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Enterprise Strategy Group | Getting to the bigger truth.™

Radware ADC Survey Final Results

Jon Oltsik, Senior Principal Analyst

Project Overview

2 © 2014 by The Enterprise Strategy Group, Inc.

• 243 completed online surveys with IT professionals responsible for evaluating, purchasing, and managing campus and data center networking technologies for their organization

• Enterprise organizations (defined as organizations with 1,000 employees or more) with $500 million or more in annual revenue

• Geographic scope: North America

• Multiple industry verticals including financial, information technology, business services, manufacturing and retail

Demographics

3 © 2014 by The Enterprise Strategy Group, Inc.

Respondents’ Responsibility for Making Networking Technology Products and Services Purchasing Decisions

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I make/approve purchase decisions, 85%

I influence or provide input on purchase decisions,

15%

To what degree are you responsible for making purchase decisions related to networking products and services for your organization? (Percent of respondents, N=243)

Respondents’ Familiarity/Involvement with Organization’s Load Balancer or ADC Deployments

5 © 2014 by The Enterprise Strategy Group, Inc.

I have a high level of knowledge/familiarity, 73%

I have a good level of knowledge/familiarity, 27%

To what extent are you personally familiar and/or involved with your organization’s load balancer or application delivery controller (ADC) deployments? (Percent of respondents, N=243)

Respondents’ Current Responsibility

6 © 2014 by The Enterprise Strategy Group, Inc.

Senior IT management (e.g., CIO, VP of IT, Director

of IT, etc.), 65%

IT management, 28%

IT architecture/planning, 3%

IT Operations, 3% IT staff, 1%

Which of the following best describes your current responsibility within your organization? (Percent of respondents, N=243)

Respondents by Number of Employees Worldwide

7 © 2014 by The Enterprise Strategy Group, Inc.

1,000 to 2,499, 14%

2,500 to 4,999, 26%

5,000 to 9,999, 19%

10,000 to 19,999, 18%

20,000 or more, 23%

How many total employees does your organization have worldwide? (Percent of respondents, N=243)

Respondents by Industry

8 © 2014 by The Enterprise Strategy Group, Inc.

Information Technology, 34%

Manufacturing, 14%

Financial (banking, securities, insurance), 12%

Retail/Wholesale, 11%

Health Care, 7%

Business Services (accounting, consulting,

legal, etc.), 5%

Communications & Media, 5%

Government (Federal/National,

State/Province/Local), 2%

Other, 10%

What is your organization’s primary industry? (Percent of respondents, N=243)

Respondents by Annual Revenue

9 © 2014 by The Enterprise Strategy Group, Inc.

13%

20% 21%

16%

19%

9%

1%

0%

5%

10%

15%

20%

25%

$500 million to$749.999 million

$750 million to$999.999 million

$1 billion to $4.999billion

$5 billion to $9.999billion

$10 billion to $19.999billion

$20 billion or more Not applicable (e.g.,public sector, non-

profit)

What is your organization’s total annual revenue ($US)? (Percent of respondents, N=243)

General IT Environment

10 © 2014 by The Enterprise Strategy Group, Inc.

Total Number of Physical x86 Servers Supported by IT Organization

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3%

12% 11%

23%

14%

20%

16%

0%

5%

10%

15%

20%

25%

100 or less 101 to 250 251 to 500 501 to 1,000 1,001 to 2,500 2,501 to 5,000 More than 5,000

Approximately how many total physical x86 servers (whether production or test/development) are supported by your IT organization? (Percent of respondents, N=243)

Total Number of Virtual Machines Deployed

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2%

5% 6%

9%

14%

16% 16% 17%

16%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

25 or less 26 to 50 51 to 100 101 to 250 251 to 500 501 to 1,000 1,001 to 2,500 2,501 to 5,000 More than5,000

Approximately how many total virtual machines (whether production or test/development) are currently deployed in your organization? (Percent of respondents, N=243)

Most Important IT Priorities Over the Next 12 Months

13 © 2014 by The Enterprise Strategy Group, Inc.

