Computer Software Association of Japan B-Security(2)
The Real Transnational Company: Trend Micro Akihiko Omikawa Executive Vice President General Manager, Japan Region Trend Micro Incorporated
Computer Software Association of Japan
Global Global Strategies Strategies of of Trend Trend Micro Micro
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Computer Software Association of Japan
Company Profile Name
Trend Micro Incorporated
Management
Eva Chen, CEO Mahendra Negi, CFO and COO Steve Chang, Chairman and Founder
Address
Headquarter Tokyo, Japan Shinjuku MAYNDS Tower, 2-1-1 Yoyogi Shibuya-ku, Tokyo, 151-0053 TEL 03-5334-3600
FAX 03-5334-4008
Sales office
Osaka, Nagoya, Fukuoka
Founded
Oct 24, 1989
Capital
¥ 13.479 billion (Dec 2006)
Stock
Tokyo Stock Exchange
Business
Development and sales of security software and services
Employee
3,229 (Dec 2006)
Sales
¥85.614 billion (2006)
code:4704
Global operations (* Sales office) United States, United Kingdom, Germany, France, Italy, Ireland, Norway*, Sweden*, Holland*, Spain*, UAE (Dubai)*, Taiwan, China, Korea, Hong-Kong, Australia, Singapore*, Malaysia, India*, Mexico, Brazil, Belgium*, Thai, New Zealand, Denmark*, Finland*
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Computer Software Association of Japan
History
CEO Eva Chen
1989 Oct 1991 Apr 1998 Aug 1999 Jul 2000 Jul 2000 Aug 2002 Jun 2002 Sep 2004 Mar 2004 May 2004 Jun 2004 Sep 2004 Sep 2005 Jan 2005 May 2005 Jun 2007 Jul
Founded Developed “ Virus Buster”in Japan Listed Japan OTC Listed NASDAQ *2007May Delisted Developed Virus Mail Check Service with ISP Listed on the first section of the Tokyo Stock Exchange Launched “ Trend Micro Enterprise Protection Strategy” Listed on Nikkei 225 as Nikkei Stock average Developed “ Trend Micro Security Pack”for SMB Developed “ Trend Micro Network VirusWallTM 1200” Cisco Systems and Trend Micro Extend Security Relationship to Deliver Virus and Worm Outbreak Prevention Solutions Developed “ Trend Micro Network VirusWall Family” Designated stock in DOW JONES Sustainability Index 2004 Change CEO to Eva Chen Acquired InterMute Inc. (for Anti-spyware) Acquired Kelkea Inc. (for IP filtering and reputation service) Announced new strategy “ Total Web Threat Protection”
Chairman & Founder Steve Cahng 4
Computer Software Association of Japan
Trans-National Company from Japan
US BU
Germany BU China BU France BU
Japan Headquarters Taiwan BU
Philippine Virus Research and Development Center TrendLabs Manila
Head quarter
R&D
Tokyo, Japan
Tokyo, Taipei, US, Germany, China, UK
Global office
TrendLabs
Tokyo, Taipei, Irvine, London etc.
Manila, Tokyo, Taipei, Lake Forest, Paris, Munich 5
Computer Software Association of Japan
Achievement of Trend Micro in Security Market Market Share by World basis
Sales by Region South America Asia/Pacific Europe Nourth America Japan
Sales (Unit: M yen)
70000
¥73.0bln 3%
3%
11%
60000
25%
% 1177%
11% 25% 22%
21%
Market Share within Japan Region Products for Enterprise (Gateway)
30000
20000
TM got No.1 Share for Gateway Product Source: IDC Worldwide Antivirus 2006-2010 Forecast update and 2005 vendor analysis
50000
40000
Trend Micro 26.8%
¥85.6bln
90000
80000
2005 Gateway Anti-Virus product market
40%
39%
2005
2006
10000
0
We execute transtrans-national management to fit each regional situation. We keep a good balance of sales in Japan, US and Euro.
Other Trend Micro Company B 10.3% 63.1% 12.8% Company A 13.8%
2006
Products for Enterprise (Server/Client/Others) Company B 25.6%
Other Trend Micro 11.1%
41.7%
Company A 21.7% 2006
No.1 Share for Server/Client/Others products as well Source: Fuji Chimera “ Network Security Business 2007 - Comprehensive Research Report
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Computer Software Association of Japan
Awards Overseas
Japan
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Computer Software Association of Japan
Porter Prize in Japan 2003 We won the Porter Prize in 2003
【The Reason of winning this award】 - concentration on specializing in one field of anti-virus in the network and security countermeasures, and doing accumulation and the solution development of virus information for 24 hours and 365 days.
