2015
2015 Global APT Protection for SMB
New Product Innovation Award
BEST PRACTICES RESEARCH
Contents
Background and Company Performance ........................................................................ 3
Industry Challenges .............................................................................................. 3
New Product Attributes and Customer Impact ..........................................................4
Conclusion........................................................................................................... 5
Significance of New Product Innovation ......................................................................... 6
Understanding New Product Innovation ......................................................................... 6
Key Benchmarking Criteria .................................................................................... 7
Best Practice Award Analysis for WatchGuard ................................................................ 7
Decision Support Scorecard ................................................................................... 7
New Product Attributes ......................................................................................... 8
Customer Impact ................................................................................................. 8
Decision Support Matrix ........................................................................................ 9
The Intersection between 360-Degree Research and Best Practices Awards ..................... 10
Research Methodology ........................................................................................ 10
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best
Practices ................................................................................................................. 11
About Frost & Sullivan .............................................................................................. 12
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Background and Company Performance
Industry Challenges
The traditional role of defending companies from cyber threats is even more difficult now,
as there is continual growth in new threats and attacks. Spear phishing and advanced
persistent threat attacks continue to increase. Cybercriminals consistently and effectively
use social engineering, such as e-mails, to persuade e-mail users to directly and indirectly
disclose sensitive data.
Just because all companies are faced with the same threats does not mean that all
companies can use a single “one size fits all” approach. Although small and medium size
businesses (SMB) need protection from Web-based threats, Frost & Sullivan points out
that the reality is that they typically do not have the dedicated network security staff to
implement the solutions with the same degree of customization and sophistication as their
enterprise brethren.
As a result, Frost & Sullivan analysis confirms that cyber security
solutions need to be tailored to suit the unique needs of the SMB segment.
In addressing the needs of smaller organizations, cyber security solutions vendors must
address the four golden rules of the SMB segment:
1. Solutions cannot be complicated.
Small businesses are experts in their
respective fields. They are experts in manufacturing, retail, law, finance, etc.
They have little or no interest or economic justification in developing expertise
in network security. Additionally, the person implementing security solutions is
often multitasking, as he or she performs several other significant roles in the
organization. In essence, small businesses are implementing a security solution
because they need to - and would rather spend whatever time they would use
implementing cyber security measures on serving the needs of their customers,
most of whom they know on a first name basis.
2. Solutions cannot be expensive. Small businesses tend to be intensely cognizant
on how each of their expenditures affects the bottom line, scrutinizing every
expenditure according. They report to Frost & Sullivan how they crave solutions
that offer compelling value at reasonable prices.
3. Solutions need to flexible. No two small businesses are the same. Their needs
vary based on vertical market, size of the firm, ownership structure, and many
other factors.
Solutions need to accommodate this diversity with an easy-to-
tailor administrative interface. In addition, small businesses may employ local
IT consultants or contractors to implement a solution on their behalf. Solutions
need to be flexible enough to be operated by the small business directly and/or
by local IT consulting firms.
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4. Solutions must provide robust protection.
Just because SMBs are smaller
organizations, their needs for protection from cyber threats are not any less
than that of large and enterprise businesses. Solutions addressing this segment
cannot compromise on protective measures just because the organization is
smaller.
New Product Attributes and Customer Impact
In April of 2014, WatchGuard introduced its APT Blocker.
APT Blocker is a network
security sandbox solution that leverages WatchGuard’s unified threat management (UTM)
platforms to provide advanced threat protection. WatchGuard includes APT Blocker on its
entire portfolio of UTM platforms from its XTM 2520, which is intended for enterprise
customers, to its Firebox T10 Models that are designed for small businesses. For smaller
organizations, Frost & Sullivan appreciates the fact that WatchGuard is making enterprisegrade security more available.
Quality
The WatchGuard UTM platforms integrate best-of-breed security technologies from pureplay vendor partners (such as Websense, AVG, Trend Micro, Sophos, Cyren, and Lastline).
This partner-centric strategy allows WatchGuard to offer best-of-breed protection and
value to its customers with the flexibility to change partners as necessary.
For its APT Blocker, WatchGuard leverages technology from Lastline which was founded in
2011 by university researchers based on academic research on malware analysis and
countermeasures. The founders are well-known for their development of Anubis and
Wepawet, cloud-based malware analysis tools.
The result is that WatchGuard combines its best-of-breed UTM platform and Lastline
network sandbox technology to offer APT Blocker, a virtualized sandbox solution on
WatchGuard UTM platforms to detect malware. The sandbox solution conducts full system
emulation, so that every single instruction is examined. In this holistic emulation, the
entire flow of data within the malware execution is examined.
This feature protects
against sandbox evasion techniques and through that, detects evasive behavior such as
malware checking for a specific feature of the operating that would trigger the malware to
suspend its operation.
Match to Needs
Frost & Sullivan firmly believes that WatchGuard properly addresses the golden rules of
security. WatchGuard is an established competitor in the UTM market with a history of
providing quality products at compelling price points. The WatchGuard product strategy
focuses on visibility, performance, and best-of-breed technologies. These principles guided
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the company’s decision to redesign its popular WatchGuard XTM solution to be a modular
platform in 2010.
