Get documents about "Symantec Corp
Document Sample
Symantec Corporation
A Growth Culture You have to learn the rules
of the game, and then you
have to play better than
Kevin Bailey anyone else.
Director, Product Marketing EMEA Albert Einstein
1879-1955
February 2009
Macro Economics
The US and global economy is
in a recession which will last
into 2010 (18 month minimum).
As a result, the tech market will
see slow growth for the next 3-4
quarters, then start to improve
in late 2009.
Source: Forrester & IDC
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 2
EMEA Countries by Population
Rank City Population
1 Russia 140,702,096
Norway
2 Germany 82,469,552
Russia
3 Turkey 71,892,808
UK
4 France 64,057,792
Germany
5 United Kingdom 60,943,912
France Switzerland
6 Italy 58,145,320
Spain Italy
7 Spain 40,491,012 Turkey
8 Switzerland 7,581,520
9 Norway 4,644,457
UAE
10 UAE 4,621,399
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 3
A Snap Shot of the European Union
Rank Region GDP (PPP)$M Population of the European Union 491m
World 64,903,314
EU 14,712,369
Labour Force 224m
1 United States 13,807,550
Unemployment Rate 7.2%
2 China 7,034,838
3 Japan 4,292,198 Current Inflation Rate 3.7%
4 India 2,996,588
5 Germany 2,812,255 Gross Domestic Product -1.8%
6 UK 2,167,837
7 Russia 2,089,607
Internet Users 247m
8 France 2,067,707
Market Value of Publicly Traded Shares $15.5 Trn
9 Brazil 1,837,149
10 Italy 1,787,897 2009 Infrastructure Software Spend $31.6 Bn
Source: CIA 2008, International Monetary Fund..
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 4
The Big Picture
2009 IT spending
Given technology’s role in productivity, cost
estimates range control and competitiveness, IT spending will
from -10% to +3% outpace GDP growth in rich countries as well
as developing ones.
The Economist Forecast The Economist Forecast
• Business Strategy
– Focus on installed base
– Take share from weaker competitors
– Outlay will provide accelerated ROI
– Exploit opportunities for alternative IT
delivery models: Residency, Managed
Services, SaaS, etc.
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 5
IT software market expected to decelerate,
but will fare better than the overall IT sector
Worst case scenario Worst case scenario Infrastructure Downturn will Software
Overall global Global IT SW software is be shallow license
IT market spending is expected to be with no v-shaped revenue
growth will expected to more resilient recovery declines
slow from 7-8% decline by to economic are likely
to 2.3% 1-2% in 2009 downturn Spending expected to
remain soft over the
next 4 to 6 quarters
Maintenance EMEA is SaaS revenue Storage SW Security
growth should expected to have expected to to reduce by Software to
decelerate but 2-3 quarters account for 1.6% in 2008 reduce by
remain relatively of flat to between 3-5% and 2.8% in 50% in 2009
resilient and negative real of current 2009 7.7% (from
continue to grow growth ending license (IDC) 14.61%)
in the latter half revenues Recovering to
of 2009 until 2010 8.5% in 2010
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 6
Projected Slowing of IT Software Spending
Expected to Shift Customer Priorities
Projected IT Spending Growth IT Spending Trends:
CY2009 • Most CIO budgets will decrease in 2009
7% • Discretionary IT projects will be put on hold or
postponed
• Focus on cost predictability
• Evaluate mix of fixed / variable IT costs
Overall Developed • Retire non-essential assets/applications
IT Spend Markets • Focus on cost-reduction vs. revenue-growth
projects
Emerging
-1% Markets Which Result in:
• Spending on hardware and professional services
will decrease significantly
-5%