※What is the Porter Prize in Japan? A prize that is proposed by Professor Hirotaka Takeuchi of Hitotsubashi University, crown the name of the redcap professor, Dr. Porter, who is the world authority of the competing theory. This Award is for the enterprise that achieves and maintains high profitability with an original and superior strategy. 8
Computer Software Association of Japan
The Definition of Global Management C.K. Prahalad, a professor of the Michigan University, defines the four level of the corporate global management. Located at the fourth stage of this framework, Trend Micro has been evaluated as a truly innovative company that adopts the borderless, transnational management system. Level 1
A domestic company with overseas sales by import/export, licensing, or franchising.
Level 2
Establish the overseas branch offices and conduct sales operations.
Level 3
All activities and process of sales and marketing are practiced in the subsidiary companies.
Level 4
Corporate functions are controlled under the borderless management system. 9
Computer Software Association of Japan
Global Management Practice of Trend Micro 1. Corporate Functions
2. Executive
While the company is headquartered in Japan, which plays the important corporate role, key functions and decision-making processes are managed by the regions.
In order to establish stronger relationship with customers, which is one of the most important corporate commitment, the executives are also distributed to key regions in the world.
Trend Micro’ s Global Strategy 4. Empowerment
3. Recruiting
Virus data and information is collected globally and analyzed by each region. The decision-making authority regarding to solution provisioning or customer approaches are given to the region that knows customers the best.
In most cases of global companies, managers in overseas office are sent from their headquarter offices. However, Trend Micro values regional characteristics and hires managers within their own countries. 10
Computer Software Association of Japan
Trend Labs Virus analysis/support center is made in various places such as Japan, Philippines, Taiwan, the United States, and Europe, for virus information gathering, investigation, analysis, and pattern file/engine is made for 24 hours a day, every day.
Supported by 800 people or more per six base in the world 24 hours in the 365 days. Munich Paris ◎ ◎ Europe
North America
Asia ◎ Tokyo
Africa
Irvine ◎
◎Taipei ◎
Manila
Regional Regional TrendLabs TrendLabs Regional for Regional TrendLabs TrendLabs has has been been established established for the the purpose purpose of of Australia collecting collecting especially especially original original threats threats in in Japan Japan and and making making an an original original pattern pattern file file domestically, domestically, as as well well as as attempting attempting prompt prompt correspondence correspondence to to the the target target attack, attack, aa peculiar peculiar attack. attack. A A flexible flexible solution solution is is offered offered according according to to the the situation situation such such as as the the system system cleaners cleaners that that simplify simplify use use for for aa special special removal removal tool tool and and Japan Japan that that exterminates exterminates aa specific specific malware malware in in addition addition to to the the usual usual pattern pattern file. file.
South America
Regional TrendLabs
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Computer Software Association of Japan
Best of Breed Strategy
We adopt the “ Best of Bleed”strategy that specializes in the anti-virus market, rather than unified (total solution) strategy. This strategic focus enables us not only to develop our technology for best solutions to the customer, but also to have flexible partnership with other vendors and provide customer-oriented solutions.
Best of Breed Strategy
Total Solution Strategy Competitor A
Trend Micro <Anti-Virus technology>
Function A
Alliance Function A Partner
Function B Partner
•Focusing on one field enables us to provide the best solution development to the customers as well as take quick action against new threats. •Easy to make strategic alliance with partners. •Able to develop tech-oriented marketing and sales strategy.
Function B
Function C
•Strength is the broadness of its product portfolio, not the quality or innovativeness of each product; hard to adopt the solution to the rapidly changing threat environment. •Cost reduction and operational control can be achieved, but the degree of strategic flexibility is limited in some parts including practicing alliance/partnership.
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Computer Software Association of Japan
State of IT Market & Trend Micro’ s Action Current State of IT Market
Trend Micro’ s Approach
Many software are used world wide. It is no boundary for threats through network. Customers need solution which can be global-oriented.
Develop Develop product product component component by by global global team, team, not not just just regional regional team. team.
While the social network infrastructure has been more advanced, the network threat has become more complicated and causes larger scale of damages.
