Next-Generation Endpoint Security Market Sizing and Forecast 2016–2020

1. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING David Monahan Enterprise Management Associates Research Director, Security and Risk Management Twitter: @SecurityMonahan Next-Generation Endpoint Security Market Sizing and Forecast 2016–2020

2. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Featured Speaker Slide 2 © 2016 Enterprise Management Associates, Inc. David Monahan Research Director, Risk and Security David is a senior information security executive with several years of experience. He has organized and managed both physical and information security programs, including security and network operations (SOCs and NOCs) for organizations ranging from Fortune 100 companies to local government and small public and private companies.

3. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Logistics for Today’s Webinar Slide 3 © 2016 Enterprise Management Associates, Inc. • An archived version of the event recording will be available at www.enterprisemanagement.com • Log questions in the Q&A panel located on the lower right corner of your screen • Questions will be addressed during the Q&A session of the event QUESTIONS EVENT RECORDING

4. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING David Monahan Enterprise Management Associates Research Director, Security and Risk Management Twitter: @SecurityMonahan Next-Generation Endpoint Security Market Sizing and Forecast 2016–2020

7. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Perception of Prevention Technology Slide 7 © 2016 Enterprise Management Associates, Inc. Sample Size = 207 Yes 79% No 21% Believes Prevention of APT/ATAs is Possible with Currently Existing Technology

8. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Perception of Detection Technology Slide 8 © 2016 Enterprise Management Associates, Inc. Yes 83% No 17% Believes Detection of APT/ATAs is Possible with Currently Existing Technology Sample Size = 207

9. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Qualifications for Consideration • Non-reliant on Signature/pattern-based Enforcement or Detection • Proactive • Centrally Manageable and Scalable • Granular Policy-based Control Slide 9 © 2016 Enterprise Management Associates, Inc.

10. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Capabilities • Prevention • Must stop the execution of malware. • Detection • Do not attempt to stop execution, but rather rely on their ability to identify activities and changes. • Response • Incident Alerting • Isolate infected host • Remove Malware • Ticket/Workflow integrations Slide 10 © 2016 Enterprise Management Associates, Inc.

11. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Research Participants Slide 11 © 2016 Enterprise Management Associates, Inc. Participating Vendors Avecto CounterTack Fidelis Cybersecurity LightCyber SentinelOne Carbon Black CrowdStrike FireEye HX Malwarebytes Sophos Bromium Cybereason Hexis Cyber Solutions Outlier Tanium Cisco Cylance IBM Apex Promisec Triumfant Comodo Deep Instinct Invincea RSA ECAT Ziften Non-Participating Vendors Avast Intel Security Symantec Confer Kaspersky Trend Micro Endgame Palo Alto Networks Webroot

12. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING The Tools Security is Turning to: Slide 12 © 2016 Enterprise Management Associates, Inc. 27% 28% 31% 32% 33% 38% 38% 40% 41% 43% 44% 44% 45% 49% 51% 53% 54% 61% Endpoint Forensics Adv. Threat Analytics & Anomaly Detection Threat Intell Svc/Feed ETDR Network APT Detection/Analysis Cloud Application Security Mgmt.- casm Network Admission Control- NAC NGFW & UTM IAM, IDM, PIM, etc. Mobile Security Tools DLP/Data Classification Cloud Data Encryption SIEM Web Security Gateway- WSG Security & Risk Mgmt/ ITGRC- SRM WAF Endpoint Encryption Antivirus Declining Technology Low Market Saturation High Customer Value

13. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Mean Perceived Value of Technologies (Benefits vs. TCO) Slide 13 © 2016 Enterprise Management Associates, Inc. 1.89 2.04 2.08 2.11 2.11 2.12 2.13 2.13 2.14 2.15 2.16 2.18 2.18 2.21 2.21 2.23 2.23 2.23 Antivirus WAF DLP/Data Classification IAM, IDM, PIM, etc. Mobile Security Tools SIEM Endpoint Encryption Endpoint Forensics SRM CASM NAC WSG NGFW & UTM Network APT Detection/Analysis ETDR Threat Intel Svce/Feed Cloud Data Encryption Adv. Sec./Threat Analytics &… Highest Increase in Value

16. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Vendors 5 Years Old & Newer vs. Over 5 Years Old Slide 16 © 2016 Enterprise Management Associates, Inc. Vendors 5 Years Old or Less, 77% Vendors Over 5 Years Old, 23%

17. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Largest Single Deployment Slide 17 © 2016 Enterprise Management Associates, Inc. Company Name Rank by Largest Deployment (Ties within 10K) Avecto 1 Fidelis Security Systems 2 Bromium 3 Malwarebytes 4 Carbon Black 5 Cisco 5 Cylance 5 CrowdStrike 6 Cybereason 6 IBM Apex 7 Promisec 7 RSA ECAT 7 Ziften 7 Invincea 8 Hexis Cyber Solutions 9 Triumfant 9 Outlier 10 CounterTack 11 LightCyber 12 SentinelOne 12 Comodo 13

19. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Vendor Rank by Licenses Sold Slide 19 © 2016 Enterprise Management Associates, Inc. Company Name Rank by Licenses Sold (Ties within 1%) Carbon Black 1 Cisco 2 Fidelis Security Systems 2 Avecto 3 Cylance 3 Invincea 4 Malwarebytes 4 Cybereason 5 Promisec 6 RSA ECAT 6 Bromium 7 IBM Apex 7 Sophos 7 CounterTack 8 CrowdStrike 8 SentinelOne 8 Ziften 8 Comodo 9 Deep Instinct 9 FireEye HX 9 Hexis Cyber Solutions 9 LightCyber 9 Outlier 9 Triumfant 9

21. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Aggregate Ranking Slide 21 © 2016 Enterprise Management Associates, Inc. Company Name Aggregate Ranking Carbon Black 1.0 Cisco 2.0 Malwarebytes 3.5 Avecto 4.5 Fidelis Security Systems 4.5 Invincea 4.5 Bromium 5.0 CrowdStrike 6.0 Cybereason 6.0 IBM Apex 6.5 Sophos 6.5 Promisec 7.0 RSA ECAT 7.0 Comodo 7.5 Countertack 7.5 SentinelOne 7.5 FireEye HX 8.0 Hexis Cyber Solutions 8.0 Ziften 8.0 Deep Instinct 8.5 LightCyber 8.5 Outlier 8.5 Triumfant 8.5

22. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Market Value Slide 22 © 2016 Enterprise Management Associates, Inc. Low-Range NGES Market Value Mid-Range NGES Market Value High-Range NGES Market Value Est Value 2015 $ 314,775,000 $ 426,462,500 $ 538,150,000 Conservative Low-Range NGES Market Value Mid-Range NGES Market Value High-Range NGES Market Value Est Value 2016 $ 535,117,500 $ 724,986,250 $ 914,855,000 Est Value 2017 $ 829,432,125 $ 1,123,728,688 $ 1,418,025,250 Est Value 2018 $ 1,202,676,581 $ 1,629,406,597 $ 2,056,136,613 Est Value 2019 $ 1,623,613,385 $ 2,199,698,906 $ 2,775,784,427 Est Value 2020 $ 2,029,516,731 $ 2,749,623,632 $ 3,469,730,534 Aggressive Low-Range NGES Market Value Mid-Range NGES Market Value High-Range NGES Market Value Est Value 2016 $ 629,550,000 $ 852,925,000 $ 1,076,300,000 Est Value 2017 $ 1,070,235,000 $ 1,449,972,500 $ 1,829,710,000 Est Value 2018 $ 1,605,352,500 $ 2,174,958,750 $ 2,744,565,000 Est Value 2019 $ 2,167,225,875 $ 2,936,194,313 $ 3,705,162,750 Est Value 2020 $ 2,709,032,344 $ 3,670,242,891 $ 4,631,453,438

23. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Going Forward • Acceptance by Regulators and Auditors • Further 3rd-party certification • New Entrants and Market Consolidation • Technology mergers to maintain market strength against leaders • Acquisition by other vendors to augment portfolios • Acquisition by current mainstay antivirus providers seeking to augment portfolios and market appeal • Consumer Segment Expansion • A lot of headaches Slide 23 © 2016 Enterprise Management Associates, Inc.

24. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Questions? Slide 24 © 2016 Enterprise Management Associates, Inc. Get the report: http://research.enterprisemanagement.com/next-gen-endpoint-security- market-sizing-2016-report.html