symantec corporation a growth culture kevin bailey director, product marketing emea february 2009...

Symantec CorporationA Growth Culture

Kevin Bailey

Director, Product Marketing EMEA

February 2009

You have to learn the rules of the game, and then you have to play better than anyone else.

Albert Einstein 1879-1955

2Symantec FY10 Planning Overview

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.

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


Switzerland

Turkey

EMEA Countries by Population

Rank City Population

1 Russia 140,702,096

2 Germany 82,469,552

3 Turkey 71,892,808

4 France 64,057,792

5 United Kingdom 60,943,912

6 Italy 58,145,320

7 Spain 40,491,012

8 Switzerland 7,581,520

9 Norway 4,644,457

10 UAE 4,621,399

Italy

Norway

UK

Germany

France

Russia

UAE

Spain



A Snap Shot of the European Union

Source: CIA 2008, International Monetary Fund..

Rank Region GDP (PPP)$M

World 64,903,314

EU 14,712,369

1 United States 13,807,550

2 China 7,034,838

3 Japan 4,292,198

4 India 2,996,588

5 Germany 2,812,255

6 UK 2,167,837

7 Russia 2,089,607

8 France 2,067,707

9 Brazil 1,837,149

10 Italy 1,787,897

Population of the European Union 491m

Unemployment Rate 7.2%

Current Inflation Rate 3.7%

Gross Domestic Product -1.8%

Internet Users 247m

Market Value of Publicly Traded Shares $15.5 Trn


Labour Force 224m

2009 Infrastructure Software Spend $31.6 Bn


The Big Picture


• 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.

2009 IT spending estimates range from -10% to +3%The Economist Forecast

Given technology’s role in productivity, cost control and competitiveness, IT spending will outpace GDP growth in rich countries as well as developing ones.

The Economist Forecast


IT software market expected to decelerate, but will fare better than the overall IT sector


Worst case scenario

Overall globalIT market growth will

slow from 7-8%to 2.3%

Infrastructuresoftware is

expected to be more resilient to economic

downturn

Downturn willbe shallow

with no v-shaped

recovery

Spending expected toremain soft over the next 4 to 6 quarters

Software license revenue declinesare likely

EMEA is

expected to have 2-3 quarters of flat to negative real growth ending

in the latter half

of 2009

SaaS revenue expected to

account for between 3-5% of current license revenuesuntil 2010

Storage SW to reduce by 1.6% in 2008 and 2.8% in 2009(IDC)

Security Software to

reduce by 50% in 2009

7.7% (from

14.61%)

Recovering to

8.5% in 2010

Worst case scenario

Global IT SW spending is

expected to decline by1-2% in 2009

Maintenance growth should

decelerate but

remain relatively

resilient and

continue to grow


Projected Slowing of IT Software Spending Expected to Shift Customer Priorities


Sources: Goldman Sachs, IT Spending Survey 11/2/08; Gartner CIO Spending Survey 10/27/08

Projected IT Spending GrowthCY2009

OverallIT Spend

Developed Markets

-1%Emerging Markets

-5%

7%

IT Spending Trends:•Most CIO budgets will decrease in 2009

•Discretionary IT projects will be put on hold or postponed

•Focus on cost predictability

•Evaluate mix of fixed / variable IT costs

•Retire non-essential assets/applications

•Focus on cost-reduction vs. revenue-growth projects

Which Result in:•Spending on hardware and professional services will decrease significantly

•Security software spending expected to increase

•Investment in hosted and SaaS basedsolutions will increase


Clouds and silver linings in the economic outlook


Source: Bank of England, Forrester & IDC

Clouds that will keep economic growth weak

Silver linings that will foster a recovery in [late] 2009

• Tight credit will last until Tight credit will last until 20102010

• $2.8 trillion $2.8 trillion in credit crunch losses and state in credit crunch losses and state bail-outs totalling bail-outs totalling £750 Bn £750 Bn worldwide.*worldwide.*

• US housing market will continue toUS housing market will continue toweaken (weaken (20.3% down since June 2006)20.3% down since June 2006)

• UK -17% (1% up turn Jan 09)UK -17% (1% up turn Jan 09)