Concentrate Concentrate on on developing developing new, new, innovative innovative technology technology against against threats threats by Best approach. by aa “ “ Best of of Breed” Breed” approach. ItIt allows allows us us to to provide provide customers customers with with the the best best quality quality solution. solution.
Environmental factors such as culture, business customs, and laws heavily influence the company’ s regional performance including sales and marketing activity.
The The hiring hiring process process for for managers managers are are managed managed by by the the region. region. The The Regional Regional management management team team is is empowered empowered for for deciding deciding the the business business strategies. strategies.
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Computer Software Association of Japan
Summary 1. Trend Micro is one of the truly globally managed companies, which actualize innovative management system by diversifying its core functions of business around the world. 2. In order to respond adequately to cultural difference in each country, we employ unique method about the allocation of executives, the recruitment of managers, the way of strategic planning, and empowerment. 3. We employed “ Best of Breed”strategy by picking up and specializing into anti-virus among many security categories, and building partnership with other vendors. We succeeded to gain competitive advantage in technology by concentrating on the development of the latest and the best solution, and actualized customer-oriented solution by the partnership with other vendors. 4. In order to enlarge your business globally, it is important to employ the business method and strategy with counting on the regional cultural differences, rather than unified business strategy in worldwide. 14
Computer Software Association of Japan
Overview Overview and and Strategic Strategic Approach Approach for for Asian Asian Market Market
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Computer Software Association of Japan
World Wide Infrastructure (diffusion in areas) IT infrastructure populization rate for major countries Internet
IT Infra
Users (/1,000)
Regions
North/South America East/West Europe Asia/Mid East Oceania Africa World
Users (%)
PC
Connexted PC
Connexted PC (/10,000)
Number of Penetration (/1000)
Mobile Phone
Penetration Rate (%)
Users (/1000)
Users (%)
270,285.8
30.89
205,502,481
2,347.63
293,822
34.49
374,144.1
42.74
249,417.4
31.13
29,055,601
362.60
224,183
28.48
573,784.6
71.61
305,303.2 15,570.5 22,233.0 862,809.9
8.10 47.93 2.60 13.62
27,986,795 4,571,332 424,968 267,541,177
74.32 1,408.31 4.93 422.21
224,473 16,168 13,710 772,357
6.35 50.72 1.74 12.89
710,023.6 20,031.2 78,762.7 1,756,746.1
18.72 61.71 9.14 27.61
Asia/Mid-East IT infrastrure Internet
IT Infra
Countries
Users (/1,000)
User (%)
Connected PC
PC Connexted PC (/10,000)
Japan 64,160.0 50.20 16,445,223 1,286.80 Korea 31,580.0 65.68 5,433,591 1,130.06 China 94,000.0 7.23 162,821 1.25 Hong Kong 3,479.7 50.32 783,371 1,132.74 Taiwan 12,210.0 53.81 3,153,004 1,389.65 Singapore 2,421.8 56.12 503,099 1,165.93 Malaysia 9,879.0 38.62 135,082 52.81 Thailand 6,972.0 11.25 360,255 58.13 Indonesia 14,508.0 6.52 111,630 5.01 Philippine 4,400.0 5.32 65,390 7.91 India 35,000.0 3.24 143,654 1.33 Israel 3,200.0 46.63 541,794 789.56 Saudi Arabia 1,586.0 6.36 16,665 6.69 UEA 1,384.8 31.85 26,570 61.11 Numbers are based on 2004 * means number from 2003 or presumption. Source: ITU "World Telecommunication/ICT Indicators"
Number of Penetration Penetration Rate (/1000) (%) 69,200 54.15 26,201 54.49 52,990 4.08 4,187 60.54 11,975 52.78 2,590* 62.20* 4,900 19.16 3,716 6.00 3,022 1.36 3,684 4.46 13,030 1.21 5,037 73.40 8,476 34.01 450* 11.99*
Mobile Phone Users (/1000) 91,473.9 36,586.1 334,824.0 8,214.0 22,760.1 3,860.6 14,611.9 27,379.0 30,000.0 32,935.9 47,300.0 7,222.0 9,175.8 3,683.1
Users (%) 71.58 76.09 25.76 118.77 100.31 89.47 57.12 44.18 13.48 39.85 4.37 105.25 36.82 84.71
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Computer Software Association of Japan
Number of Broadband Users (Top 20 adoption rate countries) # of Broadband User (Total)
# of Broadband User (out of 100)
40.00
37.89 The number of broadband users in Asia has been increasing and already exceeded that in other regions
35.00 30.00 24.9
15.00
19.8 18.9 18.3 17.9 17.7
16.5 16.3 15.6 15.3 14.9 14.9 14.7
11.92
12.8
11.9 11.2 10.5 10.2
10.00
6.75 6.26
5.63
0.83 0.05
Singapore
0.51
USA
Norway Sweden
Japan
1.07 1.62 0.80 1.91 0.68 1.30
Belgium Finland
Netherland Denmark
Hong Kong
Korea
0.00
0.05
Canada Taiwan
1.01
1.28
Israel
3.75
3.21
Switzerland
1.51
Iceland
5.00
9.7
Source: ITU “ ITU Internet Reports 2005: The Internet of Things-Executive Summary”
China
20.00
Australia
21.3
France England
25.00
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Computer Software Association of Japan
Number of Mobile Users Number of Mobile Phone Users in the World (2004)
Top 20 Counties for Number of Mobile Phone User (as of 2004 Dec.) # of Mobile Phone Users (Million)
Europe 33%
Asia/Mid -East 40%
400.0 350.0
China has large potential since its user rate of cell phone is small.
