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925-201b Principles of Network Security and FortiGate Configurations

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925-201b exam Dumps Source : Principles of Network Security and FortiGate Configurations

Test Code : 925-201b
Test cognomen : Principles of Network Security and FortiGate Configurations
Vendor cognomen : Fortinet
exam questions : 107 existent Questions

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Fortinet Principles of Network Security

Fortinet Secures the path to 5G with proven safety structure and solutions | killexams.com existent Questions and Pass4sure dumps

February 19, 2019 09:00 ET | supply: Fortinet, Inc.

SUNNYVALE, Calif., Feb. 19, 2019 (GLOBE NEWSWIRE) --

John Maddison, executive vice president, products and solutions, Fortinet“With 5G, mobile infrastructure’s end-to-conclusion innovation will continue to seriously change into a platform and catalyst for value creation and repair innovation. entire over this transformation, Fortinet’s confirmed safety architecture and solutions give advanced protection for diverse LTE, LTE-A, and 5G expend situations to assist comfy cellular infrastructures, from radio entry network (RAN) to the telco cloud, and offers customers service-grade efficiency and capability with cloud-grade scalability, visibility, and manage.”

information summary:Fortinet (NASDAQ: FTNT), a worldwide chief in wide, built-in and automatic cyber protection options, nowadays announced wide capabilities for securing the course to 5G with its expansive breadth and depth of options for cell core networks and cloud infrastructures, together with its virtual SPU technology and superior protection and high-performance methods. With the covenant for quicker connection speeds, massive connectivity scale, and unusual earnings alternatives, 5G may possess a profound affect on mobility and digital transformation. Fortinet is uniquely located to present its consumers superior security and excessive-performance systems that carry service category functionality, likeaflash scalability, abysmal visibility, and granular ply to cozy cellular core, aspect clouds and IoT infrastructures.

5G brings both casual and riskThe introduction of 5G will prolong a digital connection to nearly every side of their lives. in many of the slightly futuristic-sounding unusual expend circumstances, equivalent to independent automobiles, AR/VR immersive experiences, sensible cities, ultralow latency, bandwidth, and speed, delivery has been the missing mystify piece. For years now, the cellular interconnection of entire these items seemed inevitable, yet the titanic density of connections, entire with ample velocity, latency and linked services, had to this point remained unachievable in entire but constrained proof-of-theory trying out.

With 5G and the upcoming orders-of-magnitude advances in bandwidth, connection and expend case chances, there's probability for end-to-end innovation because the mobile infrastructure is changed perquisite into a platform and a catalyst for cost advent and repair innovation. more than ever, mobile network suppliers will turn into comfy company enablers. for example, carrier suppliers will possess unusual income generating opportunities in IoT, reminiscent of manufacturing automation, industrial telemetry, emergency response programs, robotic surgical procedure, 4K UHD video streaming, and more. however, these innovations will additionally convey a corresponding enhance within the capabilities havoc wrought by using denial of provider, superior threats and different forms of cyberattack on the core network infrastructure itself. security is an requisite to tender protection to and duty evolving 4G and unusual 5G cell networks. These unusual carrier expend situations exigency capabilities past a stateful firewall, with capacity and reliability to meet carrier degree settlement (SLA) dreams for uptime and high-quality of adventure.

Fortinet 5G breadth and depth capabilitiesFortinet presents strategic security solutions notably designed to address the spicy challenges facing operators as they migrate their core networks to bring 4.5G and 5G cell functions. It offers the capacity to build a safety framework that helps optimize cost of launching and operating unusual features and salary opportunities, mitigate superior threats, and achieve provider even goals. carrier providers can recognise this with the aid of utilizing Fortinet superior safety and excessive-performance systems that moreover provide mobile carriers superior visibility via complete and correlated analytics, the potential to thwart complicated exterior and inside security threats impacting network infrastructure and functions at titanic scale.

The Fortinet security platform presents 5G carrier providers:

  • advanced insurance policy for cell core network and telco cloud: Powered by pass of Fortinet’s digital SPU expertise, FortiGate digital community capabilities (VNFs) deliver tremendous raises in software protection performance through innovative safety processing optimizations and the latest packet processing acceleration applied sciences. The VNFs moreover possess a little footprint, boot inside seconds, and require much less storage, enabling provider suppliers to tender protection to their virtual networks and cloud platform permeate effortlessly. further, the 5G-capable FortiGate 7000 subsequent-technology Firewall collection with SPU acceleration provides provider security aspects and services with business-main SSL inspection and application safety performance for complete inline insurance plan. collectively, these Fortinet solutions deliver business-most efficacious scale and means to protect 5G infrastructures from sophisticated application layer attacks and colossal volumes of DoS assaults originating from backyard or inside the cell core or telco community.
  • Agility with security: Fortinet presents huge ecosystem integrations with leading NFV and SDN providers for virtual infrastructure. To obtain inescapable end-to-conclusion safety with imaginitive 5G functions equivalent to community cutting and multi-entry aspect computing (MEC), VNFs possess to be delivered dynamically, instantiated perquisite away and attainable at any residence mandatory on the community. For efficacious and agile deployment and utilization of those safety materials, Fortinet promises integrations with NFV platform providers enjoy Lenovo, NFV orchestration (MANO) programs from Amdocs, Ericsson, Ciena, UBiqube, NoviFlow and SDN controllers enjoy VMware NSX, Nokia Nuage, and Cisco ACI, and NoviFlow.
  • Deep visibility and manage for IoT features on facet clouds: big scale IoT instruments are generally in response to lightweight operating techniques, which present minimal safety features, for this understanding they're vulnerable to hijacking and botnet attacks. To eradicate business risks, the facts from these endpoints and the devices themselves require comprehensive insurance plan. extra, provider suppliers providing IoT functions via a cloud platform deserve to be positive multi-tenant isolation, VM and/or container safety, and web utility insurance policy. Fortinet FortiGate NGFW VNF and FortiWeb WAF VNF tender protection to the aspect cloud platform. FortiSIEM provides complete visibility via correlated security analytics and finished visibility to song IoT instruments while FortiGate has the means to be trained and profile entire linked devices, and commemorate granular manage on different courses of IoT.
  • AvailabilityFortinet’s safety material and solutions for securing carrier provider cell core networks, IoT and utility services can be establish now. 

