Messaging Gateway Security Competitors

1. Messaging Gateway Security Competitors ProofPoint, Postini, IronPort

2. ProofPoint Overview • HQ in CA, 150 plus employees, 2004 sales $8.7, 2005 Sales $12m (IDC), 2005 Market Share was 3.4% as compared to ours at 17.8% • Main products are: ProofPoint Protection Server with application modules; Anti-Spam, Anti-Virus, Regulatory Compliance, Digital Assets, Secure Messaging (Voltage), and Network Content Sentry (web & ftp) • Geography: Stronger presence in US and growing Internationally • Market Segments: Primarily Compliance • Aggressive sales; would drop price if we are competing • Started Year Strong with Venture Capital of 20M, hired a large sales team, by August terminated 30% of company

3. Beating ProofPoint • How we attack ProofPoint • They do not have a True Reputation capability – They do not have a reputation service like TrustedSource. Nor do they identify what was wrong with the message which required it to be quarantined or blocked. • Software Upgrades – Requires their Support to log onto the backend and perform part or all of the upgrade. There are restrictions around business hours which are 7am – 7pm PST. Additional fees are charged for upgrades outside business hours. • Security Vulnerabilities– Subject to vulnerabilities of Spam Assassin, OS, and Open Source MTA. • How ProofPoint attacks us & how we defend • IronMail Lack Clustering Capability –Enterprise class solutions require dedicated Central Quarantine and Central Management systems thus reducing the load on the message processing appliances. • Weak Content Compliance – IronMail has more functionality and flexibility in its core content compliance with full Regulatory Compliance functionality for message body, header and attachments. • Complex UI - Our UI represents a very deep feature set of multiple functions. Advanced features are separate from our basic feature set. • Neutralizing ProofPoint strength • Lack of functionality in Base Product – OEM third party for Encryption, Lacks Compliance in Base Product, PP does not support S/MIME and PGP Gateway to Gateway encryption, Unable to edit weights in preconfigured Compliance dictionaries • Reputation Service – PP lacks a True Reputation System.

4. Postini Overview • HQ in San Carlos, CA, 300 employees, 2006 bookings: $65-75m (profitable since 2004) • Main products are: Perimeter Mgr for Email, IM, Archives, Encryption, and Web • Geography: NA and EMEA • Market Segments: mostly SMB (30,000) but creeping into enterprise • Sales Strategy: Managed services only

5. How we attack Postini TCO – over 3+ years, total cost of ownership is higher than on-prem solutions. Content Filtering – only have keyword matching in message (no attachment analysis), no dictionaries or lexicons, no advanced scanning at all. Encryption and Web offerings aren’t integrated– these are separate data centers run by partners using different management consoles, differ UI and different reporting. Market Share Isn’t There– IDC only gives managed services a 25% maximum market share so most accounts aren’t available to them. Compliance Shouldn’t be Managed Off-Prem– Most companies seriously concerned about compliance won’t send messages off-net to be scanned. Weak Indirect Channel– McAfee is their only partner of any size. How Postini attacks us & how we defend High Accuracy with Low False Positives –with TrustedSource, our accuracy rates are higher. Evens out Spam Surges – With SecureEdge, we can negate spam surges. Low Initial Cost - Great, unless you’re planning on doing email in a couple of years, then the cost is dramatically higher. Neutralizing Postini strengths No Ability to Scan Outbound – Can’t help you with compliance AT ALL. Won’t scan outbound for data leakage. Margins – They charge flat fees to customers; spam surges increase their costs and erode profits. Beating Postini

6. HQ in San Bruno CA, 400 employees, 2005 sales $90-110m Main products are: Email, web and management appliances Geography: International Market Segments: secure email, compliance Sales Strategy: Acquired by Cisco so their sales strategy will become channel focused IronPort Overview

7. IronPort Overview – Cisco Acquisition Info • Price: $830M (cash and stock) • Timetable • Announced January 4 • Target close: Q3 • Motivation • Plugs email hole in “Self-Defending Networks” story • Extends Cisco’s reach in application space • High growth strategy for a low-growth portfolio • Risks to Cisco • De-focused sales force and R&D • Failure to integrate in a timely manner • Sets them up for head-to-head competition with Microsoft in unified messaging market • No “pull” from IronPort for larger infrastructure deals so reps may ignore

8. How we attack IronPort Weak Content Control – only do pattern matching. They rely on Vontu partnership to do any sophisticated scanning. Email only – They do nothing with IM, FTP, P2P or webmail. Reputation Service– SenderBase is nothing more than RDNS, RBL, and volume counter of domains/IPs sending mail. #2 player– In every analyst report and industry study, IronMail beats IronPort hands down. No ability to handle spam surges– they have nothing to compare with Edge. Patched together solution– Almost all of their technology is acquired or partners; no real in-house expertise. Poor Quarantine/Message Management solution – their Centralized Quarantining and Searching is very weak and requires additional hardware/software installation. How IronPort attacks us & how we defend SenderBase Scale –TrustedSource was first, does more sophisticated analysis and catches more spam, zombies and malware faster and more accurately. Customer loyalty – Secure has a 99% renewal rate. Neutralizing IronPort strengths Cisco isn’t a Security company – ~ 2% of Cisco revenue comes from security. Their motivation is to sell routers. Defocused – Their eyes will be off the ball during the merger period. Beating IronPort

9. Beating IronPort