lessen over the next 18 months asdevelopment and product releases catch up with demand.Source: Frost & Sullivan analysis.
  25. 25. 25<N9B3-74>Restraints Explained• Costumer confusion about importance of mobile security solutions delaysspending on products, such as mobile VPNso Enterprise architects are still discovering more security measures areneeded as they adapt to more wireless devices connecting to theirnetworks. These security issues have perplexed information (IT)administrators on how to implement proper security measures for wirelessdevices.o Many organizations attempting solve mobile security challenges look totraditional VPN solutions, such as SSL or IPSec VPN. Mobile VPNvendors have to educate IT buyers before they can influence their buyingdecisions.o Despite high adoption by many organizations, many organizations remainreluctant to adopt mobile devices because of the potential security risksassociated with allowing remote employees to access corporate networks.Source: Frost & Sullivan analysis.
  26. 26. 26<N9B3-74>Forecasts and Trends—Total Mobile VPN ProductsMarket
  27. 27. 27<N9B3-74>MEASUREMENT NAME MEASUREMENT TRENDMarket Stage (Nascent, Growth, Mature) Growth —Market revenue(2010) $160.0 M ▲Market Units/Volume (2010) 83.9 (000) ▲Average Price Per Unit $192.1 ▼Market Size at End of Forecast Period (2015) $382.0 M ▲Base Year Market Growth Rate 21.2% ▼Compound Annual Growth Rate (CAGR) 18.4% —Customer Price Sensitivity (scale of 1 to 10, Low to High) 5 ●Degree of Technical Change (scale of 1 to 10, Low to High) 7 ▲Market Concentration (% of base year market controlled by top 3 competitors) 38.5% ▼Market Engineering MeasurementsNote: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.TRENDDecreasing Stable Increasing▼ ● ▲Market OverviewTotal Mobile VPN Products Market: Global, 2010
  28. 28. 28<N9B3-74>Replacement Rate (average period of unit replacement) 18 Months ●Attachment Rate (current number of units per user - 2010) 1 ●Maximum Attachment Rate (maximum potential number of units per user - 2010) 2 ●Base Year 2010 (Potential Users or Addressable Market) 3.1 M ●MEASUREMENT NAME MEASUREMENT TRENDNumber of Competitors (active market competitors in base year) 19 ●Number of Companies that Exited in Base Year* 0 ●Number of Companies that Entered in Base Year* 0 ●Market Engineering Measurements (continued)Competitor OverviewTotal Addressable MarketNote: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.* Companies with >$1M revenue.TRENDDecreasing Stable Increasing▼ ● ▲
  29. 29. 29<N9B3-74>MEASUREMENT NAME MEASUREMENT TRENDAverage Product Development Time 15 Months ●Average R&D Spend by Product $5.5 M ▲Marketing Spend as a Percent of Market Revenue 5.5% ●Market Engineering Measurements (continued)TRENDDecreasing Stable Increasing▼ ● ▲Industry AdvancementNote: All figures are rounded; base year is 2010. Source: Frost & Sullivan analysis.
  30. 30. 30<N9B3-74>Forecast AssumptionsThe forecast for mobile VPN market revenue and unit shipment prices are based onnumerous assumptions, including the following factors:• New cyber security requirements and legislation to be released in 2012 and 2013• Continued product development and new features expected between 2010 and2013• Continued cyber terrorism and data-security breaches throughout the forecastperiod• A significant increase in number mobile devices entering organizations through 2015• Continued concerns around unsecure mobile devices entering enterprise space• Increased competition from traditional VPN security solutions from 2011 to 2015• The integration and consolidation of VPN clients onto new mobile devicesSource: Frost & Sullivan analysis.
  31. 31. 31<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Market Unit Shipment and RevenueForecastKey Takeaway: An increase in using wireless devices will fuel revenuegrowth through 2015.2007 2008 2009 2010 2011 2012 2013 2014 2015Revenue 90.0 110.0 132.0 160.0 193.0 230.0 275.0 325.0 382.0Units 441.4 550.3 673.6 832.9 1025.1 1246.6 1520.9 1834.2 2199.90.0500.01000.01500.02000.02500.00.050.0100.0150.0200.0250.0300.0350.0400.0450.0Units(000s)Revenue($Million)YearTotal Mobile VPN Products Market Unit Shipment and RevenueForecast, Global, 2007-2015CAGR = 18.4%
  32. 32. 32<N9B3-74>Unit Shipment and Revenue Forecast Discussion• The global mobile VPN market was in a growth stage in 2010, with an estimated $160million in revenue. The market is expected to grow at a CAGR of 18.4 percentthroughout the forecast period. The base year growth was 21.2 percent in 2010. Themarket is expected to generate $382 million in revenue by 2015.• High growth was expected for the mobile VPN market in a 2008 study; however, actualgrowth was slower than forecasted because of the competition increase and thepopularity of a variety of operating systems in the device market. Most mobile VPNvendors have been slow in offering broader platforms and have focused on the Windowsplatform. As a result, growth during the forecast period is expected to be approximately18.4 percent healthy but lower than many other security markets.• The number of units represents the number of users purchasing mobile VPN solutions.In 2010, the number of units was estimated at 832.9 thousand and was predicted toreach 3.1 million users by 2015. The average sales price used to determine the numberof units was estimated to be $192.1 per user. The price is expected to reach $173.60 peruser by 2015 and is expected to decline as more competitors begin offering similarsolutions and the demand increases because of the number of various endpointsentering the business market.Source: Frost & Sullivan analysis.
  33. 33. 33<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Products Market Pricing Trends andForecastKey Takeaway: Prices are expected to decline slightly at a -2.0 percent CAGR during thenext five years.2007 2008 2009 2010 2011 2012 2013 2014 2015Average Price 203.9 199.9 195.9 192.1 188.3 184.5 180.8 177.2 173.2155.0160.0165.0170.0175.0180.0185.0190.0195.0200.0205.0210.0AveragePrice($)YearAverage Price for Mobile VPN ProductsTotal Mobile VPN Products Market: Global, 2007-2015CAGR=-2.0%
  34. 34. 34<N9B3-74>Pricing Trends and Forecast Discussion• The pricing for the mobile VPN market differs somewhat from the traditional SSL or IPSec VPNvendors who charge for the number of deployed users. Mobile VPN vendors have a variety ofsales models. Some vendors may sell a clients to a company and then include the server for free.Other vendors may place the client for free within the device and make up the revenue fromhardware or support services.• The average sales price in 2010 was $192.1 per user. The average sales price is expected toreach $173.2 per user by 2015. Prices are expected to decline as more competitors begin offeringsimilar solutions increasing competition. Not included in this pricing are annual maintenance feesthat range from 20 to 30 percent of the cost.• Mobile VPN pricing can vary, depending on the featured set or solution and the contract size. Thepricing can also change, depending on the service or the maintenance model the client chooses.Dedicated mobile VPN vendors are experiencing increased competition from traditional networkequipment vendors, such as Juniper and Cisco. Cisco, for example, has a solution that includesmany of the benefits of a mobile VPN, such as seamless roaming and application persistence.Stand-alone mobile VPN vendors continue to add separate modules into the mobile VPN solutionas a means to differentiate themselves from other traditional SSL VPN vendors.Source: Frost & Sullivan analysis.
  35. 35. 35<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Market Percent Revenue Forecast byRegionKey Takeaway: The North American market will remain the key adopter for newertechnologies.0.0%20.0%40.0%60.0%80.0%100.0%2007 2008 2009 2010 2011 2012 2013 2014 2015Latin America 5.0 4.9 5.0 5.0 5.1 5.2 5.3 5.5 5.7APAC 5.0 5.2 5.4 5.5 5.6 5.8 6.0 6.1 6.2EMEA 9.9 10.2 10.1 10.2 10.3 10.4 10.6 10.8 11.1North America 80.1 79.7 79.5 79.3 79.0 78.6 78.1 77.6 77.0%RevenueYearTotal Mobile VPN Products Market Percent Revenue Forecast byRegion, 2007–2015
  36. 36. 36<N9B3-74>Revenue Forecast by RegionTotal Mobile VPN Products Market: Revenue Forecast by Region, 2007-2015Year North America($ Million)EMEA($ Million)APAC($ Million)Latin America($ Million)2007 72.1 8.9 4.5 4.52008 87.7 11.2 5.7 5.42009 104.9 13.3 7.1 6.62010 126.9 16.3 8.8 8.02011 152.5 19.9 10.8 9.82012 180.8 23.9 13.3 12.02013 214.8 29.2 16.5 14.62014 252.2 35.1 19.8 17.92015 294.1 42.4 23.7 21.8CAGR 17.6% 20.3% 25.3% 21.8%Source: Frost & Sullivan analysis.
