“Ev­ery sin­gle part­ner is pos­i­tive about the Blue Coat ac­qui­si­tion”

John Thomp­son, Global Part­ner Sales Leader, Sy­man­tec

DQ Channels - - Front page - ANUSHRUTI SINGH (anushrutis@cy­berme­dia.co.in)

We have dif­fer­ent cat­e­gories of part­ners in our part­ner pro­gram, which is plat­inum, gold and sil­ver, depend­ing on the com­pe­tency and the prod­uct port­fo­lio

What are the ma­jor high­lights in Sy­man­tec this year?

Through our re­cent ac­qui­si­tion of Blue Coat Sys­tems which is num­ber one as far as en­ter­prise and net­work se­cu­rity is con­cerned, Sy­man­tec has en­hanced its lead­er­ship po­si­tion to de­fine the fu­ture of cybersecurity, set­ting the pace for in­no­va­tion in­dus­try wide. It will al­low to con­sol­i­date our port­fo­lio to cover all as­pects of what a dig­i­tal en­ter­prise now re­quire- be it end­point pro­tec­tion, e-mail pro­tec­tion, web pro­tec­tion net­work­ing pro­tec­tion, or en­ter­prise server pro­tec­tion.

We are very ex­cited about this, cre­at­ing op­por­tu­ni­ties for cus­tomers as well as part­ners. If you look at the com­bined com­pa­nies go­ing for­ward, we will have over 385,000 cus­tomers world­wide and it will enor­mously en­hance the match­ing in­ter­net of things and what’s hap­pen­ing in the cloud with mo­bile de­vices and more and more ap­pli­ca­tions mov­ing to the cloud. Blue Coat, for ex­am­ple, pro­tects over 12,000 ap­pli­ca­tions to­day, so that will be­come part of the port­fo­lio as we move for­ward to­mor­row. We have over over a bil­lion web re­quests to­day on a daily ba­sis. We have over 175 mil­lion end­points, a huge scale and ca­pa­bil­ity that we have now as a com­bined com­pany. We are twice our near­est com­peti­tor in terms of rev­enue and of course with the ac­qui­si­tion of Blue Coat which is, you know, ap­prox­i­mately in the $750 mil­lion range, we see huge op­por­tu­nity here from a part­ner com­mu­nity per­spec­tive.

And what about your con­sumer unit Seifert?

Well, I think that the con­sumer unit is sort of com­pli­men­tary. Let’s start with the en­ter­prise and we will come back to con­sumer. In the en­ter­prise space, a lot of Blue Coat is in fact sold in the en­ter­prise and Sy­man­tec’s chan­nel part­ners, many in In­dia of course, like Wipro or HCL or TCS, or some of the other large In­dian part­ners, cre­ates a new cross-sell­ing op­por­tu­nity. Blue Coat’s Proxy SG for ex­am­ple can be sold in con­sort with Sy­man­tec’s data loss pre­ven­tion prod­uct or DLP prod­uct and that is a great cross-sell op­por­tu­nity in our chan­nel.

Se­condly, the en­crypted SSL can be com­bined with our DLP prod­uct for cross-sell. And third, the cloud area, like Man­aged Ser­vice Provider, for the SMB mar­ket or en­ter­prise cloud providers; the as­sets of Elas­tica and Elas­tica, (ac­quired by Blue Coat ear­lier in the cloud space) can be com­bined with our data loss pro­tec­tion prod­uct. Fourthly, around en­hanced threat in­tel­li­gence, we have the world’s largest pri­vate-sec­tor cy­ber se­cu­rity data­base and we will be ap­ply­ing our an­a­lyt­ics in not only the Sy­man­tec port­fo­lio but the Blue Coat port­fo­lio. So this is also an op­por­tu­nity for our part­ners in the se­cu­rity prac­tice to lever­age this tech­nol­ogy, this data that we have.

Tell us about Sy­man­tec chan­nel struc­ture and what are the pro­grams you are of­fer­ing to part­ners and how is the re­sponse?

