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Palo Alto Networks�BRAND PLATFORM �03 FEBRUARY 2015

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Today

  • Overview of 1:1 research, Partners, Analysts, Senior Executives, Customers
  • Proposal for new Brand Platform, repositioning PAN as enterprise security provider�

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Brand Research

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methodology

��• 3rd party information �• Interviewed key stakeholders �• Competitive audit ��- 2 customer interviews�- 2 analysts interviews�- 11 senior leaders�- 6 functional area leaders

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“ Our challenge is when you talk to existing customers, almost always people say, “PAN—you’re the firewall guys.

Source: Executive interviews, October/November, 2014.

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I don’t think customers understand the network security platform yet, and we are not pushing the message.

Source: Executive interviews, October/November, 2014.

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Prospective customers don’t know about our enterprise platform. Employees at Palo Alto Networks are saying different things…

Source: Executive interviews, October/November, 2014.

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Nobody does it all and not at such an automated and integrated fashion as we do.”

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Source: Executive interviews, October/November, 2014.

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When people say ‘next gen’—everyone uses this—it’s lost its true meaning. When I hear it—it’s a buzzword. Even Check Point and Cisco use it.”

Analyst

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Source: Executive interviews, October/November, 2014.

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[I see] competing business visions for Palo Alto—are they a network company? Network security operations? Or trying to go into non-adjacent markets such as endpoint?”

Analyst

Source: Executive interviews, October/November, 2014.

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“We are not a networking company.”

Source: Executive interviews, April/May, 2010.

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“ The goal is to continue to be an innovative leader in enterprise security.”

Source: Executive interviews, April/May, 2010.

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Many successes…

  • 19,000 customers in 120 countries
  • Ranked an enterprise firewall market leader by Gartner last four years
  • Cybersecurity for 75 of Fortune 100 customers; 850 of global 2000
  • YoY revenue growth 58.6% 2014 Q4
  • Revenue grown at compounded rate of 145.9% over last 3 years
  • Elite IT partnerships
  • Competitive advantage in enterprise platform offering

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Source: www.paloaltonetworks.com; Executive interviews, Oct/Nov 2014

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…Although growth can have challenges

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Source: nytimes.com; Tech Security Upstarts Enter Fray

  • Unusually fragmented market, which will increase to $87B in 2016
  • NSS Labs identifies security weakness: experts call the failure a “serious” lapse
  • Rapid growth in operating expenses
  • Misperception that Palo Alto Networks is only a firewall company
  • Lack of awareness in the market around our new enterprise platform
  • Onboarding ~200 employees a quarter

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Messaging in the category is redundant and undifferentiated

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Palo Alto Networks

Check-point

Cisco

FireEye

Prevent

Integrated security

Enterprise platform

Enterprise productivity

Industry-leading

Automated solution

Gartner magic quadrant

Key Takeaways

  • All competitors talk about industry-leading quality

  • “Cisco [claims] they can do everything you can do now, [but] they are not even in the same market or class. They are claiming as they are as good or better” -Analyst

  • Check Point has competitor comparisons using NSS report

  • Cisco and Check Point discuss enterprise productivity as a benefit

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Companies change brands for the following reasons

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  • Change in a product offering and/or scope of products
  • Change in the competitive landscape
  • Merger/acquisition
  • New leadership
  • Company name is inaccurate or misleading
  • When name has geographic location (that makes it hard to expand nationally or internationally)

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Changes driving brand evolution

  • Acquisition of Cyvera as well as the integrated and automated nature of our technology opens a new category for us: integrated enterprise security.
  • New focus on CISOs, CIOs, boards, audit committees as target customers, requires a different kind of conversation.
  • Existing noise, clutter in market requires us to be nimble and strategic in how we differentiate
  • Customers and analysts see us as being the most innovative in the market today
  • However, there is a misperception of what we do: “firewall guys”
  • Our brand needs to help close this gap, differentiate us in the market and appeal to a broader audience of executive-level customers.

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Summary

In a fragmented and rapidly growing enterprise security market, it is increasingly challenging to break through the “noise.”

Competitors are making similar claims of integrated solutions, automation and detection and prevention.

Third-party endorsements including Gartner and NSS do not fully underscore the competitive difference for Palo Alto Networks.

Brand needs to help differentiate against the competition

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How can our brand lead the way?

  • create a rallying cry for the future
  • support and prioritize our actions
  • tell our story our way
  • have the message sink in

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How can our brand help us breakout?

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Platform

Single product

Security focused

Network

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The playing field

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Network companies

Niche security companies

Platform

Single product

Security focused

Network

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Our opportunity

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Platform

Single product

Security focused

Network

A new leader for integrated enterprise security

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Network companies

Niche security companies

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We are innovators for a new breed of enterprise security

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We are innovators for a new breed of enterprise security

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Environments

Events

Seminars

Offices

Web Interface

Recruiting Meetings/locations

Co-branded spaces (w/ corp. partners)

Communications

Advertising, online and traditional

Direct mail

Call centers

Brochures and Catalogue

Web site

Annual report

Partnerships

Solicitations

Internal communications

Meetings

Products & Services

Next gen firewall

Virtualized firewall

Centralized management

Endpoint protection

Security subscriptions

Thought leadership

Mobile security

Product whitepapers

Training centers

Consulting

Culture

Employees

Human resources

History

Values

Partners

Investors

Meetings

Initiatives

Brand

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We are innovators for a new breed of enterprise security, safely enabling people, ideas and growth.

