For the complete report, get in touch with us at : info@netscribes.com The basic premise of making fast money or transgressing into competitive warfare to a more grave espionage has initiated the malaise called cyber attacks. Cyber attacks could target anyone be it an MNC or even Small and Medium Enterprise (SME). In all the cases, the certainty in such exercises is that companies fall prey to such attacks and are subjected to a high degree of reputational risk in addition to financial losses incurred due to data leakage. Moreover, as technological advancements render heightened adoption of smartphones or other such devices that induce greater internet connectivity, risks associated with cyber domain loom large translating into more cyber attacks. What renders it to be more insidious is that these attacks do not follow any common pattern or motive and thereby becomes more dangerous not only in terms of information security for companies but also for national security as a whole. As more and more cyber attacks get recorded across the world, cyber security solutions are poised for further growth. The report begins with the introduction of concept of cyber security along with a brief snapshot of the objectives as well as the efforts required to secure systems in the cyber space. It then goes on to describe a work model of cyber security in terms of the defense mechanism it follows. The report then moves towards providing a brief overview of the global cyber security market with the global as well as Asia Pacific market size and growth along with a competitive landscape. This is collaborated with snapshots and some facts associated with global cyber security arena. Then the report goes on to describing the Indian market along with its market size and growth. It gets followed by a brief detailing about the different types of cyber attacks witnessed across the cyber space. This gets immediately succeeded by a value chain analysis that speaks about the individual components that summarize the process of providing security solutions. Next in line is an elaborated discussion on the types of cyber security and brief descriptions added with it. Then next section speaks about the best practices followed in the market in terms of cyber security solutions. It then discusses about the market scenario in SMEs and associated growth opportunity in the said sector. Brief descriptions of the drivers that help the sector to prosper include increased wired and wireless usage, rapid computerization, presence of smart handheld devices, growth of e-commerce, growth in cloud computing and rise in cyber attacks. Increase in the usage of internet both in the wired as well as wireless forms make for a potential driver for the cyber security market in India. As broadband penetration intensifies and Wi-Fi hotspots develop across the country, systems are more prone to cyber attacks thereby demanding protection in terms of cyber security.

1. Cyber Security Market in India
Cyber Security Market in India
September 2012

2. Executive Summary
 Global cyber security market has been posting a healthy growth rate of ‐% over the years 20‐‐
 The Indian cyber security market is growing at a considerable rate of ‐% annually
Market
 The concept of cyber security is evolving with myriad growth opportunities across different
sectors including a prospective opportunity in SMEs which has recently emerged as a target for
cyber attacks
cyber attacks
Drivers Challenges
– Increased wired and wireless internet – Availability of pirated software
Drivers & usage
Challenges – Rapid computerization – Lack of interest in updating software
Lack of interest in updating software
– Presence of smart handheld devices
– Growth of e‐commerce
– Growth in cloud computing
– Rise in cyber attacks
Rise in cyber attacks
 Cyber security players foray into mobile  India looking at building national cyber
security security architecture
Trends  Cyber security body designed for power sector  Training institutes design courses on cyber
by Indian Government security
 Adoption of virtualization
Major Players
Competition CISCO Fortinet Technologies Kaspersky Lab
McAfee Symantec Corporation Quick Heal
CYBER SECURITY MARKET IN INDIA 2012.PPT 2

3. •Introduction
•Market Overview
•Cyber Security Types
•Cyber Security Best Practices
•Cyber Security for SMEs
•Drivers & Challenges
•Government Regulations
•Government Regulations
•Vendor Opportunities
•Trends
•Major Players
•Strategic Recommendation
•Appendix
CYBER SECURITY MARKET IN INDIA 2012.PPT 3

4. Global Cyber Security – Snapshots (1/2)
How do breaches occur across the world?
SAMPLE Sectors Affected – Global
% s1
d2%
a1 s2
b1 s3
c2% a2% s4
c1 d1 e1
b2%
a b c d e
Countries Affected
Countries Affected Malware – Growth
Malware Growth
c1 c7 Unit no
e c2 c8 z
y
o c3 c9 x
c4 c10
f
c5 c11
n g
ml h c6
k j i
20‐‐ 20‐‐
CYBER SECURITY MARKET IN INDIA 2012.PPT 4