  37. 37. 37<N9B3-74>Regional Revenue Forecast Discussion• North America remained the leading geographic market for mobile VPNproducts, with approximately $126.9 million in revenue and 79.3 percent ofthe market in 2010. North America provides solid market opportunitybecause of its heavily regulated business environment and early adoptermentality for security solutions.• In 2010, EMEA generated $16.3 million in revenue, representing 10.2percent of the global mobile VPN market. Mobile VPN products arebeginning to gain more traction in EMEA. The small revenue amountrepresents the nascent nature of this market combined with the broaderacceptance of mobile technologies in EMEA lead Frost & Sullivan to believethe potential for high levels of competition in EMEA.• In 2010, the APAC and Latin America markets combined totaled $16.8million in revenue. For the APAC region, the market represented a CAGR of25.3 percent and represented 5.6 percent of the Global VPN market. LatinAmerica regions had a CAGR of 21.8 percent and represented 5.1 percentof the global mobile VPN market.Source: Frost & Sullivan analysis.
  38. 38. 38<N9B3-74>Product and Technology TrendsManagement tools: analytics/policy tools• Businesses today are looking for solutions that offer more than just secure tunnels—they are also looking for better management tools. The increase in multiple devicesand remote employees has driven the need for better visibility in managing thesedevices. In addition, the remote user can now log in to many different networks,making it difficult for IT management to centrally manage these devices. In additionto managing these devices, businesses want to view mobile workers’ activities onwireless connections.Network Access Control (NAC)• Companies such as NetMotion Wireless and Birdstep have implemented NACsolutions into their portfolios. The NAC feature allows users to connect to thecorporate network only if it complies with security policies. Although this functionalityhas appeared as important in the past, its adaption has been slow. Control inpolicies and management is becoming increasingly more important than the NACfeature.Source: Frost & Sullivan analysis.
  39. 39. 39<N9B3-74>Product and Technology Trends (continued)Increasing number and types of mobile devices and operating systems• As the number of remote workers increases, the multitude of new wireless devicesand operating systems is also causing challenges for businesses. In the past fewyears, the market has experienced an influx in new operating systems besidesWindows. Many traditional mobile VPN participants only support Windows andSymbian, and the addition of support for new platforms is a critical competitive factormoving forward.Integration/consolidation• Organizations continue to demand a one-stop-shop for security products to reducecomplexity and the amount of support contracts. In the information security market,integration and consolidation of vendors continues to rise. Vendors, such as Ciscoand Juniper, are partnering with other mobile vendors to increase the valueproposition of their solutions. It is likely that pure-play mobile VPN vendors will needto create tighter integration and partnerships with other mobile vendors, or they willbe acquired by larger, more comprehensive security providers.Source: Frost & Sullivan analysis.
  40. 40. 40<N9B3-74>Legislative TrendsPayment Card Industry (PCI) Data Security Standard (DSS)• The PCI DSS set a minimum baseline in the marketplace to protect a cardholder’ssensitive account and transaction information. On 1 October 2008, PCI DSS 1.2was implemented. The main purpose for the update was to clarify existingrequirements and provide flexibility in the standard’s interpretation. Within the mobileVPN market, legislation has stirred the retail market and businesses that haveaccess to remote credit card transactions. The need for encryption and protectingdata in motion continues to drive the market for mobile security.HIPAA and HITECH• The Health Insurance Portability and Accountability Act (HIPAA) was signed into lawon August 21, 1996, causing a host of security solutions to be evaluated andimplemented by hospitals, doctors, pharmacies, and insurance companies. TheHealth Information Technology for Economic and Clinical Health Act (HITECH)responds to the criticisms of HIPAA and builds on HIPAA and broadens HIPPA’sscope by increasing the rigor for compliance. As the healthcare market adoptswireless technologies, the need for remote access will increase. In addition,organizations will need to secure any mobile or wireless device that is accessing thecorporate network to reduce the possibility of threats.Source: Frost & Sullivan analysis.
  41. 41. 41<N9B3-74>Legislative Trends (continued)Gramm-Leach-Bliley Act• The Gramm-Leach-Bliley Act (GLB) targets the financial markets, banks, securitiesfirms, and insurance companies. This act addresses the privacy of consumer dataand its exchange. Given the sensitivity of financial information, the financial sectorrequired little convincing of the need for securing their communications. Financialinstitutions were early adopters of security technologies because of the size of theirnetworks and budgets and the sensitivity of their data.Sarbanes-Oxley Act• The Sarbanes-Oxley Act (SOX) set and enforced standards for corporate financialaccountability. Intended to reduce fraud and conflicts of interest, SOX mandates thatCEOs, CFOs, and auditing firms attest to the validity of financial records and audits.It establishes managements responsibility for internal control and financialreporting; it also requires organizations to report material changes in financialconditions or operations on a rapid and current basis.Source: Frost & Sullivan analysis.
  42. 42. 42<N9B3-74>Total Mobile VPN Products Market Percent of RevenueDistribution by Vertical MarketTelecommunications30.0%Government20.0%Healthcare10.0%Utilities10.0%Financial7.0%*Other23.0%Percent Sales BreakdownTotal Mobile VPN Products Market: Global, 2010Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.*Other Verticals include: Retail, Media, Transportation, Hospitality, Manufacturing , and Entertainment
  43. 43. 43<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Products Market Revenue Forecast byVertical Market (continued)yKey Takeaway: Telecommunications will provide strong growth opportunities duringnext 5 years.*Other Verticals include: Retail, Media, Transportation, Hospitality, Manufacturing , and Entertainment2007 2008 2009 2010 2011 2012 2013 2014 2015Other 24.5 28.2 32.0 36.8 42.1 48.2 53.8 60.6 65.7Utilities 8.3 10.5 12.9 16.0 19.9 24.2 30.0 35.8 43.5Financial 5.7 7.2 8.8 11.2 13.7 16.8 20.6 24.7 29.8Healthcare 7.9 10.0 12.5 16.0 20.1 24.4 30.3 37.4 45.5Telecommunications 26.5 32.6 39.3 48.0 58.3 69.7 83.9 99.5 117.7Government 17.2 21.5 26.1 32.0 39.0 46.7 56.4 67.0 79.8Revenue Growth Rate (%) 22.2 20.0 21.2 20.6 19.2 19.6 18.2 17.50.05.010.015.020.025.00.050.0100.0150.0200.0250.0300.0350.0400.0450.0GrowthRate(%)Revenue($Million)YearTotal Mobile VPN Products Market Revenue Forecast byVertical Market , 2007-2015, Global
  44. 44. 44<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Products Market Unit Shipment andRevenue Forecast for Telecommunications VerticalKey Takeaway: Wireless carriers and other telecom carriers will continue to drive the sales ofmobile VPNs from integrated devices2007 2008 2009 2010 2011 2012 2013 2014 2015Revenue 26.5 32.6 39.3 48.0 58.3 69.7 83.9 99.5 117.7Units 129.7 162.9 200.7 249.8 309.6 377.7 463.9 561.2 677.50.0100.0200.0300.0400.0500.0600.0700.0800.00.020.040.060.080.0100.0120.0140.0Units(1000s)Revenue($Million)YearTotal Mobile VPN Products Market, Unit Shipment and RevenueForecast for Telecommunications VerticalGlobal, 2007–2015CAGR = 19.1%
  45. 45. 45<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Products Market Unit Shipment andRevenue Forecast for Government VerticalKey Takeaway: State and emergency response workers will drive the governmentmarket.2007 2008 2009 2010 2011 2012 2013 2014 2015Revenue 17.2 21.5 26.1 32.0 39.0 46.7 56.4 67.0 79.8Units 84.2 107.3 133.3 166.5 207.0 253.0 311.8 377.8 459.70.050.0100.0150.0200.0250.0300.0350.0400.0450.0500.00.010.020.030.040.050.060.070.080.090.0Units(1000s)Revenue($Million)YearTotal Mobile VPN Products Market Unit Shipment and RevenueForecast for Government VerticalGlobal, 2007–2015CAGR = 19.4%
  46. 46. 46<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Products Market Unit Shipment andRevenue Forecast for Utilities VerticalKey Takeaway: Field utility workers will continue to fuel revenue growth.2007 2008 2009 2010 2011 2012 2013 2014 2015Revenue 8.3 10.5 12.9 16.0 19.9 24.2 30.0 35.8 43.5Units 40.6 52.2 66.0 83.2 105.5 130.8 165.7 201.7 250.70.050.0100.0150.0200.0250.0300.00.05.010.015.020.025.030.035.040.045.050.0Units(1000s)Revenue($Million)YearTotal Mobile VPN Products Market Unit Shipment and RevenueForecast for Utilities VerticalGlobal, 2007-2015CAGR = 21.5%
  47. 47. 47<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Products Market Unit Shipment andRevenue Forecast for Healthcare VerticalKey Takeaway: Field workers in the healthcare market will fuel revenue growth2007 2008 2009 2010 2011 2012 2013 2014 2015Revenue 7.9 10.0 12.5 16.0 20.1 24.4 30.3 37.4 45.5Units 38.8 50.0 63.9 83.2 106.6 132.1 167.3 210.9 261.70.050.0100.0150.0200.0250.0300.00.05.010.015.020.025.030.035.040.045.050.0Units(1000s)Revenue($Million)YearTotal Mobile VPN Products Market Unit Shipment and RevenueForecast for Healthcare VerticalGlobal, 2007-2015CAGR = 22.6%
