content watch - company & product overview (eng)

ContentWatch Internet Protection Tools…when you want to be sure.

Company & Product Overview


To be a leading provider of content filtering and security solutions that give users a safe, productive, and secure Web experience.

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Vision

Devices could include PC’s, tablets, smartphones, WiFi devices, routers, gaming consoles, etc.


• Developing a mobile client filtering solution that is scalable, cross-platform, and device-independent.

• Updating current product lines and accelerating growth thru improved routes to market.

• Considering complementary adjacencies through acquisition or license agreement.

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Tactics


Company Overview

• Founded : 2002 • Status : Privately held• Headquarters : Salt Lake City, Utah• 50% Avg. Annual Growth Rate, 2005-10• Target Markets : SMB, home, govt, educ• Penetration : over 750,000 users in 157

countries

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Milestones2002 Company Founded

2004 ContentProtect Pro launched for SMB’sSVP/COO hiredSoftware-as-a-Service licensing began

2007 Net Nanny brand acquisition, LookSmart Ltd.CP Security Appliance launched

2008 Net Nanny for Mac launchedNet Nanny 5.6 launched / PC Mag Editor’s Choicenew VP Development hired

2009 Net Nanny for Mobile launchedNet Nanny 6.0 launched / PC Mag Editor’s Choice

2010 Net Nanny 6.5 launched / PC Mag Editor’s Choicenew CEO and Management Consultants hiredNN for Android to be launched

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Executive TeamBrent Bishop | Chairman of the Board• 25 years of Entrepreneurial leadership • Co-founder of Franklin Quest and Greenbacks/All A Dollar

Russ Warner | President and CEO• 23 years as a business and sales manager in the IT industry• Worked for Altiris, SageCreek Partners, Novell, Alianza, and WordPerfect

Scott Cleghorn | Sr. VP and COO• 22 years of financial and management experience • Worked for GTE, Verizon and Qwest

Louie DiCristofano | VP of Engineering• 21 years of experience in the IT industry• Worked for Novell supervising 60+ developers and engineers

Doug Anderson | Director, Marketing and Product Management• 18 years in the IT industry as a writer, editor, web manager, and product marketing manager

Brian Schumann | Director of Channel Sales• 10 years as Sales Director, International Sales Director, and Channel Mgr in the Network Security industry• Work for 8e6 Technologies, M86 Security and Lightspeed Systems

Greg Butterfield | SageCreek Partners• Orchestrated multiple start-ups, acquisitions, spin offs, and fund raising. • $1.2B acquisition of Altiris by Symantec & $1.8B acquisition of Omniture by Adobe.

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• Safety and appropriate use are primary goals for consumers.

• Curb cyberslacking - increase productivity by limiting employee web site roaming.

• Security is improved by reducing malware, commonly found on inappropriate Web sites.

• Liability is decreased on company-owned assets because inappropriate materials will not be viewed or shared.

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Value Proposition


Solutions

• Net Nanny PC – parental controls• Net Nanny Mac – parental controls• Net Nanny Mobile – parental controls• ContentProtect Professional – endpoint employer

controls via SaaS• ContentProtect Security Appliance – secure web

gateway

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Solutions

Future Net Nanny for Mobile: Android client and

iPhone browser Net Nanny for OEM’s and ISV’s: SDK

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New Architecture (Fish)

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Data Capture/Analysis

Management Consoledb

CWI Engine

Reporting Engine

Policy Management

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Software Developer Kit

Personal Computer – Windows, Mac, LinuxNetbooks & Tablets

Smart PhonesGateway Appliances

Routers & WiFi HotspotsSecurity Suites


Market OpportunitySecure Web Gateway• Content security software and hardware will reach $3.2B by 2013.• Content security software & appliance market to hit $3.8 billion in 2014.• Worldwide content security software & appliance revenue grew 2.5% between 4Q09

and 1Q10 to $640 million.

Mobile Security• The mobile security market will exceed $4 Billion by 2014.• The mobile security client software segment is forecast to grow at a 50% CAGR from

2009 to 2014. • No mobile security suite vendors offer content filtering. • T-Mobile, Sprint, & France Telecom have contacted us about content filtering.

Smartphones• U.S. Smartphone sales in Q1’10: AT&T 32%, Verizon 30%, T-Mobile 17% & Sprint 15%.• Global smartphone market is 260 M units in 2010 and 300 M in 2011.• Smartphone shipments surpass desktops + laptops in 2012.• Smartphone shipments surpass feature phones in 2011.• 85% of U.S. teens have cell phones.

Sources: Gartner, Infonetics, ABI Research; NPD, Top Ten Reviews, Morgan Stanley, Cox.

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Market OpportunityAndroid (Gartner)

• We need to uptake on a strong, growing base due to implementation of solution.• N.A. smartphone market share increased 7x over the last 12 months.• Accounts for 9.6% of all worldwide smartphone sales in Q1 of 2010, up from only 1.6%

during the same quarter of 2009.• Q1 2010 - N.A. sales increased 707 % YoY

iPhone & iPad

• Apple pre-sold 600,000 iPhone 4’s in 1 day in June.

• Sold 3M iPads in 80 days.

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Market OpportunityU.S. Households• Total 115 million• With Children ages 3-17 37 million (32%)• Using Parental Controls 12 million (9.6%)

Sources: http://www.census.gov/prod/1/pop/p25-1129.pdf http://www.pff.org/issues-pubs/pops/2009/pop16.5parentalcontrolsmarket.pdf http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1350541

Other• Half of businesses not equipped for legalities of social media. (Tech Republic)

• There will be 10X as many devices in play by 2015-2020: smartphone, iPad, tablet, computers, Kindle, gaming console, car electronics, HD TV, and more.

