IBM Security: Security for a New Era of Computing
Brendan Hannigan General Manager IBM Security June 9, 2015
© 2015 International Business Machines Corporation 2
Forward-Looking Statement Certain comments made during this event and in the presentation materials may be characterized as forward looking under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. These statements by their nature address matters that are uncertain to different degrees. Any forward-looking statement made during this event or in these presentation materials speaks only as of the date on which it is made. The company assumes no obligation to update or revise any forward-looking statements.
Those statements involve a number of factors that could cause actual results to differ materially, including the following: a downturn in economic environment and client spending budgets; the company’s failure to meet growth and productivity objectives, a failure of the company’s innovation initiatives; risks from investing in growth opportunities; a failure of the company’s intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; cybersecurity and privacy considerations; fluctuations in financial results, impact of local legal, economic, political and health conditions; adverse effects from environmental matters, tax matters and the company’s pension plans; ineffective internal controls; the company’s use of accounting estimates; the company’s ability to attract and retain skilled personnel and its reliance on critical skills; impacts of relationships with critical suppliers and business with government clients; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; reliance on third party distribution channels; the company’s ability to successfully manage acquisitions, alliances and dispositions; risks from legal proceedings; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company’s Form 10-Qs, Form 10-K and in the company’s other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. Additional information concerning these factors is contained in the Company's filings with the SEC. Copies are available from the SEC, from the IBM web site, or from IBM Investor Relations.
© 2015 International Business Machines Corporation 3
PARADIGM SHIFT IN CRIME
Automated Criminals purchase attack software for a few thousand dollars that includes bronze, silver, and gold support levels, and a dashboard to monitor the attack effectiveness
Collaborative Cyber criminals use social media and the Dark Web to share malware techniques, best practices for attacks, surveillance information, and methods to avoid detection
Organized Attackers are no longer kids in hoodies in the basement. They are organized crime rings with bosses, and hundreds of sophisticated, highly trained employees
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The enterprise security problem
Attackers Outsiders rob data, money and intellectual property
Insiders Insiders steal critical business plans or designs
Suppliers Vendors and contractors have unsafe practices
Mistakes Users share passwords, use improper settings, lose PCs
Regulations Regulations and compliance mandates trigger audits
Innovation Cloud, mobile transformation need to be secure
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Fragmented • Opportunity for IBM to lead as broad provider
Dynamic • Highly opportunistic arena for new entrants and IPOs
• Disruption occurring in endpoint, network and threat protection
High Growth
• Hot areas:* Security Analytics / SIEM (10%), Threat Intelligence (>10%), Mobile Security (18%), Cloud Security (50%)
Observations
*Source: IDC
The $50B+ security opportunity*
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IBM helps protect against new, complex security challenges Optimize
your security program Stop
advanced threats Protect
critical assets Safeguard
cloud and mobile Use experts to modernize
security, reduce complexity, lower costs
Use analytics, insights for smarter, more
integrated defense
Use context-aware controls to prevent unauthorized access,
data loss
Use IT transformation to build a new, stronger
security posture
Leadership: • Professional consulting
services
• Professional integration services
• 6000+ IBM Security consultants
Leadership: • Managed security
services
• Security intelligence
• Advanced fraud prevention
• Endpoint protection
Leadership: • Data security
• Identity and access governance and management
• Application security
Leadership: • Mobile security
• Extending data center security to the cloud
IBM Security 2014 year-to-year revenue grew at 19% … 3X the market
Source: Leadership positions based on Forrester, Frost and Sullivan, Gartner, IDC, and KuppingerCole analyst reports
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Optimize your security program
An international energy firm reduced 2B+ logs and events per day to 25 high priority offenses for its security team to investigate
Stop advanced threats
Protect critical assets Safeguard cloud and mobile
A major US healthcare organization protected 30K endpoints and blocked 100s of threats not identified by its firewall and antivirus systems
A top10 automobile manufacturer* safeguards access to its cloud hub for 8M+ automobile customers and internal users
A global financial services company protected 2000+ critical databases and saved $21M annually in compliance costs
Client examples
*Source: Forbes
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IBM Security go-to-market strategy Buyers
CISO, CIO, and Line-of-Business Deliver a broad portfolio of solutions differentiated
through their integration and innovation to address the latest trends
Key Security Trends
Support the CISO agenda 1
Innovate around megatrends 2
Compliance Mandates
Skills Shortage
Cloud Advanced Threats
Mobile and Internet of Things
IBM Security Portfolio
Strategy, Risk and Compliance Cybersecurity Assessment and Response
Security Intelligence and Operations
Advanced Fraud
Protection
Identity and Access
Management Data
Security Application
Security Network, Mobile
and Endpoint Protection
Advanced Threat and Security Research
Lead in selected segments 3
HELP!
© 2015 International Business Machines Corporation 9
Continuous investment
IBM Security Systems
IBM Security Services
TRUSTEER
FIBERLINK
LIGHTHOUSE
CROSSIDEAS
DASCOM
ACCESS 360
METAMERGE
Before 2005
DATAPOWER
2005
INTERNET SECURITY SYSTEMS
2006
WATCHFIRE
CONSUL
PRINCETON SOFTECH
2007
ENCENTUATE
2008
GUARDIUM
OUNCELABS
2009
BIGFIX
NISC
2010
Q1LABS
2011 2012 2013 2014 2015
IBM Security
IBM Security Services
IBM Security Systems
3,000+ 6,000+
15B+
security patents
security experts worldwide
security events managed per day
70+ new or updated offerings in 2014
in security R&D over the last decade
security acquisitions
security operations centers
$2B 15+
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Security Intelligence and Analytics
Provide real-time alerts and insights across thousands of sources of data activity
Analyze millions of lines of code per day and identify 1000s of application attacks
Inspect up to 25 GBps of network traffic to identify and block malicious activity
Scale identity management to handle 60M internal and external users per day
Update threat information from 15B+ monitored security events per day
Monitor 270M endpoints world wide for fraudulent activity and malware
Perform near real-time analysis on billions of events per day, with rapid forensic analysis of offenses
IBM X-Force Exchange: A threat intelligence platform
1,000+ organizations signed up in the first week Participants across 16 industries, 5 of the world’s top 10 banks, 6 of the top 10 retailers
• One of world’s largest catalogs of vulnerabilities
• Threat information based on 15B+ monitored security events per day
• Malware threat intelligence from 270M+ endpoints
• Threat information based on 25B+ web pages, images
• Intelligence on 8M+ spam and phishing attacks
• Reputation data on 1M malicious IP addresses
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GROWTH INVESTMENT LEADERSHIP
analyst leadership positions**
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10K 19% 15 acquisitions since 2005
70+ new products or major enhancements
IBM Security: Delivering on the innovation
year-to-year 2014 revenue growth, 3x the market*
clients worldwide
Top 3 in enterprise security software market*
*Source: IDC and Gartner **Source: Forrester, Frost and Sullivan, Gartner, IDC, and KuppingerCole
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• IBM Security is well positioned for a world without perimeters where intelligence, analytics, and services are foundational
• Security is a key IBM growth initiative that leverages an expanding portfolio of products and services with continued investment
• IBM Security has the integrated research, global reach, and industry expertise to help protect clients wherever they are
Summary
© 2015 IBM Corporation
IBM Security
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www.ibm.com/security