  48. 48. 48<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Products Market Unit Shipment andRevenue Forecast for Financial VerticalKey Takeaway: The financial market is more inclined to purchase traditional SSL VPN solutions, butwill be inclined to try new technologies.2007 2008 2009 2010 2011 2012 2013 2014 2015Revenue 5.7 7.2 8.8 11.2 13.7 16.8 20.6 24.7 29.8Units 27.8 35.7 45.1 58.3 72.7 91.0 114.0 139.4 171.50.020.040.060.080.0100.0120.0140.0160.0180.0200.00.05.010.015.020.025.030.035.0Units(1000s)Revenue($Million)YearTotal Mobile VPN Products Market Unit Shipment and RevenueForecast for Financial VerticalGlobal, 2007–2015CAGR = 21.1%
  49. 49. 49<N9B3-74>Vertical Market Revenue Forecast Discussion• Telecommunications and the government were the largest verticals for mobile VPN products in 2010.The telecommunications vertical represented 30 percent of the global mobile VPN market andgenerated $48 million in revenue. The government vertical represented 20 percent of the global VPNmarket by generating $32 million in revenue. The telecommunications vertical includes vendors, suchas communication carriers and service providers. Telecommunications companies usually provideservices to their own clients; therefore, this market is expected to experience growth through theincreasing demand of mobile and wireless devices.• The government vertical remains a leading vertical in information security products. Furthermore, themobile VPN market is in high demand for public safety, emergency, federal, local, and stateagencies. The early adopters for this solution were providers for public safety and emergencies.Devices typically purchased in this sector consist of integrated mobile VPN clients because thedemand for seamless security is increasing for this sector.• To remain in compliance, several key security standards are required before approving wirelessdevices for government employees. The key required security standards include strongauthentication, non-repudiation, and secure personal identification devices and network levels. Whilethese stringent requirements are more difficult for vendors to meet, the government is less pricesensitive than other verticals.Source: Frost & Sullivan analysis.
  50. 50. 50<N9B3-74>Vertical Market Revenue Forecast Discussion(continued). • The healthcare vertical generated $16 million in revenue in the total global mobile VPN market. In2010, this segment represented 10 percent of the global mobile VPN market. The healthcare verticalis made of hospitals and other healthcare facilities.• The healthcare vertical has been a key adopter of SSL VPNs and Virtual Desktop Infrastructure(VDI). Meeting HIPAA compliance has increased the need to secure data on mobile devices—theeffort to meet these compliance regulations will create strong traction for this market globally.• Field workers, physicians, and medical staff are being given more access to confidential medicalrecords and other healthcare applications through wireless networks; therefore, the need to protectthis data in transit will help spur the growth of the healthcare vertical. Home healthcare andtelemedicine is driving the addition of more wireless devices and with required compliancelegislations, such as HIPAA and HITech, mobile-device security be at the forefront of deployments.• The utilities vertical is comprised of gas, electric, and energy companies. The utilities segment hasadopted mobile VPN solutions in order to provide continuous application sessions and seamlessroaming capabilities to field service workers. Field service workers within the utilities vertical are alsoutilizing this solution to process orders and respond to service inquires more efficiently andeffectively.Source: Frost & Sullivan analysis.
  51. 51. 51<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Total Mobile VPN Products Market Percent RevenueForecast by Distribution ChannelKey Takeaway: Partner channels will remain the most influential channel in 2011; theVARs channel will also continue to grow throughout 2015.0.0%20.0%40.0%60.0%80.0%100.0%2007 2008 2009 2010 2011 2012 2013 2014 2015Web 3.1 3.5 3.6 3.0 2.9 2.7 2.5 2.4 2.1Partners 43.6 44.1 44.5 45.0 45.3 45.7 46.0 46.2 46.4Direct Sales 12.0 11.0 10.1 10.0 9.5 9.1 8.7 8.3 7.8VARS 41.3 41.4 41.8 42.0 42.3 42.5 42.8 43.1 43.7%RevenueYearTotal Mobile VPN Products Market Percent Revenue Forecast by DistributionChannelGlobal, 2007-2015
  52. 52. 52<N9B3-74>Distribution Channel Revenue Forecast Discussion• Key distribution channels for mobile VPN products include: partnerships with telecomcompanies, integrators, and handset manufacturers. VARs are also an importantdistribution channel for mobile VPN products. In 2010, partnerships accounted for $72million in revenue and 45 percent of mobile VPN market. Partnerships are expected tocontinue to be a key driver in the future, generating $177.2 million in revenue or 46.3percent of the market by 2015. Carriers such as AT&T, Sprint, and Verizon Wirelesshave been instrumental in selling mobile VPN solutions to their customers. Addingsecurity to the wireless portfolio has been important in the sales process for wirelesssolutions.• VARs generated $67.2 million in revenue in 2010. VARs remains a key channeldistributer for mobile VPN vendors. VARs are expected to remain a top distribution pointfor mobile VPN providers and are expected to contribute $166.9 million in revenue by2015.• Managed security service providers are also hosting mobile VPN services. Enterpriseshave found that mobile deployments may be confusing and complex; therefore,enterprises are turning to MSSPs to host this service. MSSPs are expected to become amore important channel in the next 3 to 5 years.Source: Frost & Sullivan analysis.
  53. 53. 53<N9B3-74>Market Share and Competitive Analysis—Total Mobile VPN Products Market
  54. 54. 54<N9B3-74>Competitive Analysis—Market ShareNote: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.Key Takeaway: Consolidation and acquisition is expected as Tier I network securitycompanies broaden their mobile security portfolioNetMotion Wireless16.5%Columbitech6.7%Radio IP4.7%SmithMicro Software6.7%Birdstep Technology2.7%Cisco15.3%IBM6.7%Others40.7%Percent of SalesTotal Mobile VPN Products Market: Global, 2010Other vendors include: Anthasoft, Broadbeam (A Mobileaware Company), Check Point Software, Cryptzone, Fortinet, GoodTechnology, Juniper Networks, NCP Secure Communications, NetSeal Mobility, RIM, The Green Bow, WatchGuardn = 19
  55. 55. 55<N9B3-74>Market Share AnalysisThe top five mobile participants contributed 55.1percent of total market revenue. NetMotion Wirelessleads the competition in 2010 with 16.5 percent ofrevenue. NetMotion Wireless developedrelationships with wireless carriers early in themarket, and these relationships have proven to befavorable for the company. In addition to existingpartnerships, NetMotion’s early market entrance hasalso enabled the company’s success in the mobileVPN market.Cisco is a top integrator in the market, and its alwayson approach for remote access has enabled thecompany to gain a strong market entrance in theenterprise market. Cisco ranked second next toNetMotion with $23 million in revenue for 2010.Companies Revenue (%)NetMotion Wireless 16.5Cisco 15.3Columbitech 6.7SmithMicro Software 6.7IBM. 6.7Radio IP 4.7Birdstep Technology 2.7Others 40.7Total 100.0* A list of “Other” companies can be found at link to slide in appendix. Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.Mobile VPN Products Market: Company MarketShare Analysis of Top ParticipantsGlobal, 2010
  56. 56. 56<N9B3-74>Competitive EnvironmentSource: Frost & Sullivan analysis.Total Mobile VPN Products Market: Competitive Structure, Global, 2010Number of Companies in the Market 19 with revenue greater than $1M USDCompetitive FactorsPrice, performance, partnership relationships, technology,security features, ease of use, easy end-user experienceKey End-user Groups Government, healthcare, utility, financial, and retail industriesMajor Market Participants NetMotion Wireless, CiscoMarket Share of Top 10 Competitors 59.3%Other Notable Market ParticipantsGreen Bow, MobileAware, Cryptozone, Check Point Software,NCP EngineeringDistribution Structure VARSs, D Wireless Carriers, integrators, OEMs, direct salesNotable Acquisitions and MergersRadio IP purchased ipUnplugged in 2009, Cryptzone acquiredAppGate in 2009
  57. 57. 57<N9B3-74>Top CompetitorsCompany Strengths Weaknesses Opportunities ThreatsNetMotionWirelessProven and solidsolution, strongrelationships withpartnersLimited product line withinthe information securitymarket, platform fordevices is not broadGovernment andhealthcare markets, solidreputation for local andstate government entitiesSlower growth thanexpected in the market,Needs diverse platformsto support growingcustomer demandCiscoProduct and servicediversity, strongreputation and brandnameLeverages other mobileVPN vendors for acomplete solution,focused more on theenterprise marketSolid penetration in theenterprise market, utilizesits existing customersCost, more of an all-in-onesolutionSmithMicroSoftwareStrong partnershipsand diverse softwareproductPrimarily focused on theWindows PlatformHas solid partnershipswith various carriers andhardware vendorsIntegrators, such as Ciscoand Juniper, are offeringlucrative enterprise dealsIBMStrong reputation andbrand nameThe mobile VPN solutionis an extension to its LotusNotes product lineLeverage its existingenterprise customers andoffer a holistic secureconnectivity solutionProduct is primarily avalue-added solution forLotus customers, lacksbroader market appealSource: Frost & Sullivan analysis.
