Palo Alto Networks�BRAND PLATFORM �03 FEBRUARY 2015

Today

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

Brand Research

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methodology

��• 3^rd 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.

“ 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.

“ 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.

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

…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

Messaging in the category is redundant and undifferentiated

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Key Takeaways

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• All competitors talk about industry-leading quality

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• “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

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• Check Point has competitor comparisons using NSS report

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• 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

How can our brand help us breakout?

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Platform

Single product

Security focused

Network

The playing field

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Network companies

Niche security companies

Platform

Single product

Security focused

Network

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)

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Communications

Advertising, online and traditional

Direct mail

Call centers

Brochures and Catalogue

Web site

Annual report

Partnerships

Solicitations

Internal communications

Meetings

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Products & Services

Next gen firewall

Virtualized firewall

Centralized management

Endpoint protection

Security subscriptions

Thought leadership

Mobile security

Product whitepapers

Training centers

Consulting

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Culture

Employees

Human resources

History

Values

Partners

Investors

Meetings

Initiatives

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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.

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IVELICH STONE

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Innovative

Elegant

Customer-focused

Honest

Brand positioning platform

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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

process

Discover

Invent

Execute

Measure

process

Discover

Invent

Execute

Measure

����������Thank you

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