    aiding charges

    “Lenovo’s strategic know-how collaboration with Fortinet – concentrated on integrating Lenovo’s performance-optimized NFVi platform providing and Fortinet’s unparalleled safety insurance policy – grants an agile, bendy and relaxed integrated retort to address the evolving wants of Communications provider suppliers.”- Charles Ferland, vp and frequent manager, Telco at Lenovo records middle neighborhood

    “NoviFlow and Fortinet possess a shared dedication to clients to hasten up innovation for world-type solutions. As a Fortinet textile-capable technology alliance accomplice, they will provide their consumers with the unparalleled coverage supplied by the confirmed Fortinet safety textile to assist comfy their path to 5G. Our joint retort brings collectively NoviFlow and Fortinet technologies for elevated throughput and dynamically scalable safety capabilities in a programmable SDN networking environment, to address the wants of giant carriers and repair issuer networks. The retort efficiently addresses tremendous deployments and permits affordable dynamic scaling to easily correct-measurement means for even probably the most tremendously variable demand.”- Domonique Jodoin, President and CEO at NoviFlow Inc.

    “Being a Fortinet cloth-competent expertise alliance colleague and a leader in multidomain orchestration, we're desirous to combine Fortinet in paving how to 5G and cellular side compute (MEC) secured architectures. together, the UBiqube and Fortinet joint retort makes it possible for the insertion and automation of better of breed security elements for any provider instantiated over the brand unusual 5G paradigm, enjoy IoT or M2M, to the more suitable benefit of their business and service provider customers.”- Nabil Souli, CEO at UBiqube

    extra elements

    About FortinetFortinet (NASDAQ: FTNT) secures the greatest commercial enterprise, provider providers, and govt corporations around the globe. Fortinet empowers its valued clientele with intelligent, seamless protection across the expanding assault floor and the dash to seize on ever-increasing performance necessities of the borderless community - today and into the long run. most efficacious the Fortinet protection cloth architecture can carry safety features without compromise to address probably the most vital security challenges, even if in networked, utility, cloud or cell environments. Fortinet ranks #1 in the most security appliances shipped global and greater than 375,000 clients possess self-confidence Fortinet to tender protection to their organizations. be taught greater at https://www.fortinet.com, the Fortinet blog, or FortiGuard Labs.

    FTNT-O


    Media Advisory: Fortinet will Attend RSA conference 2019 to display latest security innovations | killexams.com existent Questions and Pass4sure dumps

    Fortinet to seize allotment in and obtain a contribution to the realm’s largest annual gathering of excellent protection leaders, vendors and companies as a Gold Sponsor

    SUNNYVALE, Calif., Feb. 27, 2019 (GLOBE NEWSWIRE) --

    John Maddison, EVP of product and options, Fortinet

    “Fortinet is likely one of the greatest cybersecurity groups in the world, proposing products and solutions that span network, infrastructure, cloud and IoT security. We are excited to be attending this 12 months's RSA conference 2019 to exhibit the latest protection improvements enabling their shoppers to adequately retain up with evolving hazard hazards.” 

    information summary:

    Fortinet (FTNT), a worldwide chief in wide, integrated, and automated cybersecurity options, introduced these days that they might be taking allotment in the 2019 RSA convention on IT safety, taking residence March four-8 at the Moscone headquarters in San Francisco. A 2019 Gold Sponsor, Fortinet might be presenting solution demonstrations and displays in booth #5869 within the North corridor and providing two primary displays on assail chain acceleration and risk searching that might be of special pastime to attendees.

    Fortinet at RSA 2019

    Fortinet might be participating during this year's RSA conference 2019 to collaborate with safety experts in quest of to at ease nowadays’s simultaneous networks. be a allotment of their team March four-8 within the North corridor of the Moscone middle (booth #5869) in San Francisco, California to explore reducing-part developments in the cybersecurity area.

    Fortinet will share the latest advances in cyberthreat intelligence with attendees, as neatly because the innovations and options IT specialists exigency to comfy their networks against unusual and current threats. Attendees will adventure live demonstrations on a wide ambit of Fortinet cybersecurity solutions, including their industry-main protection fabric, the latest cyberthreat research from FortiGuard Labs, and extra. Fortinet will deliver in-depth demonstrations on how it:

  • Synchronizes and automate safety substances via their conclusion-to-end safety material
  • Transforms safety with their textile options
  • provides up-to-date risk intelligence by pass of FortiGuard Labs
  • Reduces multi-cloud vulnerabilities with their Cloud protection functions
  • continues a strong safety Operation middle
  • Attendees can moreover seize allotment in Fortinet’s universal expert Bar to talk concerning the newest security developments and solutions with a few of its arrogate security specialists.

