SonicWall Corporate UpdateJanuary 2019

SonicWall Leadership…

18,000+global channel partners

1 million+networks protected

215+countries & territories

~500,000organizations

290+patents

3 million+firewalls shipped

3

• Surpassed financial objectives for eight straight quarters

• New records across the business:

⎻ 92% customer renewal rate

⎻ 44 new products and 160+ million lines of code

⎻ 58% of technical support cases resolve in first business day

⎻ 15:1 self-service score in 2018 (best in class)

⎻ 49 awards FY YTD

• Launched new Capture Cloud Platform and Capture Security Center

Business Update

“I am just amazed how much work SonicWall has done in the last 12 months. I’d like to express my appreciation for all the effort being put into marketing, product recognition, partner support and, of course, the huge development of the powerful and beloved security products.”-Jan Jezek, Network Security, Bcom

“Our retail and PCI business has grown significantly as a result of our partnership with SonicWall. They continue to deliver the technology and marketing support we need to be competitive, and with these new products, we’re looking forward to joint customer-engagement in that fast-growing business.”-Mike Johnson, CEO Cerdant, SecureFirst partner

4

Did you know?From Jan. through December 2018, the average SonicWall customer faced:

SonicWall Security CenterWORLDWIDE ATTACKS

• ~25,000 malware attacks (+22% over 2017)• 778 ransomware attacks (+120%)• 19% of malware using non-standard ports (+9%)• 9.3 million intrusion attempts (+38%)• 1,276 encrypted threats (+27%)• 105,108 web app attacks (+79%)• 4,164 phishing attacks • 392K new attack variants (1,074/day) detected by Capture ATP • 74K+ never-before-seen attack variants identified by RTDMI

5

Business Impact

6

$11.5BTotal cost of ransomware

to businesses forecasted for 20191

$3.9MAverage

total cost of adata breach2

22% Businesses attacked by ransomware that suffered a stoppage3

$12.5BGlobal losses due to

business email compromise scams

as of May 20184

1 Cybersecurity Ventures, 2017

2 Ponemon Institute, IBM, 2018

3 Malwarebytes, 2017

4 FBI, 2018

Our Vision: Automated Real-time Breach Detection and Prevention

7

Ransomware

Fileless Malware

Encrypted Malware

Cryptojacking

Malvertising

Phishing

Any VehicleEmail, Browser, Apps, Files

Any TrafficEncrypted, Unencrypted

Any NetworkWired, Wireless, Mobile, Cloud

Any DevicePC, Tablet, Phone, IoT

Inspect all SSL/encrypted traffic

Machine learning

Multi-engine, CPU-tracking cloud sandbox

Block files until a verdict is rendered

Integrated security platform (firewall, endpoint, wireless, email, CASB, Wi-Fi)

Security center (SOC)

SonicWall Capture Labs

Analyzed10.5 billion malware attacks Jan. – Dec. ‘18

Identified74,000+ never before seen threats

CreditedDiscovery of hundreds of unique variants every day

Established in mid-90’s

DedicatedWorld-class threat and machine learning engineering team

Extensive Malware LibraryHundreds of terabytes of data/artifacts

8

9

1.0M+Sensors

50+Industry research

organizations in which

intelligence is shared

24x7x365Monitoring

< 24 Hr.Response to never before

seen vulnerabilities

140K+Malware samples collected

daily

28M+Malware attacks blocked

daily

Automated Real-Time Breach Detection and Prevention Technology

10

DEEP LEARNINGALGORITHM

Machine Learning

Artifact 1

Artifact 2

Artifact 3

Artifact 4

Data File

MS Office

PDF

Streaming Data

Classified Malware

RANSOMWARELocky

RANSOMWAREWannaCry

TROJANSpartan

UNKNOWN

CLOUD CAPTURE SANDBOX

Hypervisor

GoodBad BLOCKuntil

VERDICTSENT

Emulation

Virtualization

BLOCK

Analyzed10.5 billion malware attack attempts in 2018 (Jan. –Dec.)

