Vpn Plbp 04.14.20001


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Competitive Analysis of Shiva by Intel and Recommendations for next steps.

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Vpn Plbp 04.14.20001

  1. 1. April 14, 2000 WSO PLBP - VPN Competitive Market, Channel and Strategy
  2. 2. <ul><li>VPN MARKET </li></ul><ul><li>TAM: $85M (1998) - $1.5B (2003) with 77% CAGR </li></ul><ul><li>SAM: $20.3M (1998) - $172M (2003) with 53% CAGR </li></ul>VPN PLBP Key Messages <ul><li>Key Messages: </li></ul><ul><ul><li>VPN is a primary enabler of converged data networking, facilitating the consolidation of private infrastructure into shared public infrastructure: one virtual network </li></ul></ul><ul><ul><li>VPN is the only viable means for broad based remote access and </li></ul></ul><ul><ul><li>e-business applications </li></ul></ul><ul><ul><li>VPN is currently a stand-alone capability that will be absorbed into access routers, switches, MSADs and Internet appliances </li></ul></ul>
  3. 3. <ul><li>Dedicated VPN hardware : devices that support VPNs via hardware; the products are divided into the following subcategories : </li></ul><ul><ul><li>Low-end: support 100 or fewer simultaneous tunnels </li></ul></ul><ul><ul><li>Midrange: support 101 to 1,000 simultaneous tunnels </li></ul></ul><ul><ul><li>High-end : support more than 1,000 simultaneous tunnels </li></ul></ul><ul><li>Dedicated VPN routers : hardware support for encryption and support for routing protocols </li></ul><ul><li>VPN-enabled routers : routers with software support for tunneling and encryption </li></ul><ul><li>VPN-Enabled Software Firewalls: software firewalls with support for tunneling and encryption </li></ul>VPN Product Segments
  4. 4. VPN Market Matrix Comparison <ul><li>Six vendors identified for competitive analysis vs. Intel </li></ul><ul><li>Nortel </li></ul><ul><li>Cisco/Altiga/Compatible </li></ul><ul><li>Lucent/Xedia </li></ul><ul><li>Efficient Networks/Netscreen </li></ul><ul><li>Microsoft </li></ul><ul><li>Checkpoint </li></ul>
  5. 5. Matrix Comparison
  6. 6. Nortel <ul><li>Market Share </li></ul><ul><ul><li>14% World Wide Total Dedicated VPN </li></ul></ul><ul><ul><li>30% World Wide Dedicated Low End </li></ul></ul><ul><ul><li>15% World Wide Dedicated High-End </li></ul></ul><ul><li>Target Markets and Channels </li></ul><ul><ul><li>SME </li></ul></ul><ul><ul><li>Large Enterprises - Fidelity Mutual Funds, Miami Herald </li></ul></ul><ul><ul><li>ISP - GTE Internetworking, Bell Nexia, NBTel, Sprint Global Internet VPN Service </li></ul></ul><ul><li>SME and Large Enterprise markets served both by resellers/system integrators and Large Enterprise and ISP via resellers and Nortel Direct sales. </li></ul>
  7. 7. Nortel <ul><li>Why Nortel Wins </li></ul><ul><ul><li>Mature stable product </li></ul></ul><ul><ul><li>Full featured product line </li></ul></ul><ul><ul><li>Strong enterprise and ISP relationships </li></ul></ul><ul><ul><li>Strategic Market Alliances </li></ul></ul><ul><li>Strategic Marketing Alliances </li></ul><ul><ul><li>Nortel incorporation of Checkpoint FireWall-1 allows Nortel Networks to further strengthen its leading Extranet/Virtual Private Network (VPN) solution </li></ul></ul><ul><ul><li>RSA Security </li></ul></ul><ul><ul><li>Nortel integrated the Entrust IPSec Negotiator* Toolkit into the software platform of its Contivity* Extranet Switch product line, making the product Entrust-Ready*. </li></ul></ul><ul><ul><li>RND Network's IP load balancer, the Web Server Director (WSD),combined with Bay Networks ContivityTM Extranet Switch product family. </li></ul></ul><ul><ul><li>Bay Networks has licensed Netscape® Directory Server software and will bundle it with each version from Bay Networks Contivity® Extranet Switch product family. </li></ul></ul>