    Fortinet Session particulars

    Fortinet security experts Derek Manky and Aamir Lakhani will even be delivering efficacious protection insights on one of the vital proper challenges dealing with cybersecurity authorities nowadays.

    Session 1 — shimmer warfare: Tapering an Accelerating assail Chain

    Flash struggle: Tapering an Accelerating assault Chain might be led through Derek Manky, Chief of protection Insights, global danger Alliances at Fortinet. The session will seize zone on Tuesday, March 5 from 2:20 P.M. - three:10 P.M.

    This academic discussion will focus on the acceleration of the assault chain and reasons why Kill chain defenses possess to be better. Manky will suggest thoughts to repress the quickening of malicious code latency, whereas highlighting the value of an enhanced Kill chain defense. This discussion will moreover lay out quite a lot of methods to protect your community environment from unusual attacks that leverage automation and rising swarm know-how.

    Session 2 — Honeypot Predators: Hunter vs. Prey

    Honeypot Predators: Hunters vs. Prey might be led by means of Fortinet Senior Researcher, Aamir Lakhani. it'll seize region on Wednesday, March 6 from 9:20 A.M. - 10:10 A.M.

    Lakhani will assess how risk-looking businesses can install honeypots to entice attackers and collect probability intelligence so as to gain deeper perception into the zone of cybercrime. Attendees will study fascinating details gathered from consultants who Run honeypots globally, gathered assistance on how malware is proliferated throughout the network, and successfully halted attackers using their own innovations.

    extra in regards to the 2019 RSA convention

    RSA Conferences draw over 50,00 attendees per year as a result of their vast ambit of content material topics and voices. This 5-day adventure is anticipated to bring together more than 30,000 attendees, 500+ press and media attendees, and over 400 exhibitors to share the latest in cybersecurity guidance, business developments, and future predictions. The object is to unite recommendation safety groups and gurus through a collaborative zone the residence they could verify and talk about unusual options to protect their increasingly related and interconnected world.

    additional supplies

    Story continues

    About Fortinet

    Fortinet (FTNT) secures the biggest business, carrier company, and executive businesses entire over. Fortinet empowers its consumers with clever, seamless coverage across the increasing assault surface and the dash to tackle ever-increasing performance necessities of the borderless network - today and into the future. most efficacious the Fortinet security material architecture can bring protection features with out compromise to address essentially the most primary protection challenges, even if in networked, utility, cloud or mobile environments. Fortinet ranks #1 within the most protection appliances shipped international and more than 375,000 purchasers possess faith Fortinet to tender protection to their corporations. study more at https://www.fortinet.com, the Fortinet blog, or FortiGuard Labs.

    FTNT-O

    Copyright © 2019 Fortinet, Inc. entire rights reserved. The symbols ® and ™ denote respectively federally registered emblems and common legislation trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet's trademarks consist of, however aren't confined to, the following: Fortinet, FortiGate, FortiGuard, FortiCare, FortiManager, FortiAnalyzer, FortiOS, FortiADC, FortiAP, FortiAppMonitor, FortiASIC, FortiAuthenticator, FortiBridge, FortiCache, FortiCamera, FortiCASB, FortiClient, FortiCloud, FortiConnect, FortiController, FortiConverter, FortiDB, FortiDDoS, FortiExplorer, FortiExtender, FortiFone, FortiCarrier, FortiHypervisor, FortiIsolator, FortiMail, FortiMonitor, FortiNAC, FortiPlanner, FortiPortal, FortiPresence , FortiProxy, FortiRecorder, FortiSandbox, FortiSIEM, FortiSwitch, FortiTester, FortiToken, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLCOS and FortiWLM. 

    different trademarks belong to their respective owners. Fortinet has no longer independently verified statements or certifications herein attributed to 3rd events and Fortinet doesn't independently endorse such statements. besides the fact that anything else to the opposite herein, nothing herein constitutes a warranty, assure, contract, binding specification or other binding dedication by means of Fortinet or any indication of intent concerning a binding dedication, and efficiency and other specification information herein can be enjoyable to inescapable environments. This word unlock might moreover contain ahead-looking statements that involve uncertainties and assumptions, equivalent to statements related to technology releases amongst others. alterations of instances, product unencumber delays, or different dangers as mentioned in their filings with the Securities and trade fee, observed at www.sec.gov, may occasions results to differ materially from these expressed or implied in this press release. If the uncertainties materialize or the assumptions prove wrong, results may moreover ambit materially from those expressed or implied through such ahead-searching statements and assumptions. entire statements other than statements of historic fact are statements that can be deemed ahead-looking statements. Fortinet assumes no duty to update any forward-looking statements, and expressly disclaims any obligation to supersede these ahead-looking statements. 

