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Vpn Plbp 04.14.20001


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

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

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