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F r o s t R a d a r™ : G l o b a l E n d p o i n t S e c u r i t y , 2 0 2 3

October 2023

A Benchmarking System to Spark Companies to Action - Innovation That Fuels New Deal Flow and Growth Pipelines

Authored by: Sarah Pavlak

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Strategic Imperative and Growth Environment

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Strategic Imperative

Source: Frost & Sullivan

• The threat landscape is changing because cyberattacks are more lucrative, and new cybercriminal

groups are emerging. Enterprise attack surfaces are expanding because more individuals use their

devices and connect remotely. Attackers exploit remote working environments with various endpoint

devices, lacking proper security management.

• Remote work and bring your own device (BYOD) add to the challenges of protecting endpoints because of

the increase in the number of devices and an organization’s lack of physical control over them.

• Some organizations lack the resources or expertise to defend against cyberattacks targeting IoT

devices. Some outdated IT security methods cannot recognize IoT endpoints as entry points for

attack, offering cyber criminals an open door to the corporate network. Some unmonitored IoT

devices send unencrypted messages within and outside a corporate network, allowing hackers to

intercept sensitive data. Endpoint security solutions can detect this through continuous data

collection and behavioral analytics.

The endpoint security market fluctuates. Changing work environments and continuously evolving cyber threats drive the market’s technological advancement. Addressing new endpoint security product use cases and applications helps market leaders maintain a competitive edge and sustain growth.

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Strategic Imperative (continued)

Source: Frost & Sullivan

• Endpoint security paired with network security solutions deliver on the ideal of a holistic, zero-trust

security architecture—the future of security portfolios. Some vendors already offer such integrated

solutions, and more will embrace the strategy in the next few years.

• Organizations know they must improve their cybersecurity posture. Security technologies and the

threats they aim to thwart are becoming more sophisticated and complex, prompting enterprises to

employ advanced technologies such as extended detection and response (XDR) as a consolidation

strategy.

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Growth Environment

Source: Frost & Sullivan

• In 2023, enterprise spending on endpoint security solutions is projected to exceed $12.2 billion

globally. Frost & Sullivan projects spending to reach $22.3 billion by 2027, achieving a compound

annual growth rate of 16.2%.

• In response to cyberattacks' increasing severity and sophistication, the endpoint security market

has had strong double-digit growth over the last five years. A growth driver is organizations

migrating to the cloud—transitioning from on-premises to cloud-delivered solutions.

• Continued growth in endpoint devices, BYOD, and IoT device connectivity will increase

enterprise web traffic and enterprises’ need for endpoint protection capabilities. More devices

on the network will require scaling and more security services. Some vendors offer endpoint

protection platforms (EPP).

• Many organizations have shifted to hybrid workspace environments after a period of fully

remote work at the start of the COVID-19 pandemic. However, that has opened them to new

risks and forced IT security to counter unknown threat vectors as users work outside traditional

network security perimeters.

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Growth Environment (continued)

Source: Frost & Sullivan

• Secure access service edge (SASE), zero trust, and platform integration will enhance endpoint

security’s efficacy and value. These factors will contribute to industry growth.

• The banking, government, healthcare, and manufacturing industries have experienced novel and

previously unseen types of cyberattacks during the pandemic years. These industries remain

vulnerable, driving the need for better endpoint security solutions.

• Threats will continue to evolve and challenge existing endpoint security solutions. Ransomware

will remain a prominent threat, and endpoint security vendors will innovate and deliver new

solutions to counter advanced threats.

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Frost Radar™

Endpoint Security, 2023

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Frost Radar™: Endpoint Security, 2023

Source: Frost & Sullivan

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Frost Radar™ Competitive Environment

Source: Frost & Sullivan

• In a competitive field of more than 50 participants globally in the endpoint security space,

Frost & Sullivan independently plotted 18 growth and innovation leaders in this Frost Radar

analysis.

• Security vendors continuously innovate and expand endpoint security features and functions

to make their technologies more competitive and better able to counter increasingly

sophisticated cyberattacks.

• Vendors recognize the shift to platform service consolidation and are making their

technologies capable of merging with broader solution suites. The ability to offer unified

device security is a significant factor as customers seek to consolidate their security solutions

and reduce the management overhead of an expanded security perimeter.

• The endpoint security market is saturated, mature, highly competitive, and crowded. The

technology is becoming commoditized, but vendors are developing functions and features to

counter new threats and adjust to changing standards.

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Frost Radar™ Competitive Environment

Source: Frost & Sullivan

• Check Point, has been identified by Frost & Sullivan as a Growth Index leader. They have

demonstrated above-industry-average growth for several years. Check Point is an established

security vendors with extensive product portfolios and provide comprehensive endpoint

security solutions with long-term strategic outlooks.

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Significance of Being on the Frost Radar™

Companies plotted on the Frost Radar™ are the leaders

in the industry for growth, innovation, or both. They are instrumental in advancing the

industry into the future.

GROWTH POTENTIAL

Your organization has significant future growth potential, which makes it a Company to Action.

BEST PRACTICES

Your organization is well positioned to shape Growth Pipeline™ best practices in your industry.

COMPETITIVE INTENSITY

Your organization is one of the key drivers of competitive intensity in the growth environment.

CUSTOMER VALUE

Your organization has demonstrated the ability to significantly enhance its customer value proposition.

PARTNER POTENTIAL

Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.

Source: Frost & Sullivan

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Companies to Action: Companies to Be Considered First for Investment, Partnerships, or Benchmarking

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Company to Action: Check Point

• Check Point’s Harmony Endpoint is a comprehensive solution unifying prevention, detection, and

response across endpoints, mobile devices, email, and collaboration apps. The API-based solution

allows for easy integration with third-party solutions to augment security. Check Point’s ThreatCloud

AI supports it.