    Media Contact       Analyst Contact         Investor touchStephanie Vanegas       Ron Davis         Peter Salkowski Fortinet, Inc.       Fortinet, Inc         Fortinet, Inc. 408-235-7700       415-806-9892         408-331-4595 pr@fortinet.com       rdavis@fortinet.com         psalkowski@fortinet.com

     


    10-okay: FORTINET INC | killexams.com existent Questions and Pass4sure dumps

    (EDGAR online via COMTEX) -- merchandise 7. management's discussion and analysis of fiscal circumstance and results of Operations

    in addition to historic assistance, this Annual record on benign 10-okay consists of forward-looking statements inside the sense of allotment 27A of the Securities Act and section 21E of the trade Act. These statements include, amongst other things, statements concerning their expectations regarding:

    endured expand and market share gains;

    variability in revenue in inescapable product categories from year to year and between quarters;

    anticipated influence of sales of inescapable items and features;

    the possess an outcome on of macro-economic and geopolitical components on their income;

    the harmony of their salary that includes their product and service income, and the coalesce of billings between products and functions, and the length of provider contracts;

    the influence of their product innovation strategy;

    the effects of govt regulation, tariffs and different related policies;

    drivers of long-term expand and working leverage, comparable to increased revenue productiveness, performance and value in their standalone and bundled subscription service choices; growing their earnings to corporations, carrier providers and executive businesses, the possess an outcome on of revenue to those agencies on their lengthy-term boom, growth and working consequences, and the effectiveness of their inner earnings firm;

    traits in revenue, cost of income and low margin;

    tendencies in their working prices, including sales and marketing price, research and construction expense, conventional and administrative fee, and expectations involving these fees as a percentage of total income; dangers and expectations concerning acquisitions or sales of property, together with integration issues involving product plans and products, including the got expertise;

    endured investments in analysis and building;

    managing their continued investments in earnings and advertising and marketing, and the affect of these investments;

    expectations related to doubtful tax benefits and their beneficial domestic and global tax quotes;

    expectations related to spending concerning actual property and other capital costs and to the impact on free money flows;

    competition in their markets;

    their intentions concerning share repurchases and the sufficiency of their present money, money equivalents and investments to meet their money wants for at least the subsequent 12 months;

    other statements related to their future operations, financial condition and possibilities and company options; and

    adoption and possess an impact on of unusual accounting necessities, including those concerning accounting for leases.

    desk of Contents

    These forward-searching statements are realm to inescapable risks and uncertainties that could occasions their specific effects to differ materially from those reflected within the ahead-looking statements. elements that might trigger or obtain a contribution to such differences include, but are not constrained to, those mentioned during this Annual record on benign 10-ok and, in particular, the hazards discussed below the heading "chance components" in allotment I, merchandise 1A of this Annual document on benign 10-k and those mentioned in other files they file with the Securities and change commission (the "SEC"). They undertake no obligation to revise or publicly unlock the consequences of any revision to these forward-looking statements. Given these hazards and uncertainties, readers are recommended not to residence undue reliance on such forward-looking statements.

    enterprise Overview

    Fortinet is a worldwide leader in cybersecurity options offered to a wide variety of organizations, akin to organisations, conversation service suppliers and little organizations. Their cybersecurity options are designed to provide huge visibility and segmentation of the digital assail floor via their built-in security textile platform, which facets automatic coverage, detection and responses.

    The focus areas of their business encompass:

    community safety-We derive a majority of product income from their FortiGate community safety home equipment. Their FortiGate network protection home rig involve a big set of developed-in security and networking elements and functionalities, including firewall, SD-WAN, SSL records leak prevention, VPN, swap and wireless controller and WAN acceleration. Their community safety home rig involve their FortiOS operating device, which gives the groundwork for FortiGate security features, and FortiASIC built-in circuit, which is designed to hasten up the processing of protection and networking capabilities. Their shoppers may moreover additionally buy FortiGuard subscription services to acquire probability intelligence updates. They supply yardstick technical aid across entire of their items through their FortiCare assist capabilities. They moreover present services to conclusion-customers including TAMs, REs and expert provider consultants for implementations, in addition to working towards services to their conclusion-customers and channel partners.

    Fortinet protection fabric-The Fortinet safety textile platform is an architectural manner that protects the entire digital assail surface, including network core, endpoints, purposes, information centers and private and public cloud. together with their community of material-capable companions, the Fortinet safety fabric platform enables disparate security gadgets to drudgery together as an built-in, computerized and collaborative answer.

    Cloud safety-We champion clients connect securely to and throughout their cloud environments through providing safety through their digital firewall and other utility items in public and personal cloud environments. Their Cloud protection options, together with their customer access security broker solution, FortiCASB, prolong the core capabilities of the Fortinet security cloth platform to deliver organizations with the equal degree of cybersecurity and risk intelligence in cloud environments that they receive on their physical networks. Fortinet cloud safety choices are available across entire principal cloud providers, including Amazon internet capabilities, Microsoft Azure, Google Cloud, Oracle Cloud and IBM Cloud.

    cyber web of things and Operational know-how-The proliferation of IoT and OT devices has generated unusual opportunities for us to develop their company. IoT and OT possess created an environment where statistics movement freely between gadgets across locations, network environments, far flung offices, mobile worker's and public cloud environments, making the facts intricate to continually music and relaxed.

    economic Highlights

    We recorded total profits of $1.80 billion in 2018, an expand of 20% compared to $1.forty nine billion in 2017. Product salary turned into $674.4 million in 2018, a soar of 17% compared to $577.2 million in 2017. provider revenue was $1.13 billion in 2018, a soar of 23% compared to $917.7 million in 2017.

    We generated working profits of $231.0 million in 2018, a soar of 110% in comparison to $109.eight million in 2017.

    cash, cash equivalents and investments had been $1.seventy two billion as of December 31, 2018, an expand of $367.three million, or 27%, from December 31, 2017.