5. As technology continues to outpace policy and
enforcements, need for cyber security continues to rise SAMPLE
Cyber Security – Indian Market Overview
• India Inc has witnessed four fold jump in cyber attacks which states the reason why Indian companies are
increasingly understanding the significance of cyber security
• Since many organizations are dependent on latest Internet technologies to enhance their competitiveness
within both domestic and international markets, issue of cyber security is a reason to worry
• India has emerged as the top r1 nation in the March quarter of 20‐‐
• As internet population in India continue to rise after crossing ‐ cyber crimes are also in the rise
• A considerable percentage of r2 attacks have been on Indian brands that used the r3 domain and r4
constituted the major sector that emerged at the receiving end of these attacks
Cyber Security – Market Size & Growth Cyber Security – Segmentation (2011)
S1 S2 S3
INR bn
z x
s r
q
p
o
m n
0
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ y
CYBER SECURITY MARKET IN INDIA 2012.PPT 5

6. Security – Types prevalent in the cyber domain (1/8)
Types of Cyber Security
Network Security Examples
• Network security can be defined as the
authorization of access of data in a network which e1
is controlled by the network administrator wherein e4
users are assigned an ID and password that allows
them to access information and programs within e2
their authority
• Is composed of components both of software and e5
hardware which are designed to work in tandem to e3
improve security and maintenance
Application Security Examples
• Application security is the use of software
Application security is the use of software, e6 e9
9
hardware and procedural methods to protect
applications from external threats
• Security measures built into applications along e7 e10
with a sound application security routine minimize
the probability of manipulation of applications and
p y p pp
access, steal, modify or delete of sensitive data e8 e11
CYBER SECURITY MARKET IN INDIA 2012.PPT 6

7. … as major viruses attack these small enterprises …
SAMPLE
Cyber Security – Small and Medium Enterprises (SMEs) (2/3)
• SMEs are vulnerable to cyber attacks owing to the reason that they have smaller customer base along with
limited product lines as compared to the MNCs
• They are also considered as having poor IT infrastructure loaded with problems like absence of resources, IT
infrastructure and skilled manpower
• The ever‐increasing threat by cyber attacks have brought the weakness of SMEs to light and made them
vulnerable
t1% of the attacks were aimed at firms with
Only t3% of the targeted attacks were
against the CEOs or senior managers
lower than
l th
t2 employees
l
Threat of cyber attacks are on the rise in Indian cities t11 of the attacks were aimed at firms with
such as t4 t5 t6 t7 t8 and t9 with t10% bot
such as t4, t5, t6, t7, t8 and t9 with bot
infections % fewer than
t12
12 employees
• It is of common opinion by industry experts that average cost of the worst IT information security breaches in small companies is not
a small amount
a small amount
• It is of tremendous shock that majority of such companies are not equipped with contingency plans to counter cyber attacks or even
required security level to take measures against it
CYBER SECURITY MARKET IN INDIA 2012.PPT 7

8. Drivers & Challenges – Summary
Drivers
Increased wired and wireless internet
usage
Rapid computerization
Challenges
Presence of smart handheld devices Availability of pirated software
Growth of e‐commerce Lack of interest in updating software
Growth in cloud computing
Rise in cyber attacks
CYBER SECURITY MARKET IN INDIA 2012.PPT 8

9. High possibility of cyber threats from the use of internet
happens to be a major driver for the market
Increased Wired and Wireless Internet Usage (1/2) Impact
• Usage of internet makes an user highly vulnerable to cyber threats, as most of the malicious
softwares are spread and activated through internet from remote locations
• Generally, individuals or business organizations tend to avoid exposure to cyber threats and
hence invest in security softwares
 These softwares also need to get upgraded to newer and better versions, which also attract revenue
generation for these vendors
• India is currently witnessing an exponential growth in the internet usage amongst its population
India is currently witnessing an exponential growth in the internet usage amongst its population
 Diminishing internet tariffs, easy accessibility and growing popularity of social networking sites are some of
the major factors boosting internet usage amongst individuals
 Companies or enterprises are also showing prominent symptoms of embracing dynamic concepts such as
cloud computing and Enterprise Mobility (EM) which in turn inject growth in the internet usage
Internet Users – Growth in India
mn
n m
l
k
j
i
0
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
CYBER SECURITY MARKET IN INDIA 2012.PPT 9