7% 7%

8% 8%

9% 9% 9%

10% 10% 10%

11% 12% 12% 12%

13% 13% 13%

14% 16%

20% 21%

22% 23%

0% 5% 10% 15% 20% 25%

Use platform-as-a-service (PaaS) for application development

Deploying applications on or for new mobile devices

Business continuity/disaster recovery programs

Deploy application- or workload-specific systems/appliances

Providing employees access to pre-approved repository of business applications

Data center consolidation

Deploy integrated computing platform

Reduce data center power and cooling requirements

Major application deployments or upgrades

Regulatory compliance initiatives

Desktop virtualization

Business intelligence/data analytics initiatives

Bring-your-own-device (BYOD) policy

Improve collaboration capabilities

Major database deployments or upgrades

Applications delivered via software-as-a-service (SaaS) model

Mobile workforce enablement

Manage data growth

Improve data backup and recovery

Increased use of server virtualization

Building a “private cloud” infrastructure

Information security initiatives

Use cloud infrastructure services

Which of the following would you consider to be your organization’s most important IT priorities over the next 12 months? (Percent of respondents, N=243, three responses accepted)

Strategic Initiative to Automate Provisioning of IT Infrastructure Resources

14 © 2014 by The Enterprise Strategy Group, Inc.

Yes, for all of our IT infrastructure resources,

70%

Yes, for certain IT infrastructure resources,

28%

No, 2%

Does your organization have a strategic initiative to automate the provisioning of IT infrastructure resources? (Percent of respondents, N=243)

Does Strategic Initiative to Automate Provisioning of IT Infrastructure Resources Include Network Operations?

15 © 2014 by The Enterprise Strategy Group, Inc.

Yes, 90%

No, 10%

Does your organization’s strategic initiative to automate the provisioning of IT infrastructure include network operations processes? (Percent of respondents, N=67)

Most Common Challenges Meeting Application SLAs

16 © 2014 by The Enterprise Strategy Group, Inc.

2%

22%

23%

28%

28%

28%

30%

32%

33%

39%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

No problems

Allocating the right equipment for application development/testing

Deployment/upgrade project not completed within budget

Performance problems

Determining proper security policies

Deployment/upgrade project not completed on time

Infrastructure problems

Application compatibility problems

Allocating the right IT staff resources to meet project schedules

Security problems

What are the most common challenges encountered in terms of meeting application SLAs? (Percent of respondents, N=243, three respondents accepted)

Most Common Network Challenges When Deploying or Upgrading an Application

17 © 2014 by The Enterprise Strategy Group, Inc.

31%

35%

35%

41%

42%

46%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Not enough capacity

Lacked ability to rapidly scale

Not enough security for multi-tenant environment

Length of time to provision network services

Lacking flexibility to support virtual environment

Latency in the network

What are the most common network challenges your organization encounters when deploying or upgrading an application? (Percent of respondents, N=243, three responses accepted)

ADC Environment

18 © 2014 by The Enterprise Strategy Group, Inc.

Total Number of Applications Supported Today and Number of Applications Supported with ADC Technology Today

19 © 2014 by The Enterprise Strategy Group, Inc.

2%

12%

21% 23% 23%

18%

0%

12%

18%

27%

21%

12%

8%

2%

0%

5%

10%

15%

20%

25%

30%

Less than 50 50 to 99 100 to 249 250 to 499 500 to 999 1,000 or more Don’t know

Approximately how many total applications does your organization support today? Approximately how many of these applications does your organization support with ADC technology today? (Percent of

respondents, N=243)

Total applications supported Applications supported with ADC technology

Application Types Currently Supported with ADC Technology

20 © 2014 by The Enterprise Strategy Group, Inc.