• Security software spending expected to increase
• Investment in hosted and SaaS based
solutions will increase
Sources: Goldman Sachs, IT Spending Survey 11/2/08; Gartner CIO Spending Survey 10/27/08
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 7
Clouds and silver linings in the
economic outlook
Clouds that will keep economic growth weak
• Tight credit will last until 2010 • Job losses will increase
• $2.8 trillion in credit crunch losses and state • US predict 8.5% (worse since 1980)
bail-outs totalling £750 Bn worldwide.* • UK at 6.3% (55k per day in EU)
• US housing market will continue to • US consumers will be focused on building
weaken (20.3% down since June 2006) savings, trimming consumption
• UK -17% (1% up turn Jan 09) • Major industrial countries are all in recession
Silver linings that will foster a recovery in [late] 2009
• Energy prices down by half from • UK Banks providing £3Bn Funds for
their 2008 peak SME’s
• Interest rates are coming down (1%) • Many corporations have limited debt,
• Government economic stimulus strong cash positions
programs will come • China and some other emerging markets
still growing
Source: Bank of England, Forrester & IDC
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 9
Know which industries
will suffer most…
HARDEST HIT
FINANCIAL SERVICES CONSUMER DURABLES CONSTRUCTION AND HOUSING RETAIL
FEELING THE PINCH
CENTRAL & LOCAL GOVERNMENT INSURANCE TELECO MEDIA & ENTERTAINMENT TRANSPORTATION SOME PROFESSIONAL SERVICES
LEAST IMPACT
PRIMARY PRODUCTION OIL & GAS HEALTHCARE EDUCATION INDUSTRIAL MANUFACTURING
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 10
IDC & Gartner Market Commentary
Storage & Backup
tailwinds headwinds
Increased number of govt. investigations Macro-environment
Post Y2K refresh cycle Refresh cycles will be pushed out
Server virtualization driving re-architecture
Lack of brand loyalty. Re-architecting opens
Time of recovery + amount of data to recover discussion, risk with dissatisfied customers
where switching costs are low
Moving from tape to disk backup
Limited new initiatives
Projects that can be turned quickly
Source: IDC, Gartner
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 11
IDC & Gartner Market Commentary
Security & Systems Management
tailwinds headwinds
Compliance and audit requirements Macro-environment
Enterprise preference for leveraging Increased cautiousness
existing vendor relationships and
reducing number of vendors Refresh cycles pushed out
and extended sales cycles
Demand for more integrated Bleed of trust
solutions and decreased complexity Retail decline
Increase in cyber crime Consumer freeware adoption
Emerging market preference for regional players
Source: IDC, Gartner
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 12
Analysts Recommendations
for Software Vendors
Problem/Issue IDC Approach Gartner Approach Forrester Approach
Always be able to
Customer Cutting or Only sell what’s Sell Value,
answer the ‘So what’
Delaying Investment required. Sales 101 Focus on Payback
scenario
Customers are capital SaaS / Cloud Reconsider Budget Alternate Licensing
constrained Opportunity priority models
Customers resist higher Analyse cost or face Don’t drop price, sell Give some ground,
maintenance fees loss to local vendor value of offer agree to share the pain
Partner ecosystem is Target top performers Re-evaluate and then Focus on enablement,
underperforming and invest re-align compete for mindshare
Stars and Cash cows,
Product portfolio shows Invest in Portfolio Focus marketing on
then decide about dogs
mixed results analysis better performers
& ??’s
Sales Org is complacent Re-focus routes to Change compensation
Reduce headcount
