Be Ready for the New Frontline

Peter Cooper, Head of Channel Sales, Kaspersky Lab15th July 2011

Be Ready for the New FrontlineA new conversation for our channel partners

Channel partner facing deck NOT for onward distribution

Why are we talking about the New Frontline?Our value proposition – your value proposition

We all face challenging times

Which means we MUST change the way we

go to market

We need to broaden our buying centre

Change the conversation

• Customers are focused on value

• IT needs to be aligned to solving business issues and directives

We all must avoid fighting on price, or we risk commoditisation

Our sales conversations have be more strategic, we all want bigger customers, bigger deals

Kaspersky Lab has a new value proposition

A new story to tell: based on what customers want to know about

New tools to help us all hit the numbers

| July 6 2011Be Ready for the New FrontlinePAGE 2 |

Our task together: time to move up the value change.Focused on a different audience, and a different message

Technology specific

Operationally specific

Business specific

Current Target

Frontline Target

IT

Management

C-Level

Pro

duct

Valu

e


Kaspersky Lab has evolved: more value to you

TO

Technology features

Talking malware messaging

Engaging technical implementers

Not considered, no seat at the table

Commodity vendor

Business impact and value

Discussing customer challenges

Engaging business decision-makers

Valued opinion, shaping the projects

Strategic partner

FROM


Context: what are customers thinking about?

The business:• Increase revenue and reduce operating costs • Increase efficiency whilst reducing long term fixed commitments• Moving capital expenditure to operational expenditure• Becoming more agile, responsive and resilient to volatile conditions

CEOboard

Technology leadership• Transformation through new technologies that create a more

flexible, dynamic and efficient work environment• Deliver new working practices for greater productivity• Choosing new strategies that leverage today’s “sophisticated” end-user• New devices, corporate and personal, to connect, share and collaborate

CIOCISO

So, where’s the project?


Context: your customer’s landscape

The business:• Increase revenue

and reduce costs • Increase efficiency• Capex to opex• Agility

CEOboard

Technology leadership

• Transformation• New working practices• New strategies• New devices

CIOCISO

New strategies, new security concerns, new conversations

• Mobility projects: Smartphones increase productivity – but as mobility increases, so to does the risk

• Virtualisation: server virtualisation achieved huge cost savings, is the desktop the next cost saving potential? What are the security implications?

• Consumerisation: do more with less by empowering employees to use their own devices. But, empowerment could come at a price...

• Outsourcing to a cloud-based service: the need to focus on core business means nothing is sacred – but pushing corporate applications, and data, to the cloud bring a perceived risk


Broadening the buying centre

| July 6 2011Be Ready for the New FrontlinePAGE 7

CEO

Telecoms' manager

Procurement

IT

Broader c suite contacts e.g. sales director , marketing director, finance director, HR director

Where are conversations focussed now?

Typically within IT sphere of influence

Using a business need/driver led approach illustrates to senior management how a decision in IT can have a serious impact on overall business plans

Context – opportunities for our partners


At Kaspersky Lab we recognise that its time to change the type of conversations we are having and broaden the range of people we are talking to within an organisation

By expanding our buying centre and using value propositions that talk to organisational business drivers, we can raise our profile within an account and start to become recognised as a strategic partner rather then a commodity vendor

Our partner community is crucial for us to be successful in this approach, we are working hard to provide you with tools that enable you to engage with a wider base of contacts as well as deliver you new ‘business need’ led messaging

Many interactions with existing and potential customers are centred on procurement and specific elements of IT. In order to sell a wider portfolio and resolve our customer’s operational and strategic business issues, we need to have new conversations with new people about new subjects and move up the decision making value chain

This approach will open up new opportunities within both your existing and potential base and provide you with exposure to new contacts and perhaps more importantly new budgets

Be ready for the New Frontline

Introducing: “Be ready for the New Frontline.”

Context:Organisations are seeing an unprecedented change in their operating and IT environments – the security frontline has shifted

Our response:At Kaspersky we take security to where the new battle lines are drawn, regardless of the platform, device or location.

Their resultCustomers can make the business transformation they need, but without the risk

MOBILE

VIRTUALISATION

CONSUMERISATION

CLOUD


Securing your customer’s mobile workforce

Customer scenario:Financial services business has an increasingly distributed and mobile workforce: key driver to ensure maximum staff productivity, no matter where they are

IT has lost the battle for control: the business users now employ different devices – carrying with them valuable, sensitive and costly information

The challenge:Huge risks exist around loss of unsecured devices, growing threats around mobile malware and how to manage it efficiently

Our proposition:We treat a mobile end-point like any other: securing it and securing your business

We provide mobile protection across different devices and platforms – all easy to manage through a single dashboard