  58. 58. 58<N9B3-74>Top Competitors (continued)Company Strengths Weaknesses Opportunities ThreatsColumbitech Solid mobile VPNproduct, works well forintegration, supportsAndroid platformLow penetration in NorthAmericaWireless carriers, value-added resellers in NorthAmericaSlow growth because ofeconomic restraints,focuses less on enterprisemarketsRadio IPProduct and servicediversityLimited marketpenetration globallyGovernment and globalexpansion marketsThe need to remarketbrand name afterpurchase of ipUnpluggedBirdstepTechnologiesSolid product offeringand relationshipsSmall penetration in theenterprise market, lowbrand awarenessNorth Americapenetration, building morepartnershipsLow growth due toeconomic issuesCryptzone Solid security portfolioand SSL VPN providerBuilding reputation inmobile VPN marketNorth America andbuilding strong distributionchannelsLow brand name andreputation in VPN marketNCP Engineering Solid SSL VPNsolution and hybridoffering, strongrelationshipsStrong brand nameoutside Germany, offeringis for large enterprisesNorth Americapenetration, offers amanaged service forpenetrating SMB marketsCompetitive market fromlarge networkingcompanies such as CiscoSource: Frost & Sullivan analysis.
  59. 59. 59<N9B3-74>Competitor Growth AnalysisGrowthrate2009-2010NetMotion WirelessRevenue ($ Million)CiscoBirdstepTechnologiesSmith MicroSoftwareColumbitech> 10% growth 10-20% Growth > 20% GrowthKey Takeaway: The highest penetration rates are expected to come from Cisco,Juniper, and NetMotion WirelessCompetitor Growth AnalysisTotal Mobile VPN Products Market: Global, 2010IBMCheck Point SoftwareTechnologiesRadio IPJuniperNetworksNote: Bubble size represents relative capitalization. Thebase year is 2010. Source: Frost & Sullivan analysis.
  60. 60. 60<N9B3-74>Competitive Factors and AssessmentSource: Frost & Sullivan analysis.Tier AnalysisBirdstep Technologies, Radio IP, NCP Engineering, CryptzoneColumbitech, Smith Micro,IBM, Check Point SoftwareNetMotion Wireless, CiscoTier IIITier IITier ICompany Tier AnalysisCompany Tier Analysis• There are three tiers of competitors in the globalmobile VPN security market.• NetMotion Wireless and Cisco were the Tier Imarket competitors that dominated the market,with a combined share of 42.5 percent in 2010.• Tier II companies, including Columbitech , IBM,Check Point Software were consideredchallengers or contenders, with a strongpresence in the market.• Tier III companies had a smaller presence in themarket, primarily niche markets.
  61. 61. 61<N9B3-74>InnovationStrategy ImplementationCheck PointColumbitechSource: Frost & Sullivan analysis.CiscoNetMotionWirelessJuniperNetworksTotal Mobile VPN Products Market: Strategy Implementation and Innovation by VendorGlobal, 2010Competitive Analysis (continued)Competitive Factors and Assessment (continued)RadioIPBirdstep TechnologiesIBMCryptzoneNCP Engineering
  62. 62. 62<N9B3-74>Competitive Factors and Assessment (continued)Source: Frost & Sullivan analysis.Company PartnershipsNetMotion Wireless AT&T, Verizon Wireless, Microsoft, T-Mobile,Sprint, Sybase iAnywhere, Sierra WirelessColumbitech Motorola Symbol, Ericsson, Tella, VerizonBusiness, HP InventBirdstep Technology Nokia, Ericsson, Cisco, MicrosoftRadio IP Bell Canada, Comintel, Rogers, MotorolaNCP Engineering WatchGuard, T-Mobile, Verizon WirelessSmith Micro Software AT&T, Bell Canada, Sprint, T-Mobile USA,Verizon Wireless, VodafoneMobileAware AT&T, RIM, Certicom, Motorola, Ericsson, Sprint,Sierra Wireless, Verizon WirelessTotal Mobile VPN Products Market: Notable Key Partnerships by Vendor Global, 2010
  63. 63. 63<N9B3-74>Competitive Factors and Assessment (continued)Source: Frost & Sullivan analysis.Company Current Client Operating SystemsSupportedNetMotion Wireless Windows 7, Windows Vista, Windows XP,Windows Mobile, Windows CEColumbitech Windows 2000 Professional, Windows XP,Windows Vista and 7 32/64 bit, Windows Mobile2002, 2003 , 5.0, 6.X, Windows CE, Symbian9.1, AndroidBirdstep Technology Windows XP, Vista 7, Windows WM6.1,6.5,Nokia S60 3.1, 3.2, Android 1.6, 2.1,2.2Radio IP Windows, Windows XP, Windows 7 64 bitNCP Engineering Windows 7, Windows Vista, Windows XP,Windows Mobile 5.0,6.x, Linux , Mac OSX,Symbian OS S60 3rd editionSmith Micro Software Windows XP 32 bit, Vista 32 bit, 7 32 bitIBM Windows, Windows Mobile, Symbian and LinuxCisco Symbian, OS/ iOS and WindowsTotal Mobile VPN Products Market: Notable Key Partnerships by Vendor, Global, 2010
  64. 64. 64<N9B3-74>NetMotion Wireless ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• Mobility XE 9.0: a software-based mobile VPN• Policy Managment Module: admins can createspecific policies to manage.• Network Access Control Module: allowsdevices to access the corporate network ifspecific security policies are met.• Analytics Module: allows for better visability.• The average cost per license for Mobility XE isestimated to be $175 to $200, which includesone year maintenance.• Total Investment Upfront:o 100 users : $20,000o 500 users: $100,000o 1000 users: $180,000• Key features for the mobile VPN solutionsinclude: User-transparent security, two-factorauthentication, device authentication advancedencryption standard (AES ) encryption, NetworkAccess Control (NAC).• Data compression for real-time applications,streaming video and packet-loss recovery• Netmotion Wireless was one of the firstcompanies to specialize in the public safety/emergency medical vertical. The company hasalso sold through strong partnerships, such asAT&T and other wireless carriers. As a result,these partnerships have enabled NetMotion togain strong traction in the market.Source: Frost & Sullivan research.
  65. 65. 65<N9B3-74>Competitor Opportunities• NetMotion is a solid competitor, but itlacks visibility into other geographicareas.• NetMotion is a strong competitor in thegovernment sector, but it does not havea large presence in the enterprisemarket.• The company’s product is restricted tothe Windows operating system;therefore, the company needs to focuson expanding to support more operatingsystems, such as the Android and Appleplatforms.NetMotion Wireless Strengths• NetMotion Wireless already has a strongpresence in the North American marketand is making an entrance into theEuropean market.• NetMotion Wireless has expanded itsproduct line to include a detailed policymanagement and network access control(NAC) module.• Frost & Sullivan believes that NetMotionWireless will continue to have a strongposition in the mobile VPN market.NetMotion Wireless Profile (continued)Source: Frost & Sullivan analysis.
