CYREN Sales Overview Presentation 2014.pdf · 14 global, Tier IV data centers // highly scalable,...

1© 2014 CYREN Confidential and Proprietary

INVESTOR PRESENTATIONLeading provider of Internet Security technology and cloud-based services

NASDAQ: CYRN

© 2014 CYREN Confidential and Proprietary

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SAFE HARBOR AND FORWARD LOOKING STATEMENTS

This presentation contains forward-looking statements, including projections about our business,within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the SecuritiesExchange Act of 1934. For example, statements in the future tense, and statements includingwords such as "expect," "plan," "estimate," "anticipate," or "believe" are forward-lookingstatements. These statements are based on information available to us at the time of thepresentation; we assume no obligation to update any of them. The statements in this presentationare not guarantees of future performance and actual results could differ materially from ourcurrent expectations as a result of numerous factors, including business conditions and growth ordeterioration in the Internet market, commerce and the general economy, both domestic as wellas international; fewer than expected new-partner relationships; competitive factors, includingpricing pressures; technological developments, and products offered by competitors; the ability ofour OEM partners to successfully penetrate markets with products integrated with CYRENtechnology; a slower than expected acceptance rate for our newer product offerings; availability ofqualified staff; and technological difficulties and resource constraints encountered in developingnew products, as well as those risks described in the text of this presentation and the company'sAnnual Reports on Form 20-F and reports on Form 6-K, which are available through www.sec.gov.

© 2014 CYREN. All rights reserved. CYREN, Recurrent Pattern Detection, RPD, Zero-Hour and GlobalView are trademarks, and Authentium, Command Antivirus and Command AntiMalware are registered trademarks of CYREN. U.S. Patent No. 6,330,590 is owned by CYREN. All other marks are the property of their respective companies.


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AGENDA

Security Market

Capturing the Growth

Services and Solutions

Financial Snapshot

CYREN 2015


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SECURITY MARKET


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DRIVING TRENDS IN THE SECURITY MARKET

Increasingly Complex Threat

Environment

Multi-Layer Threats

Broader Targeting

Virtualized IT environments create security visibility challenges – exponential growth in endpoints

– Dynamic bot / zero-day attacks difficult to defend against with traditional tools

Movement of data between locally firewalled and hosted applications delivered on-demand creates additional complexity and vulnerability

Dynamic bot / zero-day attacks difficult to defend against with traditional tools

Advanced Persistent Threats drive need for behavioral-based solutions that leverage real-time network and application data to determine anomalies with limited false positives and network disruption

Small-to-mid-sized businesses are ill-equipped and ill-prepared to defend against attacks

Social media scams are increasing as hackers take advantage of “trust” on these networks

Mobile Data The shift to BYOD introduced security vulnerabilities

130,000 new Android month per month in 2013 (source: GlobalView™ Security Lab)

Network trust is at a premium as digital life transfers from the PC to mobile devices and the cloud


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EVOLUTION OF SOFTWARE AS A SERVICE

Apps were internal

Pay for/Own app

Pay for/Own servers/hardware

Manage security internally

Before Between Now Apps hosted in cloud

Pay for/Own app

Rent hosting for servers/hardware

Hybrid security internal/hosted

Complete Cloud apps

Pay per use/user

Web driven apps

Services

– LOB applications

– Servers

– Security


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MARKET OPPORTUNITY

Cloud-based security market growing at a

20% CAGR from 2013 to 2017

Source: Gartner Market Trends: Cloud-based Security Services, October 2012

2013

2017



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CAPTURING THE GROWTH


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CLOUD-BASED SECURITY BY DESIGN

Scalable cloud infrastructure

Patented technology

Expansive partner network using embedded software

European footprint and enterprise customer base

Proven market-leading Email SaaS technology

World-class AntiMalware engineering capabilities

Prior art for heuristic detection that much of AntiMalware industry relies upon

CYREN

The leader of integrated cloud-based security

technology providing a cost-effective, easily

deployed solution that mitigates threats

through global data detection, prevention,

and intelligence.


