How Arbor’s DDoS Solutions Are Rising to the Challenge

1 ©2017 ARBOR® CONFIDENTIAL & PROPRIETARY

The Stakes Have Changed: How Arbor’s DDoS Solutions Are Rising to the Challenge

Andrew Kramer Darren Anstee VP, Investor Relations CTO NETSCOUT SYSTEMS, INC. Arbor Networks

2 ©2017 ARBOR® October 2017

AGENDA

◦ NETSCOUT and Arbor

◦ DDoS Market Dynamics

◦ Arbor DDoS Solutions & Capabilities

◦ Q&A


SAFE HARBOR

Forward Looking Statements: Forward Looking Statements: Forward-looking statements in this communication are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and other federal securities laws. Investors are cautioned that statements in this communication, which are not strictly historical statements, including without limitation, the statements related to the Company’s outlook for Arbor Networks, statements related to new and modified products and solutions, and the timing of introduction and the capabilities and market acceptance of such products and solutions, statements regarding shifts in the market and in customer actions, expectations and demand for products, including the Company’s ability to gain traction based on these changes, constitute forward-looking statements which involve risks and uncertainties. Actual results could differ materially from the forward-looking statements due to known and unknown risk, uncertainties, assumptions and other factors. Such factors include slowdowns or downturns in economic conditions generally and in the market for advanced network and cybersecurity solutions specifically; the Company’s relationships with strategic partners; dependence upon broad-based acceptance of the Company’s solutions; the presence of competitors with greater financial resources than we have and their strategic response to our products; our ability to retain key executives and employees; and lower than expected demand for the Company’s products and services. For a more detailed description of the risk factors associated with the Company, please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2016 and subsequent Quarterly Reports on Form 10-Q, which are on file with the Securities and Exchange Commission. NetScout assumes no obligation to update any forward-looking information contained in this communication or with respect to the announcements described herein.


NETSCOUT and Arbor Networks

◦ NETSCOUT acquired Arbor in July 2015 as part of the Danaher Communications Business transaction

• Security is a natural adjacency for NETSCOUT

• Arbor has been an undisputed leader in DDoS since its inception

◦ Arbor has thrived as part of NETSCOUT

• Strong, consistent top-line growth and healthy profitability

• Robust investment to drive innovation

• Healthy talent retention

◦ Increasing collaboration between NETSCOUT and Arbor

• DDoS cross-selling

• Advanced Threat integration between Arbor Spectrum and NETSCOUT InfiniStreamNG


History of Arbor Networks

TIER 1 & 2

SERVICE PROVIDERS

TIER 1, 2 & 3

SERVICES & CLOUD

PROVIDERS

CLOUD PROVIDERS &

LARGE ENTERPRISE ENTERPRISE

TRAFFIC & DDoS

VISIBILITY

DDoS

PROTECTION

DDoS PROTECTION

SOLUTIONS

ADVANCED THREAT

& DDoS SOLUTIONS

GROWTH

SALES

EXECUTION

PARTNERS

BEST

PEOPLE

NETSCOUT

2001 - 2007 2007 - 2013 2014 2015 - 2017

Acquires DHR Communications

(including Arbor)

Acquires Arbor


Arbor’s Best-In-Class Customers

95% of the world's Tier 1 service providers who are Arbor customers

8 of 10 Largest Cloud Services Providers are

Arbor customers

4 of the top 6 US banks, 3 of 5 largest social media platforms are

Arbor customers

Do we have the

potential to add

some logos?


DDoS Market Dynamics:

The Stakes Have Changed


8 8 ©2017 ARBOR® October 2017

THE CONNECTED

WORLD IS

BUSINESS


COMPLEXITY FREQUENCY SIZE


©2017 ARBOR® CONFIDENTIAL & PROPRIETARY

Cost of

DDoS

Service

Impact to

Victim

Why? Weaponisation

©2017 ARBOR® October 2017

https://www.youtube.com/watch?v=nL6tRJSwP-E



11


IoT Botnet Attack Success Story: ISP in Brazil

Sept Aug Oct Nov 2016 Feb Mar Apr May June July Dec

600G

500G

400G

300G

200G

100G

IoT Botnet (Observed)

Initial DDoS Activity

International

Sporting Event


Arbor Networks DDoS Portfolio

DDoS Managed Services Detection & Mitigation Products Industry Leading Threat Intelligence

14 14 ©2017 ARBOR® October 2017

Smarter Data

Comprehensive Network Telemetry

Ubiquitous Visibility & Security

Smarter Analytics

Visibility is the Foundation of All

Enabling Business Value & Agility Through Managed Risk

1

2

ASNs: 44,570

Unique IPv4

Addresses: 2.63B

“Dark” IPv4

Addresses: 1.76M

Daily Malware

Samples: 200k

Active Threat Level Analysis System

Global Traffic

Visibility One Third

16 16 ©2017 ARBOR® October 2017

17 17 ©2017 ARBOR® October 2017

Traffic Visibility Arbor SP

©2017 ARBOR® CONFIDENTIAL & PROPRIETARY

17

SERVICE PROVIDER

18 18 ©2017 ARBOR® October 2017


DDoS Mitigation Arbor TMS

18

SERVICE PROVIDER

19 19 ©2017 ARBOR® October 2017



Cloud Services Arbor CLOUD

19

ENTERPRISE

SERVICE PROVIDER

20 20 ©2017 ARBOR® October 2017




DDoS Protection Arbor APS

20

ENTERPRISE

SERVICE PROVIDER

21 21 ©2017 ARBOR® October 2017

ENTERPRISE

SERVICE PROVIDER

with ISNG




DDoS Protection Arbor APS

Adv Threat Analysis Arbor Spectrum

21


Arbor’s Multi-Layer DDoS Approach

On-Prem The Internet ISPs

Cloud

Signaling

Arbor APS Attacks

Arbor SP/TMS

Arbor Cloud

Scrubbing

Center

1

2

4

3


Arbor Networks, Why We Win

Network

Visibility

DDoS

Mitigation

Hardware

Capacity

Cloud

Scrubbing

Managed

Services Performance

Radware NASDAQ: RDWR

A10 Networks NASDAQ: ATEN

Akamai NASDAQ:AKAM


Q&A / Thank You

Darren Anstee, CTO Arbor Networks [email protected]

24

For more info, please contact:


Q&A

◦ The DYN attack in the fall of 2016 was a high-profile, watershed event that resulted in outages at major sites like Twitter, NetFlix and scores of other highly trafficked websites and it created a spike in demand from both existing and prospective customers? What happened there and what did Arbor learn from that attack?

◦ DDoS is a major security threat to customers of all sizes. What are Arbor’s development priorities going for customers going forward?

◦ Earlier this spring, Arbor announced a major commitment to significantly expand its scrubbing capacity for its DDoS cloud service, Arbor Cloud. How is that progressing?

◦ One of Arbor’s offerings for its service providers, SP Flex, converted from a subscription offering to a more conventional, perpetual license. Can you tell us a little about that product and what happened to cause that change? How was that transition received by customers and how far along is that conversion?

Documents

How Arbor’s DDoS Solutions Are Rising to the Challenge