at the top market plans to leverage focus
Source: IDC, Gartner, Forrester
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 13
2009 Vertical Market Growth
and Technology Spend
IDC, Sept 2008
Symantec FY10 Planning Overview 14
EMEA Region
• Western Europe suffers from tight link to
Projected GDP Growth CY09
US, but Government is moving decisively April 08 vs. February 09 Forecast
to avoid prolonged downturn
5.3%
• As credit markets improve, large
2.4%
enterprises and the public sector continue Feb 09
to spend on infrastructure software with Apr 08 Oct 08 -1.8%
increasing emphasis on efficiency, SaaS
& Virtualization
EMEA IT Spend $m
• Consumer driven recession impacts small 2008 – 2010 (Est)
enterprises / consumers, pressuring the
SMB market (SaaS increasing relevant) 667
631
609
2008 2009 2010
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 15
IT Spending Overview : UK & IRE
Calendar Year 2009 YoY Growth
SW Infrastructure SW
EPS 9.0% $422m
2.5% $20,274m 3.9% $5,858m
Message Security 9.0% $88m
Services Applications Web Security 9.0% $88m
2.7% $51,076m 1.5% $9,662m
Network Security 13.9% $72m
Printers Appl. Development Compliance 17.3% $216m
-1.1% $2,437m 3.0% $4,754m
Backup 3.1% $265m
Total IT Network Online Backup n/a n/a
0.0% $97,162m -1.2% $6,837m
Email Archiving 14.7% $102m
Storage VCS 4.0% $151m
-3.2% $1,577m
EM 3.8% $190m
Servers File System 4.2% $33m
-7.7% $2,263m Storage Infrastructure 3.9% $82m
Storage Management 2.9% $84m
PCs
-13.2% $9,594m Consumer n/a n/a
Source: IDC (Dec 2008)
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 16
EMEA Storage & Security
Software Spend CY09
Enterprise Mid-Market Small
1000+ employees 100-999 10-99
Market Size 2009 Growth Market Split
$1582M +8.0% 19.7%
$3497M +9.4% 43.5%
$2952M +6.3% 36.8%
Source: IDC, Symantec Custom Model EMEA, Jan 2009 *Note: Storage & Security markets in EMEA only. Consumer Excluded.
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 17
Economic Index
+ 632%
FEBRUARY 12 1999 TO FEBRUARY 13 2009
2321 1534 44.518.64 25.5912.06 50.61 5.14 38.2135.86 44.6230.32
-34%
2.31 14.6
-7% -33%
-41% -47%
-91%
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 18
FY10 : EU Spend on IT
Total IT Spend
$631Bn
Total SW Spend
$110Bn
Total Infrastructure SW Spend
$31.6Bn
Symantec Storage
& Security SW
Symantec Opportunity Symantec
Share 19% $8Bn Headroom 81%
$1.5Bn $6.5Bn
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 20
UK/Ire Region : Franchise Metrics
EMEA MARKET FY10 EMEA MARKET FY08
SYMC
Opportunity Growth Mkt. Share Mkt. Position Mkt. Leader Major Threat
Endpoint $190.2m 3.8% (6.6%) 11% (Up) #4 Msoft (18%) IBM (14%)
Management
Endpoint
$422.4m 9.0% (15.9%) 18% (Down) SYMC McAfee (12%)
Protection
Suites
BackupExec $119.4m 3.1% (4.3%) 39% (Flat) SYMC IBM (13%)
Veritas
Cluster $151.5m 4.0% (5.0%) 16% (Flat) #3 HP (26%) Msoft (25%)
Server
Storage $374.1m 3.7% (6.0%) 13% (Up) #3 EMC (30%) NetApp (18%)
Foundation
NetBackup $145.9m 3.1% (4.3%) 39% (Flat) SYMC IBM (13%)
Data Protection Market Opportunity being challenged with IDC
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 25
UK/Ire Region : High Growth Metrics
EMEA MARKET FY10 EMEA MARKET FY08
SYMC
Opportunity Growth Mkt. Share Mkt. Position Mkt. Leader Major Threat
Messaging
Security $88m 9.0% (15.9%) 22% (Flat) SYMC McAfee (12%)
Compliance $216.3m 17.3% 8% (Flat) #2 IBM (9%) Attachmate
(24.4%) (6%)
Archiving $102m 14.7% 16% (Flat) #3 IBM (27%) Autonomy
(11.2%) (20%)
DLP $47m 114% (120%) n/a n/a n/a n/a
**Messaging Security Market Share aligns to Antispam only
SYMANTEC CONFIDENTIAL – NOT FOR UNCONTROLLED DISTRIBUTION Symantec FY10 Planning Overview 26
Thank You
Symantec FY10 Planning Overview 27
