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A S H S E T HI , ME R G E R T E C H 2
MA R KE T D R I V E R S
$0B
2014 2015E 2016E 2017E 2018E
A S H S E T HI , ME R G E R T E C H 3
THRE AT VECTORS
14x
INCREASE IN US
22%
5 YEAR CAGR IN IT
$145B
ANNUAL DAMAGE TO US ECONOMY
NETWORK SNIFFING
RANSOMWARE
BUDGET ALLOCATION
TO IT SECURITY
SECURITY SPENDING RESULTING FROM DATA BREACHES
BOTNETS
SINCE 2000
A S H S E T HI , ME R G E R T E C H 4
E NT E R PR I SE A ND C O NSU ME R SE C U R I T Y C HA LLE NGE S
OPPORTUNITIES CHALLENGES
FACILITATES ACCESS TO DATA BYOD BLURS DATA OWNERSHIP; RISK OF
MOBILE ANYWHERE, ANYTIME LOST OR STOLEN DEVICES
A S H S E T HI , ME R G E R T E C H 5
COMING EXPLOSION IN SMB SECURIT Y G ROWTH
AN UNMINED YET POTENTIALLY LARGE SOURCE OF GROWTH IS THE SHEER NUMBER OF SMBs BOTH IN NORTH
AMERICA AND OVERSEAS THAT LACK ANY TANGIBLE SECURITY MEASURES AROUND THEIR IT OPERATIONS.
SOME FACTS AROUND SMBs:
WHERE SECURITY IS LAX, HACKERS HAVE HELPED THEMSELVES TO BILLIONS IN FRAUDULENT CREDIT CARD
TRANSACTIONS, COMPANY DATA AND PROPRIETARY INFORMATION, BANK ACCOUNT DETAILS, AND EMPLOYEE
INFORMATION.
A S H S E T HI , ME R G E R T E C H 6
THE NEW PARADIGM
AS NEW TYPES OF ATTACKS DEVELOP, THE MOST EFFECTIVE GLO BAL MI LI TARY I T SPE ND
DEFENSES ARE EMERGING FROM “NEW GUARD” PLAYERS
$69.3B
WHO INCUBATE INNOVATIVE, EFFECTIVE SOLUTIONS. $70B $64.1B
$67.9B
$60.5B
$55.8B
$52.4B
$53B $46.9B $49.5B
$43.7B
A S H S E T HI , ME R G E R T E C H 7
DIVERSE ACQUISITION ECOSYSTEM
IM GLOBAL, QUBERA, VIGILANT, URGENTIS, HSC, QUBIT, P3 CONSULTING, TRUSTEQ, FIRST POINT
“THE BIG FOUR” GLOBAL, NORSE, MTS ALLSTREAM, ASECURE, KEY IT GROUP, MPC, SEEKER, INTEGRC, MYCROFT
A S H S E T HI , ME R G E R T E C H 8
MA R KE T R E SPO NSE
201 $2,540M
INVESTMENTS
>SIGNIFICANT INVESTMENT IN STARTUPS FOCUSING
DEALS
156
ON SECURITY CHALLENGES RELATIVELY NEW TO THE 160 $2,000M
$1,710M
MODERN ENTERPRISE: WIRELESS ACCESS, BYOD, 120
108
CLOUD STORAGE AND VIRTUALIZATION $1,220M
80 $1,000M
$800M $815M
>PROLIFERATION OF MOBILE COMMERCE AND
BANKING, GREATER USE OF DIGITAL CASH, AND
GROWTH IN NEW PAYMENT MODELS FUELING 0 $0M
INVESTMENT IN FINTECH RELATED SECURITY—16% 2010 2011 2012 2013 2014 2015E
OF ALL ATTACKS ARE ON FINANCIAL SERVICES
FIRMS/PLATFORMS
A S H S E T HI , ME R G E R T E C H 9
MA J O R V C I NV E ST O R S A ND GR O WT H V E R T I C A LS
BYOD 6