  66. 66. 66<N9B3-74>Cisco ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• Cisco’s mobile VPN includes the Cisco SecureMobility “ always on” or “on demand”connectivity• Components include client software, anddevices can be managed through CiscoAdaptive Security Appliance (ASA)• Pricing varies, depending on the number ofusers and requirements• Estimated initial investment for 500 users:• Price includes ASA 5520 VPN edition,with 500 SSL user license, AnyConnectMobile license and support for one year• The solution offers an “always on “ experience• In addition, the VPN offers an optimizedgateway selectionOther additional features include:• Web secuirty• Granular control• Cisco focuses more on the enterprise market,focusing on 500 plus users• The company leverages its SSLVPN footprintand its enterprise market to offer a holistic VPNsolution; Cisco’s global distribution allows thecompany to have a larger geographic footprintSource: Frost & Sullivan research.• An “always on “ experience• Optimized Gateway Selection• Network roaming• Web security• Granular control
  67. 67. 67<N9B3-74>Cisco Strengths• Cisco is a well-known establishedinformation security vendor andintegrator. The company is a strongparticipant in the SSL VPN market withan established presence in the NorthAmerican, EMEA, and APAC.• Cisco has a strong presence within theenterprise market, and it leverages itspartnerships and its reputation tomaintain its market presence.• The company has support for a broadplatform of devices, such as Symbian,Apple, and Windows.Cisco Profile (continued)Source: Frost & Sullivan analysis.Competitor Opportunities• Cisco only offers the connectionmanager for Windows laptops.• Cisco relies on a homogeneous network,which is not always the best fit for allcustomers• Cisco has a larger presence in theenterprise segment and only a smallpresence in the small business market.
  68. 68. 68<N9B3-74>SmithMicro Software ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• SmithMicro offers QuickLink Mobility, a securemobile VPN and network management solution.• Other solutions within the company’sconnection and security portfolio include:QuickLink Mobile, SODA, and QuickLinkHotspot Manager• Pricing varies, depending on the number ofusers and requirements.• Estimated initial investment for 500 users:• $23,000 equipment and software• One Year Maintenance cost, estimated at$31,000Key features included:• Session persistance• Access Control and remediation• Software and device managment• Integrated diagnostics and reporting• Centralized policy management and clientcustomization• The company has strong partnerships withWireless carriers and believes this will remain astrong distrubution channel in the future.• The company also strategically offers a breadthof other software solutions to the enterprisemarket, so it leverages the enterrpise to expandits productsSource: Frost & Sullivan research.
  69. 69. 69<N9B3-74>SmithMicro Strengths• SmithMicro offers a broad portfolio ofsoftware solutions for the enterprisemarket.• SmithMicro continues to expand itsfootprint through developing strongpartnerships, such as its currentrelationship with Telecom New Zealand,the largest telecommunication serviceprovider in New Zealand.• SmithMicro’s ability to offer solid securityservices and advanced applicationsenables the company to remaincompetitive in the market.SmithMicro Software Profile (continued)Source: Frost & Sullivan analysis.Competitor Opportunities• SmithMicro has a smaller presencegeographically compared to othervendors.• SmithMicro’s QuickLink only supports theWindows platform. Broader devicesupport is needed as more enterpriseschose other platforms such as Androidand Apple.• SmithMicro focuses more onmanagement and connectivity ratherthan security.
  70. 70. 70<N9B3-74>Columbitech ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• Columbitech offers Columbitech mobile VPN, asecure mobile VPN solution for laptops andmobile devices.• Other solutions include: CT Connect, ability toaccess the Internet anywhere.• Pricing varies, depending on the number ofusers and requirements.• Estimated initial investment for 500 users:o $20,0000 equipment, software, licensesand one-year maintenance supportKey features include:• FIPS 140-2 certified mobile VPN• Multifactor authenitaction with up to 256-bitAES encryption• Session persistence• Advanced data compression• Seamless roaming• Columbitech has gained a strong marketpresence in the retail and government markets.• Columbitech continues to build its businessthough partnerships with Verizon, and othertelecom companies. Columbitech has alsobeen a strong partner with Symbol for providinga mobile VPN for its Symbol devices.Source: Frost & Sullivan research.
  71. 71. 71<N9B3-74>Columbitech Strengths• Columbitech offers an innovative mobileVPN product and diverse platformsupport.• The Columbitech solution offers otheradvanced features such as timestamping, geographic IP addresses andgeo-location capabilities.• Columbitech is working diligently toprovide cloud services and to offer bettermanagement tools.• Columbitech has built strongpartnerships to enable future growth inthe market.Columbitech Profile (continued)Source: Frost & Sullivan analysis.Competitor Opportunities• Columbitech has experienced slowergrowth due to economic conditions.• Columbitech has limited distribution andgrowth in North America• Columbitech remains a smallerparticipant in the market, with little growthoutside the mobile VPN market.
  72. 72. 72<N9B3-74>IBM ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• IBM offers its IBM Lotus Mobile Connectsolution.• IBM’s Lotus Mobile Connect works in conjuctionwith its other products, such as IBM LotusSametime software, Web Conferencing, IBMWebSphere Portal, IBM Lotus Notes, and IBMLotus Expeditor.• Pricing varies, depending on the number ofusers, feature sets and deal sizes.• The pricing for the Lotus Mobile Connect is partof a total solution for IBM’s collaboration asolution. A server is typically $5,700 for 100users. Client access is typically $100 per user.• IBM includes its mobile connect solution as afeature to its other IBM Lotus products.• IBM is a well-known security, software, andhardware solutions vendor that focuses on theenterprise segment, with more than 5,000 plusemployees.Source: Frost & Sullivan research.Key features include:• Session Persistence• Data Optimization• Anytime, anywhere access to collaboration andenterrpise applications• FIPS 140-2
  73. 73. 73<N9B3-74>IBM Strengths• IBM has a broad product portfolio in thesoftware, hardware, and security market.IBM is a well-known brand that isrespected in the security market.• IBM leverages its enterprise customerbase to add additional security solutions,such as Lotus Mobile Connect.IBM Profile (continued)Source: Frost & Sullivan analysis.Competitor Opportunities• IBM only offers its Lotus Mobile Connectwithin its IBM Lotus Sametime software,Web conferencing, IBM WebSherePortal, IBM Lotus Notes, and IBM LotusExpeditor.• IBM’s mobile connections are limited toWindows, Windows Mobile, Symbian,and Linux platforms.
  74. 74. 74<N9B3-74>Radio IP ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• Radio IP offers two types of mobile VPNsolutions, Radio IP MTG, ipUnplugged, andMult IP.• Radio IP MTG is tailored for the public safety(government) and utility sectors.• Mult IP is focused other enterprises, such asthe healthcare and financial sectors.• Pricing varies, depending on the number ofusers , feature sets, and deal sizes.• Estimated initial investment for 500 users:o $100,000 software licenses and one-yearmaintenance supporto $200 per-user license• Constant connectivityacross multiple-IP andnon-IP wirelessnetworks• BandwidthOptimization• FIPS 140-2 compliant• Single sign onauthentication• Two-factorauthentication• Access Defender• Secure Guest Access• Radio IP has focused on governement andutilites segments. The company purchasedipUnplugged in 2009 and is now slowly gainingtraction in the enterprise market.• Radio IP plans to strengthen its position byoffering support to a broader number of mobiledevice platforms.Source: Frost & Sullivan research.
  75. 75. 75<N9B3-74>Radio IP Strengths• Radio IP has experienced largedeployments in verticals, such as in thegovernment and utilities segments.• Radio IP’s solution offers seamlessconnectivity to legacy networks that maynot be supported by other mobile VPNproviders. In addition, the solutions havea solid group-policy management controlsystem.• Radio IP can work on Windowsplatforms, but plans exist for expandingto Windows Mobile and Android devices.Radio IP Profile (continued)Source: Frost & Sullivan analysis.Competitor Opportunities• Radio IP is heavily distributed in NorthAmerica and has limited internationalpresence.• Radio IP acquired ipUnplugged tocompliment Radio IP’s existing solutionand to penetrate European markets, butthe company lacks a strong brand nameand reputation in the enterprise market.
  76. 76. 76<N9B3-74>Birdstep Technology ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• Birdstep offers, SafeMove, a mobile VPNsoftware• Other software solutions within its profolioinclude:o EasyConnecto SmartConnect• Pricing varies, depending on the number ofusers, feature sets, and deal size• Estimated initial investment for 500 users:o $100,000 software licenses and one-yearmaintenance supporto $200.00 per-user licenseKey features include:• Network Access Control-like feature• FIPS 140-2 Encryption• Session persistence• Seamless roaming• Zero- Click connectivity• Data and VOIP optimization• Birdstep has a strong direct channel though itspartnerships.The company maintains strongpartnerships with other companies, such asEricsson and Cisco.• Birstep continues to provide a strong innovativesolution, along with a mulitude of platforms tosupport.Source: Frost & Sullivan research.
  77. 77. 77<N9B3-74>Birdstep Strengths• Birdstep has experienced largedeployments in verticals, such as thegovernment and healthcare segments.• Birdstep has a solid position within itsdomestic market, Finland, and itcontinues to grow in the public segment.• The BirdStep product can work onvarious devices, making the solutioncross platforms for all computers, tabletsand smartphone operating systems.Birdstep Technology Profile (continued)Source: Frost & Sullivan analysis.Competitor Opportunities• Birdstep has experienced marginalgrowth due to economic and conditionsand the restructuring of the BirdstepGroup.• Primary growth was largely frominternational territories because othermarkets were slowed due to budgetissues.• Birdstep has a limited presence in NorthAmerica and within the governmententerprise market.