MemoryProtecting PDFs, MS Office and Chip-based Processor /

Memory

NetworkSecurity

Appliances

WiFi

Cloud

Email

IoT

Endpoints

Capture ATP MomentumSince November 2016

11

+10x +12x+16x

+19x+26x

CaptureRevenue

Capture Attach Rates

Capture New Attach

Capture Activations

Capture Renewals

Product Innovation: Q4 CY17 to Q4 CY18

Sonic OS 6.5.1

Virtual Firewall

Capture Security Center

Analyzer 2.0

Cloud Analytics

High-end Network Security Appliances

SonicOS 6.5.2

Email Security 9.2Cloud App Security

Capture Client 1.5

Secure Mobile Access Access

SonicWave APs

NSa 2650

SMA 12.1 SonicOS 6.5GMS 8.4

Cloud Management

Mid-Range Network Security Appliances

New Lines of Code (M) New Products

+

12

Accelerating Product Innovation – November 2018 Launch

GMS 8.7 Zero-Touch Deployment• Reduce TCO with Zero-Touch

Deployment• Synchronize assets with

ConnectWise Automate• Deploy GMS in highly secure

closed networks

TZ300P / TZ600P• Reduce TCO with integrated

PoE/PoE+• Power for wireless APs, VOIP

phones, cameras• Superior encrypted threat

prevention performance

Capture Security Center Risk Meters• Powerful personalized threat

data and risk scores• Real-time display of live

attacks• Detect and categorize attacks

Secure SD-WAN• SonicOS 6.5.3 eliminates

cost/complexity of MPLS• Enhanced business-critical and

SaaS app performance• Simplified deployment and

management

Web App Firewall 2.2• Adds the security of Capture

ATP / RTDMI for web file uploads

• Block unknown files until a verdict is delivered by Capture ATP

• Automatically provision TLS cert for SSL inspection

NSv Hyper-V / Azure / AWS• Extend security to AWS and

Azure• New, flexible non-perpetual

licensing option• Private cloud support for

ESXi, Hyper-V

13

New in Q4: SonicWall Risk Meters

14

15

CLOUDSECURITY

Network Security Platforms Cloud IoTEmailMobile & EndpointsWiFi

FW • IPS • ATP • DPI TLS • ANTI-MALWARE • CASB • ANTI-PHISHING • URL FILTERING • WAF

THREAT DETECTION, PRESENTATION & VISIBILITY MANAGEMENT REPORTING / ANALYTICS

FY ‘19 Product ArchitectureCAPTURE Security Center (Management, Analytics, Threat Visibility)

CAPTURE Advanced Threat Protection

Cloud App Security

Email Security

NSv and WAF

CAPTURE Client

16

Network Security Platforms Cloud IoTEmailMobile & EndpointsWiFi

2018 NSS NGFW Report

• In July 2018, NSS Labs published its 6th annual NGFW report

• For the 5th time, SonicWall is strongly positioned in the upper right “Recommended” quadrant

• NSa 2650 achieved a security effectiveness score of 98.8%

• 100% effectiveness against all evasions (190/190)

• 100% pass rate for all stability & reliability tests

• Achieved security effectiveness with a low TCO of $4/Mbps (2nd best in value vs. all the models tested)

17

Juniper Networks HuaweiNSS was unable to measure the security effectiveness and determine the suitability of next generation firewall products from these vendors and therefore cautions against their deployment without a comprehensive evaluation.

2018 NSS Labs Security Value Map for NGFW

Confidential. For internal use only.

Overall Security Effectiveness

18

NSS Test Results – Evasion Resistance Vendor Comparison

19

Gartner Magic Quadrant for Unified Threat Management 2018Gartner UTM Magic Quadrant 2018

Fortinet

Check Point

Sophos

WatchGuard

Cisco

SonicWall

Huawei

Juniper

BarracudaStormShieldVenustech

Hillstone UntangleRohde & Schwarz

LEADERSCHALLENGERS

VISIONARIESNICHE

As of Jul 2018COMPLETENESS OF VISION

ABIL

ITY

TO E

XECU

TE

Arrows indicate movement from 2017 to 2018 20

SonicWall Automated Real-Time Threat Detection & Prevention: JAN-DEC ‘18

NGFWDPI for TLS/SSL

CaptureATP Sandbox

Real-Time DeepMemory

Inspection

CaptureClient

So far this year, SonicWall

stopped 10.5billion malware

attacks, an increase of 22%

over 2017

70% of Internet traffic was

encrypted YTD

~2% of malicious files were unknown

RTDMI finds 50% more new threats

Capture Client provides rollback for any malware that makes it through

Policy, complianceand enforcement

with shared intelligence

Why we are different:

High security efficacy, machine learning algorithms

High performance patented RFDPI

Multi-technology, block until verdict, deep learning

Ultra-fast, catches never-before-seen attacks

Shared intelligence, rollback

74K+ new attack variants

found since Jan’18

1,097 new threats identified

/ day1,276 encrypted

threats / customer

~25K malware and 778

ransomware attacks / customer

19%of malware used non-standard

ports

Email Security

Comprehensive inbound/outbound protection

4,164 phishing attacks / customer

21

Capture Client provides next-gen protection for mobile and remote users

Why we are different:

Protection Across the Enterprise...

Web App Firewall

TLS/SSL DPI

Capture ATP with RTDMI

Web traffic

~105K web app attacks per

customer so far in 2018 (up 79%)

Remote and Mobile Use Case Web App Protection Use Case

70% of Internet traffic was

encrypted YTD

• Cross-vector shared threat intelligence• TLS/SSL DPI• Sandbox integration

Web Application Firewall protects the web infrastructure

• Rollback• Continuous behavioral monitoring• Sandbox integration

Why we are different:

Web Servers/Apps

SSLVPN

70% of Internet traffic was

encrypted YTD

Capture ATP with RTDMI

SonicWall NGFWblocks malware

in corporate SSL-VPN traffic

CaptureClient

SSL-VPN and web

traffic

22

Support Services - Improvements from July 2017 to Oct. 2018

• Monthly Service Reviews – CEO-driven• Enterprise Support Model• Strategic Support Calls• Pareto Analyses by Product• Top Accounts

24

Support Improvements (YoY)• 91% 12 month average satisfaction rating for agent

professionalism, technical knowledge and responsiveness.

• 89% 12 month average for recommendation of SonicWall products.

• 58% of cases resolved in with first business day• 97% positive article rating (Knowledge Base).• eSupport improvements – 10:1 to 15:1

Go-to-Market Evolution

SMB Enterprise

The SonicWall Automated Real-time Breach Detection and Prevention Platform

Gov

ernm

ent

Dis

tribu

ted

Ente

rpris

e / R

etai

l

Educ

atio

n

SonicWall Direct Touch

100% Channel/

MSSP

100% Channel/

MSSP

SonicWall Distributors

SecureFirst / Enablement /Ease of Doing Business

Products / Pricing / Promotions

24

SonicWall Awards in FY’19 (February-December)

26

Global Results: 49 Awards Won

14 Product Awards 11 Partner Program Awards 24 Business Awards

27

Thank You!