Best Practices Award Template

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BEST PRACTICES RESEARCH

Product Line Strategy Network Intrusion Prevention Systems (IPS) Products North America, 2011 Frost & Sullivan’s Global Research Platform Frost & Sullivan is in its 50th year in business with a global research organization of 1,800 analysts and consultants who monitor more than 300 industries and 250,000 companies. The company’s research philosophy originates with the CEO’s 360 Degree Perspective™, which serves as the foundation of its TEAM Research™ methodology. This unique approach enables us to determine how best-in-class companies worldwide manage growth, innovation and leadership. Based on the findings of this Best Practices research, Frost & Sullivan is proud to present the 2011 North American Product Line Strategy Award in the Network Intrusion Prevention Systems Products Market to HP.

Key Industry Challenges Once viewed as an unreliable technology, IPS technology has now become an essential part of an organization’s core network security infrastructure. Continued development and increased capabilities by IPS vendors has lead to significant improvements in the areas of speed, ease of maintenance, and compatibilities. The wave of new malware threat vectors, and new technologies such as virtualization and cloud computing are resulting in new challenges for IPS. Competition from unified threat management (UTM) vendors has also brought on new challenges for IPS vendors. As malware continues to become more sophisticated with severe results, the necessity to develop a product that enhances an organization’s security stature is a top priority. Frost & Sullivan’s research reveals that with new vectors of attacks, such as social media and mobile devices, organizations are looking for IPS technologies that not only proactively protect networks from attacks but are also able to effectively perform in the case of an attack. In ensuring an organization, through high-level performance, an IPS vendor is able to solidify the investment and value it brings to an organization. The

move

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organizations

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moving

assets

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environments

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implementing cloud services in their operations has brought on new challenges for both organizations and security vendors. Securing virtual and cloud based environments can be overlooked by organizations, resulting in the need to implement these technologies at a later state in the implementation process. Most vendors still lack a solid strategy for these new computer paradigms. The lack of strategy can result on missed opportunities and from alternative solutions being considered. However, some IPS vendors have capitalized on this challenge with the development of virtual IPS appliances. Aside from other network security products, IPS vendors are now facing competition from UTM vendors. Although UTM appliances are geared more to SMBs, Frost & Sullivan firmly

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believes that IPS technologies are also valuable for the SMB to SME segment. Some vendors have developed products aimed at small branch offices; however pricing of these products have been perceived as more expensive than a UTM. UTM appliances continue to be developed and much improvement has been made to increase their capabilities and throughput.

In addition, for the majority of UTM vendors, IPS functionality is the key.

While UTM vendors are not expected to overtake IPS in enterprise level opportunities, the technology has become a legitimate competitor to IPS vendors.

Impact of Product Line Strategy Aw ard on Key Stakeholders The Product Line Strategy Award is a prestigious recognition of HP’s accomplishments in the network intrusion prevention systems product market. An unbiased, third-party recognition can provide a profound impact in enhancing the brand value and accelerating HP’s growth. As captured in Chart 1 below, by researching, ranking, and recognizing those who deliver excellence and best practices in their respective endeavors, Frost & Sullivan hopes to inspire, influence, and impact three specific constituencies: 

Investors

Investors and shareholders always welcome unbiased and impartial third-party recognition. Similarly, prospective investors and shareholders are drawn to companies with a well-established reputation for excellence. Unbiased validation is the best and most credible way to showcase an organization worthy of investment.  Customers Third-party industry recognition has been proven to be the most effective way to assure customers that they are partnering with an organization that is leading in its field.  Employees This Award represents the creativity and dedication of HP’s executive team and employees. Such public recognition can boost morale and inspire your team to continue its best-in-class pursuit of a strong competitive position for HP.