  8. 8. Cisco (Altiga, Compatible) <ul><li>Market Share </li></ul><ul><ul><li>88% World Wide VPN enabled Routers </li></ul></ul><ul><li>Target Markets and Channels </li></ul><ul><ul><li>Compatible </li></ul></ul><ul><ul><li>SME CPE via Resellers/Integrators and Catalog </li></ul></ul><ul><ul><li>Enterprise Customers via Resellers/Integrators </li></ul></ul><ul><ul><li>Showcase accounts include Adobe Systems, Apple Computer, Corio, Entex Information, JPL, Lawrence Livermore, Pacific Group, Yankee Group, Pacific Stock Exchange </li></ul></ul><ul><ul><li>ISP Carriers </li></ul></ul><ul><ul><li>Altiga </li></ul></ul><ul><ul><li>Small to Medium Enterprises </li></ul></ul><ul><ul><li>Large Enterprises </li></ul></ul><ul><ul><li>ISP’s - UUNET Vendor Alliance Program, HarvardNet, MediaOne, Digital Signal Communications. </li></ul></ul><ul><ul><li>Resellers/Channels/System Integrators </li></ul></ul><ul><ul><li>Technica Corporation, a leading government solutions (GSA) integrator, to provide customized VPN solutions to enterprise and government agency clients. </li></ul></ul>
  9. 9. Cisco (Altiga, Compatible) <ul><li>Why Cisco Wins </li></ul><ul><ul><li>Time to market - Quick release product cycles </li></ul></ul><ul><ul><li>Strong enterprise and reseller channels </li></ul></ul><ul><ul><li>Two Acquisitions in dedicated hardware market </li></ul></ul><ul><ul><li>Mind Set </li></ul></ul><ul><li>Strategic Marketing Alliances </li></ul><ul><li>Compatible </li></ul><ul><ul><li>Compatible and PSINet Join Forces to with Channel Offering via Ingram Micro to make Service/Hardware bundle available through Resellers Nationwide </li></ul></ul><ul><ul><li>Compatible Partners with NETRIX to Offer VoiceOverVPN June 1999 </li></ul></ul><ul><li>Altiga </li></ul><ul><ul><li>Baltimore Technologies, GTE CyberTrust, Entrust Technologies, RSA Security, iPass, Funk Software and Microsoft Certified Solution Provider. </li></ul></ul>
  10. 10. Lucent (Xedia) <ul><li>Market Share </li></ul><ul><ul><li>17% World Wide Dedicated Mid-Range </li></ul></ul><ul><ul><li>24% World Wide Dedicated VPN Router </li></ul></ul><ul><li>Target Markets and Channels </li></ul><ul><ul><li>SME </li></ul></ul><ul><ul><li>Large Enterprises </li></ul></ul><ul><ul><li>ISP </li></ul></ul><ul><ul><li>SME and Large Enterprise markets served both by </li></ul></ul><ul><ul><li>resellers/system integrators and Large Enterprise ISP </li></ul></ul>
  11. 11. Lucent (Xedia) <ul><li>Why Lucent Wins </li></ul><ul><ul><li>High performance IP routing and QoS </li></ul></ul><ul><ul><li>Multi-tenant Internet Access </li></ul></ul><ul><ul><li>Strong market awareness through publications and trade magazines </li></ul></ul><ul><ul><li>Proven award wining product I.e Best of Show N+I </li></ul></ul><ul><ul><li>Carrier class products </li></ul></ul><ul><li>Strategic Marketing Alliances </li></ul><ul><ul><li>UUNET, Concentric Network, Internet Telephony, </li></ul></ul><ul><ul><li>AT&T Canada </li></ul></ul>