We in­tro­duced Se­cure One last year and it’s not even a year old. What we did around the part­ner pro­gram specif­i­cally is firstly we sim­pli­fied the pro­gram, se­condly we started the pay­out from dol­lar one against growth tar­gets as cash­flow is more at­trac­tive in the part­ner com­mu­nity, thirdly, we im­ple­mented ac­cel­er­a­tors in the pro­gram it­self, so that if a part­ner achieved cer­tain level it ac­cel­er­ates on their pay­out, be­ing more lu­cra­tive for the part­ner. Lastly, we did make some of the com­pe­ten­cies eas­ier to ob­tain, so that they do not have to take as many cour­ses and save as much as 56% of tax­ing time around the prop­erty. We have re­ceived very pos­i­tive feed­back around the Se­cure One pro­gram and we see good things there.

How­ever, Blue Coat has its own pro­gram, Sy­man­tec has this pro­gram; we don’t see any ma­jor changes on day one for ei­ther pro­gram. They both been suc­cess­ful on their own and we want to very care­fully over an ex­tended pe­riod of time, with lots of in­put from the part­ner com­mu­nity, eval­u­ate, how best do we move more to­wards a uni­fied pro­gram.

What are the three big mar­kets in Asia Pa­cific, you are fo­cus­ing on and how many chan­nel part­ners you have in In­dia?

The three big mar­kets we can talk about is of course, en­ter­prise segment, com­mer­cial or mid-mar­ket and the SMB mar­ket. Both Sy­man­tec and Blue Coat are very strong in the en­ter­prise segment. In the com­mer­cial mid-mar­ket this is a great op­por­tu­nity for the Blue Coat port­fo­lio. We think that we can ex­tend that port­fo­lio with the strength of our part­ner com­mu­nity in more the mid-mar­ket in com­mer­cial space. And in SMB, if we talk broader across the whole com­pany we have SMB along with our con­sumer line-up with Nor­ton. So, we cover ev­ery­thing from con­sumer to SMB, to mid-mar­ket to en­ter­prise across the port­fo­lio. The sec­tors that are re­ally un­der at­tack right now are your fi­nan­cial and in­sur­ance sec­tors.

The tar­geted mar­ket from data per­spec­tive, we are see­ing more from In­dia-pro­file per­spec­tive, so that’s got strong mar­ket cri­te­ria and lot of trac­tion is go­ing on. And also the com­mer­cial and SMB mar­ket, as you know very well the com­mer­cial and SMBs are big op­por­tu­ni­ties in In­dia, where we have a part­ner ecosystem who works on it.

We have dif­fer­ent cat­e­gories of part­ners in our part­ner pro­gram, which is plat­inum, gold and sil­ver, depend­ing on the com­pe­tency and the prod­uct port­fo­lio. Typ­i­cally the plat­inum and the gold part­ners fo­cus on big en­ter­prises in terms of pro­vid­ing and im­ple­ment­ing the so­lu­tions. We have hun­dreds of part­ners who are on the sil­ver cat­e­gory, who ad­dresses the SMB mar­ket.

Post Ver­i­tas de-merger, how is it go­ing in Sy­man­tec and what im­pact has been there?

With the spin-off of Ver­i­tas, we be­came a pure-play se­cu­rity com­pany and that frankly, has al­lowed us to get more fo­cused and we are see­ing that with our port­fo­lio around new in­no­va­tion with prod­ucts like Ad­vanced Threat

We are num­ber one mar­ket-share po­si­tion and we have over 175 mil­lion end­points pro­tected on a world­wide ba­sis, so great op­por­tu­nity for the part­ner com­mu­nity

Pro­tec­tion which we’ve rolled out as well as at least 10 new prod­ucts in the last six months.