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C har t 1 : B es t P rac t i ces L ev e ra g e fo r Gr ow t h Ac ce l era t i on

Key Benchmarking Criteria f or Product Line Strategy Aw ard For the Product Line Strategy Award, the following criteria were used to benchmark HP’s performance against key competitors: • Breadth of Product Line • Size of Addressable Customer Base • Impact on Customer Value • Impact on Market Share • Breadth of Applications/Markets Served

Decision Support Matrix and Measurement Criteria To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Matrix (DSM). The DSM is an analytical tool that compares companies’ performance relative to each other with an integration of quantitative and qualitative metrics. The DSM features criteria unique to each Award category and ranks importance by assigning weights to each criterion. The relative weighting reflects current market conditions and illustrates the associated importance of each criterion according to Frost & Sullivan. Fundamentally, each DSM is distinct for each market and Award category. The DSM allows our research and consulting teams to objectively analyze each company's performance on each criterion relative to its top competitors and assign performance ratings on that basis. The DSM follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are shown in Chart 2.

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C har t 2 : P erf o rm an c e - Bas e d Ra t i ng s fo r De cis i on S u pp o r t Ma tr i x

This exercise encompasses all criteria, leading to a weighted average ranking of each company. Researchers can then easily identify the company with the highest ranking. As a final step, the research team confirms the veracity of the model by ensuring that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies. C har t 3 : Fr os t & S ul l iva n’s 10 -S t e p P r oc ess f or I de n t ify in g Awa rd R ec ip i en ts

Best Practice Award Analysis for HP The Decision Support Matrix, shown in Chart 4, illustrates the relative importance of each criterion for the Product Line Strategy Award and the ratings for each company under evaluation. To remain unbiased while also protecting the interests of the other organizations reviewed, we have chosen to refer to the other key players as Competitor 1 and Competitor 2.

C har t 4 : D ec is io n S u p po r t M at ri x f or P ro d uc t L i n e S tra t e gy A war d Measurement of 1–10 (1 = lowest; 10 = highest) Award Criteria

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Breadth of Product Line

Size of Addressable Customer Base

Impact on Customer Value

Impact on Market Share

Breadth of Applications/Markets Served

Weighted Rating

BEST PRACTICES RESEARCH

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Criterion 1: Breadth of Product Line The acquisition of 3Com in early 2010 resulted in HP entering the intrusion prevention systems (IPS) market. Through the acquisition of TippingPoint, a 3Com company, HP was able to push the technology and platform to compete more effectively in the IPS market. HP TippingPoint offers multiple purpose built intrusion prevention system appliances ranging from SMB’s up to Data Centers solutions, along with security for virtual environments. HP TippingPoint’s S-Series network security product line offers models that target remote office/branch

office,

perimeter

and

zone

isolation

deployments.

With

throughput

capabilities ranging from 20 Mbps up to 300 Mbps, the S-Series provides users with a high quality product. HP TippingPoint’s S-Series N Platform network security product line targets enterprise core, data center and 10GbE deployments with capabilities of up to 16 Gbps of inspected throughput. The entire HP TippingPoint product line leverages the same DVLabs security intelligence with the only difference being inspected throughput rates. Secure Virtualization Framework, which includes HP TippingPoint’s IPS solution, is HP’s solution to visibility and security across an organization’s virtual and physical data center. In May of 2011, HP announced the release of its FlexNetwork architecture, a unified architecture for the data center, campus and branch, which enables enterprises to fully harness the power of media-rich content, virtualization, mobility and cloud computing. With the launch of FlexNetwork, HP also released its new virtual- and cloud-optimized network IPS, which increases security in data centers. All of HP TippingPoint's products are kept current using the Digital Vaccine (DV) service, which delivers new and updated filters each week to the IPS. The group responsible for developing and issuing the DVs is DVLabs. Using the knowledge collected from developing

