New Product Innovation for IoT contact wmurphy@cygnacom.com

1. FROST & SULLIVAN BEST PRACTICES AWARD
Product Leadership 2019
IOT CYBERSECURITY - NORTH AMERICA

2. BEST PRACTICES RESEARCH
© Frost & Sullivan 2019 2 “We Accelerate Growth”
Contents
Background and Company Performance ........................................................................3
Industry Challenges..............................................................................................3
Product Family Attributes and Business Impact ........................................................4
Conclusion...........................................................................................................6
Significance of Product Leadership................................................................................7
Understanding Product Leadership................................................................................7
Key Benchmarking Criteria ....................................................................................8
Best Practices Award Analysis for Entrust Datacard ........................................................8
Decision Support Scorecard ...................................................................................8
Product Family Attributes ......................................................................................9
Business Impact...................................................................................................9
Decision Support Matrix ......................................................................................10
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best
Practices .................................................................................................................11
The Intersection between 360-Degree Research and Best Practices Awards.....................12
Research Methodology ........................................................................................12
About Frost & Sullivan ..............................................................................................12

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Background and Company Performance
Industry Challenges
IoT is increasingly permeating every aspect of consumer and enterprise activities. With
the growth of microelectronics, ubiquitous connectivity, and predictive computing, IoT is
poised for rapid growth. The future of IoT involves billions of connected devices
communicating with one another regardless of the manufacturer, operating system,
chipset, or physical transport mode. IoT cybersecurity, however, has not kept up with the
rapid pace of innovation and deployment, creating substantial safety and economic risks.
Whether malicious or accidental, compromised IoT devices can pose significant risks to
consumers, businesses and societies. Not only can cybersecurity attacks cause operational
disruptions, breached devices can also be commandeered to launch cybersecurity attacks
on other devices and systems.
IoT creates new cybersecurity challenges that cannot be adequately addressed by
traditional IT cybersecurity technologies and approaches. While the basic concepts of
protection – such as digital certificates, hardware-based trust, and data encryption –
remain, memory and processor limitations, data velocity, and device volumes present
unique challenges in IoT cybersecurity. Therefore, IoT must be secured by using efficient
technologies that are purpose-built for the machine environment. Technological mega
trends, such as edge, cloud and fog computing, virtualization, software-defined
networking (SDN), 5G, distributed ledger technologies (DLT), and digital and crypto
payments place new demands on cybersecurity that must be addressed to help realize the
benefits of IoT. Providing “security-at-the-speed-of-business” requires consistent new
product innovation and visionary leadership in the dynamic IoT markets. Therefore, in
addition to securing the emerging communication and collaboration mechanisms in the
IoT, cybersecurity solution providers must themselves invest in new technologies to
enhance the performance of their solutions.
Holistic and tiered-offerings that can provide the technological foundations to address the
full spectrum of IoT device provisioning and operational requirements are a key market
need in IoT cybersecurity. Creating a trust framework for IoT starts with establishing
immutable device identities to prevent untrusted devices or applications from
communicating with other devices or components on the network. Other important
attributes for effective IoT security include: 1) the ability to secure device identities and
data, 2) secured data acquisition and ingestion with policy-driven equipment data
management, 3) supporting deep integration of security into modern DevOps to maintain
pace with continuous software development and updates, and 4) facilitating secure
deployment of edge computing and security management capabilities.
It is simply not enough to provide enterprise customers with digital certificates and expect
them to develop whole, workable solutions for their IoT cybersecurity needs (aka- the
“cert pump” model). Frost & Sullivan firmly believes that providers that can offer fully
integrated, managed and consultative solutions for IoT cybersecurity will be positioned