FACT:Over 1bn mobile devices will have access to the internet by 2013

FACT:When surveyed, two thirds of employees on the move wanted a smartphone as their mobile tool of choice, only one third wanted a laptop

FACT:There was a 33% increase in malware infections aimed at smartphone users in 2010


Making desktop virtualisation a secure environment

Customer scenario:European food retailer faces a price war – IT is tasked with saving 30% budget savings within 9 months

Previous server virtualisation saved over $8m, with over 50,000 seats, implementing desktop virtualisation is now top of the priority list

The challenge:The virtualisation project has to happen, but the CISO may not understand the security vulnerabilities generated by this new environment

Our proposition:We understand the unique complexities in securing a virtualised desktop, and can deploy full security with minimal impact – this is ‘Real Security in a Virtualised World’

FACT:By 2015, 40% of the security controls used within enterprise data centers will be virtualized up from less than 5% in 2010. (Gartner)

FACT:By moving to virtualised services CIOs can see a 20-50% cost saving for their organisation as well as increased flexibility and speed of service (Gartner)

FACT:28% of installed applications are currently running on VM, by 2012 this is set to rise to 48% (Gartner)


Consumerisation: embracing consumer technology in the workplace while minimising risk

Customer scenario:Pharmaceutical company has grown quickly through acquisition, but needs to stay fleet of foot despite its size – competitive pressure focuses on the need for fast innovation

The business needs faster and better collaboration – with staff taking the initiative by using their own tools and devices

The challenge:How can the business foster collaboration and empower employees, without exposing itself to significant risk?

Our proposition:We allow organisations to turn IT consumerisation into a harvestable opportunity – rather than a threat

We manage and secure consumer devices in the corporate environment: just like any other end-point

FACT:40% of information workers today use some form of self provisioned technology in the workplace

“Either you take control of this or its going to take control of you”

Philip Cox (System Experts)

FACT:By 2012 IT departments will have to support an average of 3.3 smartphone or tablet platforms


What is IT consumerisation?

Our view:The cost benefits of consumerisation to an organisation are potentially huge, and workforces are using their own devices – whether they like it or not. However, the result is that there are now a vast number of end-points and subsequent security risks – these require management.

As the industry experts on end-point security, Kaspersky are ideally placed to protect businesses and save them money.

CIOs face mounting pressure to facilitate the adoption of “consumer applications” at work while balancing the risks and opportunities.Forrester, 2010

FACT:Citrix’s use of the “bring your own computer” scheme has shown average cost savings of 15-20% versus traditional desktop deployment

FACT:1 in 4 employees use personal smartphones at work, despite their organisation forbidding it


Keeping customers safe in the cloud

Customer scenario:Global business faces immediate pressure for $2bn cost savings

Needs to move significant capex into opex – reducing its risk profile and achieving ‘pay as you go’ financial flexibility

A number of applications are seen as ‘non differentiating’ – so migrating them to the cloud would free up tens of millions...

The challenge:Concerns around where the data is stored – but the endpoint is where the risk lies

Our proposition:We can help businesses become ‘cloud safe’ – we as Kaspersky use the cloud to monitor threats and have a real depth of understanding.

We make it easy to secure end-point – so whilst the data is in the cloud, the access to it is not at risk

FACT:Cloud services will be worth $44bn by 2013

“There are some real Achilles’ heels in cloud infrastructure that are making big holes to get into” Eugene Schultz, Emagined Security

FACT:Loss or theft of customer data costs businesses £1bn per year.


Spotting opportunities: what you need to ask

MOBILEAre you having to manage the consequences of a more mobile workforce?“ ”

Are you aware of the increased security risks as the end-points multiply and get harder to pin down?“ ”

What’s the best plan of attack to keep your employees safe, when you’re faced with multiple devices and multiple platforms?

”“



VIRTUALISATION

MOBILEAre you considering or already undertaking a desktop virtualisation project?

”“

Are you aware of how this changed environment potentially opens up new security risks – and have you considered how you are going to manage this?

”“


How secure do you need your virtual environment to be?

”“


MOBILE

VIRTUALISATION

CONSUMERISATION

As the lines blur between business IT and consumer technologies, have you got a plan of attack?

”“How can you give your staff freedom of choice and reaps the benefits, without compromising your data?

”“

How can you treat every new technology as just another end-point?

”“


Spotting opportunities: what we need to ask

MOBILE

VIRTUALISATION

CONSUMERISATION

CLOUD

Are you currently considering, or already reaping the benefits of, moving specific services to the cloud?

”“

Are you aware of the real risks and vulnerabilities to your business?

”“Could your end-point now be your biggest point of weakness?

”“| July 6 2011Be Ready for the New FrontlinePAGE 19 |

Scoping the opportunity: how big is the New Frontline?