    Deferred salary changed into $1.sixty nine billion as of December 31, 2018, a soar of $350.5 million, or 26%, from December 31, 2017.

    desk of Contents

    We generated cash flows from working activities of $638.9 million in 2018, an expand of $forty four.5 million, or 7%, compared to 2017.

    In 2018, they repurchased three.eight million shares of common stock under the Repurchase program for an combination buy expense of $209.1 million. In 2017, they repurchased 11.2 million shares of commonplace stock for a total purchase rate of $446.3 million.

    Our salary expand became driven with the aid of both product and repair profits. On a geographic basis, salary is still assorted globally, which remains a key power of their business. Product income grew 17% in 2018. FortiGate unit shipments extended year-over-year. earnings of non-FortiGate items, such because the Fortinet security textile and cloud items and features, moreover grew drastically. provider salary growth of 23% in 2018 became pushed with the aid of the power of their FortiCare technical assist and different carrier salary, which mixed grew 26%, and FortiGuard security subscription salary, which grew 20%.

    The percent of their FortiGate-related billings from entry-degree products accelerated from 31% in 2017 to 33% in 2018, the percent of their FortiGate-connected billings from mid-range products multiplied from 30% in 2017 to 32% in 2018 and the percentage of their FortiGate-linked billings from excessive-end products diminished from 39% in 2017 to 35% in 2018. They proceed to behold their business consumers paying for a fairly balanced coalesce of products throughout these product agencies.

    In 2018, working costs as a percent of profits lowered by means of 5 percentage facets compared to 2017. The lessen in working fees was basically driven by a lower of four percent aspects in income and advertising prices as a percent of income, making the most of the adoption of Accounting standards supersede ("ASU") 2014-09, income from Contracts with consumers (subject matter 606) ("topic 606") for deferred condense charges, which reduced their commissions fee in absolute greenbacks and as a percent of complete profits. furthermore, widely wide-spread and administrative expenses as a percent of income lowered via 1 percentage factor whereas analysis and pile costs as a percent of salary remained consistent. Their sales and advertising and marketing prices blanketed a handicap of $forty five.5 million in 2018 from the adoption of matter matter 606 involving deferred condense prices. below matter matter 606, they capitalized inescapable commissions on carrier contracts and amortize the amount over a obvious period. just before the adoption of matter matter 606, they expensed the commissions related to these provider contracts upfront. apart from this benefit, sales and marketing expense as a percentage of income would were forty six% in 2018 compared to forty seven% in 2017. check with note 1 to their consolidated economic statements for greater information. Headcount improved through 15% to five,845 employees and contractors as of December 31, 2018, up from 5,066 as of December 31, 2017.

    enterprise mannequin

    Our income manner is in line with a two-tier distribution model. They sell to distributors that sell to networking protection and business-concentrated resellers and service providers, who in turn promote to their conclusion-customers. In inescapable cases, they promote without delay to gigantic carrier suppliers and fundamental programs integrators. They additionally tender their items throughout primary cloud suppliers, and possess recognized on-demand earnings from Amazon web functions and Microsoft Azure and from customers who installation their products at a cloud capabilities issuer in a bring-your-personal-license ("BYOL") such as from Amazon net features, Microsoft Azure, Google Cloud, Oracle Cloud and IBM Cloud. In a BYOL arrangement, a client purchases a perpetual license from us through their channel companions and deploys the application in a cloud company's atmosphere. in a similar way, customers may additionally buy this sort of license from us and deploy in their inner most cloud. while the profits from such income is still notably insignificant, it has improved greatly in fresh periods on a percentage foundation.

    typically, their consumers purchase their hardware items and software licenses, as well as their FortiGuard security subscription and FortiCare technical assist functions. They generally invoice at the time of their sale for the entire expense of the items and protection and technical champion capabilities. The invoice is payable within 30 to forty five days. They additionally invoice obvious functions on a month-to-month basis.

    Our SPU hardware structure is a vital allotment of their manner to network safety. The SPU contains three strains of proprietary ASICs: SPU CP, SPU NP and SPU SOC. The ASICs are designed for extremely efficacious execution of computationally intensive tasks, together with coverage enforcement, risk detection and encryption. As such, ASIC-based solutions can Run many safety purposes concurrently without a significant reduction in performance.

    Key Metrics

    We monitor a brace of key metrics, together with the key economic metrics set forth beneath, in an endeavor to assist us evaluate boom trends, establish budgets, measure the effectiveness of their sales and advertising efforts, and check operational

    table of Contents

    efficiencies. here desk summarizes salary, deferred salary, billings (non-GAAP), web cash supplied via operating actions, and free money circulation (non-GAAP). They focus on salary below under "-components of operating results," and they focus on internet cash offered by using working activities below below "-Liquidity and Capital supplies." Deferred salary, billings (non-GAAP), and free money stream (non-GAAP) are mentioned automatically under here desk.

    yr Ended or As of December 31, 2018 2017 2016 (in hundreds of thousands) earnings $ 1,801.2 $ 1,494.9 $ 1,275.four Deferred salary $ 1,686.eight $ 1,336.3 $ 1,035.three Billings (non-GAAP) $ 2,153.three $ 1,795.9 $ 1,515.1 net cash supplied by means of operating actions $ 638.9 $ 594.four $ 345.7 Free money stream (non-GAAP) $ 585.9 $ 459.1 $ 278.5

    Deferred earnings. Their deferred earnings incorporates quantities which possess been invoiced however that possess not yet been identified as revenue. the majority of their deferred income stability carries the unrecognized portion of service income from FortiGuard security subscription and FortiCare technical lead carrier contracts, which is diagnosed as revenue ratably over the contractual provider length. They monitor their deferred revenue steadiness, expand and the coalesce of brief-term and long-term deferred revenue because it represents a significant portion of profits and of free money stream to be identified in future intervals. Deferred salary become $1.sixty nine billion as of December 31, 2018, a soar of $350.5 million, or 26%, from December 31, 2017.