• Check Point has been in the cybersecurity industry for more than 30 years, meaning it has all the

more developed threat intelligence to teach its AI solutions to detect sophisticated threats. For

example, its Threat Cloud AI offers zero-day protection with more than 60 AI engines.

• Check Point has introduced many capabilities over the past three years, including XDR, vulnerability

and patch management, a dedicated managed security service provider portal, multiple operating

system support, forensics collection, and automated reports.

Innovation

Source: Frost & Sullivan

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Company to Action: Check Point

• Check Point sells Harmony Endpoint to medium-sized organizations and large enterprises.

Check Point's long experience in this market means it has longstanding customer relationships

with enterprises looking to Check Point to help them secure their shifts to hybrid working

models.

• Check Point has achieved steady, above-industry-average revenue growth, gaining incremental

market share for several years.

• Check Point’s growth strategy incorporates key Mega Trends in the security industry. This

includes a consolidated endpoint and SASE solution to support zero trust access, identity

protection, and data loss prevention capabilities.

• Check Point has a customer retention rate that exceeds 85%. Check Point analyzes product data

usage telemetry to learn more about customers not using specific features. Customer Success

groups follow up to help them get the most out of their purchased services.

Growth

Source: Frost & Sullivan

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Company to Action: Check Point

• Check Point has made several acquisitions over the past few years to enhance its security

solutions further. This and partnership opportunities with managed service providers are

essential strategies to keep pace with close competitors. Check Point can grow and gain market

share faster by acquiring companies with solutions that integrate into its technology roadmap.

This will prove especially true as Check Point broadens its SASE, zero trust, and network

security offerings.

• Enterprises continue to diversify client device support. Check Point should continue enhancing

IoT/OT device visibility and protection. Healthcare and manufacturing represent substantial

potential markets, and Check Point can continue to develop such protection to meet the

evolving threat landscape.

Frost Perspective

Source: Frost & Sullivan

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Key Takeaways

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Key Takeaways

Source: Frost & Sullivan

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Stand-alone endpoint security solutions can be too complex for some organizations

to manage effectively. Unifying EPP and EDR within a single cloud-based platform

allows these complementary solutions to protect endpoints comprehensively.

Enterprise attack surfaces have grown. Threat risk is one of several trends (including

technological innovation and platform consolidation) driving EDR and XDR adoption.

The migration from EDR to XDR is accelerating and generating attention: XDR offers a

unified suite of EDR and related security technologies and provides broader,

extended visibility into all phases of an attack on an endpoint. This allows security

teams to monitor any changes to the environment, thwart an attacker, or launch a

manual investigation at any attack stage.

Many customers have too many siloed security solutions. This patchwork

complicates security administration, makes communication between solutions

difficult, and can create significant security gaps. Customers want fewer, better,

and more comprehensive security solutions.

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Key Takeaways

Source: Frost & Sullivan

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Deploying a security suite that combines endpoint security capabilities is better for

customers than a piecemeal, multivendor, point-solution approach. To gain and

preserve momentum in the market, EDR vendors must consider these considerations

and pursue integrated platform development strategies.

End-to-end visibility solutions (platforms or suites) ensure better endpoint security and

an easier means to locate and address any security issues that may arise. They are also

easier to administer, offering single-pane-of-glass monitoring and unified security policy

development. A customer aims to access an integrated, secure cloud solution that

supports zero trust access.

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Frost Radar™ Analytics

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Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform

VERTICAL AXIS

Growth Index (GI) is a measure of a company’s growth performance

and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market,

competitor, and end-user focused sales and marketing strategies.

GROWTH INDEX ELEMENTS

• GI1: MARKET SHARE (PREVIOUS 3 YEARS) This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years.

• GI2: REVENUE GROWTH (PREVIOUS 3 YEARS) This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™.

• GI3: GROWTH PIPELINE This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities.

• GI4: VISION AND STRATEGY This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision?

• GI5: SALES AND MARKETING

• This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.

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Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform

HORIZONTAL AXIS

Innovation Index (II) is a measure of a company’s ability to develop products/services/solutions (with

a clear understanding of disruptive Mega Trends) that are globally applicable, are able to

evolve and expand to serve multiple markets, and are aligned

to customers’ changing needs.

INNOVATION INDEX ELEMENTS

• II1: INNOVATION SCALABILITY This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals.

• II2: RESEARCH AND DEVELOPMENT This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline.

• II3: PRODUCT PORTFOLIO This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue.

• II4: MEGA TRENDS LEVERAGE This is an assessment of a company’s proactive leverage of evolving, long- term opportunities and new business models, as the foundation of its innovation pipeline. An explanation of Mega Trends can be found here.

• II5: CUSTOMER ALIGNMENT This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.

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Slide 1 Slide 2 Slide 3: Strategic Imperative Slide 4: Strategic Imperative (continued) Slide 5: Growth Environment Slide 6: Growth Environment (continued) Slide 7 Slide 8: Frost Radar™: Endpoint Security, 2023 Slide 9: Frost Radar™ Competitive Environment Slide 10: Frost Radar™ Competitive Environment Slide 11: Significance of Being on the Frost Radar™ Slide 12: Companies to Action: Companies to Be Considered First for Investment, Partnerships, or Benchmarking Slide 13: Company to Action: Check Point Slide 14: Company to Action: Check Point Slide 15: Company to Action: Check Point Slide 16 Slide 17: Key Takeaways Slide 18: Key Takeaways Slide 19 Slide 20: Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform Slide 21: Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform Slide 22: Legal Disclaimer