  78. 78. 78<N9B3-74>Cryptzone ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• Cryptzone offers various security products:Content Security, endpoint security, policycompliance, and secure access.• The Appgate security server enables secureaccess from mobile, desktop, and laptopdevices. The Appgate Client is a securityapplication that works on various devices.• Pricing varies and depends on the number ofusers , feature sets, and deal size• Estimated initial investment for 500 users:o $150,000 software licenses and one-yearmaintenance supporto $300.00 per-user license• Cryptzone offers security solutions and OEMtechnologies with various partners and offerssecurity and professional services• Cryptzone focuses on the EMEA and APACregions.Source: Frost & Sullivan research.• Authentication, authorization, encryption• Access control, client control• Monitoring and reporting• Add on module Offers IP-tunneling for full IPconnetivity and unlimited applcation access• Seamless roaming between networks andoperators
  79. 79. 79<N9B3-74>Crtyptzone Strengths• Cryptzone has a broad product portfolioin the network security market, offeringmore than just mobile VPN solutions.• Cryptzone has a number of partnersOEMing their technologies within theEuropean market.• The Cryptzone Appgate client includes amobile VPN that will log the user onautomatically when switching networks,and supports the Windows and Symbianplatform.Cryptzone Profile (continued)Source: Frost & Sullivan analysis.Competitor Opportunities• Cryptzone has a limited presence in theNorth American market.• Cryptzone is not as well known as othersecurity companies, such as Cisco orJuniper.• The Cryptzone Appgate client needs toadd support for Apple and Androiddevices in order to remain competitve.
  80. 80. 80<N9B3-74>NCP ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• NCP offer a holistic remote access VPN, theNCP Secure Enterprise Solution• The NCP Secure Enterprise Solution includes :o Cliento NCP Secure Enterprise Servero NCP Secure Enterrpise ManagmentSystem• Pricing varies, depending on the number ofusers, feature sets, and deal sizes• The typical sales investment model for 100,500, or 1000 users:o $100–$10,000o $500–$50,000o $1000–$100,000• NCP continues to focus on buildingrelationships with companies, such as T-Mobile,and Juniper Networks, and increasing itsplatform to include iOS4, OS, Andriod• NCP plans to add its seamless roamingsolution to other networks, such as Wi-FI to 4GSource: Frost & Sullivan research.Key features include:• Dynamic personal firewall configuration andmanagement• Network Access Control or endpoint policyenforcement functions• Monitoring and Reporting• Freindly net detection
  81. 81. 81<N9B3-74>NCP Strengths• NCP continues grow partnerships withmany Tier I carriers and informationsecurity providers.• NCP recently partnered with Juniper, atop integrator in the enterprise market tohelp resell its NCP Enterprise Solution.• NCP continues to expand its presenceglobally and win large sales, such asAmerican Hospice.NCP Profile (continued)Source: Frost & Sullivan analysis.Competitor Opportunities• NCP is a smaller contender in the globalmarket most of its revenue coming fromthe European market.• NCP lacks a strong brand name orreputation in the broader informationsecurity market.• NCP does not provide seamless roamingfor all platforms.
  82. 82. 82<N9B3-74>Juniper ProfileProduct/Service Profile Pricing StructureKey Features Market Strategy• Juniper offers Junos Pulse for mobile devices• Junos mobile solutiions include a mobile VPNand security solution, which is designed toallow an enterrpise to enable users to utilizecoportate-manged or personal devices withsecure remote access to corporate networks,applications, and data.• Pricing varies depending on the number ofusers and deal size• The typical sales investment model for 500users:o 500 users - $30,000 license only• Juniper will focus on moving trends inexpanding the platform to enable more secureenterprise mobility on the corporate networkand more extensive mobile devicemanagement. Juiper will continue to targetlarge service providers, MSSPs, wirelesscarriers, and enterprises.Source: Frost & Sullivan research.• Antimalware/Personal firewall• Role-based access to certain applications• Loss and theft protection• Device control• Integrated approach to security and secureaccess to devices.
  83. 83. 83<N9B3-74>Competitor Opportunities• Juniper is more focused within theenterprise market, on organizations with1000 plus users, so they are potentiallymissing deals with small and mid-sizedorganizations.• Other security vendors such as CheckPoint and Cisco are highly competitiveagainst Juniper, meaning lower marginsand longer sales cycles.Juniper Strengths• Juniper is the market leader in the SSLVPN market and has a strong reputationin other security products market.• Juniper has a strong presence in theenterprise market and has establishedvarious partners, such as serviceproviders, to provide more channels ofdistribution.• Juniper supports a broad platform ofdevices, which includes Windows, AppleiOS (iPhone and iPads), Andriod, andRIM.Juniper Profile (continued)Source: Frost & Sullivan analysis.
  84. 84. 84<N9B3-74>Check Point Software Technologies ProfileProduct Profile Pricing StructureKey Features Market Strategy• As part of Check Point’s endpoint securityportfolio, Check Point offers Mobile AccessSoftware Blade• The solution offers mobile VPN access to thecorporate netwok email, and businessapplications• Pricing varies, depending on the number ofusers and deal size• The typical sales investment model for 1000users:o 1000 users is $40,000 license• Check Point is 100 percent indirect channeland consists of various OEM partnerships.• Most of the enterprise market is sold throughCheck Point, standard partners, and endpointsecurity solution providers.Source: Frost & Sullivan research.Key features include:• Personal firewall• Port control• Seamless roaming accross wireless networks• Managedment through SmartCenter andProvider-1
  85. 85. 85<N9B3-74>Check Point Strength• Check Point has a broad portfolio ofsecurity solutions; its endpoint umbrellaof solutions offers a complete end-to-endsolution.• Check Point has a reputable brand nameand reputation and has a solidpenetration across the global landscape.• The solution supports iOS, Android,Windows XP, Vista, and Windows 7.Check Point Software Technologies Profile (continued)Source: Frost & Sullivan analysis.Competitor Opportunities• Other vendors, Cisco and Juniper inparticular, are strong competitors toCisco, lowering margins and extendingsales cycles.• The company recently launched its iOSplatform, but the SecureClient Mobileproduct still only supports WindowsMobile and Android.
  86. 86. 86<N9B3-74>North America Breakdown
  87. 87. 87<N9B3-74>North America Breakdown• North America refers to the UnitedStates and Canada.• The North American region has thehighest mobile VPN market revenue.• Mobile VPN sales in North Americaaccounted for 79.3 percent of thetotal market revenue.• The higher market penetration ofmobile VPN products could also beattributed to the number of largewireless carriers in the market.Source: Frost & Sullivan analysis.
  88. 88. 88<N9B3-74>Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.2007 2008 2009 2010 2011 2012 2013 2014 2015Revenue 72.1 87.7 104.9 126.9 152.5 180.8 214.8 252.2 294.1Units 353.6 438.6 535.5 660.4 809.8 979.8 1,187.8 1,423.3 1,693.90.0200.0400.0600.0800.01,000.01,200.01,400.01,600.01,800.00.050.0100.0150.0200.0250.0300.0350.0Units(1,000s)Revenue($Million)YearMobile VPN Products Market Unit Shipment and Revenue Forecast,North America,2007-2015CAGR = 17.6%North America Market Unit Shipment and RevenueForecastKey Takeaway: Revenue growth is fueled by new subscribers from 2009 to 2011.
  89. 89. 89<N9B3-74>North America Unit Shipment and Revenue ForecastDiscussion• The North American market remains the leading geography for mobile VPN sales. The NorthAmerican market generated approximately $126.9 million in revenue and accounted for 79.3percent of total sales in 2010.• North America remains a key market for mobile VPN vendors because of the early adoption ofNorth American organizations. In addition, higher market penetration is attributed to many largewireless carriers in the market.• In 2010, the North American market experienced strong growth with a CAGR of 17.6 percent.North America remains an established IT infrastructure, compared to other emerging markets, andis predicted to maintain its solid growth throughout the forecast period.• Compliance in North America remains a strong driver, and the need to maintain secureconnectivity also continues to drive the North American market. The drive to utilize mobile orwireless devices in North America has also been more widely adopted in this area more than othergeographical areas. As a result of the increase in remote workers, the North American region hasexperienced a larger demand for mobile VPN solutions than it has in the past.• The adoption of the mobile devices into the enterprise is expected to continue to stir this market,creating more demand for mobile security solutions. The rise of remote workers in the governmentand other verticals within the North American market will remain an upward trend throughout theforecasted period.Source: Frost & Sullivan analysis.