10. IT and telecom sectors constitute the prime areas for cyber
security measures and adoption SAMPLE
IT & Telecommunication Sector – Overview IT/ITes Sector – Growth
• Threats related to cyber security are on the rise
wherein critical infrastructure like
telecommunication and information technology has INR tr
u t
become targets
s
• The attacks are no longer confined to just r
information infrastructures and geographical q
p
boundaries but have extended to exploitation of
network interconnections and navigation through
infrastructure
i f t t
• Cyber security therefore becomes an essential 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
requirement in this domain
Tele‐density – Growth
Tele density Growth p
• India is on the lookout to establish a new body that
Unit will oversee telecom and cyber security
v • The body, called p1, will be headed by the telecom
w secretary and will have representatives from the
defense and home ministries, intelligence agencies,
d f dh ll
IT department, intelligence bureau, National Security
Advisor and NTRO, among others
u • The body will address network security issues and
also set up objectives and targets to various
departments and agencies handling telecom and
20‐‐
20 20‐‐
20 cyber security related issues
CYBER SECURITY MARKET IN INDIA 2012.PPT 10

11. Government Regulation – Summary
Government Initiatives
Participation
p
Cyber Law
Cyber Law CERT In
CERT‐In
CYBER SECURITY MARKET IN INDIA 2012.PPT 11

12. Some of the statistics revealed by CERT‐In
SAMPLE
CERT‐In (3/3)
Defacement refers to hacking or defacing sites by attacking the sites which changes the visual appearance of
the sites
J
Unit no f Unit no A
j k N‐
2 J
e U
0 L
1
1 2
g h i l m n 0
1
e1 f1 g1 h1 i1 j1 k1 l1 .m1 n1 2
Unit no Unit no J
k2 m2 q2
A
N‐
2 p2 J
o2 U
0 a2 b2 c2 d2 e2 f2 2
g2 h2 j2 l2 n2 r2 s2 L
i2
1
1 2
0
1
a3 b3 c3r d3 e3 f3 g3 h3 i3 j3 k3 l3 m3 n3 o3 p3 q3 r3 s3 2
Open proxy servers serve as the major sources of Spam on the Internet and are used to launch attacks on
other systems
CYBER SECURITY MARKET IN INDIA 2012.PPT 12

13. Trends – Summary
Cyber security players foray into mobile security
Cyber security body designed for power sector by Indian Government
`
Key Trends Adoption of virtualization
India looking at building national cyber security architecture
g g y y
Training institutes design courses on cyber security
T i i i i d i b i
CYBER SECURITY MARKET IN INDIA 2012.PPT 13

14. Training institutes designing courses in cyber security have
shaped the sector as a relevant trend SAMPLE
Training institutes design courses on cyber security
• Several courses M O
have been
designed owing to • ‐ is the training wing of ‐ to provide information security
the latent training • A two‐year post
• It has categorized training programs separately for beginners, graduate course
potential that the administrators, advanced and developers in cyber security
sector is deemed • It looks at providing training on subjects including ethical was started by ‐
to be possessing
to be possessing hacking, wireless security, network security, database
h ki i l it t k it d t b in Coimbatore in
in Coimbatore in
• As need for cyber 20‐‐ which marks
security, operating systems security, intrusion detection and it to be the first
security increases, analysis, e‐crime and computer forensics, virtualization and course in cyber
demand for security, web application security, cloud computing security security started
professional hands and others in India
also rises • The areas for
research
research
• Capitalizing on the included in cyber
opportunity for N security ranges
security needs, across
training institutes cryptography,
have delineated • ‐ has launched world‐class infosec education programs to visual
courses on these
courses on these provide training on information security management as well
provide training on information security management as well cryptography,
as certification programs multimedia
lines to render security,
proper training to • The ‐ is an integral part of ‐ which offers programs such as the intrusion
people who wish Official (ISC)2 CISSP Review Seminar, IRCA accredited ISO detection,
to embark on a 27001‐Advanced ISMS Auditing Course and Certified Ethical wireless security,
career on cyber Hacker (CEH) web and internet
security
security • ‐ is another offering that is a one‐year program in
is another offering that is a one year program in security and
security and
Information Security Management others
CYBER SECURITY MARKET IN INDIA 2012.PPT 14

15. Public: Foreign Company – Company 1 (1/3)
Company Information
SAMPLE
Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Place
Year of Incorporation
Ticker Symbol
Stock Exchange
Head Office
Products and Services
Products and Services
Category Products/Services
Services/ Products S1, s2 Key People
Name
N Designation
D i ti
P1 D1
P2 D2
P3 D3
CYBER SECURITY MARKET IN INDIA 2012.PPT 15

