Vision<br />To be a leading provider of content filtering and security solutions that give users a safe, productive, and secure Web experience.<br />Devices could include PC’s, tablets, smartphones, WiFi devices, routers, gaming consoles, etc.<br />2<br />
Tactics<br />Developing a mobile client filtering solution that is scalable, cross-platform, and device-independent.<br />Updating current product lines and accelerating growth thru improved routes to market.<br />Considering complementary adjacencies through acquisition or license agreement.<br />3<br />
Company Overview<br />Founded : 2002 <br />Status : Privately held<br />Headquarters : Salt Lake City, Utah<br />50% Avg. Annual Growth Rate, 2005-10<br />Target Markets : SMB, home, govt, educ<br />Penetration : over 750,000 users in 157 countries<br />4<br />
Milestones<br />2002 Company Founded<br />2004 ContentProtect Pro launched for SMB’s<br /> SVP/COO hired<br /> Software-as-a-Service licensing began<br />2007 Net Nanny brand acquisition, LookSmart Ltd.<br /> CP Security Appliance launched<br />2008 Net Nanny for Mac launched<br /> Net Nanny 5.6 launched / PC Mag Editor’s Choice<br /> new VP Development hired<br />2009 Net Nanny for Mobile launched<br /> Net Nanny 6.0 launched / PC Mag Editor’s Choice<br />2010 Net Nanny 6.5 launched / PC Mag Editor’s Choice new CEO and Management Consultants hired<br /> NN for Android to be launched<br />5<br />
Executive Team<br />Brent Bishop| Chairman of the Board<br /><ul><li> 25 years of Entrepreneurial leadership
Co-founder of Franklin Quest and Greenbacks/All A Dollar</li></ul>Russ Warner| President and CEO<br /><ul><li> 23 years as a business and sales manager in the IT industry
Worked for Altiris, SageCreek Partners, Novell, Alianza, and WordPerfect</li></ul>Scott Cleghorn| Sr. VP and COO<br /><ul><li> 22 years of financial and management experience
Worked for GTE, Verizon and Qwest</li></ul>Louie DiCristofano| VP of Engineering<br /><ul><li> 21 years of experience in the IT industry
Worked for Novell supervising 60+ developers and engineers</li></ul>Doug Anderson| Director, Marketing and Product Management<br /><ul><li>18 years in the IT industry as a writer, editor, web manager, and product marketing manager</li></ul>Brian Schumann | Director of Channel Sales<br /><ul><li> 10 years as Sales Director, International Sales Director, and Channel Mgr in the Network Security industry
Work for 8e6 Technologies, M86 Security and Lightspeed Systems</li></ul>Greg Butterfield | SageCreek Partners<br /><ul><li>Orchestrated multiple start-ups, acquisitions, spin offs, and fund raising.
$1.2B acquisition of Altiris by Symantec & $1.8B acquisition of Omniture by Adobe.</li></ul>6<br />
Value Proposition<br />Safety and appropriate use are primary goals for consumers.<br />Curb cyberslacking - increase productivity by limiting employee web site roaming. <br />Security is improved by reducing malware, commonly found on inappropriate Web sites. <br />Liability is decreased on company-owned assets because inappropriate materials will not be viewed or shared.<br />7<br />
Solutions<br />Net Nanny PC – parental controls<br />Net Nanny Mac – parental controls<br />Net Nanny Mobile – parental controls<br />ContentProtect Professional – endpoint employer controls via SaaS<br />ContentProtect Security Appliance – secure web gateway<br />8<br />
Solutions<br />Future<br /><ul><li>Net Nanny for Mobile: Android client and iPhone browser
Net Nanny for OEM’s and ISV’s: SDK</li></ul>9<br />
Market Opportunity<br />Secure Web Gateway<br /><ul><li>Content security software and hardware will reach $3.2B by 2013.
Content security software & appliance market to hit $3.8 billion in 2014.
Worldwide content security software & appliance revenue grew 2.5% between 4Q09 and 1Q10 to $640 million.</li></ul>Mobile Security<br /><ul><li>The mobile security market will exceed $4 Billion by 2014.
The mobile security client software segment is forecast to grow at a 50% CAGR from 2009 to 2014.
No mobile security suite vendors offer content filtering.
T-Mobile, Sprint, & France Telecom have contacted us about content filtering.</li></ul>Smartphones<br /><ul><li>U.S. Smartphone sales in Q1’10: AT&T 32%, Verizon 30%, T-Mobile 17% & Sprint 15%.