The WatchGuard strategy addresses the growing customer need to implement best-ofbreed security technologies with budgetary restrictions, time constrictions, and expertise
limitations. This appeals most to SMB organizations, but is also of increasing importance
to enterprise organizations.
Price/Performance Value
The pricing scales based on the needs of the organization.
For its highest capacity
platform, the XTM 2520, the price is $13,335 for a 1 year agreement. The price scales
downward from there, reaching $90 per year for the Firebox T10 Models and making
enterprise grade security affordable for even the smallest SMBs.
Customer Purchase Experience
APT Blocker is pre-installed on all WatchGuard UTM and Next-Gen Firewall (NGFW)
appliances. Inherent in the architecture, WatchGuard's UTM and NGFW security platforms
were purpose-built to simplify the implementation and management of cyber security. APT
Blocker can be implemented, literally, with a couple of clicks. Ongoing management is
facilitated by WatchGuard's visibility tool WatchGuard Dimension. Dimension provides an
integrated, single pane-of-glass view of advanced threats, along with other top trends,
applications and threats covered by WatchGuard's security technologies.
Conclusion
SMBs have the same need for security as their enterprise brethren.
These companies
have additional requirements, including ease-of-use, flexibility and SMB appropriate
pricing.
WatchGuard’s APT Blocker provides a network security sandbox solution for
advanced threat protection, while leveraging the usability benefits of WatchGuard’s UTM
platforms to deliver a solution that is conducive to the unique needs of SMBs.
With its strong focus to drive enterprise-grade security to smaller sized organizations,
WatchGuard has earned the 2015 Frost & Sullivan Global New Product Innovation Award.
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Significance of New Product Innovation
Ultimately, growth in any organization depends upon continually introducing new products
to the market, and successfully commercializing those products. For these dual goals to
occur, a company must be best-in-class in three key areas: understanding demand,
nurturing the brand, and differentiating from the competition.
Understanding New Product Innovation
Innovation is about finding a productive outlet for creativity — for consistently translating
ideas into high quality products that have a profound impact on the customer.
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Key Benchmarking Criteria
For the New Product Innovation Award, Frost & Sullivan analysts independently evaluated
two key factors — New Product Attributes and Customer Impact — according to the
criteria identified below.
New Product Attributes
Criterion 1: Match to Needs
Criterion 2: Reliability
Criterion 3: Quality
Criterion 4: Positioning
Criterion 5: Design
Customer Impact
Criterion 1: Price/Performance Value
Criterion 2: Customer Purchase Experience
Criterion 3: Customer Ownership Experience
Criterion 4: Customer Service Experience
Criterion 5: Brand Equity
Best Practice Award Analysis for WatchGuard
Decision Support Scorecard
To support its evaluation of best practices across multiple business performance
categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool
allows our research and consulting teams to objectively analyze performance, according to
the key benchmarking criteria listed in the previous section, and to assign ratings on that
basis. The tool follows a 10-point scale that allows for nuances in performance evaluation;
ratings guidelines are illustrated below.
RATINGS GUIDELINES
The Decision Support Scorecard is organized by New Product Attributes and Customer
Impact (i.e., the overarching categories for all 10 benchmarking criteria; the definitions
for each criteria are provided beneath the scorecard). The research team confirms the
veracity of this weighted scorecard through sensitivity analysis, which confirms that small
changes to the ratings for a specific criterion do not lead to a significant change in the
overall relative rankings of the companies.
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The results of this analysis are shown below. To remain unbiased and to protect the
interests of all organizations reviewed, we have chosen to refer to the other key players
as Competitor 2 and Competitor 3.
DECISION SUPPORT SCORECARD FOR NEW PRODUCT INNOVATION AWARD
Measurement of 1–10 (1 = poor; 10 = excellent)
New Product Innovation
New Product
Attributes
Customer
Impact
Average
Rating
WatchGuard
10
10
10
Competitor 2
8
10
9
Competitor 3
9
9
9
New Product Attributes
Criterion 1: Match to Needs
Requirement: Customer needs directly influence and inspire the product’s design and
positioning
Criterion 2: Reliability
Requirement: The product consistently meets or exceeds customer expectations for
consistent performance during its entire life cycle
Criterion 3: Quality
Requirement: Product offers best-in-class quality, with a full complement of features and
functionality
Criterion 4: Positioning
Requirement: The product serves a unique, unmet need that competitors cannot easily
replicate
Criterion 5: Design
Requirement: The product features an innovative design, enhancing both visual appeal
and ease of use
Customer Impact
Criterion 1: Price/Performance Value
Requirement: Products or services offer the best value for the price, compared to similar
offerings in the market
Criterion 2: Customer Purchase Experience
Requirement: Customers feel like they are buying the most optimal solution that
addresses both their unique needs and their unique constraints
Criterion 3: Customer Ownership Experience
Requirement: Customers are proud to own the company’s product or service, and have a
positive experience throughout the life of the product or service
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Criterion 4: Customer Service Experience
Requirement: Customer service is accessible, fast, stress-free, and of high quality
Criterion 5: Brand Equity
Requirement: Customers have a positive view of the brand and exhibit high brand loyalty
Decision Support Matrix
Once all companies have been evaluated according to the Decision Support Scorecard,
analysts can then position the candidates on the matrix shown below, enabling them to
visualize which companies are truly breakthrough and which ones are not yet operating at
best-in-class levels.
