RSA Media & Analyst Briefing March 2-4, 2010
RSA Media & Analyst Briefing
March 2-4, 2010
The CxOs Balancing ActChanging World, Changing Priorities, Increasing Danger
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Changing World Business
Priorities
Partner & Customer
Collaboration
High ROILow TCO
Workforce Effectiveness
Risk Management
& Compliance
New & Malicious
Threats
Macro Economics
Mobile
Social Media
Technology TrendsImpacts to Productivity & ROI
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Infrastructure Demands:
Bandwidth
Performance Availability Ease of use
Manageability Security TCOConverged
Comms
Cloud/SaaS Consolidation Virtualization
Web 2.0 Mobile Devices
2001: Network Perimeter 2010: Network ExpansionVOIP Users
Traveling Users
Remote Employees
Corporate Data Centers
Customers or Suppliers
Remote Access
External Users
The Business Impact – Perimeter Contraction / Network Expansion
User Protection
Access Control
ProductivityControls
Saas, Web 2.0 Real-Time Apps
Perimeter / Internal Security
Business Communication
Protection
Beyond 2010 – More Collaboration, More Content, More Communications = More IT Challenges
Partner Access
WANsExtranets
Collaboration
Cloud/SaaS
Converged Communications
Employee Productivity & Security Impact
Copyright 2009 SonicWALL Inc. All Right Reserved.5
Blogging Facebook Twitter IM Streaming video Streaming audio Downloading files Playing games Webmail Wikis
25% of office Internet traffic is non-business related(Burst Media Survey, 2008)
50% of surveyed companies said at least 30% of their bandwidth is
being consumed by social networking traffic
(Forrester, Feb 2009)
Malware, Trojans, BotNets, Intrusions out of control
A Secure Future
What if....
You could control, manage and protect your global network easily, automatically? You could control different applications more easily, manage their bandwidth, and
block objectionable applications? You could receive & share threat and defense data around the world in real time? You could secure any user, any device, using any application from anywhere? You could scale services securely without compromising reliability? You could access any Carrier, SaaS, or Cloud without security impact? You could always see and know what the malicious activities are on your network? You could do all of this and actually lower your TCO?
Dynamic Security for the Global Network
Global, Distributed, Mobile and Cloud
Real-time Situational Visibility and Awareness
Communication of Shared Threats and Shared Defenses
Proactive Risk Management and Compliance
Best Economics
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What's New?
Introducing Portfolio of Security Virtual Appliances
Family of Virtual Appliances Focused on SECURITY
Deployed in VMware environment
Choice and flexibility for Enterprises, SMBs, and Managed Service Providers
Solutions to range from Global Management, Reporting, Email Security, SSL VPN
New Category of Products Focused on Application Intelligence,
Control, and Security
Multi-Gigabit Appliances delivered with Application Intelligence & Control AND Intrusion Prevention
New Intuitive Visualization Tools to categorize and take action on all network activity for optimization
Flexible Deployment as the Gateway or In-Line behind a Firewall
Delivering Virtual Appliance Solutions
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Technology TrendsImpacts to Productivity & ROI
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Converged Comms
Cloud/SaaS Consolidation Virtualization
Infrastructure Demands:
Bandwidth
Performance Availability Ease of use
Manageability Security
TCO
Web 2.0 Mobile Devices
Cloud, SaaS, Consolidation, VirtualizationDriven By TCO and Optimization Needs
Technology Trends Plus Fundamental TCO Economics
Source:1. IDC, U.S. and Worldwide Server Installed Base 2007–2011 Forecast, Doc #207044, May 20072. IDC, Virtualization And Multicore Innovations Disrupt The Worldwide Server Market, Doc #206035, March 20073. Source: VMware
Benefits of Security Virtual Appliance Strategy
Advantage Details
Increased Security: Hardened SonicLinux Operating System; users are not able to tamper with the virtual appliance
Lower TCO: The virtual appliance is a pre-configured virtual machine - there are no dedicated hardware prerequisites, no professional service fees and no hidden costs. It's all in the appliance!
Higher Performance Optimized software and hardware architecture; no unnecessary processes active
Reduced Complexity:
Simplified product selection, product integration, ongoing support.
SonicWALL GMS and ViewPoint Virtual Appliances
Introduced at RSA
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SonicWALL GMS Virtual Appliance
The GMS Virtual Appliance is based on SonicWALL GMS version 6.0 announced earlier this year
Flexible, powerful and intuitive solution to centrally manage and rapidly deploy all of their SonicWALL firewall, anti-spam, backup and recovery, and secure remote access solutions
Enterprises and MSPs use SonicWALL GMS to manage thousands of appliances simultaneously Centrally create &push security policies Provide real-time monitoring and Alerting Intuitive compliance and usage reports
from a single management interface.
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SonicWALL ViewPoint Virtual Appliance
The ViewPoint Virtual Appliance provides granular reporting on one or more SonicWALL security devices, allowing administrators to closely track network utilization, monitor security activity and view Web usage.