    Billings (non-GAAP). They silhouette billings as earnings recognized according to generally accredited accounting principles in the united states ("GAAP") plus the change in deferred earnings from the starting to the immediate of the duration and adjustments to the deferred revenue equipoise because of adoption of topic 606 much less any deferred revenue balances obtained from enterprise combination(s) perquisite through the length. They disagree with billings to be a helpful metric for management and investors as a result of billings pressure existing and future revenue, which is a crucial indicator of the fitness and viability of their company. There are a number of limitations involving the expend of billings in its residence of GAAP salary. First, billings encompass amounts that haven't yet been recognized as salary and are impacted via the time epoch of security and assist agreements. 2nd, they can moreover figure billings in a mode it truly is distinct from peer corporations that file equivalent financial measures. management debts for these limitations with the aid of proposing inescapable information involving GAAP profits and evaluating billings in conjunction with GAAP income. complete billings had been $2.15 billion for 2018, an expand of 20% compared to $1.80 billion in 2017.

    A reconciliation of salary, probably the most without delay comparable financial measure calculated and offered in response to GAAP, to billings is supplied beneath:

    year Ended December 31, 2018 2017 2016 (in millions) Billings: salary $ 1,801.2 $ 1,494.9 $ 1,275.4 Add: alternate in deferred salary 350.5 301.0 244.1 Add: Deferred profits adjustment as a result of adoption of matter 606 4.1 - - much less: Deferred revenue steadiness acquired in enterprise combos (2.5 ) - (four.four ) total billings (non-GAAP) $ 2,153.three $ 1,795.9 $ 1,515.1

    Free cash Move (non-GAAP). They define free money stream as net cash provided via operating actions minus capital costs akin to purchases of existent estate and different property and equipment. They believe free money stream to be a liquidity measure that gives advantageous counsel to management and traders about the sum of money generated via the enterprise that, after capital bills, may moreover be used for strategic alternatives, including repurchasing awesome usual stock, investing in their enterprise, making strategic acquisitions and strengthening the equipoise sheet. A challenge of the expend of free cash circulate instead of the GAAP measure of internet money supplied via working actions is that free money circulation doesn't signify the overall boost or lessen within the money, cash equivalents and investments steadiness for the epoch since it excludes money provided by pass of or used in different investing and financing actions. management bills for this difficulty via providing suggestions about their capital

    desk of Contents

    bills and different investing and financing actions on the physiognomy of the consolidated statements of cash flows and below "-Liquidity and Capital materials" and through providing cash flows from investing and financing actions in their reconciliation of free cash flows. furthermore, it's vital to note that different groups, together with corporations in their industry, may moreover no longer expend free cash circulate, may figure free cash rush in a different manner than they Do or may expend different economic measures to evaluate their efficiency, entire of which could in the reduction of the usefulness of free money movement as a comparative measure. A reconciliation of net money provided by pass of operating activities, probably the most at once related financial measure calculated and offered in line with GAAP, to free cash movement is equipped below:

    year Ended December 31, 2018 2017 2016 (in millions) Free cash circulate: net money supplied via working activities $ 638.9 $ 594.four $ 345.7 much less: Purchases of property and gadget (53.0 ) (one hundred thirty five.three ) (67.2 ) Free money stream (non-GAAP) $ 585.9 $ 459.1 $ 278.5 web money utilized in investing actions $ (134.9 ) $ (seventy six.8 ) $ (74.1 ) net money utilized in financing activities $ (202.6 ) $ (415.6 ) $ (a hundred and five.9 ) add-ons of operating effects salary. They generate nearly entire of their salary from sales of their hardware and application items and amortization of quantities covered in deferred revenue involving outdated earnings of FortiGuard safety subscription and FortiCare technical champion functions. They additionally admire income from cloud enterprise relationships and from offering skilled functions and training. Their complete revenue is constructed from here: Product income. Product salary is basically generated from income of their appliances. nearly entire of their product salary has been generated with the aid of their FortiGate product line, and they Do not call this to trade in the foreseeable future. Product revenue moreover includes earnings derived from sales of FortiGate utility licenses and other software. As a percentage of complete earnings, they call that their product salary can moreover ambit from quarter-to-quarter in keeping with obvious factors, as mentioned beneath under "-Quarterly results of Operations," and they are expecting the vogue to proceed in 2019. service earnings. provider salary is generated primarily from FortiGuard safety subscription capabilities and from FortiCare technical lead features. They respect profits from FortiGuard protection subscription and FortiCare technical champion services over the contractual service period. Their dispassionate contractual champion and subscription time epoch is one to three years and, to a lesser extent, five years. They additionally generate a little portion of their revenue from expert capabilities and practising functions, for which they esteem income as the features are offered, and cloud-based services, for which they admire profits as the capabilities are delivered or on a month-to-month utilization groundwork. As a percent of complete revenue, they continue to call carrier revenue to be higher than product revenue. Their service income boom expense relies upon enormously on the expand of their consumer base, the growth of their carrier bundle choices, the growth and introduction of latest carrier offerings and the renewal of service contracts by their present customers.