On the other hand, with the ac­qui­si­tion of Blue Coat, So, we are even more fo­cused around the se­cu­rity mar­ket­place. It is a phe­nom­e­nal com­pany in terms of peo­ple, in terms of in­tel­lec­tual prop­erty and in terms of their mar­ket-place po­si­tion in cloud and web. We feel more con­fi­dent and our part­ners are ex­cited to en­gage with us as well as they see new growth op­por­tu­nity and new profit op­por­tu­nity to take care of their cus­tomers.

What are the ma­jor threats in 2016 and 2017 and how you are tack­ling those?

If we talk about the threat land­scape area first of all, to be in In­dia specif­i­cally, we are the sixth most tar­geted in the APJ re­gion for threats and at­tacks and 30% of the tar­get at­tacks were on large en­ter­prises, over 1,500. And they were six times more likely to be tar­geted, at least, once a year com­pared to small businesses.

50% of SMBs are be­ing tar­geted, and in the last five years there has been a steady­ing in­crease in businesses with less than 250 em­ploy­ees. I would say that the threat land­scape is alive and well. One of our four pil­lars of course is our threat-pro­tec­tion prod­ucts which con­sist of our e-mail, our end­point, and our an­tivirus prod­ucts as well as now our net­work­ing prod­ucts.

We have our in­for­ma­tion pro­tec­tion prod­uct line which con­sists more of our data loss pre­ven­tion, user au­then­ti­ca­tion, our VIP prod­ucts etc. And then we have our data se­cu­rity and ser­vices an­a­lyt­ics which is not a core prod­uct of our prod­uct port­fo­lio. And, again, all three of these very part­ner-cen­tric al­low the part­ner to par­tic­i­pate in it. 100% of Blue Coat’s busi­ness runs through the pri­vate com­mu­nity; Sy­man­tec is off that be­cause Sy­man­tec busi­ness flows through the part­ner com­mu­nity and cre­ates a great op­por­tu­nity to move for­ward and even within. In­dia is a very im­por­tant coun­try for us; we have over one in three of our en­gi­neers are ac­tu­ally based in In­dia as far as de­vel­op­ment work that we are do­ing as a com­pany in Sy­man­tec.

There are over 1.4 bil­lion smart­phones that are pur­chased glob­ally and smart­phones are easy and at­trac­tive tar­gets for on­line crim­i­nals. We pro­vide a va­ri­ety of prod­ucts to pro­tect against this and that’s an im­por­tant part of our strat­egy as well as Blue Coat’s strat­egy. In 2009, there were two mil­lion new pieces of mal­ware cre­ated and in 2015 there was 430 mil­lion, in­di­cat­ing that mal­ware is alive and well; there is over a mil­lion pieces of mal­ware that hits daily around the planet and it’s im­por­tant that peo­ple are pro­tected against this as we go for­ward.

For more ad­vanced pro­tec­tion, Sy­man­tec’s Ad­vanced Threat Pro­tec­tion or ATP tri­an­gu­lates around three key ar­eas where we are num­ber one: e-mail en­vi­ron­ment, end­point pro­tec­tion en­vi­ron­ment and web and net­work-se­cu­rity which with the ac­qui­si­tion of Blue Coat puts us into the num­ber-one po­si­tion as well. ATP de­tects more than -- 95% more than the com­pe­ti­tion around re­me­di­at­ing and de­tect­ing threat and then fix­ing them of course with au­to­matic tool.

What is Sy­man­tec’s prod­uct port­fo­lio in end­point se­cu­rity?

From an end­point se­cu­rity per­spec­tive, Sy­man­tec is the world­wide leader. We are num­ber one mar­ket-share po­si­tion and we have over 175 mil­lion end­points pro­tected on a world­wide ba­sis, so great op­por­tu­nity for the part­ner com­mu­nity. In fact, if we look at e-mails and other ex­am­ples, we have over two bil­lion e-mails that are scanned daily, that we pro­tect. So, Sy­man­tec in con­sort with its part­ner com­mu­nity pro­tects 1/3rd of all the e-mail in the world.