4. BEST PRACTICES RESEARCH
© Frost & Sullivan 2019 4 “We Accelerate Growth”
favorably in the long run in the IoT cybersecurity markets. While open-source software
can be used to support initial deployments, customers must prefer working with
specialized providers to ensure timely and effective technology upgrades. IoT, as such, is
rapidly migrating to supporting autonomous operations through increased emphasis on
generating, collecting, processing and using sensor data to perform business functions in
real time. The consequences of cybersecurity violations can be severe in such scenarios,
making it critical that highly proven, modular and agile solutions are used for IoT
cybersecurity.
Product Family Attributes and Business Impact
Entrust Datacard is a leading provider of trusted identity and secure transaction
technologies. The company offers solutions ranging from the physical world of financial
cards, passports and identity cards, to the digital realm of authentication, certificates and
secure communications. For IoT, Entrust Datacard offers the ioTrust security solution that
provides IoT value-chain participants with full control of the security mechanisms in their
IoT products, services and deployments. The key success factors for ioTrust are discussed
below.
Product Capabilities
The ioTrust IoT security solution offers a comprehensive, standards-based trust model for
IoT identity and cryptography management. It puts the IoT value-chain participants in full
control of the security mechanisms of their IoT products, services and deployments.
Adopting a three-tiered approach, ioTrust aligns with the security and enablement needs
of manufacturers and operators to establish a secure connected ecosystem. With ioTrust,
IoT device manufacturers can embed trusted identities on their devices, thus facilitating
Secure-by-Design implementations critical to IoT security.
For device operators, ioTrust offers strong authentication, authorization and bi-directional
data flow capabilities to securely operationalize devices using the embedded device trust
anchors and device information. Moreover, it offers identity and data security to operators
for managing the increased number of relationships between devices, applications and
users and enable secure interactions within their operational environment.
New Product Innovation
Entrust Datacard continues to enhance the capabilities of ioTrust to address the device
and data protection needs of the IoT. Examples of recent and upcoming new product
initiatives for ioTrust include:
 Securing software containers through edge ID orchestration and enablement of
cybersecurity functions such as dynamic enrolment and secure certificate lifecycle
management;

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 Enhanced cybersecurity for brownfield industrial deployments by securing legacy
protocols and devices; and
 Technology and deployment simplification through the use of embeddable agents and
libraries providing secure service discovery and automated device configuration.
The growing need for enterprise customers to move from customized implementations
that struggle to scale or interoperate easily presents additional opportunities for the
company to add value by delivering a structured, organized and auditable security
framework.
Deployment Versatility
ioTrust is implemented in software and can support different types of IoT deployments in
an effective and economical manner. It can also be used to secure brownfield IoT
deployments via its edge gateway offerings. ioTrust components can be deployed as on
premise, hybrid or cloud implementations. It is important to note that while ioTrust can
leverage hardware security elements such as secure elements (SE), Trusted Platform
Modules (TPMs) and hardware security modules (HSMs), the solution is driven by software
which enables Entrust Datacard to be more agile and flexible for cryptographic security in
IoT. Furthermore, the Appliance, Managed Services and On-premise deployment models
for ioTrust allow Entrust Datacard to address the unique deployment needs of its
customers. A proven track record in supporting the cybersecurity requirements of a
diverse range of customers across different industry verticals including industrial,
automotive, smart manufacturing, and telecommunication, is a clear testament to
ioTrust’s versatility and customization capabilities.
Strategic Roadmap
The product roadmap for ioTrust is aligned to address the emerging cybersecurity needs in
IoT. For example, Entrust Datacard is expected to support code signing services for IoT
firmware and application updates. The company’s recent acquisition of Safelayer Secure
Communications S.A will help augment its capabilities for digital signing services. Entrust
Datacard is also expected to deliver enhancements to edge ID services featuring
distributed issuance and management models for micro-services cybersecurity. Greater
focus on data-driven IoT opportunities through secure data acquisition features is also
expected from Entrust Datacard. The recent acquisition of nCipher Security’s general
purpose Hardware Security Module business from Thales will enable the company to
support high assurance use cases based on a range of next-generation digital
transformation tools such as the IoT, virtual payments and blockchain/DLT. Frost &
Sullivan believes management’s focus on deriving greater synergies between its core PKI
team and the IoT cybersecurity teams will significantly enhance the company’s market
position and associated growth opportunities.

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Competitive Differentiation
The competitive landscape in IoT cybersecurity is comprised of endpoint or library-focused
companies and traditional certificate or root-of-trust providers. Dependency on the
availability of hardware components dedicated to cybersecurity tends to limit the
deployment flexibility for Entrust Datacard competitors. The ability to maintain strong,
dedicated roots of trust – versus using shared roots – to deliver firm cybersecurity
assurance is a key competitive advantage for Entrust Datacard. Entrust Datacard is not
limited to offering only the client libraries – the company offers a full stack solution for IoT
cybersecurity. Frost & Sullivan’s research indicates that Entrust Datacard is among a small
group of companies with the scale, sophistication, systems, and expertise needed to
deliver end-to-end security in IoT.
Unlike competing solutions that require considerable time and monetary investments in
implementing and managing cybersecurity deployments, the managed infrastructure-
centric approach for ioTrust leads to considerable ease of IoT cybersecurity lifecycle
management and has resonated well with enterprise customers. Entrust Datacard has had
notable wins against traditional PKI vendors that are focused on purely cloud issuance and
are not actively assisting enterprise customers with important processes such as key
management or device strategies. With an increased focus on adopting a solutions-
architect approach within its sales organization, Entrust Datacard should maintain its
growth momentum in the IoT cybersecurity markets.
The leading IoT platforms all have a basic set of IoT cybersecurity enablement offerings.
Entrust Datacard participates in the partnership programs of the leading cloud-based IoT
platform providers and offers its software stack in the leading application marketplaces in
a pre-integrated manner for ease of deployment. Therefore, engagement with the
platform providers is a good go-to-market strategy for Entrust Datacard and may not
necessarily be a direct competitive threat for the company. Overall, an innovative product,
the PKI brand, and the stability of the company are the key competitive differentiators for
Entrust Datacard.
Conclusion
Entrust Datacard continues to leverage decades of expertise in cryptography, embedded
systems and trusted infrastructures to ensure the right security level for devices,
applications, systems and users in IoT. Comprehensive product capabilities, strong focus
on new product innovation, exceptional product customization capabilities and deployment
flexibility are the key highlights of the ioTrust IoT cybersecurity solution. Frost & Sullivan
proudly presents Entrust Datacard with the 2019 Product Leadership award in recognition
of its impressive achievements.