Source: Gartner (May 2011)


VIRTUALISATION:By 2015, 40% of the security controls used within enterprise data centres will be virtualised, up from less than 5% in 2010 (Gartner)

CONSUMERISATION:In 2012, IT teams will have to support an average of 3.3 smartphone or tablet platfroms being used by their workforce (Aberdeen group)

MOBILE:297 million smartphones were sold in 2010, with over 80% running on operating systems other than Apple’s IOS (buysellads.com/Gartner)

CLOUD:Cloud services will be worth $44bn by 2013 (Forrester)

FRONTLINE:The average cost of a data breach is now $7.2 million, an increase on 18% from 2009. The average cost per compromised record is $214 (Ponemon study)

FRONTLINE:27.3% of organisations reported information theft in the last 12 months, an increase of 9.3% from 2009 (Secureview)

Proof: The New Frontline in the news


Proof: What the experts are saying

Sources: Gartner: Forecast Analysis: IT Outsourcing, Worldwide, 2009-2014IDC’s 2007 Information Protection and Control Survey

“Expect the importance of

device management and

security options to increase among SMB IT

decision makers with the

continued growth in the

wireless industry despite

the current economic

situation”IDC

“68% consider security services including remote lock/wipe as essential criteria when choosing a mobile operator”IDC

“The worldwide market for

corporately purchased

converged mobile devices

(CMDs) by SMBs is

expected to grow to 38

million devices by 2012”

IDC

“Of the total smartphone

market as at May 11:

27.4% ran on Symbian,

36% ran on Android,

12.9% ran on Blackberry OS”

Gartner

“By 2013, 80% of organisations will need to support a workforce using tablets”Gartner


Proof: The new frontline is top of customer concerns

Source:Forrester, The State Of Enterprise IT Security And Emerging Trends, 2010


Focusing our efforts:We can support over 80% of the smartphone market

1Q11 1Q11

Company Units 1Q11 Market Share (%) Units 1Q11 Market Share (%)

Android 36,267.8 36.0 5,226.6 9.6

Symbian 27,598.5 27.4 24,067.7 44.2

iOS 16,883.2 16.8 8,359.7 15.3

Research In Motion 13,004.0 12.9 10,752.8 19.7

Microsoft 3,658.7 3.6 3,696.2 6.8

Other OS 3,357.2 3.3 2,402.9 44.4

Total 100,769.3 100.0 54,505.5 100.0

Worldwide Smartphone sales to end users by operating system in 1Q11



Focusing our efforts:We can support over 80% of the smartphone market

1Q11 1Q11

Company Units 1Q11 Market Share (%) Units 1Q11 Market Share (%)

Android 36,267.8 36.0 5,226.6 9.6

Symbian 27,598.5 27.4 24,067.7 44.2

iOS 16,883.2 16.8 8,359.7 15.3

Research In Motion 13,004.0 12.9 10,752.8 19.7

Microsoft 3,658.7 3.6 3,696.2 6.8

Other OS 3,357.2 3.3 2,402.9 44.4

Total 100,769.3 100.0 54,505.5 100.0

Worldwide Smartphone sales to end users by operating system in 1Q11



Vendor

Partner Relationship DynamicsNew Frontline provides 2 wins – new customers and new opportunities for partners

Client (end-user)

Reseller

Distributor


1. Demand creation

3. Partner Support & Programs/Promos

2. Brand Pull

Why Kaspersky Lab for our channel partners


Deal RegistrationEarn up to 14% additional margin by

registering your deals

Base DiscountsSome partners are eligible for a maximum base discount of 25%, discount is linked

to partner status

Extra IncentivesIn some cases free home user keys will

be offered to end users, up to 20% of the overall amount of licenses on the orderYou could be entitled to an additional 10% margin if a renewing customer

stays with Kaspersky Lab

Buy Back SchemeAvailable where we are displacing the

competition on multi year deals

Why Kaspersky Lab for our channel partners?

One of the world’s fastest growing endpoint security company (Source: Gartner)

The best for detection


Launching new channel partner programme

100% focused on channel partners, not direct

50% 80%

Industry average Kaspersky

Detection rate: proactive malware prevention

196mMalicious programmes detected

1.3bnNetwork attacks prevented

1.5mSpam emails analysed per day

We provide:

• Training• Pre-sales support• Market

development, resource

• Thought leadership

Resources to support you in the field

Tools under development• Customer facing Frontline deck/pitch• Frontline branded solutions sheets/collateral set • Video & Static Case studies • Analyst papers


Thought leadership tools available now• Could the smartphone be the weakest link of your corporate

IT network? (Kaspersky Lab Whitepaper)• Kaspersky Lab: Consumerisation in the work place (ppt)• Kaspersky Lab: Are we high in the clouds? (ppt)• Kaspersky Lab: The computer in your pocket (ppt)

Thank you

Channel partner facing deck NOT for onward distribution

Documents

Be Ready for the New Frontline