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CYREN IS A TRUSTED SECURITY PARTNER TO THE LEADERS

180+ Partners with over 550 million End Users


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CYREN HAS A UNIQUE COMPETITIVE ADVANTAGE

Global Infrastructure

Trust

Business Model

Proprietary Intellectual Assets

• Cloud-Assist (hybrid)• Multi-tenant Public Cloud• “Follow the Sun” Support• Data Centers

• Low Churn Rate• High Detection Rate• Marquee Global Customers

• Recurring Revenue• Cash generating• Scalable

• Heuristic Analysis• Big Data Analytics• “Actionable Intelligence”


OfficesData Centers

Worldwide Sales & Support Centers

U.S. headquarters in Virginia

200 employees

Recurring revenue business model

Cash generative core detection business

GLOBAL REACH


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SOLUTIONS & SERVICES

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PROVEN PLATFORM IS INTEGRATED AND EXPANDABLE

WEB SECURITY

…Additional Services

EMAIL SECURITY

…Additional Services

Advanced Threat Protection…Future Services

Mobile Security

…Future Services

PARTNER & SMB PORTALS // ENTERPRISE SCALABILITYSimple Provisioning // Easy to Manage // Comprehensive Reporting // White-Label // Extensible APIs

GLOBALVIEW™ SECURITY LABAntiMalware // AntiSpam Engine // AntiPhishing // IP Reputation // URL-Filtering //

OPERATIONS & SUPPORTFollow the Sun multi-lingual support & technical operations personnel // 24x365 NOC

INFRASTRUCTURE14 global, Tier IV data centers // highly scalable, fault-tolerant architecture // virtual access points

$3.4 Billion Cloud-Based Security Services Market IDC 2014

SERVICE PROVIDERS // KEY ACCOUNTS


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FLEXIBLE DEPLOYMENT

Security technology to enhance existing or create new products, to complement your core competencies

Industry leading performance

Easily integrated into products and services via SDK

Compelling long-term investment case

EMBEDDED

SaaS security solutions designed for Enterprise scalability and SMB ease of use

Full- function private-label SECaaS

Minimal management overhead

Expand market opportunity beyond large enterprise to SMBs

SAAS


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CYREN POSITIONED FOR GROWTH

TOTAL ADDRESSABLE MARKET

Software Security Market

$75-80 million

CYREN-$1.0-1.5/year/user

Cloud-Based Security Market

$4.1 billion in 2017

CYREN Partner-$15-20/year/user

Annual Cost Per User/Year = $30Annual Cost Per User/Year = $50

PartnerPartner


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PRODUCT FAMILIES

WEB EMAILANTIMALWARE

CYREN WebSecurityURL-Filtering

MobileSecurityAntiVirus

CYREN EmailSecurityEmail Messaging SuiteAntiSpamOutbound AntiSpamIP ReputationAntiVirus for Email



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WEB


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HOW IT WORKSBENEFITS

A turnkey revenue opportunity

Supports any sales ecosystem

Private label, or co-brand

CYREN’s leading detection

Build your own value-added Services

Secure browsing from any device, anywhere, however you want.

A total solution for roaming users, smartphones and tablets - including BYOD

An intuitive customer experience – easy to set up and manage

CYREN WEBSECURITY

WEB


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Broad, high-accuracy coverage

Near zero latency

Real-time threat identification

Enables policy enforcement

Customize cache by location

Direct-to-Center option fits almost any platform

EMBEDDED URL FILTERING

WEB

The standard for URLF performance in applications such as:

Web Security

Parental Control

Business productivity and compliance management



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EMAIL


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High-performance detection, from a mass-scale platform

Premium email security without needing infrastructure investment

Empower resell partners with minimal overhead

CYREN EMAILSECURITY

EMAIL

Protect email users across any platform or device.

Market leading spam and malware protection without specialized hardware, software, or security expertise

Stop unwanted spam and malware before it reaches your infrastructure


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BENEFITS

Zero false positives

High-quality protection

Improved customer satisfaction

Reduced cost

Low TCO

EMBEDDED ANTISPAM

EMAIL

High-performance protection with strict privacy for customer email contents.

Identify new spam, malware and phishing attacks - the moment they emerge

Global detection from a patented content and language agnostic solution

HOW IT WORKS


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BENEFITS

Block ~85% of spam at perimeter

Conserve infrastructure

Base policy on real-time understanding of risk

Accept legitimate traffic as attacks subside

EMBEDDED IP REPUTATION

EMAIL

Prevent transactions with untrusted systems.

Real-time intelligence on sources of spam, malware, and phishing

Base your decisions on a detailed understanding of current host activity

HOW IT WORKS


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BENEFITS

Real-time intelligence

A complete picture of all currently active zombies

Identify untrustworthy hosts along with their activity

ZOMBIE INTELLIGENCE SERVICE

IP REPUTATION

Identify active compromised (zombie) hosts and their activity in last 24 hours.