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Significance of Product Leadership
Ultimately, growth in any organization depends upon customers purchasing from a
company and then making the decision to return time and again. A comprehensive
product line, filled with high-quality, value-driven options, is the key to building an
engaged customer base. To achieve and maintain product excellence, an organization
must strive to be best-in-class in three key areas: understanding demand, nurturing the
brand, and differentiating from the competition.
Understanding Product Leadership
Demand forecasting, branding, and differentiating all play a critical role in finding growth
opportunities for your product line. This three-fold focus, however, must be complemented
by an equally rigorous focus on pursuing those opportunities to a best-in-class standard.
Customer communications, customer feedback, pricing, and competitor actions must all be
managed and monitored for ongoing success. If an organization can successfully parlay
product excellence into positive business impact, increased market share will inevitably
follow over time.

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Key Benchmarking Criteria
For the Product Leadership Award, Frost & Sullivan analysts independently evaluated two
key factors—Product Family Attributes and Business Impact—according to the criteria
identified below.
Product Family Attributes
Criterion 1: Match to Needs
Criterion 2: Reliability and Quality
Criterion 3: Product/Service Value
Criterion 4: Positioning
Criterion 5: Design
Business Impact
Criterion 1: Financial Performance
Criterion 2: Customer Acquisition
Criterion 3: Operational Efficiency
Criterion 4: Growth Potential
Criterion 5: Human Capital
Best Practices Award Analysis for Entrust Datacard
Decision Support Scorecard
To support its evaluation of best practices across multiple business performance
categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool
allows our research and consulting teams to objectively analyze performance, according to
the key benchmarking criteria listed in the previous section, and to assign ratings on that
basis. The tool follows a 10-point scale that allows for nuances in performance evaluation.
Ratings guidelines are illustrated below.
RATINGS GUIDELINES
The Decision Support Scorecard is organized by Product Family Attributes and Business
Impact (i.e., These are the overarching categories for all 10 benchmarking criteria; the
definitions for each criterion are provided beneath the scorecard.). The research team
confirms the veracity of this weighted scorecard through sensitivity analysis, which
confirms that small changes to the ratings for a specific criterion do not lead to a
significant change in the overall relative rankings of the companies.

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The results of this analysis are shown below. To remain unbiased and to protect the
interests of all organizations reviewed, we have chosen to refer to the other key
participants as Competitor 2 and Competitor 3.
Measurement of 1–10 (1 = poor; 10 = excellent)
Product Leadership
Product Family
Attributes
Business
Impact
Average
Rating
Entrust Datacard 9.5 9.5 9.5
Competitor 2 8.5 8.5 8.5
Competitor 3 8.2 8.2 8.2
Product Family Attributes
Criterion 1: Match to Needs
Requirement: Customer needs directly influence and inspire the design and positioning of
the product family.
Criterion 2: Reliability and Quality
Requirement: Products consistently meet or exceed customer expectations for
performance and length of service.
Criterion 3: Product/Service Value
Requirement: Products or services offer the best value for the price, compared to similar
offerings in the market.
Criterion 4: Positioning
Requirement: Products or services address unique, unmet need that competitors cannot
easily replicate or replace.
Criterion 5: Design
Requirement: The product features an innovative design, enhancing both visual appeal
and ease of use.
Business Impact
Criterion 1: Financial Performance
Requirement: Overall financial performance is strong in terms of revenues, revenue
growth, operating margin, and other key financial metrics.
Criterion 2: Customer Acquisition
Requirement: Product strength enables acquisition of new customers, even as it enhances
retention of current customers.
Criterion 3: Operational Efficiency
Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high
quality standard.

