how arbor’s ddos solutions are rising to the challenge
TRANSCRIPT
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
3 ©2017 ARBOR® October 2017
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.
4 ©2017 ARBOR® October 2017
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
5 ©2017 ARBOR® October 2017
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
6 ©2017 ARBOR® October 2017
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?
7 ©2017 ARBOR® October 2017
DDoS Market Dynamics:
The Stakes Have Changed
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8 8 ©2017 ARBOR® October 2017
THE CONNECTED
WORLD IS
BUSINESS
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COMPLEXITY FREQUENCY SIZE
The Stakes Have Changed
©2017 ARBOR® CONFIDENTIAL & PROPRIETARY
Cost of
DDoS
Service
Impact to
Victim
Why? Weaponisation
©2017 ARBOR® October 2017
11 ©2017 ARBOR® October 2017
The Stakes Have Changed
11
12 ©2017 ARBOR® October 2017
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
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Arbor Networks DDoS Portfolio
DDoS Managed Services Detection & Mitigation Products Industry Leading Threat Intelligence
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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
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Traffic Visibility Arbor SP
©2017 ARBOR® CONFIDENTIAL & PROPRIETARY
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SERVICE PROVIDER
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Traffic Visibility Arbor SP
DDoS Mitigation Arbor TMS
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SERVICE PROVIDER
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Traffic Visibility Arbor SP
DDoS Mitigation Arbor TMS
Cloud Services Arbor CLOUD
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ENTERPRISE
SERVICE PROVIDER
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Traffic Visibility Arbor SP
DDoS Mitigation Arbor TMS
Cloud Services Arbor CLOUD
DDoS Protection Arbor APS
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ENTERPRISE
SERVICE PROVIDER
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ENTERPRISE
SERVICE PROVIDER
with ISNG
Traffic Visibility Arbor SP
DDoS Mitigation Arbor TMS
Cloud Services Arbor CLOUD
DDoS Protection Arbor APS
Adv Threat Analysis Arbor Spectrum
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22 ©2017 ARBOR® October 2017
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
23 ©2017 ARBOR® October 2017
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
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Q&A / Thank You
Darren Anstee, CTO Arbor Networks [email protected]
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For more info, please contact:
25 ©2017 ARBOR® October 2017
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?