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We are Palo Alto Networks

We believe that true enterprise security is the new competitive advantage. That companies are most innovative when they’re mobile, nimble and free to be responsive to customer needs. Built from the ground up, we've delivered the first, fully-integrated enterprise platform that doesn’t just detect attacks in the early stages — it prevents them altogether. And then? Information is shared across all security points, so that your system continues to evolve and get smarter with each attempted attack. Because at the end of the day, security isn't just managing incidents, it’s the start of moving your company forward.

IVELICH STONE

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Innovative

Elegant

Customer-focused

Honest

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Brand positioning platform

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Who we are

Innovators for a new breed of enterprise security

What we do

Safely enable business growth and performance

How we do it

Innovative, elegant, customer-focused, honest

Why it matters

A secure organization empowers people, ideas and performance

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Positioning Palo Alto Networks technology

Palo Alto Networks is the only enterprise security platform

That safely enables all applications�through granular use control�and prevention of known and unknown cyber threats�for all users on any device across any network

Unlike traditional firewalls, UTM’s, and�disparate stand-alone security point-products

That offer limited control for some applications and�limited detection of some cyber threats

Source: Positioning deck, January 2015

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process

Discover

Invent

Execute

Measure

  • Brand audit
  • Competitive audit
  • Analyst reports
  • Market overviews
  • Interviews with key stakeholders
  • Brand strategy
  • Naming structure
  • Brand architecture
  • Messaging matrix

  • Refresh logo
  • Develop tagline
  • Brand visual expression
  • Voice and tone
  • Implementation
  • Digital asset library
  • Photography
  • Brand guidelines
  • Brand templates
  • Brand tracker
  • Qualitative and
  • Quantitative research
  • Web and digital analytics

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process

Discover

Invent

Execute

Measure

  • Brand audit
  • Competitive audit
  • Analyst reports
  • Market overviews
  • Interviews with key stakeholders
  • Brand strategy
  • Naming structure
  • Brand architecture
  • Messaging matrix

  • Refresh logo
  • Develop tagline
  • Brand visual expression
  • Voice and tone
  • Implementation
  • Digital asset library
  • Photography
  • Brand guidelines
  • Brand templates
  • Brand tracker
  • Qualitative and
  • Quantitative research
  • Web and digital analytics

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����������Thank you

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APPENDIX

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Our brand platform��������True��Differentiating��Compelling

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“ We’re going to make you safe.”

Source: Executive interviews, October/November, 2014.

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Who we are

“We innovate. We help our customers implement a better solution to protect their networks.”

Innovator, fast-moving, dynamic.”

“We never over-promise”

“Technocratic--the firm belief that if you do the right technical thing, everything else will take care of itself.”

“Elegance, simplicity, transparency, truthfulness”

“It’s a challenge to keep the startup feeling. As we grow, it’s impossible to keep that culture.”

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Source: exe

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�Setting context�������We are��We serve��We offer

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Management interviews revealed opportunity with CxOs

If you go to CISO’s, they probably know who we are and probably heard of us. If you go to CIO’s, they probably would not [know who we are].”

“ You don’t start with the CIO at Boeing for example by saying ‘Hey we have a better mousetrap, how many would you like?’ It’s ‘Let me tell you about our business and how we are helping peers of yours...”

“ We are not happy being a $10B market cap company, we are not happy with a 7% market share in this total $20B addressable market. We want to be the biggest, most important company in security because you need that… To defend against the bad guys.

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Our mission

To allow enterprises, service providers, and government entities to safely enable the increasingly complex and rapidly growing number of applications running on their networks and successfully prevent security breaches stemming from cyber attacks.

Superior security with superior TCO

Source: Positioning deck, January 2015

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Summary

Palo Alto Networks offers enterprise security technology to safely enable applications, people and ideas, and prevent attacks.

The brand needs to show our product differentiation, as well as our commitment to innovation and customer service.

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Given the years we have had our brand, I wouldn’t change it. I think personally think it’s fine.

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Source: Executive interviews, October/November, 2014.

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“ The name used to be accurate—it is not accurate anymore—you should move to ‘network security.”

Customer

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Source: Executive interviews, October/November, 2014.

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Security’ would be a better noun to complete “Palo Alto” than ‘networks.’ Could I live with nothing? I could live with nothing as well at this point...”

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Source: Executive interviews, October/November, 2014.

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Summary

Employees say the length of the name can be cumbersome.

Customers often short-hand our name: PAN, PANW, Palo and Palo Alto.

“Networks” is viewed by our more technical audience as inaccurate – “security” or “technology” are seen as more accurate.

The name is not seen as a barrier to sales or causing confusion in the enterprise security market.

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