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Delivering Multi-Gigabit Application Intelligent Firewall with IPS
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Technology TrendsImpacts to Productivity & ROI
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Infrastructure Demands:
Bandwidth
Performance Availability Ease of use Manageability Security
TCO
Web 2.0, Converged Communications, Mobile Devices Drive Need for Dynamic Security While Maintaining Performance
Cloud/SaaS Consolidation Virtualization
Converged Comms
Web 2.0 Mobile Devices
SonicWALL E-Class NSA E8500
Application Intelligence and IPS
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SonicWALL NSA E8500: High Performance Application Intelligence & IPS
Comprehensive Inspection W/ Ease of Use Application Intelligence & Control Powerful IPS, Multi-gig performance Management of traffic Visualization of traffic RFDPI Technology (low latency) SSL Traffic Inspection “Bump in the Wire” mode or
traditional gateway
The Technology 16-Core, 4GB RAM 8.0 Gbps Stateful Inspection 3.5 Gbps IPS 2.0 Gbps Application Control Detects over 1,000,000 unique
threats
Detects, Classifies and Controls over 1,100 Unique Applications
Unique Technology ApproachEvery bit, every protocol, every user & application
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Scalable Engine Architecture Re-Assembly Free DPI – at wire speed Virtually no latency introduced Designed for current & future protocols Foundation for all technologies
Clustering Technology Increased availability Increased throughput
Massive Scalability & Bandwidth Multi-core, parallel architectures Unlimited data size or formats Unlimited number of connections
Best Economical Solution Easy to adopt, deploy and manage Modular platform
Real-time, Deep protection Simultaneous, proactive, multi-threat scanning & analysis Real-time communications with SonicWALL GRID Network Behavioral Analysis & Protection
Application Intelligence & ControlIdentify- By App- Not by Port & Protocol
Categorize- By app- By Category of App- By destination- For which person or groups
Control- Allow- Block- Bandwidth Prioritize
Critical Business(Allocate Bandwidth)
Observe, Act, React(Dig in, Take New Action)
Acceptable Applications(Limit Bandwidth)
Social(Allocate bandwidth to Marketing
Block Social to all others)
Application Chaos(So many on port 80)
Bringing It All Together
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Converged Comms
Cloud/SaaS Consolidation Virtualization
Web 2.0 Mobile Devices
Virtualized Environment
Network Security Protection for
Virtualized Environment
SonicWALL Financial Results
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Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements presented in accordance with GAAP, SonicWALL presents certain non-
GAAP financial measures. These non-GAAP financial measures are not intended to replace GAAP results. GAAP results
are the most comprehensive and accurate representation of the performance of the company. Management does, however,
regularly use these non-GAAP financial measures to evaluate certain aspects of the companyÕs operating performance against
established business objectives such as departmental operating results in terms of cash operating expenses as a percentage of
revenue, and inventory turns exclu sive of non-cash expenses. Management further uses these non-GAAP measures as a
benchmark of the companyÕs performance against our competitors who frequently present similar non-GAAP financial
measures. The company has in the past and may again in the future use these non-GAAP financial measures as targ et metrics
for its incentive compensation plans. Additionally, management establishes its annual operating plan and manages operating
expenses each year exclusive of certain recurring expens es which have no impact on cash from operations. We believe that
investors benefit from this additional disclosure as it provides transparency into financial information used by management in
our assessment of operating performan ce, provides a cash basis comparison of operating results against other companies in
our industry, and provides the basis of targets established for the incentive compensation plans.
Fourth Quarter 2009 At-a-Glance
Q4 2008 Q3 2009 Q4 2009 Seq. % Growth
Y-Y % Growth
Revenue $54.3 $50.7 $54.1 7% 0%Non-GAAP Gross Margin 71.3% 73.3% 70.7% -- --
Non-GAAP Op. Margin 15.5% 15.8% 16.2% 5% 5%
Non-GAAP Net Income $5.9m $5.4m $6.0m 11% 2%
Non-GAAP EPS $0.11 $0.10 $0.11 10% 0%Deferred Revenue $103.5m $116.7m $124.2m 6% 20%Cash and Investments
$166.9m $203.0m $215.9m 6% 29%
*Please see non-GAAP disclosures.
Momentum in Deferred Revenue
020000400006000080000
100000120000140000
Q408 Q109 Q209 Q309 Q409
Subscription Deferred Other Deferred
Momentum in Cash Flow
0
50
100
150
200
250
Q4 08 Q1 09 Q2 09 Q3 09 Q4 09
Cash and Investments
$36 million in CFO in 2009
Revenue Breakdown
Q4 08
Q3 09
Q4 09
Product
Lic. &Serv.
60%40%
62%38%
42%58%
Total Revenue by Product Category
Q4 08
Q3 09
Q4 09
UTMSSLSCMCDP
77%
78%
78%
9%
9%
9%
10%
9%
9%
4%
4%
4%
Product Revenue by Product Line
Q4 08
Q3 09
Q4 09TZNSAOther
35%
38%
38%
42%
41%
40%
23%
21%
22%
Our Vision
We believe security solutions should be “smart” enough to adapt as organizations evolve and as threats evolve, dynamically, globally.
We believe customers around the world should have the ability to control, manage and protect their global network easily and automatically.
We believe our customers should be able to receive and share threat and defense data around the world so they can anticipate and stop attacks before they happen. We want our customers to be able to secure any user, any device, using any application from anywhere so they can collaborate securely across different networks.
All this needs to be achieved with maximum ease of deployment and at the best economic value and in a compliant framework.
Thank You!
Colleen NicholsSr. Director, Public Relations [email protected]
John Gordineer Director, Product [email protected]
Kelly BloughSr. Director, Investor Relations [email protected]