  12. 12. Efficient Networks (NetScreen) <ul><li>Market Share </li></ul><ul><ul><li>7% World Wide Dedicated Low End </li></ul></ul><ul><ul><li>9% World Wide Dedicated Mid-Range </li></ul></ul><ul><li>Target Customer </li></ul><ul><ul><li>Remote access customers </li></ul></ul><ul><ul><li>Small to medium-sized businesses </li></ul></ul><ul><ul><li>ISP/ASP </li></ul></ul><ul><li>Primary Channels </li></ul><ul><ul><li>Hewlett-Packard resells NetScreen-100 under HP Covision program </li></ul></ul><ul><ul><li>Hitachi- Seibu Software resells NetScreen products in Japan </li></ul></ul><ul><ul><li>Patriot Technologies leading reseller of security solutions adds NetScreen products to it’s GSA schedule. </li></ul></ul><ul><ul><li>WebZone Inc </li></ul></ul>
  13. 13. Efficient Networks (NetScreen) <ul><li>ISP/ASP Providers </li></ul><ul><ul><li>Tibco.net 24x7 hosting service providing content aggregation to Yahoo. AltaVista, AOL, NetCenter, mySap.com and CBS Sportsline uses NS-100 in it’s data center </li></ul></ul><ul><ul><li>Virtual Media Technologies a provider of managed Internet Security for Business to Business e-commerce sold via CLEC’s and ISP’s </li></ul></ul><ul><ul><li>[email_address] offering NetScreen-5 to small-medium enterprise customers for secure broadband connectivity </li></ul></ul><ul><ul><li>GTE Professional Services resells NetScreen-10, NetScreen-100 and NetScreen-1000 </li></ul></ul><ul><ul><li>Bluetrain.com and ASP focusing on small-medium size enterprises deploys NS-5, NS-10 and NS-100 at customer sites for secured VPN connections to their data </li></ul></ul><ul><li>Why NetScreen Wins </li></ul><ul><ul><li>Recent acquisition of NetScreen/Flowpoint </li></ul></ul><ul><ul><li>Superior alliances with ISP/ASP providers </li></ul></ul><ul><ul><li>Strategic Partnerships with Equinox </li></ul></ul>
  14. 14. Checkpoint/Nokia <ul><li>Market Share </li></ul><ul><ul><li>25% World Wide Total Dedicated VPN </li></ul></ul><ul><ul><li>56% World Wide Dedicated High-End </li></ul></ul><ul><ul><li>66% World Wide Software VPN Firewall </li></ul></ul><ul><li>Target Customer </li></ul><ul><ul><li>Check Point is experiencing success both with their existing installed base of customers and through sales by Nokia to new customers </li></ul></ul><ul><ul><li>110K customer installations - high end </li></ul></ul><ul><ul><li>50% of firewall installed on Solaris </li></ul></ul><ul><li>Primary Channels </li></ul><ul><ul><li>Distribution, OEM, 25+ Telcos/ISPs </li></ul></ul><ul><ul><li>75 Direct VARs/1,000 channel partners </li></ul></ul><ul><ul><li>~10% of sales through SunSoft unit </li></ul></ul>
  15. 15. Checkpoint/Nokia <ul><li>Why Checkpoint Wins </li></ul><ul><ul><li>Firewall-1 Security Suite: VPN, authentication, NAT, content security, auditing; third party integrated software </li></ul></ul><ul><ul><li>VPN-1 : HW and SW-based VPNs </li></ul></ul><ul><ul><li>Provider-1 : Management solution for security policies </li></ul></ul><ul><ul><li>Floodgate-1 : Enterprise traffic control/bandwidth management </li></ul></ul><ul><ul><li>ConnectControl : Load balancing solution </li></ul></ul><ul><ul><li>MetaIP : IP management </li></ul></ul><ul><ul><li>Cyber Attack Defense System : NetQuota, ServerQuota, Internet Alerts, Intrusion Response Protocol, VPN-1 Enterprise Center, Malicious Activity Detection, RealSecure </li></ul></ul><ul><ul><li>Strategic Marketing Alliances </li></ul></ul>