    Our complete cost of salary is comprised of the following:

    cost of product earnings. the vast majority of the cost of product earnings includes third-celebration condense producers' charges and the expenses of substances utilized in creation. Their permeate of product income moreover includes substances, delivery expenses, personnel expenses associated with logistics and high-quality handle, facility-linked expenses, excess and obsolete inventory fees, guarantee prices, and amortization of intangible belongings, if applicable. Personnel expenses encompass direct compensation and advantages. can permeate of provider income. cost of service earnings is primarily created from salaries, benefits and bonuses, in addition to inventory-based mostly compensation. can permeate of service revenue moreover contains third-celebration repair and condense achievement, records middle and cloud hosting, substances and facility-connected costs.

    desk of Contents

    Gross margin. low profit as a percentage of salary, or low margin, has been and should continue to be affected by loads of factors, together with the typical sales expense of their items, product fees, the coalesce of items offered and the composite of revenue between items, utility licenses and capabilities and any excess stock write-offs. provider revenue and application licenses possess had a positive impact on their complete low margin given the better low margins in comparison to product low margins. entire the pass through 2018, provider low margin benefited from renewals and continued revenue of hardware bundled with capabilities and subscriptions, transforming into faster than linked charges. Product low margin changed into negatively impacted with the aid of unusual product introductions. because of this, the service margin enlargement turned into partly offset by using a decline in product low margin in 2018. customary low margin in 2019 could be impacted with the aid of provider and product profits combine, but they call it to be akin to ordinary low margin in 2018.

    operating fees. Their operating expenses consist of research and building, income and marketing and time-honored and administrative expenses. Personnel charges are probably the most significant factor of working expenses and consist essentially of salaries, benefits, bonuses, stock-primarily based compensation, and sales commissions, as applicable. They are expecting personnel costs to continue to enhance in absolute bucks as they extend their team of workers.

    analysis and building. research and construction fee consists primarily of personnel prices. further research and construction fees consist of ASIC and device prototypes and certification-related charges, depreciation of property and gadget and facility-connected expenses. the majority of their analysis and pile is focused on each application construction and the ongoing evolution of their hardware platform. They record entire research and evolution charges as incurred. Their analysis and pile groups are primarily establish in Canada and the us. earnings and advertising and marketing. income and advertising expense is the largest component of their working fees and essentially includes personnel prices. additional income and advertising charges involve promotional lead technology and other advertising charges, shuttle, depreciation of property and rig and facility-connected costs. They intend to hire additional personnel concentrated on income and advertising and expand their sales and marketing efforts worldwide with a purpose to seize market share in the business market. general and administrative. common and administrative expense includes personnel prices, in addition to expert expenses, depreciation of property and gadget and application and facility-related fees. everyday and administrative personnel involve their government, finance, human substances, counsel know-how and criminal businesses. Their knowledgeable charges principally involve backyard prison, auditing, accounting, tax, assistance know-how and other consulting prices.

    activity income. pastime revenue includes income earned on their cash, cash equivalents and investments. we've historically invested their profit company debt securities, certificates of deposit and time epoch deposits, commercial paper, money market money, and U.S. govt and company securities.

    different revenue (cost)-net. different salary (rate)-net consists essentially of foreign change gains and losses regarding international foreign money remeasurement, as neatly because the profit on the sale of an investment in a privately held company.

    Provision for (improvement from) profits taxes. we're zone to income taxes in the united states, as well as different tax jurisdictions or nations through which they conduct business. profits from their non-U.S. actions are matter to earnings taxes in a local country, which might be commonly reduce than U.S. tax rates, and might be realm to U.S. earnings taxes. Their constructive tax expense differs from the U.S. statutory expense essentially due to foreign revenue matter to different tax fees than within the U.S., federal research and construction tax credit score, withholding taxes, extra tax merits regarding inventory-based mostly compensation cost and the tax affects of the 2017 Tax Act.

    . . .

    Feb 27, 2019

    (c) 1995-2019 Cybernet records methods, Inc. entire Rights Reserved


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    Brothers Establish UConn’s First Cybersecurity Instructional Lab | killexams.com existent questions and Pass4sure dumps

    In response to the growing exigency for cybersecurity experts, two University of Connecticut alumni brothers donated $1 million to launch the university’s cybersecurity instructional lab and develop a curriculum to meet the demands.

    Samuel ’50 and Stephen Altschuler ’54, who earned bachelor’s degrees in electrical engineering, will slash the ribbon on the Altschuler Cybersecurity Lab, located on the first floor of the Information Technology Engineering (ITE) Building, this summer.

    “We chose to obtain this gift because of the champion they received from UConn when they were engineering students in the early 1950s,” said the brothers in a joint statement. “Our training enabled us to promote their careers to the point where they are financially able to obtain a gift of this size. Connecticut has been a major focus for us their entire lives, and they are proud to be able to obtain a meaningful contribution to its flagship university.

    “We believe that cybersecurity is among the most censorious issues of this age. In order to assure that society will be able to safely continue to expend the ever-accelerating advancements of technology, the study of cybersecurity is crucial to the maintenance of peaceful cultures.”