DECISION SUPPORT MATRIX FOR NEW PRODUCT INNOVATION AWARD
High
Competitor 2
WatchGuard
Customer Impact
Competitor 3
Low
Low
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New Product Attributes
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The Intersection between 360-Degree Research and Best
Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology
represents
the
360-DEGREE RESEARCH: SEEING ORDER IN
THE CHAOS
analytical
rigor of our research process. It offers a
Emerging
Technologies
360-degree-view of industry challenges,
trends, and issues by integrating all 7 of
Industry
Evolution
Smart Cities
Technology
Obsolescence
Frost & Sullivan's research methodologies.
Too
often,
growth
companies
decisions
understanding
of
make
based
on
their
important
a
New Business
Cultures
Demographics
Crowd
Sourcing
Career
Development
Industry
Expansion
Country
Risk
Competitive
Benchmarking
Buying
Behavior
New Vertical
Markets
Capital
Investments
narrow
Competitive
Strategy
CEO
environment,
leading to errors of both omission and
commission. Successful growth strategies
are founded on a thorough understanding
of market, technical, economic, financial,
customer, best practices, and demographic
Availability
of
Capital
Emerging
Competition
New
Applications
Economic
Trends
Growth
Strategies
Growth
Implementation
Branding
and
Positioning
Segmentation
Needs
and
Perceptions
Sustainability
GeoPolitical
Stability
Industry
Convergence
Disruptive
Technologies
analyses. The integration of these research
disciplines into the 360-degree research
methodology
provides
an
evaluation
platform for benchmarking industry players and for identifying those performing at bestin-class levels.
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Best Practices Recognition: 10 Steps to Researching,
Identifying, and Recognizing Best Practices
Frost & Sullivan Awards follow a 10-step process to evaluate Award candidates and assess
their fit with select best practice criteria. The reputation and integrity of the Awards are
based on close adherence to this process.
STEP
Monitor,
1 target, and
screen
OBJECTIVE
KEY ACTIVITIES
OUTPUT
Identify Award recipient
candidates from around the
globe
• Conduct in-depth industry
research
• Identify emerging sectors
• Scan multiple geographies
Pipeline of candidates who
potentially meet all bestpractice criteria
Perform comprehensive,
360-degree research on all
candidates in the pipeline
• Interview thought leaders
and industry practitioners
• Assess candidates’ fit with
best-practice criteria
• Rank all candidates
Matrix positioning all
candidates’ performance
relative to one another
2
Perform
360-degree
research
Perform in-depth
examination of all candidates
• Confirm best-practice criteria
• Examine eligibility of all
candidates
• Identify any information gaps
Detailed profiles of all
ranked candidates
3
Invite
thought
leadership in
best
practices
Initiate
research
Conduct an unbiased
evaluation of all candidate
profiles
• Brainstorm ranking options
• Invite multiple perspectives
on candidates’ performance
• Update candidate profiles
Final prioritization of all
eligible candidates and
companion best-practice
positioning paper
5
Assemble
panel of
industry
experts
Present findings to an expert
panel of industry thought
leaders
• Share findings
• Strengthen cases for
candidate eligibility
• Prioritize candidates
Refined list of prioritized
Award candidates
6
Conduct
global
industry
review
Build consensus on Award
candidates’ eligibility
• Hold global team meeting to
review all candidates
• Pressure-test fit with criteria
• Confirm inclusion of all
eligible candidates
Final list of eligible Award
candidates, representing
success stories worldwide
7
Perform
quality check
Develop official Award
consideration materials
• Perform final performance
benchmarking activities
• Write nominations
• Perform quality review
High-quality, accurate, and
creative presentation of
nominees’ successes
8
Reconnect
with panel of
industry
experts
Finalize the selection of the
best-practice Award recipient
• Review analysis with panel
• Build consensus
• Select winner
Decision on which company
performs best against all
best-practice criteria
Inform Award recipient of
Award recognition
9
Communicate
recognition
• Present Award to the CEO
• Inspire the organization for
continued success
• Celebrate the recipient’s
performance
Announcement of Award
and plan for how recipient
can use the Award to
enhance the brand
Upon licensing, company
may share Award news with
stakeholders and customers
• Coordinate media outreach
• Design a marketing plan
• Assess Award’s role in future
strategic planning
Widespread awareness of
recipient’s Award status
among investors, media
personnel, and employees
4 director
review
10
Take
strategic
action
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About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth
and achieve best in class positions in growth, innovation and leadership. The company's
Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined
research and best practice models to drive the generation, evaluation and implementation
of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from 31 offices on six continents. To join our Growth Partnership, please visit
http://www.frost.com.
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