  16. 16. Checkpoint/Nokia <ul><li>Strategic Marketing Alliances: </li></ul><ul><ul><li>Nokia appliance development </li></ul></ul><ul><ul><li>VeriSign: Certificate deployment (Entrust/Baltimore planned) </li></ul></ul><ul><ul><li>IBM: AIX development </li></ul></ul><ul><ul><li>Microsoft (unified policy based management) </li></ul></ul><ul><ul><li>ODS: OEM of Check Point software </li></ul></ul><ul><ul><li>TI/Software: new Check Point company focused on security for broadband home market </li></ul></ul><ul><ul><li>Intel (SVN architecture to Itanium) </li></ul></ul><ul><ul><li>ISS: RealSecure development </li></ul></ul><ul><ul><li>Sun (Solstace Firewall-1) discontinued in October `99 </li></ul></ul><ul><li>OPSEC: </li></ul><ul><ul><li>Open platform for security integration of best of breed solutions; 200 partners </li></ul></ul>
  17. 17. 3Com <ul><li>PathBuilder S400 </li></ul><ul><li>PathBuilder S500 </li></ul><ul><li>Superstack II NetBuilder SI Routers </li></ul><ul><li>OfficeConnect NETBuilder </li></ul>EOL
  18. 18. Intel <ul><li>Market Share </li></ul><ul><ul><li>4% World Wide Total Dedicated VPN </li></ul></ul><ul><ul><li>7% World Wide Dedicated Low End </li></ul></ul><ul><ul><li>5% World Wide Dedicated Mid-Range </li></ul></ul><ul><li>Target Customer </li></ul><ul><ul><li>Remote access customers </li></ul></ul><ul><ul><li>Small to medium-sized businesses </li></ul></ul><ul><ul><li>Internet Service Providers who need VPN hardware and software to sell as on-site equipment to small to mid-sized businesses. </li></ul></ul><ul><li>Primary Channels </li></ul><ul><ul><li>iASP’s (including formerly Shiva Premium Plus VAR’s) who have been selling our current VPN solutions and other internetworking products. </li></ul></ul><ul><ul><li>ISPs are also a target channel through the iISP program. </li></ul></ul><ul><ul><li>NCP VAR’s (including formally Shiva premium VAR’s) </li></ul></ul>
  19. 19. Intel <ul><li>Why Intel Wins </li></ul><ul><ul><li>Mature stable product </li></ul></ul><ul><ul><li>Enhanced VPN client capabilities </li></ul></ul><ul><ul><li>Sell into existing LRAS installed base </li></ul></ul><ul><ul><li>Shiva name brand recognition in remote access space </li></ul></ul><ul><li>Why Intel Loses </li></ul><ul><ul><li>Time to Market </li></ul></ul><ul><ul><li>Critical product features missing </li></ul></ul><ul><ul><li>Lack of strategic marketing alliances/partnerships </li></ul></ul><ul><ul><li>Heavy attrition in Sales channels </li></ul></ul><ul><ul><li>Need to reeducate channel, VARs, PVARs </li></ul></ul>
  20. 20. MS Win 2000 vs. Intel <ul><li>Windows2000 Server and Advanced Server Strengths </li></ul><ul><ul><li>Interoperability and Standards Support </li></ul></ul><ul><ul><li>Support for IPSec, L2TP, PPTP industry standard protocols </li></ul></ul><ul><ul><li>Supports Industry Standard hardware, can support multiple encryption accelerators, supports multiple networking devices, Ethernet, Token Ring, FDDI, ATM, T-1. T-3 </li></ul></ul><ul><ul><li>Includes “free MS Certificate Authority Server” and supports multiple CA’s </li></ul></ul><ul><ul><li>Centralized database for authentication, NT Domain, Active Directory and Radius (Radius Server bundled free under Internet Authentication Services) </li></ul></ul>