16. Public: Foreign Company – Company 1 (2/3)
Financial Snapshot
i i lS h
SAMPLE
Key Ratios
K i
Total Income Net Profit/Loss y‐o‐y change
Revenue Profit Particulars 2011 2010 2009 2008
(2011‐10)
INR mn INR mn
y
Profitability Ratios
x z
Operating Margin ‐1.27 16.29% 17.56% 17.60% 12.80%
w Net Margin ‐2.34 9.52% 11.86% ‐109.45% 6.81%
Profit Before Tax Margin ‐2.52 11.20% 13.72% ‐106.50% 10.35%
Return on Equity ‐2.82 12.88% 15.70% ‐163.64% 3.74%
Return on Capital Employed ‐1.20 12.97% 14.17% 15.31% 5.39%
3141.67
Return on Working Capital ‐268.80 ‐145.70% 123.10%
%
‐588.51%
20-- 2009 2010 2011
Return on Assets
Return on Assets ‐1 69
1.69 4.66%
4 66% 6.36%
6 36% ‐63 79%
63.79% 2.27%
2 27%
Financial Summary Return on Fixed Assets ‐18.76 56.48% 75.24% ‐697.43% 40.93%
Cost Ratios
• The company incurred a net profit of INR ‐ mn in FY 2011, as
Operating costs (% of Sales) 1.26 83.60% 82.34% 82.26% 86.87%
compared to net profit of INR ‐ mn in FY 2010
Administration costs (% of
3.00 48.43% 45.43% 44.37% 47.04%
• The company reported total income of INR ‐ mn in FY 2011, as Sales)
compared to INR ‐ mn in FY 2010
compared to INR mn in FY 2010 Interest costs (% of Sales)
I t t t (% f S l ) 0.15
0 15 2.31%
2 31% 2.16%
2 16% 2.03%
2 03% 2.03%
2 03%
• The company earned an operating margin of ‐ % in FY 2011, a Liquidity Ratios
decrease of ‐ percentage points over FY 2010 Current Ratio ‐20.54% 0.92 1.15 0.94 0.98
Cash Ratio ‐25.62% 0.62 0.83 0.60 0.68
• The company reported debt to equity ratio of ‐ in FY 2011, a
decrease of ‐ % over FY 2010
Leverage Ratios
Debt to Equity Ratio 19.89% 1.76 1.47 1.57 0.65
Key Financial Performance Indicators Debt to Capital Ratio 3.41% 0.30 0.29 0.30 0.17
Interest Coverage Ratio ‐13.37% 7.10 8.19 8.73 6.48
Indicators Value Efficiency Ratios
Market Capitalization (INR mn) ‐ Fixed Asset Turnover ‐6.52% 5.90 6.31 6.32 5.86
Total Enterprise Value (INR mn) ‐ Asset Turnover ‐8.67% 0.49 0.53 0.58 0.32
EPS (INR) *
EPS (INR) * ‐ Current Asset Turnover
Current Asset Turnover 0.31%
0 31% 1.38
1 38 1.38
1 38 1.87
1 87 1.57
1 57
Working Capital Turnover ‐247.39% ‐15.21 10.32 ‐28.47 ‐84.31
PE Ratio (Absolute) * ‐
Capital Employed Turnover 2.15% 1.34 1.32 1.48 0.54
Improved Decline
CYBER SECURITY MARKET IN INDIA 2012.PPT 16

17. Public: Foreign Company – Company 1 (3/3)
Key Business Segments
SAMPLE
Key Geographic Segments
s1 s2 s3 s4
g1 g2 g3
a4 a5 a6 a7 a8 a9 a10 a11
b4 b5 b6 b7 b8 b9 b10 b11
c4 c5 c6 c7 c8 c9 c10 c11
d4 d5 d6 d7
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
Key Information
Description Details
• ‐ provides security, storage, and systems management solutions internationally
• ‐ markets and sells its products through distributors, retailers, direct marketers, Internet‐
Overview based resellers, original equipment manufacturers, system builders, and Internet service
providers; and its e‐commerce channels, as well as direct sales force, value‐added and
large account resellers, and system integrators
Most Recent Auditor •‐
CYBER SECURITY MARKET IN INDIA 2012.PPT 17

18. Private: Domestic Company – Company 2 (1/3)
Company Information
SAMPLE
Offices and Centres – India
Registered Address
Tel No.
Fax No.
Place
Website
Year of Incorporation
Registered
Address
Products and Services
Products and Services
Category Products/Services
Services S1 Key People
Name
N Designation
D i ti
P1 D1
P2 D2
P3 D3
P4 D4
CYBER SECURITY MARKET IN INDIA 2012.PPT 18