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http://www.census.gov/prod/1/pop/p25-1129.pdf

http://www.pff.org/issues-pubs/pops/2009/pop16.5parentalcontrolsmarket.pdf

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1350541


Additional Market Factors

• Web 2.0 increases inbound and outbound security risks.

• Online video poses problem for SMB’s and schools with bandwidth constraints.

• 40 percent of Internet use in the workplace is not business-related. Source: IDC, Secure Content Management Report

• At home, the average child’s first exposure to porn is 11 yrs. Source: internetfilterreview.com

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Success - Net Nanny

• PC Magazine Editors’ Choice for the past 3 Years• #1 Rated – Top Ten Reviews for 6 years• Computer Shopper Editor’s Choice in 2009• Top Ten reviews and 5 other leading rating services #1 rank • Featured on Oprah (twice in 2009)• Wall Street Journal Online Technology Buyer’s Guide • TTNET, a subsidiary of Turk Telecom with 220K in subscribers• Languages: English, Spanish, Japanese, and Turkish

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Retail PricingNet Nanny• $39.99 for an Annual License• $59.98 for 3-Seat Pack• Volume and Education Discounts

ContentProtect Pro• $39.99 per Annual License• 3 Seat Minimum• Volume and Education Discounts

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Success Story

Profile Fortune 500 with HQ in New Jersey

Problem 1- Customer-facing demo laptops were exposed to inappropriate web content2- Employees unproductive due to web surfing3- Potential liability for inappropriate use

Requirements 1- Global, web-based control

2- No dedicated server3- Did not want appliance

Solution 8,500 licenses ContentProtect Pro Competition Symantec, CyberPatrol, Cyber Sitter

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Profile 9,000 students / 3,000 PC’s Problem 1- Excessive bandwidth

consumption by students2- Slow applications3- Applications not prioritized

Requirements 1- Bandwidth shaping2- Application control3- Wireless control for students

Solution CP 550, upgrade to CP 1000 Competition St. Bernard, Barracuda, and

many others


Security Appliance Retail Pricing Model Bandwidth Nodes MSRP

CP 100X 2 Mbps 250 $ 1,495 CP 100XE 2 Mbps 250 $ 2,295 CP 200X 5 Mbps 350 $ 1,995

CP 200XE 5 Mbps 350 $ 2,995 CP 300X 10 Mbps 5,000 $ 2,995

CP 300XE 10 Mbps 5,000 $ 3,995 CP 350X 20 Mbps 50,000 $ 4,995

CP 350XE 20 Mbps 50,000 $ 6,495 CP 450X 50 Mbps 50,000 $ 9,995

CP 450XE 50 Mbps 50,000 $ 12,995 CP 550XE 100 Mbps 50,000 $ 22,995 CP 650XE 200 Mbps 50,000 $ 31,995 CP 750XE 500 Mbps 50,000 $ 59,995

CP 1000XE 1 Gbps 50,000 $109,995

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Routes to Market Today

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OEM

Time

RetailInternet MarketingDistributor

Acceptance

ISP

Net Nanny PC


Routes to Market Today

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VARMSP

Regional VAR

Lg. Acct VAR

Time

Internet MarketingDistributorAcceptance

CP Pro and Appliance


Routes to Market Future

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Wireless Expense Mgt

Time

Acceptance

Mobile (smartphone/tablet)

ISV

OEMCarrier

Wireless Distributor

Wireless Retailer


Competitors Today

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Net Nanny PC: SafeEyes, Cyber Patrol, Cyber Sitter, K9, Norton

Net Nanny Mac: Intego, K9, SafeEyes Net Nanny Mobile: SMobile ContentProtect Pro: WebRoot, Sophos, Cyber

Patrol, SafeEyes Secure Web Gateway: Cymphonix, Sonic Wall,

Websense, St. Bernard


Competitors - Future

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Mobile Content Filtering iPhone: Mobicip, SafeEyes,

Bsecure, Norton

Mobile Parental Control: iPhone 4

Mobile Parental Monitoring (SMS/IM): SMobile


Complimentary

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Mobile Malware• SMobile : WinMobile, Symbian, Android, & RIM• Kaspersky, BullGuard, Norton, Trend, McAfee : WinMobile &

Symbian

Remote Lock/Wipe: Kaspersky, SMobile, Norton

Mobile Lifecycle Management: Air-Watch, B2M Solutions


Secret Sauce

• Ghoti Architecture• Content analysis Engine

• Core competency – key to success• Dynamic Contextual Analysis (DCA)

• Content is analyzed on-the-fly• Web page content is not static – it changes constantly• New and locally-hosted web pages

Google – “...the number of individual web pages out there is growing by several billion pages per day."

• Understands the context of the pageEx: Wikipedia - Chicken Breast vs Breast Cancer vs Breast Augmentation

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Advantages of DCA

• Web pages are analyzed dynamically• New, updated and local web pages are always filtered• All pages (URLs) are analyzed, not just the Domains• Lists cannot effectively keep up with dynamic content

• Analysis is performed on local machine• Distributed analysis• Performance equal to or better than remote lists• No hardware investment for remote list processing

• No large list to maintain• Lists require frequent updates (daily/hourly)• CW - Periodic updates via definition updates – small, silent

• No list licensing fees

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Contact

Bob OroscoOffice: 805 824 0377Mobile: 805 200 7079

São Paulo 011 3020 6310Email: [email protected]

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[email protected]@inspirit.com.br

mailto:[email protected]



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