Symantec 2016 Annual Report Download - page 95

Symantec’s Security Technology and Response organization consists of a global team of security engineers,
threat analysts, and researchers that provide the underlying functionality, content, and support for many of our
consumer, commercial and enterprise security products. Our security experts analyze threat telemetry collected
through Symantec’s massive global sensor network, one of the largest cyber intelligence networks in the world,
to protect our customers against current and emerging threats. Our research and development teams also leverage
this vast amount of data and related insights to develop new technologies and approaches, including our Unified
Security analytics platform, in order to improve security outcomes for our customers.
Research and development expenses were $748 million, $812 million, and $722 million in fiscal 2016,
2015, and 2014, respectively, representing approximately 21%, 21% and 17% of revenue in fiscal 2016, 2015
and 2014, respectively. The percentage fluctuates between periods as a result of a variety of factors, including
changes in sales level and foreign currency exchange rates. We believe that technical leadership is essential to
our success, and we expect to continue to commit substantial resources to research and development.
Support
Symantec has support facilities throughout the world, staffed by technical product experts knowledgeable in
the operating environments in which our products are deployed. Our technical support experts assist customers
with issue resolution and threat detection.
We provide consumers with various levels of support offerings. Consumers receive automatic downloads of
the latest virus definitions, application bug fixes, and patches for most of our consumer products. Our consumer
support program provides self-help online services and phone, chat, and email support to consumers worldwide.
In addition, our Norton Security products come with a “Virus Protection Promise,” which in some markets
provides free virus removal services to customers whose protected computers become infected.
We provide customers various levels of enterprise support offerings. Our enterprise security support
program offers annual maintenance support contracts, including content, upgrades, and technical support. Our
standard technical support includes: self-service options delivered by telephone or electronically during the
contracted-for hours, immediate patches for severe problems, periodic software updates, and access to our
technical knowledge base and frequently asked questions.
Significant customers
In each of fiscal 2016, 2015 and 2014, no customer accounted for more than 10% of our total net revenues.
One distributor accounted for 10% of our gross accounts receivable as of April 1, 2016.
Acquisitions
Our strategy will be complemented by business combinations that fit strategically and meet specific
profitability hurdles. Our acquisitions are designed to enhance the features and functionality of our existing
products and extend our product leadership in core markets. We consider time-to-market, synergies with existing
products, and potential market share gains when evaluating the economics of acquisitions of technologies,
product lines, or companies. We may acquire or dispose of other technologies, products, and companies in the
future.
We did not make any material acquisitions during fiscal 2016.
Competition
Our markets are consolidating, highly competitive, and subject to rapid changes in technology. The
competitive landscape has changed significantly over the past few years, with new competition arising. Much of
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