19. Private: Domestic Company – Company 2 (2/3)
Financial Snapshot
i i lS h
SAMPLE
Key Ratios
K i
Total Income y‐o‐y change
Particulars 2011 2010 2009 2008
Total Income Profit (2011‐10)
INR mn Profit / Loss INR mn Profitability Ratios
o
Operating Margin ‐10.41 42.79% 53.20% 51.32% N.A.
Net Margin ‐6.36 30.25% 36.61% 34.58% N.A.
Profit Before Tax Margin ‐9.93 44.66% 54.58% 52.70% N.A.
n
Return on Equity ‐22.48 26.91% 49.39% 50.10% 56.25%
m Return on Capital Employed ‐34.01 43.18% 77.19% 72.57% 0.00%
Return on Working Capital ‐35.02 66.48% 101.50% 81.20% 64.71%
Return on Assets ‐19.08 26.87% 45.94% 44.26% 51.51%
Return on Fixed Assets ‐1.18 261.72% 262.90% 330.43% 272.32%
Cost Ratios
20‐‐ 20‐‐ 20‐‐ Operating costs (% of Sales) 10.35 56.40% 46.05% 47.96% N.A.
Administration costs (% of
N.A. N.A. N.A. N.A. N.A.
Financial Summary Sales)
Interest costs (% of Sales)
Interest costs (% of Sales) N.A.
NA N.A.
NA N.A.
NA N.A.
NA N.A.
NA
• Company incurred a net profit of INR ‐ mn in FY 2011, as Liquidity Ratios
compared to net profit of INR ‐ mn in FY 2010 Current Ratio 0.49% 4.37 4.35 6.74 8.62
Cash Ratio 156.18% 3.62 1.41 2.43 1.34
• It reported total Income of INR ‐ mn in FY 2011, Leverage Ratios
registering a decrease of ‐% over FY 2010 Debt to Equity Ratio N.A. N.A. 0.07 0.13 0.09
Debt to Capital Ratio N.A. N.A. 0.07 0.11 0.08
• Earned an operating margin of ‐% in FY 2011, a decrease Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
of ‐ percentage points over FY 2010
Efficiency Ratios
Fixed Asset Turnover 19.89% 8.49 7.08 9.42 0.00
Asset Turnover ‐29.57% 0.87 1.24 1.26 0.00
Current Asset Turnover
Current Asset Turnover ‐21 00%
21.00% 1.66
1 66 2.11
2 11 1.97
1 97 0.00
0 00
Working Capital Turnover ‐21.12% 2.16 2.73 2.32 0.00
Capital Employed Turnover ‐34.38% 0.87 1.33 1.43 0.00
Improved Decline
CYBER SECURITY MARKET IN INDIA 2012.PPT 19

20. Private: Domestic Company – Company 2 (3/3)
Key Recent Developments
SAMPLE
Description News
• Operates as a leading provider of Internet Security tools and is hailed as being the leader
Operates as a leading provider of Internet Security tools and is hailed as being the leader
in z1 in India
• Boasts of employing more than 450 people across 22 branches in India
Overview
• Operates through a network of dealers and channel partners in more than 50 countries
across the global platform
• Has recently bagged the award of ‐ Award 2012‐2014
• Its products can be categorized based on the end users and primarily caters to home
ll d d
users, small‐medium companies, corporate, ISP and OEMs
Products
• Recently it has launched a mobile security suite for ‐ in Mar 2012
• Has also launched unique laptop tracker in case of laptop theft
• Has been awarded the prestigious z2 operating system for its z3
Certifications
• Z4, z5 and z6 are certified in multiple categories through z7 certification
CYBER SECURITY MARKET IN INDIA 2012.PPT 20

21. Thank you for the attention
The Cyber Security Market – India 2012 report is a part of Netscribes, Inc.’s Information Technology
Industry Series.
For more detailed information or customized research requirements please contact:
Phone: +91 33 4064 6214
91 33 4064 6214
E‐Mail: sales@netscribes.com
Follow us on:
About Netscribes, Inc.
Netscribes, Inc. is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of
, g g f g p y p p f
investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its
core lies a true value proposition that draws upon a vast knowledge base. Netscribes Inc. is a one‐stop shop designed to fulfil clients’
profitability and growth objectives.
Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, Netscribes is
Disclaimer: This report is published for general information only Although high standards have been used in the preparation “Netscribes” is
not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior
permission is required for guidelines on reproduction.
CYBER SECURITY MARKET IN INDIA 2012.PPT 21