  21. 21. MS Win 2000 vs. Intel <ul><li>Weak Points Windows2000 VPN Server </li></ul><ul><ul><li>General purpose operating system, slow performance without acceleration hardware or multi-CPU processors </li></ul></ul><ul><ul><li>PCI bus bandwidth limitation for I/O device and network device </li></ul></ul><ul><ul><li>IPSec setup on server (and client) is awkward and requires significant in depth knowledge of IPSec </li></ul></ul><ul><ul><li>VPN Policy Management limited and highly dependent on Active Directory framework </li></ul></ul><ul><ul><li>QoS Features require Active Directory framework in place </li></ul></ul><ul><ul><li>Very weak and limited Logging and Troubleshooting Tools </li></ul></ul><ul><ul><li>Policy Management limited without Active Directory and predominately limited to Windows2000 clients </li></ul></ul><ul><li>Weak Points of VPN client support </li></ul><ul><ul><li>No IPSec client for Windows95/98 or NT 4.0 </li></ul></ul><ul><ul><li>No L2TP client for Windows 95/98 or NT 4.0 </li></ul></ul><ul><ul><li>Windows 95/98 and NT clients only supported under PPTP </li></ul></ul>
  22. 22. MS Win 2000 vs. Intel <ul><li>Intel VPN Gateway Strengths Compared to WIN2000 VPN Server as Gateway </li></ul><ul><ul><li>VPN Manager easier to use with more intuitive tabbed screens, requiring less IPSec and VPN knowledge to configure Gateway. </li></ul></ul><ul><ul><li>Syslog server provides single point of view on Gateway, CA or client configuration issues vs. Win2000 Servers (four basic troubleshooting programs). </li></ul></ul><ul><ul><li>Better price/performance ratio between VPN Gateway (Spitfire) versus Windows 2000 Server customized for VPN Gateway duties i.e. configured with IPSec accelerator cards, 3DES cards and multiple CPU processors. </li></ul></ul><ul><ul><li>VCDT program allows distribution of pre-configured VPN Client profiles. </li></ul></ul><ul><li>Intel VPN Client Strengths </li></ul><ul><ul><li>SST and IPSec clients for Windows 95/98 and NT 4.0 </li></ul></ul><ul><ul><li>Native support for L2TP/IPSec Windows2000 client </li></ul></ul>
  23. 23. MS Win 2000 vs. Intel <ul><li>Intel VPN Gateway Weaknesses compared to WIN2000 VPN Server </li></ul><ul><ul><li>CA support limited to Shiva CA and Entrust 4.0 both extra cost options </li></ul></ul><ul><ul><li>Radius Server is extra cost option i.e. not bundled with Intel GW, client or management programs. </li></ul></ul><ul><ul><li>Intel GW can’t proxy to NT domain without Radius Proxying </li></ul></ul><ul><ul><li>No Policy Manager for managing other Gateways or clients etc. </li></ul></ul><ul><ul><li>No Active Directory support or proxying at present </li></ul></ul><ul><ul><li>No support for PPTP </li></ul></ul><ul><ul><li>Shiva CA doesn’t interoperate with other Certificate Servers on market i.e. proprietary solution </li></ul></ul><ul><ul><li>No ease of use advantage of Shiva CA versus Microsoft CA, both are easy to setup. </li></ul></ul>
  24. 24. Summary of vendors vs. Intel <ul><li>Intel Lacking Following Key Product Features </li></ul><ul><ul><li>-routing protocols </li></ul></ul><ul><ul><li>-intrusion detection/enhanced firewall </li></ul></ul><ul><ul><li>-QoS, Bandwidth Management </li></ul></ul><ul><ul><li>-3rd party Digital Certificate support and LDAP </li></ul></ul><ul><ul><li>-enhanced logging/reporting </li></ul></ul><ul><ul><li>-unified management including HTTP </li></ul></ul><ul><ul><li>-site-to-site failover/DHCP support </li></ul></ul><ul><ul><li>-personal firewall client </li></ul></ul><ul><ul><li>-3rd party clients I.e Linux, Unix, Mac </li></ul></ul><ul><ul><li>-RADIUS for IPSec </li></ul></ul><ul><ul><li>-carrier class architecture and throughput </li></ul></ul><ul><ul><li> I.e modular design, 500Mbps + </li></ul></ul><ul><ul><li>-Voice Over IP support </li></ul></ul><ul><ul><li>-Multi-tenant internet access </li></ul></ul>
