Transcript SonicWALL Protection at the Speed of Business&#174

RSA Media & Analyst Briefing
March 2-4, 2010
The CxOs Balancing Act
Changing World, Changing Priorities, Increasing Danger
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Technology Trends
Impacts to Productivity & ROI
Infrastructure Demands:
 Bandwidth
Cloud/SaaS
Consolidation
 Performance
Virtualization
 Availability
 Ease of use
 Manageability
 Security
 TCO
Web 2.0
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Converged
Comms
Mobile Devices
The Business Impact –
Perimeter Contraction / Network Expansion
2001: Network Perimeter
2010: Network Expansion
VOIP Users
Cloud/
SaaS
Converged
Communications
Corporate Data
Centers
Business
Communication
Protection
External Users
Saas, Web 2.0
Real-Time Apps
User
Protection
Customers or
Suppliers
Remote Access
Collaboration
Perimeter / Internal
Security
Productivity
Controls
Access
Control
WANs
Extranets
Remote
Employees
Traveling Users
Beyond 2010 – More Collaboration, More Content, More
Communications = More IT Challenges
Partner
Access
Employee Productivity & Security
Impact
 Blogging
 Facebook
 Twitter
 IM
 Streaming video
 Streaming audio
 Downloading files
 Playing games
 Webmail
 Wikis
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Copyright 2009 SonicWALL Inc. All Right Reserved.
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
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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
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Global, Distributed, Mobile and Cloud
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Real-time Situational Visibility and
Awareness
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Communication of Shared Threats
and Shared Defenses
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Proactive Risk Management and
Compliance
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Best Economics
What's New?
Introducing Portfolio of Security
Virtual Appliances
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Family of Virtual Appliances
Focused on SECURITY
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Deployed in VMware
environment
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Choice and flexibility for
Enterprises, SMBs, and
Managed Service Providers
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Solutions to range from Global
Management, Reporting, Email
Security, SSL VPN
New Category of Products
Focused on Application
Intelligence, Control, and Security
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Multi-Gigabit Appliances
delivered with Application
Intelligence & Control AND
Intrusion Prevention
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New Intuitive Visualization Tools
to categorize and take action on
all network activity for
optimization
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Flexible Deployment as the
Gateway or In-Line behind a
Firewall
Delivering Virtual Appliance
Solutions
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Technology Trends
Impacts to Productivity & ROI
Infrastructure Demands:
 Bandwidth
 Performance
Cloud/SaaS
Consolidation
Virtualization
 Availability
 Ease of use
 Manageability
 Security
 TCO
Web 2.0
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Converged
Comms
Mobile Devices
Cloud, SaaS, Consolidation, Virtualization
Driven By TCO and Optimization Needs
Technology Trends Plus
Fundamental TCO Economics
Server Sprawl
Power & Cooling
• 36M physical x86 servers by 20111— a ten-fold increase in 15 years1
• $140 bn in excess server capacity - a 3-year supply2
• 50c for every $1 spent on servers2
• $29 bn in power and cooling industry wide2
Space Crunch
• $1,000 / sqft2
• $2,400 / server2
• $40,000 / rack2
Operating Cost
• $8 in maintenance for every $1 spent on new infrastructure 2
• 20-30 : 1 server-to-admin ratio3
Source:1. IDC, U.S. and Worldwide Server Installed Base 2007–2011 Forecast, Doc #207044, May 2007
2. IDC, Virtualization And Multicore Innovations Disrupt The Worldwide Server Market, Doc #206035, March 2007
3. 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
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The GMS Virtual Appliance is based on
SonicWALL GMS version 6.0
announced earlier this year
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Flexible, powerful and intuitive solution
to centrally manage and rapidly deploy
all of their SonicWALL firewall, antispam, backup and recovery, and
secure remote access solutions