Real-time intelligence from GlobalView™ Cloud on sources of spam, malware, and phishing

Base your decisions on a detailed understanding of current activity

Delivered as a complete dataset with incremental updates

HOW IT WORKS


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Avoid blacklisting

Detect attacks unique to you

Minimize recurrences

Identify sources

EMBEDDED OUTBOUND ANTISPAM

EMAIL

Neutralize spam attacks emanating from inside your own infrastructure

Avoid blacklisting by blocking outbound spam before it leaves your systemm

Identify sources and provide information required to take action


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EMBEDDED ANTIVIRUS FOR EMAIL

EMAIL


Industry-leading protection

Minimize vulnerability to new threats

Fastest clean file processing

Dual-engine protection

Ultra-low TCO

The best and broadest malware protection for your inbox.

The high-performance engine behind the largest global cloud deployments

The best and broadest protection against new or zero-hour threats

Add dual-engine protection with CYREN Virus Outbreak Detection



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ANTIMALWARE


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BENEFITS

Security with a great User Experience

Malware protection for most popular platform

Safe, secure browsing

Low resource consumption

Low TCO

EMBEDDED MOBILE SECURITY FOR ANDROID

ANTIMALWARE

The best and broadest malware protection – on the most vulnerable devices.

Maximize malware protection while minimizing device load

Prevent access to malicious URLs and blocks malware downloads

Ideal security foundation for providers of mobile applications and services

HOW IT WORKS


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Industry-leading protection minimizes vulnerability to new threats

Fastest clean file processing

Low impact to device performance

Easy integration via SDK

EMBEDDED ANTIVIRUS

ANTIMALWARE

The best and broadest protection on any platform – hardware or software.

The high-performance, low resource engine behind the largest cloud deployments in the world

The best and broadest protection against new or zero-hour threats

Embedded easily in any solution: UTMs, NAS, endpoint software and devices


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FINANCIAL SNAPSHOT

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STABLE BUSINESS MODEL POISED FOR GROWTH

• 81% gross margin business

in 2013

• Large cash generation from

traditional business

• 100% recurring revenue

model


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CYREN BY THE NUMBERS

44%

27%

23%

6%

2013 Product Revenue Mix

Email (embedded)

EmailSecurity

AntiMalware

Web

GAAP Revenues in millions

Q1 Q2 Q3 Q4 Full Year

2012 5,896$ 5,671$ 5,558$ 6,785$ 23,910$

2013 7,925$ 8,055$ 8,019$ 8,249$ 32,248$

YoY Growth 34% 42% 44% 22% 35%


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CYREN 2015



COMMTOUCH 2012

Best of Breed Silo Offering

• OEM Supplier

• Embedded Components

• Trusted Partner

• Low Growth

ASSETS + INVESTMENT2013 + 2014

• Leverage Technology

• Develop New Features

• Create Solution Mindset

• Acquire new assets

• Build Market Front end

• Launch Initial Offerings

• Gain channel and end user credibility

CYREN 2015

• Integrated Solution

• Cost Effective

• Scalable Platform

• Security Innovator

• Channel and User Momentum

• Trusted Brand

• High Growth

CYREN WILL SUCCESSFULLY TRANSFORM FOR THE NEW REALITY


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CYREN 2015

Value Proposition

Business Model

Shareholder Value

CYREN will design, deliver, and support those attributes most valued by cost-sensitive, vulnerable and/or regulated enterprises whose current needs are unmet by today’s cloud-based security solutions. By doing so, CYREN will capture an emerging, high growth segment of the market whose proprietary data and transactions will be the next attack frontier.

CYREN will approach buyers around the globe through value-sharing intermediaries in selected markets building attractive economics to establish immediate footprint of end user market while penetrating share of end user wallet with future innovative offerings

CYREN will create shareholder value by demonstrating its ability to transform and respond to a significant industry shift providing long-term leverage of its existing capabilities while greatly enhancing its growth prospects and brand equity in those areas most rewarded in the security technology market.

“From Silo to Integrated”

“From Annuity to Multiplier Effects”

“From Cash value to Potential Value”


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THANK YOU.

QUESTIONS?

CYREN Sales Overview Presentation 2014.pdf · 14 global, Tier IV data centers // highly scalable,...

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