14%

27%

28%

30%

31%

35%

35%

37%

37%

40%

42%

42%

43%

44%

50%

0% 10% 20% 30% 40% 50% 60%

Video/multimedia

Supply chain management

Content management/document management

Engineering/CAD/CAM

Industry-specific applications

Accounting/financial

e-Commerce

Internet/e-mail marketing

Project management

Collaboration/file sharing

Human resources

E-mail

CRM/SFA

Web applications

Business analytics

To the best of your knowledge, which of the following application types are currently supported with ADC technology? (Percent of respondents, N=243, multiple responses accepted)

Total Number of ADCs Deployed

21 © 2014 by The Enterprise Strategy Group, Inc.

3%

10%

35%

49%

2%

0%

10%

20%

30%

40%

50%

60%

1 to 5 6 to 10 11 to 20 21 to 50 More than 50

Approximately how many total ADCs does your organization have deployed? (Percent of respondents, N=243)

How Total Number of ADCs Deployed Will Change Over the Next 36 Months

22 © 2014 by The Enterprise Strategy Group, Inc.

31%

51%

16%

2% 0% 1%

0%

10%

20%

30%

40%

50%

60%

Increase substantially Increase somewhat Remain about thesame

Decrease somewhat Decrease substantially Don't know

How will your organization’s total number of ADCs deployed change – if at all – over the next 36 months? (Percent of respondents, N=243)

Form(s) of ADC Deployments

23 © 2014 by The Enterprise Strategy Group, Inc.

Deployed as physical appliances only, 17%

Deployed as virtual appliances only, 17% Deployed as both physical

and virtual appliances, 66%

In what form(s) are your organization’s ADCs deployed? (Percent of respondents, N=243)

Factors that Drove Virtual ADC Appliance Deployment

24 © 2014 by The Enterprise Strategy Group, Inc.

38%

46%

48%

48%

49%

53%

0% 10% 20% 30% 40% 50% 60%

Virtual ADCs are cheaper to purchase

Virtual ADCs let us align security requirements with individualapplications

Virtual ADCs can be mapped to a single application for ease ofdeployment and operations

Virtual ADCs can be provisioned easily and in the same fashion asvirtual workloads

Virtual ADCs can be customized for specific requirements in multi-tenant environments

Virtual ADCs let us align ADC processing power with the applicationperformance requirements of individual applications

Which of the following factors drove your organization to deploy virtual ADC appliances? (Percent of respondents, N=201, multiple responses accepted)

Percentage Breakdown of Physical vs. Virtual ADCs: Today and 24 Months From Now

25 © 2014 by The Enterprise Strategy Group, Inc.

11% 9%

20%

26%

17%

8% 6%

3% 1% 0%

8%

16% 14%

6%

23%

13%

8% 9%

4%

1%

0%

5%

10%

15%

20%

25%

30%

90% physical,10% virtual

80% physical,20% virtual

70% physical,30% virtual

60% physical,40% virtual

50% physical,50% virtual

40% physical,60% virtual

30% physical,70% virtual

20% physical,80% virtual

10% physical,90% virtual

Don’t know

What is the approximate percentage breakdown of your organization’s ADCs in terms of physical vs. virtual appliances today? How do you expect this to change – if at all – over the next 24 months?

(Percent of respondents, N=160)

Today 24 months from now

Benefits Realized as a Result of Deploying ADC Technology

26 © 2014 by The Enterprise Strategy Group, Inc.

29%

30%

30%

31%

34%

34%

35%

36%

44%

47%

49%

0% 10% 20% 30% 40% 50% 60%

Decreased productivity loss

Faster time to market with applications

Improved business reputation

Ability to meet stringent SLAs

Reduced latency

Increased revenue

Greater levels of protection

Enhanced security posture

Better access to applications

Improved response times

Higher levels of availability

As a result of deploying ADC technology, what benefits has your organization realized? (Percent of respondents, N=243, multiple responses accepted)

Biggest Challenges Meeting Application SLAs From an ADC Perspective

27 © 2014 by The Enterprise Strategy Group, Inc.