And in terms of web and net­work se­cu­rity, Blue Coat again is the num­ber one provider in that space. So, our port­fo­lio is deep and our port­fo­lio is broad. With the com­bined com­pa­nies, we will have 3,000 R&D en­gi­neers to help ac­cel­er­ate our in­no­va­tion fur­ther. You know many com­pa­nies in the se­cu­rity, they only have 3,000 peo­ple; we have 3,000 en­gi­neers fo­cused on noth­ing but new in­no­va­tions in that space.

What about perime­ter se­cu­rity, what is the prod­uct port­fo­lio in that?

Well, in terms of net­work se­cu­rity again, it’s an op­por­tu­nity here with the Proxy SG prod­uct from Blue Coat and it’s kind of a web proxy in terms of work­ing within the net­work en­vi­ron­ment and it’s well es­tab­lished in the en­ter­prise com­mu­nity as the num­ber one player. And then when we start to broaden the cloud space, this gives Sy­man­tec very good op­por­tu­ni­ties to leapfrog com­pe­ti­tion be­cause com­bi­na­tion of Elas­tica and other as­sets is over 12,000 cloud ap­pli­ca­tions that are pro­tected.

What’s the prod­uct roadmap in the next cou­ple of months?

We would close the Blue Coat ac­qui­si­tion by Oc­to­ber which will broaden the port­fo­lio pretty ex­ten­sively. From a prod­uct strat­egy per­spec­tive, again, it’s four core ar­eas in our prod­uct strat­egy. One is threat pro­tec­tion, two is in­for­ma­tion pro­tec­tion. You know, in threat pro­tec­tion how to keep the bad guys out; in­for­ma­tion pro­tec­tion, how do you keep the good in­for­ma­tion in. Our third is se­cu­rity ser­vices, how do we do that in con­sort with our part­ners and then fi­nally, our uni­fied se­cu­rity an­a­lyt­ics since we do have the world’s largest pri­vate se­cu­rity data­base.

We also in­te­grated so­lu­tions across threat pro­tec­tion to help cus­tomers keep their data se­cure in tran­si­tion to the cloud as there will be over six bil­lion de­vices will be on the in­ter­net in the next five years.

We got over 3,000 R&D en­gi­neers and re­searchers. Our teleme­try traf­fic is over 175 mil­lion end­points, and we are pro­tect­ing 12,000 apps to­day. Sy­man­tec End­point Pro­tec­tion (SEP) won the Best Pro­tec­tion 2015 Award by AV-TEST for cor­po­rate end­point se­cu­rity. SEP was rec­og­nized for its con­sis­tently su­pe­rior pro­tec­tion abil­ity through­out all of 2015.

Sy­man­tec was also named the leader in the Gart­ner Magic Quad­rant for the ninth year in a row. DLP and our MSSP mar­ket place as well as our end-pro­tec­tion plat­form. We con­tinue to be num­ber one in marker share in terms of our se­cu­rity port­fo­lio. Again, that’s quite good from a part­ner per­spec­tive, in terms of rev­enue be­ing done part­ners, and our part­ners are ex­cited about that.

Ev­ery sin­gle part­ner that I have reached since we an­nounced the ac­qui­si­tion, uni­ver­sally; ev­ery part­ner is pos­i­tive and ex­cited about this ac­qui­si­tion which is pretty rare. You have just peo­ple-met­rics on dif­fer­ent ap­proaches or dif­fer­ent port­fo­lio and ev­ery sin­gle part­ner think this is like the great­est thing. It helps so­lid­ify the di­rec­tion of Sy­man­tec, and the lead­er­ship within Sy­man­tec like Greg Clark com­ing on­board to drive the busi­ness as well as Mike Frey will be our new pres­i­dent we move for­ward. All the part­ners see this as an up­side op­por­tu­nity, they don’t see it as a down­side op­por­tu­nity.

JOHN THOMP­SON, Global Part­ner Sales Leader, Sy­man­tec

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