Global smartphone market is 260 M units in 2010 and 300 M in 2011.
Smartphone shipments surpass desktops + laptops in 2012.
Smartphone shipments surpass feature phones in 2011.
85% of U.S. teens have cell phones.</li></ul>Sources: Gartner, Infonetics, ABI Research; NPD, Top Ten Reviews, Morgan Stanley, Cox.<br />11<br />
Market Opportunity<br />Android (Gartner)<br /><ul><li>We need to uptake on a strong, growing base due to implementation of solution.
N.A. smartphone market share increased 7x over the last 12 months.
Accounts for 9.6% of all worldwide smartphone sales in Q1 of 2010, up from only 1.6% during the same quarter of 2009.
Q1 2010 - N.A. sales increased 707 % YoY</li></ul>iPhone & iPad<br /><ul><li>Apple pre-sold 600,000 iPhone 4’s in 1 day in June.
Using Parental Controls 12 million (9.6%)</li></ul>Sources: http://www.census.gov/prod/1/pop/p25-1129.pdf<br />http://www.pff.org/issues-pubs/pops/2009/pop16.5parentalcontrolsmarket.pdf<br />http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1350541<br />Other<br /><ul><li>Half of businesses not equipped for legalities of social media. (Tech Republic)
There will be 10X as many devices in play by 2015-2020: smartphone, iPad, tablet, computers, Kindle, gaming console, car electronics, HD TV, and more. </li></ul>13<br />
Online video poses problem for SMB’s and schools with bandwidth constraints.
40 percent of Internet use in the workplace is not business-related. Source: IDC, Secure Content Management Report
At home, the average child’s first exposure to porn is 11 yrs. </li></ul>Source: internetfilterreview.com<br />14<br />
Success - Net Nanny<br />PC Magazine Editors’ Choice for the past 3 Years<br />#1 Rated – Top Ten Reviews for 6 years<br />Computer Shopper Editor’s Choice in 2009<br />Top Ten reviews and 5 other leading rating services #1 rank <br />Featured on Oprah (twice in 2009)<br />Wall Street Journal Online Technology Buyer’s Guide <br />TTNET, a subsidiary of Turk Telecom with 220K in subscribers<br />Languages: English, Spanish, Japanese, and Turkish<br />15<br />
Retail Pricing<br />Net Nanny<br />$39.99 for an Annual License<br />$59.98 for 3-Seat Pack<br />Volume and Education Discounts<br />ContentProtect Pro<br />$39.99 per Annual License<br />3 Seat Minimum<br />Volume and Education Discounts<br />16<br />
Success Story<br /> Profile 9,000 students / 3,000 PC’s<br /> Problem 1- Excessive bandwidth consumption by students<br /> 2- Slow applications<br /> 3- Applications not prioritized<br /> Requirements 1- Bandwidth shaping<br /> 2- Application control<br /> 3- Wireless control for students<br /> Solution CP 550, upgrade to CP 1000<br /> Competition St. Bernard, Barracuda, and many others<br /> Profile Fortune 500 with HQ in New Jersey<br /> Problem 1- Customer-facing demo laptops were exposed to inappropriate web content<br /> 2- Employees unproductive due to web surfing<br /> 3- Potential liability for inappropriate use<br /> Requirements 1- Global, web-based control<br /> 2- No dedicated server<br /> 3- Did not want appliance<br /> Solution 8,500 licenses ContentProtect Pro<br /> Competition Symantec, CyberPatrol, Cyber Sitter<br />17<br />
Web page content is not static – it changes constantly
New and locally-hosted web pages</li></ul>Google – “...the number of individual web pages out there is growing by several billion pages per day." <br /><ul><li>Understands the context of the page</li></ul>Ex: Wikipedia - Chicken BreastvsBreast CancervsBreast Augmentation<br />25<br />
Advantages of DCA<br />Web pages are analyzed dynamically<br /><ul><li>New, updated and local web pages are always filtered
All pages (URLs) are analyzed, not just the Domains
Lists cannot effectively keep up with dynamic content</li></ul>Analysis is performed on local machine<br /><ul><li>Distributed analysis
Performance equal to or better than remote lists
No hardware investment for remote list processing</li></ul>No large list to maintain<br /><ul><li>Lists require frequent updates (daily/hourly)
CW - Periodic updates via definition updates – small, silent</li></ul>No list licensing fees<br />26<br />