• Job losses will increaseJob losses will increase

• US predict US predict 8.5%8.5% (worse since 1980) (worse since 1980)

• UK at UK at 6.3% 6.3% (55k per day in EU)(55k per day in EU)

• US consumers will be focused on building US consumers will be focused on building savings, trimming consumptionsavings, trimming consumption

• Major industrial countries are Major industrial countries are allall in recession in recession

• Energy prices down by half fromEnergy prices down by half fromtheir 2008 peaktheir 2008 peak

• Interest rates are coming down (1%)Interest rates are coming down (1%)

• Government economic stimulusGovernment economic stimulusprograms will comeprograms will come

• UK Banks providing £3Bn Funds for UK Banks providing £3Bn Funds for SME’sSME’s

• Many corporations have limited debt, Many corporations have limited debt, strong cash positionsstrong cash positions

• China and some other emerging markets China and some other emerging markets still growingstill growing


Know which industrieswill suffer most…


CENTRAL & LOCAL GOVERNMENT INSURANCE TELECO MEDIA & ENTERTAINMENT TRANSPORTATION SOME PROFESSIONAL SERVICES

FEELING THE PINCH

FINANCIAL SERVICES CONSUMER DURABLES CONSTRUCTION AND HOUSING RETAIL

HARDEST HIT

PRIMARY PRODUCTION OIL & GAS HEALTHCARE EDUCATION INDUSTRIAL MANUFACTURING

LEAST IMPACT


IDC & Gartner Market Commentary


Source: IDC, Gartner

Storage & BackupStorage & Backup

Increased number of govt. investigations

Post Y2K refresh cycle

Server virtualization driving re-architecture

Time of recovery + amount of data to recover

Moving from tape to disk backup

Projects that can be turned quickly

tailwindstailwinds

Macro-environment

Lack of brand loyalty. Re-architecting opens discussion, risk with dissatisfied customerswhere switching costs are low

Limited new initiatives

headwindsheadwinds

Refresh cycles will be pushed out


IDC & Gartner Market Commentary


Source: IDC, Gartner

Security & Systems ManagementSecurity & Systems Management

Compliance and audit requirements

Enterprise preference for leveragingexisting vendor relationships and

reducing number of vendors

Demand for more integratedsolutions and decreased complexity

Increase in cyber crime

tailwindstailwinds

Macro-environment

Refresh cycles pushed outand extended sales cycles

Retail decline

headwindsheadwinds

Increased cautiousness

Emerging market preference for regional players

Consumer freeware adoption

Bleed of trust


Analysts Recommendationsfor Software Vendors


Problem/Issue IDC Approach Gartner Approach Forrester Approach

Customer Cutting or Delaying Investment

Always be able to answer the ‘So what’

scenario

Only sell what’s required. Sales 101

Sell Value,Focus on Payback

Customers are capital constrained

SaaS / Cloud Opportunity

Reconsider Budget priority

Alternate Licensing models

Customers resist higher maintenance fees

Analyse cost or face loss to local vendor

Don’t drop price, sell value of offer

Give some ground, agree to share the pain

Partner ecosystem is underperforming

Target top performers and invest

Re-evaluate and then re-align

Focus on enablement, compete for mindshare

Product portfolio shows mixed results

Invest in Portfolio analysis

Stars and Cash cows, then decide about dogs

& ??’s

Focus marketing on better performers

Sales Org is complacentat the top

Re-focus routes to market

Reduce headcountChange compensation plans to leverage focus

Source: IDC, Gartner, Forrester


2009 Vertical Market Growthand Technology Spend

IDC, Sept 2008


EMEA Region

• Western Europe suffers from tight link to US, but Government is moving decisively to avoid prolonged downturn

• As credit markets improve, large enterprises and the public sector continue to spend on infrastructure software with increasing emphasis on efficiency, SaaS & Virtualization

• Consumer driven recession impacts small enterprises / consumers, pressuring the SMB market (SaaS increasing relevant)


Projected GDP Growth CY09April 08 vs. February 09 Forecast

Apr 08 Oct 08

Feb 09

5.3%

2.4%

-1.8%

EMEA IT Spend $m2008 – 2010 (Est)