19%

23%

23%

23%

24%

24%

26%

27%

29%

30%

0% 5% 10% 15% 20% 25% 30% 35%

Lack of skills to maximize benefits of ADC when deployingnew applications

Transition from test/development to productionenvironment requires changes

Lacking flexibility to support virtual environment

Lacking ability to rapidly scale

Time to tune ADC to application

Monitoring status of ADC activities

Length of time to provision ADC services

Difficult to estimate capacity requirements

Determining proper security policies to be enforced onADC

Availability of resources

From an ADC perspective, what are the biggest challenges your organization encounters in terms of meeting application SLAs? (Percent of respondents, N=243, three responses accepted)

How Use of ADC Technology Helps to Accelerate Deployment or Upgrade of Applications

28 © 2014 by The Enterprise Strategy Group, Inc.

32%

38%

42%

43%

45%

47%

47%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Provides DevOps capabilities which helps better manage applicationutilization

Increases level of orchestration (i.e., ability to leverage ADC-basedsoftware for management tasks)

Serves as technology bridge between network and applicationteams

Enables faster provisioning

Offers the ability to consolidate security services on an ADC thatmight normally require several security systems/appliances

Delivers greater scalability and flexibility

Increases level of automation (i.e., ability to use ADCs to automatemanual processes)

How does the use of ADC technology help to accelerate the deployment or upgrade process for applications? (Percent of respondents, N=243, multiple responses accepted)

Length of Time Needed to Provision ADC Services for a New Application

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1%

13%

22% 21% 21%

11% 9%

1%

5%

19%

24% 22%

13%

7% 7%

2%

0%

5%

10%

15%

20%

25%

30%

Less than 1minute

1 to 10 minutes 11 to 30minutes

31 to 59minutes

1 to 2 hours 3 to 4 hours More than 4hours

Don’t know

How long does it take to provision ADC services for a new application? (Percent of respondents)

Physical ADC (N=202) Virtual ADC (N=201)

Number of Applications Run Over a Single ADC Appliance

30 © 2014 by The Enterprise Strategy Group, Inc.

0%

14%

36% 34%

15%

0%

5%

10%

15%

20%

25%

30%

35%

40%

1 2 to 5 6 to 10 11 to 20 More than 20

On average, approximately how many applications does your organization typically run over a single ADC appliance? (Percent of respondents, N=243)

ADC Features/Capabilities Currently Utilized

31 © 2014 by The Enterprise Strategy Group, Inc.

1%

23%

24%

29%

30%

30%

30%

33%

35%

37%

37%

39%

43%

45%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

We only use simple load balancing capabilities

SSL offload

Content transformation/rewrite

TCP connection multiplexing

Single sign-on

Application specific acceleration

Multi-tenancy

Compression

Application performance monitoring

Web content optimization

Caching

Web Application Firewall (WAF)

Programmable interfaces

Network level security

Which of the following additional ADC features/capabilities does your organization currently utilize? (Percent of respondents, N=243, multiple responses accepted)

Additional ADC Features/Capabilities Organizations Expect to Utilize Within 36 Months

32 © 2014 by The Enterprise Strategy Group, Inc.

2%

19%

19%

19%

22%

22%

23%

23%

23%

23%

24%

25%

26%

28%

0% 5% 10% 15% 20% 25% 30%

We expect to only use simple load balancing capabilities

Programmable interfaces

Network level security

Caching

Web Application Firewall (WAF)

Single sign-on

Compression

SSL offload

TCP connection multiplexing

Content transformation/rewrite

Multi-tenancy

Application specific acceleration

Web content optimization

Application performance monitoring

Which of the following additional ADC features/capabilities do you expect that your organization will utilize within 36 months? (Percent of respondents, N=243, multiple responses accepted)

Running Applications in a Multi-Tenant Manner

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Yes, 72%

No, 26%

Don't know, 2%

Are any of your organization’s applications run in a multi-tenant manner (i.e., common application used by different organizations, groups, etc.)? (Percent of respondents, N=243)

Support of Applications Run in Multi-Tenant Manner by ADCs

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Yes, 95%

No, 5% Don't know, 1%

Are any of the applications supported by your organization’s ADCs run in multi-tenant manner? (Percent of respondents, N=175)

Challenges When Deploying ADC Services to Support Multi-Tenant Application(s)

35 © 2014 by The Enterprise Strategy Group, Inc.