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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 Trends
Impacts to Productivity & ROI
Infrastructure Demands:
 Bandwidth
 Performance
Cloud/SaaS
Consolidation
Virtualization
 Availability
 Ease of use
 Manageability
 Security
 TCO
Web 2.0
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Converged
Comms
Mobile Devices
Web 2.0, Converged Communications, Mobile Devices Drive Need for Dynamic
Security While Maintaining Performance
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
The Technology
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Application Intelligence & Control
Powerful IPS, Multi-gig performance
Management of traffic
Visualization of traffic
RFDPI Technology (low latency)
SSL Traffic Inspection
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
“Bump in the Wire” mode or
traditional gateway
Detects, Classifies and Controls over 1,100 Unique Applications
Unique Technology Approach
Every bit, every protocol, every user & application
 Real-time, Deep protection
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 Simultaneous, proactive, multi-threat scanning & analysis
 Real-time communications with SonicWALL GRID Network
 Behavioral Analysis & Protection
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
Application Intelligence & Control
Identify
Categorize
Control
- By App
- Not by Port
& Protocol
- By app
- By Category of App
- By destination
- For which person or groups
- Allow
- Block
- Bandwidth Prioritize
Application Chaos
Critical Business
Observe, Act, React
(So many on port 80)
(Allocate Bandwidth)
(Dig in, Take New Action)
Acceptable Applications
(Limit Bandwidth)
Social
(Allocate bandwidth to Marketing
Block Social to all others)
Bringing It All Together
Virtualized Environment
Cloud/SaaS
Consolidation
Virtualization
Network Security Protection
for
Virtualized Environment
Web 2.0
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Converged
Comms
Mobile Devices
SonicWALL Financial Results
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Use of Non-GAAP Financial Measures
To supplement our consolid ated financial statements presented in accordance with GAAP, SonicWALL presents certain nonGAAP fin ancial measures. These non-GAAP financial measures are not intended to replace GAAP results. GAAP results
are the mo st comprehensive and accurate representation of the performance of the company. Management does, however,
regularly use these non-GAAP fin ancial measures to evaluate certain aspects of the companyÕsoperating performance against
established business objectives such asdepartmental 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-GAAPmeasures as a
benchmark of the companyÕsperformance against our competitors who freq uently present similar non-GAAP fin ancial
measures. The company has in the past and may again in the future use these non-GAAP financial measures as target metrics
for its incentive compensation plans. Additionally, management establishes its annual operating plan and manages operating
expenses each year exclusive of certain recurring expenses which have no impact on cash from operations. We believe that
investors benefi t from this additional disclosure asit provides transparency into financial information used by manageme nt 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 fo r the incentive compensation plans.
Fourth Quarter 2009 At-a-Glance
Q4 2008
Q3 2009
Q4 2009
Seq. %
Growth
Revenue
$54.3
$50.7
$54.1
7%
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%
$166.9m
$203.0m
$215.9m
6%
29%
Cash and
Investments
*Please see non-GAAP disclosures.
Y-Y %
Growth
0%
Momentum in Deferred Revenue
140000
120000
100000
80000
60000
40000
20000
0
Q408
Q109
Q209
Subscription Deferred
Q309
Q409
Other Deferred
Momentum in Cash Flow
250
200
150
100
$36 million in CFO in 2009
50
0
Q4 08
Q1 09
Q2 09
Q3 09
Cash and Investments
Q4 09
Revenue Breakdown
Product
60%
40%
Lic. &
Serv.
Q4 09
Q4 08
42%
58%
38%
62%
Q3 09
Total Revenue by Product Category
10%
UTM
4%
9%
SSL
77%
Q4 09
SCM
CDP
Q4 08
9%
4%
9%
78%
9%
9%
4%
78%
Q3 09
Product Revenue by Product Line
23%
35%
42%
TZ
NSA
Q4 09
Other
22%
38%
Q4 08
40%
21%
38%
41%
Q3 09
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 Nichols
Sr. Director, Public Relations
+1.408.962.6131
[email protected]
www.sonicwall.com
John Gordineer
Director, Product Marketing
+1.408.962.7887
[email protected]
www.sonicwall.com
Kelly Blough
Sr. Director, Investor Relations
+1.408.962.6329
[email protected]
www.sonicwall.com