  90. 90. 90<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.Key Takeaway: Telecommunications and the Government verticals will continue toexperience high growth.North America Market Revenue Forecast by VerticalMarket2007 2008 2009 2010 2011 2012 2013 2014 2015Other 12.1 13.6 15.8 17.8 20.1 22.8 25.3 28.0 30.0Utilities 5.6 6.8 8.3 10.2 12.4 14.8 17.8 21.4 25.6Financial 6.8 8.4 10.3 12.7 15.4 18.4 22.3 26.5 31.2Healthcare 6.3 8.4 10.0 12.7 15.9 19.2 23.2 27.7 33.2Telecommunications 20.0 24.4 29.3 35.5 42.8 51.0 60.8 71.6 83.8Government 21.3 26.0 31.3 38.1 45.9 54.6 65.3 76.9 90.3Revenue Growth Rate (%) 21.6 19.7 20.9 20.2 18.6 18.8 17.4 16.60.05.010.015.020.025.00.050.0100.0150.0200.0250.0300.0350.0GrowthRate(%)Revenue($Million)YearTotal Mobile VPN Products Market Revenue Forecast byVertical Market , 2007-2015 North America
  91. 91. 91<N9B3-74>North America Vertical Market Revenue ForecastDiscussion• Telecommunications and the government are the top two verticals for the NorthAmerican mobile VPN market. In 2010, the North American government verticalaccounted for 30 percent of the total mobile VPN market. Customers in thegovernment segment invested heavily in mobile VPNs due to the increase in remoteworkers utilizing wireless capabilities and solutions within the public safety, emergency,federal, local and state agencies. Regulation and compliance are expected to bestrong drivers in this market through 2015.• The telecommunications vertical includes vendors such as communication carriers andservice providers. The telecommunication companies typically provide services to itsown clients; therefore, the telecommunication market is a strong vertical due to theincreasing demand of mobile and wireless devices.• Compliance and regulations will remain key drivers for securing mobile devicesentering the healthcare and financial segments.Source: Frost & Sullivan analysis.
  92. 92. 92<N9B3-74>Europe, Middle East, and Africa (EMEA) Breakdown
  93. 93. 93<N9B3-74>EMEA BreakdownSource: Frost & Sullivan analysis.• EMEA includes countries in Europe(including Eastern Europe), as well ascountries in Western Asia and in Africa.• The EMEA region is the second largestrevenue-generating region, whichgenerated 10.2 percent of the totalmarket revenue in 2010.• EMEA is starting to gain more traction.Smaller market penetration is due to thelack of penetration for security as awhole in this area.
  94. 94. 94<N9B3-74>Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.2007 2008 2009 2010 2011 2012 2013 2014 2015Revenue 8.9 11.2 13.3 16.3 19.9 23.9 29.2 35.1 42.4Units 43.7 56.1 68.0 84.9 105.5 129.6 161.2 198.0 244.10.050.0100.0150.0200.0250.0300.00.05.010.015.020.025.030.035.040.045.0Units(000s)Revenue($Million)YearMobile VPN Products Market Unit Shipment and RevenueForecast, EMEA, 2007-2015CAGR = 20.3%EMEA Market Unit Shipment and Revenue ForecastKey Takeaway: An increase in remote workers will drive sales in the EMEA market.
  95. 95. 95<N9B3-74>EMEA Unit Shipment and Revenue Forecast Discussion• In 2010, EMEA generated $16.3 million in revenue, representing 10.2 percent of theglobal mobile VPN market. Mobile VPN sales in EMEA are expected to continue solidgrowth in the future as compliance and mobility continue to drive the market.• In EMEA, the Windows operating system has a smaller presence compared toSymbian, Android, and Linux operating systems; therefore, mobile VPN solutions havebeen slower to adopt these technologies because most mobile vendors focus on theWindows platform. Although the late adoption of other mobile devices has had anegative effect on the mobile VPN market, this market is expected to experience somegrowth in the future and should have a CAGR of 20.3 percent.• The EMEA market is still being led by the need for technological improvements. EMEAis also experiencing an economic crisis, resulting in slow growth and penetration formobile VPN providers. In addition, the EMEA market has been slower to adopt remoteworkers than the North American market.Source: Frost & Sullivan analysis.
  96. 96. 96<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.EMEA Market Revenue Forecast by Vertical MarketKey Takeaway: Government and healthcare segments will have solid growth during thenext five years.2007 2008 2009 2010 2011 2012 2013 2014 2015Other 1.0 1.1 1.2 1.4 1.7 2.0 2.2 2.5 2.9Utilities 0.8 1.1 1.3 1.5 1.8 2.1 2.5 3.0 3.5Financial 1.5 1.9 2.2 2.8 3.4 4.2 5.2 6.3 7.7Healthcare 1.6 2.2 2.6 3.3 4.0 4.9 6.1 7.4 9.1Telecommunications 0.9 1.1 1.3 1.6 2.0 2.4 3.0 3.6 4.4Government 3.1 3.9 4.7 5.7 6.9 8.3 10.2 12.2 14.8Revenue Growth Rate (%) 28.4 21.2 24.9 24.3 22.8 24.4 22.9 20.80.05.010.015.020.025.030.00.05.010.015.020.025.030.035.040.045.0YearGrowthRate(%)Revenue($Million)Mobile VPN Products Market Revenue Forecast by Vertical MarketEMEA, 2007-2015
  97. 97. 97<N9B3-74>EMEA Vertical Market Unit Shipment and RevenueForecast Discussion• Regulations and compliance standards compliance to drive government,financial, and healthcare verticals in the EMEA market. The governmentvertical reached $5.7 million in revenue for 2010 and represented a CAGR of20.1 percent.• The government segment will remain strong as the number of remoteworkers increases in the EMEA market.• The healthcare segment represented $3.3 million in revenue of the totalEMEA mobile VPN market, representing a CAGR of 21.9 percent.• The financial segment is expected to grow as the EMEA market embracesmobile and wireless devices for remote and mobile workers.Source: Frost & Sullivan analysis.
  98. 98. 98<N9B3-74>APAC Breakdown
  99. 99. 99<N9B3-74>APAC BreakdownSource: Frost & Sullivan analysis.• APAC refers to countries in East andSoutheast Asia and Australia and NewZealand.• The APAC region is much smaller thanother global regions and generated only5.5 percent of the total market revenuein 2010.• The mobile VPN market in APAC is astrong growth market, which willcontinue increase throughout theforecast period.
  100. 100. 100<N9B3-74>Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.2007 2008 2009 2010 2011 2012 2013 2014 2015Revenue 4.5 5.7 7.1 8.8 10.8 13.3 16.5 19.8 23.7Units 22.0 28.6 36.3 45.8 57.4 72.3 91.2 111.8 136.30.020.040.060.080.0100.0120.0140.0160.00.05.010.015.020.025.0Units(000s)Revenue($Million)YearMobile VPN Products Market Unit Shipment and RevenueForecast, APAC, 2007-2015CAGR = 21.5%APAC Market Unit Shipment and Revenue Forecastp pKey Takeaway: Mobile VPN sales will experience growth as more mobile and wirelessdevices are accepted in the workplace.
  101. 101. 101<N9B3-74>APAC Unit Shipment and Revenue Forecast Discussion• In 2010, the APAC region totaled $16.8 million in revenue. For the APAC region, themarket had a CAGR of 21.5 percent and represented 5.6 percent of the global mobileVPN market.• The wireless networks in certain regions in APAC such as China are also less maturethan North America. Although the consumer market has quickly adopted wirelessaccess, the enterprise market has not been as quick to adopt these wireless devices.In addition, the cost for wireless access appears to be a greater concern in theseareas than it is in North America. In these regions, the development of the networkinfrastructure and future economic growth will enable better penetration and growthwithin the future forecast.Source: Frost & Sullivan analysis.