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Criterion 4: Growth Potential
Requirements: Product quality strengthens brand, reinforces customer loyalty, and
enhances growth potential.
Criterion 5: Human Capital
Requirement: Company culture is characterized by a strong commitment to product
quality and customer impact, which in turn enhances employee morale and retention.
Decision Support Matrix
Once all companies have been evaluated according to the Decision Support Scorecard,
analysts then position the candidates on the matrix shown below, enabling them to
visualize which companies are truly breakthrough and which ones are not yet operating at
best-in-class levels.
High
Low
Low High
BusinessImpact
Product Family Attributes
Entrust
Datacard
Competitor 2
Competitor 3

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© Frost & Sullivan 2019 11 “We Accelerate Growth”
Best Practices Recognition: 10 Steps to Researching,
Identifying, and Recognizing Best Practices
Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and
assess their fit with select best practice criteria. The reputation and integrity of the
Awards are based on close adherence to this process.
STEP OBJECTIVE KEY ACTIVITIES OUTPUT
1
Monitor,
target, and
screen
Identify Award recipient
candidates from around the
globe
 Conduct in-depth industry
research
 Identify emerging sectors
 Scan multiple geographies
Pipeline of candidates who
potentially meet all best-
practice criteria
2
Perform
360-degree
research
Perform comprehensive,
360-degree research on all
candidates in the pipeline
 Interview thought leaders
and industry practitioners
 Assess candidates’ fit with
best-practice criteria
 Rank all candidates
Matrix positioning of all
candidates’ performance
relative to one another
3
Invite
thought
leadership in
best
practices
Perform in-depth
examination of all candidates
 Confirm best-practice criteria
 Examine eligibility of all
candidates
 Identify any information gaps
Detailed profiles of all
ranked candidates
4
Initiate
research
director
review
Conduct an unbiased
evaluation of all candidate
profiles
 Brainstorm ranking options
 Invite multiple perspectives
on candidates’ performance
 Update candidate profiles
Final prioritization of all
eligible candidates and
companion best-practice
positioning paper
5
Assemble
panel of
industry
experts
Present findings to an expert
panel of industry thought
leaders
 Share findings
 Strengthen cases for
candidate eligibility
 Prioritize candidates
Refined list of prioritized
Award candidates
6
Conduct
global
industry
review
Build consensus on Award
candidates’ eligibility
 Hold global team meeting to
review all candidates
 Pressure-test fit with criteria
 Confirm inclusion of all
eligible candidates
Final list of eligible Award
candidates, representing
success stories worldwide
7
Perform
quality check
Develop official Award
consideration materials
 Perform final performance
benchmarking activities
 Write nominations
 Perform quality review
High-quality, accurate, and
creative presentation of
nominees’ successes
8
Reconnect
with panel of
industry
experts
Finalize the selection of the
best-practice Award recipient
 Review analysis with panel
 Build consensus
 Select recipient
Decision on which company
performs best against all
best-practice criteria
9
Communicate
recognition
Inform Award recipient of
Award recognition
 Present Award to the CEO
 Inspire the organization for
continued success
 Celebrate the recipient’s
performance
Announcement of Award
and plan for how recipient
can use the Award to
enhance the brand
10
Take
strategic
action
Upon licensing, company is
able to share Award news
with stakeholders and
customers
 Coordinate media outreach
 Design a marketing plan
 Assess Award’s role in future
strategic planning
Widespread awareness of
recipient’s Award status
among investors, media
personnel, and employees

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The Intersection between 360-Degree Research and Best
Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology represents the analytical
rigor of our research process. It offers a
360-degree-view of industry challenges,
trends, and issues by integrating all 7 of
Frost & Sullivan's research methodologies.
Too often companies make important
growth decisions based on a narrow
understanding of their environment,
leading to errors of both omission and
commission. Successful growth strategies
are founded on a thorough understanding
of market, technical, economic, financial,
customer, best practices, and
demographic analyses. The integration of
these research disciplines into the 360-
degree research methodology provides an
evaluation platform for benchmarking
industry participants and for identifying those performing at best-in-class levels.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth
and achieve best-in-class positions in growth, innovation and leadership. The company's
Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined
research and best practice models to drive the generation, evaluation, and implementation
of powerful growth strategies. Frost & Sullivan leverages more than 50 years of
experience in partnering with Global 1000 companies, emerging businesses, and the
investment community from 45 offices on six continents. To join our Growth Partnership,
please visit http://www.frost.com.
360-DEGREE RESEARCH: SEEING ORDER IN
THE CHAOS