334.8
300.0 250.0
Source: ITU “ World Telecommunication/ICT Indicators”
South Africa
Taiwan
Porland
Thailand
Indonesia
Phillipine
Turkey
Korea
Mexico
Spain
France
India
England
Italy
China
0.0
Brazil
50.0
109.4102.8 100.0 93.9 91.5 86.4 76.1 73.7 71.674.4 71.3 65.6 62.8 61.0 61.1 59.9 51.6 48.0 39.9 47.3 44.6 38.6 38.5 44.1 43.1 36.3 36.636.6 34.7 32.9 30.0 28.0 23.1 22.8 19.5 25.5 13.5 4.4
Germany
100.0
Russia
150.0
Japan
Oceania 1%
USA 21%
181.1
USA
200.0
Africa 5%
# of Mobile Phone Users (Per 100 individuals)
Source: ITU “ ITU Internet Reports 2005: The Internet of Things-Executive Summary”
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Computer Software Association of Japan
Change of Threats Customers need total solution which will protect from new threats. Change in Threats
Worms vs. Web Threats
Current/Future
Purpose
Publicity seeking
Crime (Money)
Individual
Criminal Organization
Subject
Object
Mass attack (Untargeted)
Targeted (Region, Company)
High Volume and Growing
3000
12000
2500
10000
2000
8000
1500
6000
1000
4000
500
2000
0
0 Q1-05
Q2-05
Q3-05 Worms
Means
Single Mail
Web
These threat are now sifting from individual publicity seeking to organizational crime. Its way of attack is rather targeted, sequential. We need flexible security solution to block these threats.
Q4-05
Q1-06
Q2-06
Q3-06
Web-Threats
Worms:
Sequential Source: Trend Micro
Pass
W e b T h r e a ts
Past
W o rm s
Treats
Web Threats:
Constant in the last 2 years
The number of virus and malware is increasing gradually. On the other hand, Web Threat is remarkably increasing recently. Security solutions integrated by many technology is the key for preventing Web Threat.
It solution It is is rather rather difficult difficult to to against against these these threats threats with with single single solution, solution, since fast since our our Network Network environment environment has has been been changing changing so so fast. fast.
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Computer Software Association of Japan
Counter-Technologies against Web Threat 4 Layer Protection against Web Threat Internet Side Reputation DNS Check Active Update
Mail・Web server
File server
File Check Inbound & Outbound Content Scanning Policy (Directory) Behavioral Analysis Session Correlation Multi-Protocol Isolate (NAC) Lock Down Scan Clean Recovery
Reputation
File Checking
Behavior Analysis Access Control Scan, Clean
Direction of entering threats
Client Side 20
Computer Software Association of Japan
Strategic Partnership in Asia The more network infrastructure in Asia market grows, the more network threats becomes complicated. To get a better position in the market as an IT vender, the “Best of Breed”strategy, which enables us to tie strong relationship with partners, is the most effective approach to provide customers with the highest quality solution.
“Best of Breed”Strategy for Asian Market Company with Function Core technology provisioning
Strategic Company with Company with Function B partnership Function C Supplement of Company A’ s non-core solutions
Local sales and support activities
Providing Providing the the best best solution solution to to customers customers can can be be achieved achieved by by focusing focusing on on core core business business and and practicing practicing partnership partnership to to supplement supplement its its own own weaknesses weaknesses 21