Nemertes Impact Analysis

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Trend Micro Looks to the Cloud To Offer SaaS: Security as a Service

Trend Micro (OTC:TMICY) announced "Smart Protection Network," where email,
web and file reputation services and anti-virus/malware are managed in the
cloud. With this approach, Trend is moving toward SaaS (Security as a Service).
This underscores Nemertes' finding in the Security and Information
Protection benchmark that more than 70% of participants who discuss managed
security services say they plan to use services in the future or are actively
already doing so today.

Impacts:

Enterprises: A cloud-based service is well suited for both large enterprise
with 10's of thousands of desktops and smaller enterprise with many branches and
virtual workers.

Vendors: AV rivals Symantec (NASDAQ:SYMC) and McAfee (NYSE:MFE) should be
concerned, though Trend will bump into privately held Webroot and HP (NYSE:HPQ)
already in the cloud.

Investors: Potential partners leveraging the Trend cloud may include search
firms Google (NASDAQ:GOOG) and Yahoo (NASDAQ:YHOO), as well as managed security
firms Verizon (NYSE:VZ) and IBM (NYSE:IBM).

http://www.nemertes.com/products_services/research/benchmarks/nemertes_benchmark_security_and_information_protection

http://trendmicro.mediaroom.com/index.php?s=43&item=642

Ted Ritter, Research Analyst