2008 2009 2010

609631

667


IT Spending Overview : UK & IRE


Source: IDC (Dec 2008)

Calendar Year 2009 YoY Growth

Total IT0.0% $97,162m

SW2.5% $20,274m

Services2.7% $51,076m

Printers-1.1% $2,437m

Network-1.2% $6,837m

Storage-3.2% $1,577m

Servers-7.7% $2,263m

PCs-13.2% $9,594m

Infrastructure SW3.9% $5,858m

Applications1.5% $9,662m

Appl. Development3.0% $4,754m

EPS 9.0% $422m

Message Security 9.0% $88m

Web Security 9.0% $88m

Network Security 13.9% $72m

Compliance 17.3% $216m

Backup 3.1% $265m

Online Backup n/a n/a

Email Archiving 14.7% $102m

VCS 4.0% $151m

EM 3.8% $190m

File System 4.2% $33m

Storage Infrastructure 3.9% $82m

Storage Management 2.9% $84m

Consumer n/a n/a


*Note: Storage & Security markets in EMEA only. Consumer Excluded.

EMEA Storage & SecuritySoftware Spend CY09


Source: IDC, Symantec Custom Model EMEA, Jan 2009

Enterprise

1000+ employees

$2952M +6.3% 36.8%

Mid-Market

100-999

$3497M +9.4% 43.5%

Small

10-99

Market Size 2009 Growth Market Split

$1582M +8.0% 19.7%


Economic Index


F E B R U A R Y 1 2 1 9 9 9 T O F E B R U A R Y 1 3 2 0 0 9

Symantec FY10 Planning Overview

-34%-41% -47%

-91%

-7% -33%

2321 1534

2.31 14.6

44.518.64 25.5912.06 50.61 5.14 38.2135.86 44.6230.32


FY10 : EU Spend on IT

Total IT Spend

$631BnTotal IT Spend

$631Bn

Total SW Spend

$110BnTotal SW Spend

$110Bn


Symantec Storage& Security SW

Opportunity

$8Bn

SymantecShare 19%

$1.5Bn

SymantecHeadroom 81%

$6.5Bn

Total Infrastructure SW Spend

$31.6Bn

Total Infrastructure SW Spend

$31.6Bn


UK/Ire Region : Franchise Metrics


Data Protection Market Opportunity being challenged with IDC

EndpointManagement

EndpointProtection

Suites

BackupExec

Veritas Cluster Server

Storage Foundation

NetBackup

Opportunity Growth

EMEA MARKET FY10

Mkt. ShareSYMC

Mkt. Position Mkt. Leader Major Threat

EMEA MARKET FY08

$190.2m 3.8% (6.6%) 11% (Up) #4 Msoft (18%) IBM (14%)

$422.4m 9.0% (15.9%) 18% (Down) SYMC McAfee (12%)

$119.4m 3.1% (4.3%) 39% (Flat) SYMC IBM (13%)

$151.5m 4.0% (5.0%) 16% (Flat) #3 HP (26%) Msoft (25%)

$374.1m 3.7% (6.0%) 13% (Up) #3 EMC (30%) NetApp (18%)

$145.9m 3.1% (4.3%) 39% (Flat) SYMC IBM (13%)


UK/Ire Region : High Growth Metrics


**Messaging Security Market Share aligns to Antispam only

MessagingSecurity

Compliance

Archiving

DLP

Opportunity Growth

EMEA MARKET FY10

Mkt. ShareSYMC

Mkt. Position Mkt. Leader Major Threat

EMEA MARKET FY08

$88m 9.0% (15.9%) 22% (Flat)

n/a

SYMC McAfee (12%)

$216.3m 17.3%(24.4%)

8% (Flat) IBM (9%) Attachmate(6%)

$102m 14.7%(11.2%)

16% (Flat) #3 IBM (27%) Autonomy(20%)

$47m 114% (120%) n/a n/a n/a

#2


Thank You

symantec corporation a growth culture kevin bailey director, product marketing emea february 2009...

Documents

symantec corporation

trn symantec confidential

sector symantec confidential

market growth

software market

slow growth

bn slide

gdp growth