Symantec Expands Into Cloud DLP Market

Leading security software vendor Symantec Corp. (NYSE: SYMC) has entered the cloud data loss prevention (DLP) market with its new product, Symantec Data Loss Prevention 14. ^[1] Symantec is already the market leader in the overall DLP software market, ^[2] but this is the company’s first foray into data loss prevention services for cloud and software-as-a-service (SaaS) markets.

Symantec’s latest product could be better defined as hybrid solution rather than a cloud-based product, since it performs DLP services for on-premise infrastructure as well as cloud services. It comes with a host of features, including cloud storage through partnership with the cloud storage provider, Box. Other features include integration with Microsoft Office 365 and Microsoft Azure, syncing and sharing of files, and a revamped user interface.

We have a price estimate of $26 for Symantec Corp., which is about 5% higher than its current market price.

See our complete analysis for Symantec Corp. here

Entry Into Cloud DLP May Extend Symantec’s Lead in DLP Market

The DLP market expanded at 16% in calendar 2014 primarily due to Symantec’s strong performance in this segment. Even without having a presence in the cloud segment of the global DLP market, Symantec accounted for nearly half of the $643 million DLP market in 2014. ^[2] According to the company, its market share in the DLP segment is double the market share of the next largest competitor. ^[3]

Symantec does not report revenues from different categories of security software separately. We estimate that DLP accounted for about a quarter of Symantec’s revenues from enterprise security software in fiscal 2015. This underscores the importance of the segment for the company. Indeed, DLP could be the second biggest segment in enterprise security and a major potential growth area for Symantec, next only to Endpoint Security Platforms.

However, Gartner expects that the days of double digit growth for the overall DLP market may be behind it. ^[2] If that is indeed the case, Symantec’s move to expand its product base in this segment is a good strategy that may help it sustain growth of its DLP segment in the medium term. The move may also help the company extend its share in the DLP market beyond 50%, thereby cementing its position as the undisputed leader in the segment.

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More Trefis Research

1. Symantec breaks into the cloud DLP market, teams with Box, Search Cloud Security, June 2, 2015 [↩]
2. Worldwide Security Software Market Grew 5.3 Percent in 2014, Gartner, May 27, 2015 [↩] [↩] [↩]
3. Symantec Fiscal 2015 Fourth Quarter Earnings Call Transcript, Seeking Alpha, May 14, 2015 [↩]