  102. 102. 102<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.APAC Market Revenue Forecast by Vertical Marketg yKey Takeaway: Telecommunication market will provide greatest growth opportunitiesduring the next five years.2007 2008 2009 2010 2011 2012 2013 2014 2015Other 1.1 1.4 1.7 2.0 2.4 2.9 3.5 4.1 4.8Utilities 0.2 0.3 0.3 0.4 0.6 0.7 0.9 1.1 1.3Financial 0.2 0.3 0.3 0.4 0.6 0.7 0.9 1.1 1.4Healthcare 0.2 0.3 0.4 0.5 0.7 0.9 1.1 1.4 1.7Government 1.2 1.5 1.8 2.3 2.8 3.4 4.2 5.1 6.0Telecommunications 1.5 2.0 2.5 3.1 3.8 4.7 5.8 7.1 8.5Revenue Growth Rate (%) 27.1 24.6 23.5 22.8 23.4 23.7 20.2 19.50.05.010.015.020.025.030.00.05.010.015.020.025.0GrowthRate(%)Revenue($Million)YearTotal Mobile VPN Products Market Revenue Forecast by VerticalMarket, 2007-2015, APAC
  103. 103. 103<N9B3-74>APAC Vertical Market Unit Shipment and RevenueForecast Discussion• Meeting regulatory and compliance standards continues to drive thegovernment segment. The increase of mobile and wireless devices into theworkforce continues to drive verticals, such as telecommunications,healthcare, and financial markets to implement mobile VPNs.• Within APAC, the government vertical generated $2.3 million in revenue for2010 and represented a CAGR of 21 percent. Local and federal governmententities will continue to increase market growth.• The telecommunications segment generated $3.1 million in revenue for thetotal EMEA mobile VPN market, representing a CAGR of 22 percent.Creating more strategic alliances will drive growth in the telecommunicationsindustry.Source: Frost & Sullivan analysis.
  104. 104. 104<N9B3-74>Latin America Breakdown
  105. 105. 105<N9B3-74>Latin America BreakdownSource: Frost & Sullivan analysis.• Latin America refers to Mexico, Centraland South America.• Latin America is much smaller thanother global regions and generated only5.0 percent of the total market revenuein 2010.• The mobile VPN market in LatinAmerica is a strong growth marketbecause of the acceptance within thenetwork security market, which willcontinue increase throughout theforecast period.
  106. 106. 106<N9B3-74>Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.2007 2008 2009 2010 2011 2012 2013 2014 2015Revenue 4.5 5.4 6.6 8.0 9.8 12.0 14.6 17.9 21.8Units 22.0 26.9 33.6 41.6 52.2 64.8 80.6 100.8 125.30.020.040.060.080.0100.0120.0140.00.05.010.015.020.025.0Units(000s)Revenue($Million)YearMobile VPN Products Market Unit Shipment and RevenueForecast, 2007-2015, Latin AmericaCAGR = 21.8%Latin America Market Unit Shipment and RevenueForecastp pKey Takeaway: Mobile VPN sales will experience growth as more mobile and wirelessdevices are accepted in the workplace.
  107. 107. 107<N9B3-74>LATAM Unit Shipment and Revenue ForecastDiscussion• In 2010, the LATAM region totaled $8.0 million in revenue. LATAM had a CAGR of21.8 percent and represented 5.1 percent of the global mobile VPN market.• Security has become an important and is no longer an optional investment in thisregion. Enterprises are making investments to secure corporate networks. Increasedawareness in the small and medium business segment has prompted higherinvestment in these networks.• In these regions, the development of the network infrastructure and future economicgrowth will enable more penetration and growth within the future forecast.Source: Frost & Sullivan analysis.
  108. 108. 108<N9B3-74>Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan analysis.LATAM Market Revenue Forecast by Vertical Marketpp g yKey Takeaway: Telecommunication market will provide the greatest growthopportunities during the next five years.2007 2008 2009 2010 2011 2012 2013 2014 2015Other 0.9 1.0 1.2 1.4 1.7 2.0 2.4 2.8 3.4Utilities 0.5 0.5 0.7 0.8 1.0 1.2 1.4 1.7 2.0Financial 0.4 0.5 0.7 0.8 1.0 1.2 1.5 1.9 2.4Healthcare 0.3 0.4 0.4 0.6 0.7 0.9 1.1 1.4 1.7Telecommunications 1.3 1.6 2.0 2.4 3.0 3.6 4.4 5.5 6.7Government 1.1 1.3 1.6 2.0 2.5 3.1 3.7 4.6 5.6Revenue Growth Rate (%) 19.8 22.4 21.2 23.0 21.5 21.9 22.6 21.818.019.020.021.022.023.024.00.05.010.015.020.025.0YearGrowthRate(%)Revenue($Million)Mobile VPN Products Market Revenue Forecast by Vertical MarketLATAM, 2007-2015
  109. 109. 109<N9B3-74>LATAM Vertical Market Unit Shipment and RevenueForecast Discussion• Within LATAM, the government vertical generated $2.0 million in revenue for2010 and 21 percent CAGR. Local and federal government entities willcontinue to increase market growth.• The telecommunications segment generated $2.4 million in revenue for thetotal LATAM Mobile VPN market, with a 22 percent CAGR. Creating morestrategic alliances will drive growth in the telecommunications industry.Source: Frost & Sullivan analysis.
  110. 110. 110<N9B3-74>The Last Word
  111. 111. 111<N9B3-74>The Last Word—Three Big Predictions2Partnering with integrators, telecom and managed security providers(MSSPs) will enable stronger growth in the mobile VPN market.3Support for various platforms for mobile devices will remain crucial as thedemand for smartphones and tablets continues to increase.1 Consolidation and integration is inevitable in the mobile VPN market.Source: Frost & Sullivan analysis.
  112. 112. 112<N9B3-74>The Last Word—ConclusionsCentralConclusionThe increase in usingvarious operating systemsin the market will drive theneed for mobile VPNproviders to broadenproduct operating systemssupport.Management and capabilityof remote devices isincreasing in demand, somore functionality andvisability will be required inthe market.Consolidation andintegration should beexpected in the market asmore security vendorsbroaden their mobilesecurity portfoliosolutions.Partnerships with telecom,MSSPs, and integratorswill remain a strongdistribution point for mobileVPN vendors.The threat landscape willcontinue to evolve and grow,which will make securingremote endpoints difficult forenterprises.The increase in cloudcomputing andvirtualization will drive theneed for hosted mobilesecurity solutions.Source: Frost & Sullivan analysis.
  113. 113. 113<N9B3-74>Legal DisclaimerFrost & Sullivan takes no responsibility for any incorrect information supplied to us bymanufacturers or users. Quantitative market information is based primarily on interviewsand therefore is subject to fluctuation. Frost & Sullivan research services are limitedpublications containing valuable market information provided to a select group ofcustomers. Our customers’ acknowledge, when ordering or downloading, is that Frost &Sullivan Research Services are for customers’ internal use and not for general publicationor disclosure to third parties. No part of this research service may be given, lent, resold, ordisclosed to noncustomers without written permission. Furthermore, no part may bereproduced, stored in a retrieval system, or transmitted in any form or by any means,electronic, mechanical, photocopying, recording, or otherwise, without the permission of thepublisher.For information regarding permission, write to:Frost & Sullivan331 E. Evelyn Ave. Suite 100Mountain View, CA 94041
  114. 114. 114<N9B3-74>Appendix
  115. 115. 115<N9B3-74>Market Engineering MethodologyOne of Frost & Sullivan’s coredeliverables is its Market Engineeringstudies. They are based on ourproprietary Market EngineeringMethodology. This approach, developedacross the 50 years of experienceassessing global markets, appliesengineering rigor to the often nebulousart of market forecasting andinterpretation.A detailed description of themethodology can be found here.Source: Frost & Sullivan research.
  116. 116. 116<N9B3-74>Partial List of Companies Interviewed• Birdstep Technologies• Cisco• Check Point Software• Columbitech• Cryptozone (AppGate)• Fortinet• IBM• Juniper Networks,• NCP Secure Communications,• Radio IP• SmithMicro Software,• WatchGuardSource: Frost & Sullivan research.
  117. 117. 117<N9B3-74>Additional Sources of Information on Network Security• Network Security Subscription• Market Engineering Research• eBroadcasts• Events such as Frost & Sullivan Growth InnovationLeadership (GIL) ConferenceSource: Frost & Sullivan research.
  118. 118. 118<N9B3-74>Learn More—Next Steps Request a proposal for or Growth Partnership Services or Growth Consulting Servicesto support you and your team to accelerate the growth of your company.(myfrost@frost.com) 1-877-GoFrost (1-877-463-7678) Join us at our annual Growth, Innovation, and Leadership 2011: A Frost & SullivanGlobal Congress on Corporate Growth (www.gil-global.com) Register for the next Chairman’s Series on Growth: Driving Innovation – The What, Why,and How. Visions and Benchmarks as the Innovation Key(October 5th) (http://www.frost.com/growth) Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast ofinnovative growth opportunities(www.frost.com/news)Source: Frost & Sullivan research.
  119. 119. 119<N9B3-74>Table of Acronyms UsedAPAC Asia-PacificCAGR Compound annual growth rateEMEA Europe, Middle East, AfricaIPSec Internet protocol securityIT Information technologyLAN Local area networkLATAM Latin AmericaMobile IP Mobile Internet protocolMSSP Managed security service providerNAC Network access controlSSL Secure sockets layerVAR Value-added resellerVPN Virtual private networkWAN Wide area networkSource: Frost & Sullivan research.
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