19%

19%

20%

23%

24%

27%

28%

29%

30%

35%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Not enough automation

Not enough capacity in physical device

Not enough security for multi-tenant environment

Length of time to provision ADC services

Lacking flexibility to support virtual environment

Cyber-attacks affect neighboring applications

Lacking ability to rapidly scale

Performance issues due to shared tenant environment

Operations challenges managing multiple applications across multipletenants that my include complex administration and security processes

Configuration issues affecting the underlying device

What are the biggest challenges your organization encounters when deploying ADC services in support of a multi-tenant application? (Percent of respondents, N=166, three responses accepted)

Number of Clients/Tenants Sharing a Single ADC Appliance

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1%

17%

24%

39%

19%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1 2 to 5 6 to 10 11 to 20 More than 20

On average, approximately how many clients/tenants share a single ADC appliance? (Percent of respondents, N=166)

Network Security and ADC Technology

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Reliance on ADCs to Provide Security Capabilities/Functionality

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We leverage the security capabilities/functionality of

all our ADCs, 49%

We leverage the security capabilities/functionality of only the ADCs supporting applications with sensitive

data, 44%

We do not leverage the security

capabilities/functionality of any of our ADCs, 7%

To what extent does your organization currently rely on its ADCs to provide security capabilities/functionality? (Percent of respondents, N=243)

Expected Change in Reliance of ADC-Provided Security Capabilities/Functionality with Respect to the Number of Applications Protected

39 © 2014 by The Enterprise Strategy Group, Inc.

Significant increase, 20%

Increase, 56%

No change, 22%

Decrease, 1%

Going forward, how do you expect your organization’s reliance on ADC-provided security capabilities/functionality technology to change in terms of the number of applications protected?

(Percent of respondents, N=243)

Primary Method Employed to Deliver Network Security Services to Protect Data Center-Resident Business Applications

40 © 2014 by The Enterprise Strategy Group, Inc.

24%

24%

26%

27%

27%

28%

28%

30%

35%

37%

33%

27%

31%

30%

32%

33%

27%

24%

26%

30%

26%

30%

23%

23%

12%

13%

13%

16%

12%

12%

16%

14%

2%

1%

2%

1%

3%

1%

2%

0% 20% 40% 60% 80% 100%

SSL acceleration

Integration with other security tools (e.g., SIM, log management, etc.)

WAF (web application firewall)

Web authentication gateway

DDoS defenses

Secure network segmentation

IPS/IDS (intrusion prevention/detection system)

Network firewall

What is the primary method your organization employs to deliver network security services as it relates to protecting its data center-resident business applications? (Percent of respondents, N=243)

At the network perimeter on a purpose-built network security deviceOn a physical ADCOn a virtual ADCOn a general purpose, data center-resident server

Likelihood of a Malicious Attack Penetrating Organization’s Network Perimeter with ADCs Being Last Line of Defense

41 © 2014 by The Enterprise Strategy Group, Inc.

Extremely likely, 28%

Likely, 30%

Somewhat likely, 25%

Not at all likely, 16%

Don’t know, 1%

How likely would it be for some type of malicious attack to penetrate your organization’s network perimeter, leaving your ADC(s) as the last line of defense in terms of protecting critical business

applications? (Percent of respondents, N=243)

Expected Impact of a Network Perimeter Infiltration

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29%

39%

42%

45%

48%

51%

0% 10% 20% 30% 40% 50% 60%

Compromise of DMZ-based servers/systems

Application performance degradation

Disruption of application services

Network performance degradation

Disruption of network services

Data breach

If your organization was to experience this type of network perimeter infiltration, what would be the expected impact? (Percent of respondents, N=243, multiple responses accepted)

Manner in Which Organizations Manage and Operate Network Security Processes/Technology

43 © 2014 by The Enterprise Strategy Group, Inc.