A O R AT O, C O R E O S, F O R G E R O C K , I L LU MI O, LO O KO U T, NE T S KO P E , STE ALTH TE CH
8
SE NTI NE L O NE , SI MI LI T Y, VE CTR A NE TWO R KS
THREAT INTELLIG ENCE
14
B LU E B OX , C I P HE R C LO U D, I L LU MI O, O K TA , LO O KO U T, S I G NA L F X , D ATA S E C U R I T Y
E ND PO I NT SE C U R I T Y
16
A G A R I , B LO C KS C O R E , C O HE S I T Y, G U A R D I C O R E , L I G HT C Y B E R ,
KE YME , R I SKI Q, SCALYR , VE R ADO CS, ZE R TO
A P P L I C AT I O N S E C U R I T Y
18
D U O S E C U R I T Y, I O NI C S E C U R I T Y, MA P R , S HA P E S E C U R I T Y,
SYNACK, TE AM8, THR EAT ST REA M IAM
26
A D A L LO M, B I T 9, C O HE S I T Y, C O R E O S, F O R T E R , K E E N.I O, O K TA ,
SAFE BR E ACH, SUMO LO GI C NE T WO R K SE C U R I T Y
36
A S H S E T HI , ME R G E R T E C H 10
PUBLI C MARKE TS L ANDSCAPE
A S H S E T HI , ME R G E R T E C H 11
MA R KE T C O NSO LI D AT I O N
LARGE IT FIRMS ARE NATURAL BUYERS OF SECURITY TECHNOLOGY, AS THEY HAVE AN EXISTING PORTFOLIO
OF GLOBAL CLIENTS IN INDUSTRIAL VERTICALS THEY CAN EASILY CROSS-SELL NEW SOLUTIONS INTO.
A S H S E T HI , ME R G E R T E C H 12
M& A MA R KE T L A ND SC A PE
0.0 0
2012 2013 2014 2015E
ISRAEL
THE ISRAELI CYBERSECURITY
INDIA
WITH A +1B POPULATION AND A
THE EXISTENCE OF ~1,000 A-LEVEL CYBERSECURITY
EXPERTS GLOBALLY, VS A NEED FOR 10,000 TO 30,000.
SECTOR IS A VERY LARGE AND VERY RELATIVELY SMALL CYBERSECURITY
DYNAMIC SECTOR, WITH HIGHLY MARKET, INDIA IS POISED TO
ADVANCED R&D AND SIGNIFICANT DOUBLE ITS SECURITY MARKET
M&A ACTIVITY INVOLVING CROSS- FROM $500M TO $1B IN LESS THAN
BORDER BUYERS. 2 YEARS.
A S H S E T HI , ME R G E R T E C H 13
B U Y E R L A ND S C A P E
IBM 55
CISCO SOURCEFIRE $2,500M
CISCO 42
ORACLE 35 BAIN CAPITAL BLUECOAT $2,400M
EMC 34
VMWARE AIRWATCH $1,550M
VMWARE 29
DELL 27
FIREYE MANDIANT $989M
INTEL 26
HP 22 VISTA EQUITY WEBSENSE $902M
CA 17
12 IBM TRUSTEER $900M
TIBCO
SYMANTEC 11
GEMALTO SAFENET $890M
JUNIPER 9
A S H S E T HI , ME R G E R T E C H 14
HO T SE C T O R S
2.RECENT TORRENT OF ATTACKS MAKE THE PUBLIC IDENTITY & ACCESS ANTI-MALWARE/ANTI-
MOBILE SECURITY
MANAGEMENT FRAUD
FEEL IT IS NOT ADEQUATELY PROTECTED AGAINST
BREACHES NETWORK SERVICES MOBILE SECURITY MANAGED SECURITY
MDM
NEW IN THE ENTERPRISE (EG MOBILE, CLOUD)
A S H S E T HI , ME R G E R T E C H 15
Im @techfinanceash
Ash Sethi / Associate / MergerTech
www.mergertech.com asethi@mergertech.com