Symantec 2010 Annual Report Download - page 81

The systems management market includes products that control the IT environment by streamlining efforts
associated with deploying, managing, patching, and remediating enterprise client and server assets. The drivers for
demand in this market include customers’ desire to automate management and security remediation tasks, to ensure
business productivity, and to reduce costs and complexity.
Business Developments and Highlights
During fiscal 2010, we took the following actions in support of our business:
• We strengthened our leadership in security. We introduced our new reputation-based malware detection
security technology in our 2010 Consumer products. This technology leverages data from our extensive
Global Intelligence Network to derive safety ratings for files on the Internet, and allows us to establish the
reputation of a program based on a number of different factors (including its origin, age, and prevalence). We
also launched security products and suites designed specifically for the small and medium sized business
(“SMB”) and enterprise markets. These products are easy to use and install, and provide easy to use
enterprise-level protection that optimizes performance and offers simplified management capabilities and
pre-configured settings.
• We focused on the migration to next-generation information management. We integrated our backup,
archiving and deduplication technologies and expanded our multi-platform support for physical and virtual
environments. We released updated backup products that include expanded deduplication capabilities (at the
client, media server, and via third party appliances), which products will allow customers to reduce the
amount of data they store and the volume of data they transmit on their networks. We enhanced our products’
support for VMware and Microsoft Hyper-V virtualization technologies in order to allow customers to
reduce management complexity and operational costs in their virtual environments. We introduced our new
Data Insight technology to help customers identify their most critical information and give users access to
data based on information intelligence and ownership.
• We expanded our cloud based offerings. We extended the partner distribution network associated with our
Symantec Hosted Services business, primarily in SaaS messaging and web security. We launched a new
hosted medical image archiving and sharing solution for healthcare providers that is designed to help them
lower image storage costs and provide secure, web-based image sharing. In addition, we developed a
scalable file server solution that combines our file system and clustering technologies, and integrates our
security and backup software in order to deliver an optimized infrastructure for public or private storage
clouds. We also expanded distribution of our consumer online backup solution through various channel
partners.
• We completed two acquisitions during fiscal 2010. We expanded our SaaS security leadership by acquiring
SoftScan, a privately-held SaaS security company in the Nordic region. We also acquired privately-held
Gideon Technologies, Inc., a company with a leading Security Content Automation Protocol (“SCAP”)
validated configuration and vulnerability assessment solution to enhance our ability to serve the needs of
public sector customers.
• We reduced our cost structure in order to improve operational efficiencies across our business. Some of the
actions included: carefully managing our headcount costs; outsourcing certain back office functions;
consolidating facilities; relocating certain research and development functions to lower cost locations;
and reducing travel and entertainment expenses and other discretionary expenses. Offsetting these cost
reductions were investments in our new Symantec-developed and operated consumer eCommerce platform,
increased investments in certain consumer OEM distribution agreements and acquisition related expenses.
• We launched a global eCommerce platform which allows us to host and manage consumer online stores.
This is a strategic move, consistent with our ongoing focus on eCommerce and SaaS, in support of our
consumer business. The benefits of managing an in-house eCommerce capability include building a closer
relationship with our customers and enabling greater speed and agility to take advantage of market trends.
• We repurchased 34 million shares of our common stock for an aggregate amount of $553 million.
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