  25. 25. Network Product Vendor Comparison for 2002 EOL Infonetics Research - Corporate Access in the US 2000: The Big Picture Will not be #1 or #2 with current strategy
  26. 26. VPN PLBP Strategy Market Options <ul><li>Build/Acquire complete product line according to key deficits for obtaining </li></ul><ul><li>#1 or #2 market segment share </li></ul><ul><li>VPN Branded product line will eventually be merged with converged </li></ul><ul><li>product platform but will provide foundation for MSAD product </li></ul><ul><li>Both product lines co-exist until VOIP is added to VPN platform </li></ul><ul><ul><li>VPN gateways become MSAD </li></ul></ul><ul><li>OEM Intel APIs, toolkits for building block security components once </li></ul><ul><li>converged market is in place </li></ul><ul><li>Sell VPN platform to existing OEM partners I.e DELL, Compaq, etc.. </li></ul><ul><li>Promote PC vendors to start building Internet appliances that will </li></ul><ul><li>will need security building blocks I.e IPSec toolkits, APIs, crypto etc. </li></ul><ul><li>Strategic partnerships I.e Linux to build APIs around IA platform - partner </li></ul><ul><li>and resell to OEM vendors along with Intel silicon </li></ul>
  27. 27. <ul><li>Unique position to leverage on existing computing expertise </li></ul><ul><ul><li>Leverage e-Business data center campaign </li></ul></ul><ul><ul><li>Directly complement and provide foundation for converged MSAD platform I.e VPN, routing, firewall </li></ul></ul><ul><ul><li>The complete solution is compelling to our RCO channel partners who are looking to consolidate vendors </li></ul></ul><ul><li>Economies of scale across CPG through shared architecture will allow us to drive costs down ahead of the price curve </li></ul><ul><ul><li>Reuse of routing, security and management software will maximize efficiency and time to market for new capabilities </li></ul></ul><ul><ul><li>Shared silicon, hardware and packaging will allow us to drive high volumes at low costs </li></ul></ul><ul><li>NetStructure product positioning will allow Intel to offer unique and feature rich, branded differentiation </li></ul>VPN PLBP Strategy Why We Will Win
  28. 28. <ul><li>Strategic goals </li></ul><ul><ul><li>Build/Acquire features that have been identified necessary to </li></ul></ul><ul><ul><li>be #1 or #2 in VPN TAM </li></ul></ul><ul><ul><li>Realignment of engineering resources for VPN projects </li></ul></ul><ul><ul><li>Build Strategic relationships with leading industry vendors </li></ul></ul><ul><ul><li>Identify OEM opportunities and strategic alliances </li></ul></ul><ul><li>Products </li></ul><ul><ul><li>Expand product portfolio to cover 2-5 user space, and personal firewall </li></ul></ul><ul><ul><li>Segment product portfolio to include delivery of access router for $ 1 000 price point MSRP </li></ul></ul><ul><ul><li>Migrate to common CPG hardware platform in early 2001 </li></ul></ul><ul><li>Channel </li></ul><ul><ul><li>Provide the channel with a complete product offering that enables value added solutions selling immediately </li></ul></ul><ul><ul><li>Explore direct selling via e-Commerce </li></ul></ul>VPN PLBP Strategy Summary