39% 38%

14%

4% 5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

There is a dedicated grouptasked with network securitymanagement and operations

Network securitymanagement and operationsis done cooperatively by theIT security and networking

teams, but we are currentlycreating a dedicated group

for this function

Network securitymanagement and operationsis done cooperatively by theIT security and networking

teams, but we plan oncreating a dedicated groupfor this function within the

next 12 to 24 months

Network securitymanagement and operationsis done cooperatively by theIT security and networking

teams, but we are interestedin creating a dedicated groupfor this function sometime in

the future

Network securitymanagement and operationsis done cooperatively by theIT security and networking

teams and this will continuein the future

Which of the following best characterizes the manner in which your organization manages and operates network security processes and technology? (Percent of respondents, N=243)

Day-to-Day Collaboration on Network Security Between IT Security and Networking Groups

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Very good, works most of the time, 35%

Good, works some but not all of the time, 51%

Fair, works okay but there are known problems, 13%

Poor, doesn’t work well as there are many known

problems, 1%

How would you characterize the day-to-day collaboration on network security between the IT security and networking groups? (Percent of respondents, N=149)

Organizational Challenges Between Security and Network Team with Respect to Network Security

45 © 2014 by The Enterprise Strategy Group, Inc.

3%

18%

18%

21%

22%

23%

32%

33%

34%

35%

0% 5% 10% 15% 20% 25% 30% 35% 40%

We have not experienced any challenges

Networking team does not keep the security team apprised of new networkingdevelopments

Workflow issues related to the timeliness of collaborative tasks

Redundant processes between the two groups

Security team does not keep the networking team apprised of new securitydevelopments

Lack of clarity about which group is responsible for one or more network securityprocess

Communications issues related to collaborative tasks

It can be difficult to get an accurate status of network security because the twogroups maintain separate tools and reports

The two groups are measured and compensated on conflicting goals

Issues related to the chain of command that is ultimately responsible for networksecurity and collaboration between the two groups

You indicated that your organization manages and operates network security processes and technologies as a collaborative effort between the security and networking teams. Which of the following organizational challenges between these two IT

groups in relation to network security have you experienced? (Percent of respondents, N=149, three responses accepted)

Division of Labor Between Security and Networking Teams

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36%

34%

29%

38%

34%

32%

38%

36%

46%

44%

52%

37%

44%

44%

46%

47%

17%

21%

18%

23%

21%

22%

15%

16%

1%

1%

1%

2%

1%

1%

1%

1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Creating network security policies that align with business processes

Defining network security technology requirements

Selecting and purchasing network security technologies

Deploying network security technologies

Day-to-day operations of network security technologies

Monitoring/analyzing network traffic for anomalous/suspicious traffic

Altering network security controls in response to new threat intelligence

Tracking changes and innovation in network security technology

The following question is related to the division of labor between the security and networking teams at your organization. Please make a selection in each row that reflects which group is most

responsible for each task. (Percent of respondents, N=149)

Primarily owned by the security team Collaboratively owned by the security and networking teams

Primarily owned by the networking team Don’t know

Employment of Network Security Architects

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Yes, and this person(s) resides in the information

security group, 44%

Yes, and this person(s) resides in the networking

group, 26%

Yes, and this person(s) spans the information

security and networking groups, 12%

Yes, this is part of the responsibility of an overall

IT architecture/engineering

team, 14%

No, 5%

Does your organization employ a person(s) that could be considered a network security architect(s)? (Percent of respondents, N=243)

Would Having More Security Features Integrated into ADC Solution Make Networking Group More Self-Reliant/Sufficient?

48 © 2014 by The Enterprise Strategy Group, Inc.

Yes, 84%

No, 12% Don't know, 4%

Do you believe that having more security features integrated into ADC solutions could make the networking group more self-reliant/sufficient from a security perspective? (Percent of respondents,

N=243)

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Thank You Please contact us for more information

Enterprise Strategy Group | Getting to the bigger truth.™

Jon Oltsik, Senior Principal Analyst jon.oltsik@esg-global.com 508.381.5166