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and testing filters, as well as ongoing security vulnerability research, the DVLabs team has been able to expand its offerings to include reputation services, Web application protection and application control. HP is the recipient of Frost & Sullivan’s 2011 North American Vulnerability Research Market Share Leadership Award for their active participation and excellence in the vulnerability research market. Criterion 2: Size of Addressable Customer Base Prior to the acquisition, TippingPoint had already established a strong customer base. Frost & Sullivan feels that with cutting edge technology and high throughput capabilities, TippingPoint’s IPS has continually been a contender in this highly competitive market. With the acquisition of 3Com in 2010, the HP TippingPoint IPS now has the financial, marketing, and sales backing of one of the largest global IT companies in the world to continue to expand the awareness and adoption of the IPS product lines. Criterion 3: Impact on Customer Value Due to HP’s strategic acquisitions, HP has been able to revamp its security division. The addition of HP TippingPoint products and services build upon HP’s reputable services. The acquisition has enhanced HP’s position in the security industry. Known for their highly recognized security research teams, DVLabs , HP TippingPoint has always provided customers with the most up-to-date protection in the industry. Inheriting TippingPoint’s best-of-breed portfolio represents HP’s commitment to build a security portfolio with highly competitive, quality solutions for its customers and potential customers. According to Frost & Sullivan’s research, with an IPS product portfolio that covers SMBs to large enterprises and both physical and virtual environments, HP’s drive has resulted in being mentioned now as a top challenger in the IPS market. Criterion 4: Impact on Market Share Prior to 2010, HP was not a competitor in the world network intrusion prevention systems product market. The acquisition of 3Com and inheritance of TippingPoint threw HP into the forefront of the competition in the market. In Frost & Sullivan’s 2010 World Network Intrusion Prevention Systems (IPS) Product Market, HP TippingPoint ranked fourth in the market with 11.1 percent market share. Frost & Sullivan expects HP’s strong channel and sales support team to enable HP to make a strong push into penetrating the market even further. In line with its overall security outlook and building of HP’s security portfolio, HP TippingPoint’s IPS will be further integrated with other security technologies, building a strong competitive advantage and presence in the market. Criterion 5: Breadth of Applications/Markets Served HP TippingPoint’s IPS product line ranges from branch offices up to large enterprise data centers. With appliances available for all sizes of businesses, customers receive a product

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that is suitable for their specific use-case. Based on the same technology and high throughput capabilities, SMBs and large enterprises receive the best-in-breed solutions that ensure their network traffic is proactively protected and backed by one of the most reputable labs in the security industry. Frost & Sullivan believes that the addition of ArcSight, Fortify, and SPI Dynamics to HP’s security portfolio gives HP a strong competitive advantage compared to other venders in the industry. Integration of IPS technology and these other technologies can prove to be HP’s tipping point in leading the network security market.

Conclusion Frost & Sullivan recognizes HP TippingPoint with having an exemplary network intrusion prevention system product line. Building upon the reputation TippingPoint established in prior years, HP’s dedication to the technology and integrating it with complimenting technologies will ensure further penetration of HP TippingPoint appliances in the world network intrusion prevention systems market. Based on the aforementioned criteria, Frost & Sullivan is proud to present the 2011 North American Product Line Strategy Award in the Network Intrusion Prevention Systems Products Market to HP TippingPoint.

The CEO 360-Degree Perspective T M - Visionary Platform for Growth Strategies The CEO 360-Degree Perspective™ model provides a clear illustration of the complex business universe in which CEOs and their management teams live today. It represents the foundation of Frost & Sullivan's global research organization and provides the basis on which companies can gain a visionary and strategic understanding of the market. The CEO 360-Degree Perspective™ is also a “must-have” requirement for the identification and analysis of best-practice performance by industry leaders. The CEO 360-Degree Perspective™ model enables our clients to gain a comprehensive, action-oriented understanding of market evolution and its implications for their companies’ growth strategies. As illustrated in Chart 5 below, the following six-step process outlines how our researchers and consultants embed the CEO 360-Degree Perspective™ into their analyses and recommendations.

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C har t 5 : T h e C EO 's 3 60 - De g re e P er sp ec t i ve ™ Mo d el Di re c ts Ou r R es ea rc h

Critical Importance of TEAM Research Frost & Sullivan’s TEAM Research methodology represents the analytical rigor of our research process. It offers a 360 degree view of industry challenges, trends, and issues by integrating all seven of Frost & Sullivan's research methodologies. Our experience has shown over the years that companies too often make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Frost & Sullivan contends that successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. In that vein, the letters T, E, A and M reflect our core technical, economic, applied (financial and best practices) and market analyses. The integration of these research disciplines into the TEAM Research methodology provides an evaluation platform for benchmarking industry players and for creating high-potential growth strategies for our clients.

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C har t 6 : B e nc h mar ki ng P e rf or ma nc e w i t h TE A M R es ea rc h

About HP HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems.

About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

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