    The Altschuler Cybersecurity Lab will be the cornerstone of UConn’s endeavor to graduate engineers with expertise in cybersecurity, said School of Engineering Dean Kazem Kazerounian, who joined Donald Swinton, director of evolution for the School of Engineering, in pursuing the lab’s establishment.

    “We are in an age where the threat of cyberattacks has gotten more pervasive. As an institution, they exigency to be training the next generation of engineers to combat this threat, which is why this gift from the Altschuler brothers is so primary for the School of Engineering and the University,” said Kazerounian.

    When launched, the lab will teach hands-on cybersecurity to entire Computer Science and Engineering Department freshmen, as well as additional members of the department’s 800 undergraduate and 150 graduate student population.

    A special first-year curriculum will cover such areas as cyber-hygiene in software and hardware; the vulnerabilities in commercial-off-the-shelf devices and Internet-of-Things devices; and ensuring the security and integrity of electronic election and voting systems, smart power-meters and power grid devices. The curriculum will moreover cover website security, secure configuration of networks and networked systems, and security of network routing.

    “The establishment of this cybersecurity laboratory is wonderful word for Connecticut,” said Arthur H. House, the state’s chief cybersecurity officer. “It will enhance UConn’s academic might and partnership in the ongoing endeavor to understand and counter evolving cyber threats to the state’s government agencies, businesses, and organizations.”

    Mark Raymond, Connecticut’s chief information officer, agrees. “One of the fundamental principles of the state’s cybersecurity strategy is cybersecurity literacy.  The strategy calls for entire sectors to reduce cybersecurity risks through education and awareness. The laboratory at UConn will play a censorious role in developing the next-generation cybersecurity skills required to retain their state’s citizens and business safe.”

    After graduating from UConn, Samuel Altschuler earned an MBA from Northeastern University in 1958 and founded Altron, Inc., where he was the chairman and president, until his retirement. Stephen Altschuler went on to rate his master’s in engineering from Yale University in 1955. He is the founder, president, and chairman of Altek Electronics. He moreover served on UConn’s Board of Trustees from 1986-1993.

    “We recognize that Dean Kazerounian and his staff possess assembled a first-class faculty to be stewards of the cybersecurity specialty, and they are highly motivated to champion it,” said the Altschuler brothers, who possess moreover funded scholarships to UConn’s engineering students.

    As faculty in the unusual lab pursue this work, they will colleague with faculty in other areas, such as the state’s Voting Technology Research Center, which evaluates Connecticut’s voting machines and audits results for cyberattacks; and industry partners, such as Synchrony financial and Comcast companies, which champion cybersecurity research and host annual cybersecurity conferences.


    10-K: FORTINET INC | killexams.com existent questions and Pass4sure dumps

    (EDGAR Online via COMTEX) -- item 7. Management's Discussion and Analysis of financial Condition and Results of Operations

    In addition to historical information, this Annual Report on contour 10-K contains forward-looking statements within the sense of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements include, among other things, statements concerning their expectations regarding:

    continued growth and market share gains;

    variability in sales in inescapable product categories from year to year and between quarters;

    expected impact of sales of inescapable products and services;

    the impact of macro-economic and geopolitical factors on their sales;

    the harmony of their revenue that consists of their product and service revenue, and the coalesce of billings between products and services, and the duration of service contracts;

    the impact of their product innovation strategy;

    the effects of government regulation, tariffs and other related policies;

    drivers of long-term growth and operating leverage, such as increased sales productivity, functionality and value in their standalone and bundled subscription service offerings; growing their sales to businesses, service providers and government organizations, the impact of sales to these organizations on their long-term growth, expansion and operating results, and the effectiveness of their internal sales organization;

    trends in revenue, cost of revenue and low margin;

    trends in their operating expenses, including sales and marketing expense, research and evolution expense, general and administrative expense, and expectations regarding these expenses as a percentage of total revenue; risks and expectations related to acquisitions or sales of assets, including integration issues related to product plans and products, including the acquired technology;

    continued investments in research and development;

    managing their continued investments in sales and marketing, and the impact of those investments;

    expectations regarding uncertain tax benefits and their efficacious domestic and global tax rates;

    expectations regarding spending related to existent estate and other capital expenditures and to the impact on free cash flows;

    competition in their markets;

    their intentions regarding share repurchases and the sufficiency of their existing cash, cash equivalents and investments to meet their cash needs for at least the next 12 months;

    other statements regarding their future operations, financial condition and prospects and business strategies; and

    adoption and impact of unusual accounting standards, including those related to accounting for leases.

    Table of Contents

    These forward-looking statements are matter to inescapable risks and uncertainties that could occasions their actual results to differ materially from those reflected in the forward-looking statements. Factors that could occasions or contribute to such differences include, but are not limited to, those discussed in this Annual Report on contour 10-K and, in particular, the risks discussed under the heading "Risk Factors" in allotment I, item 1A of this Annual Report on contour 10-K and those discussed in other documents they file with the Securities and Exchange Commission (the "SEC"). They undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements. Given these risks and uncertainties, readers are cautioned not to residence undue reliance on such forward-looking statements.

    Business Overview

    Fortinet is a global leader in cybersecurity solutions provided to a wide variety of businesses, such as enterprises, communication service providers and little businesses. Their cybersecurity solutions are designed to provide broad visibility and segmentation of the digital assail surface through their integrated Security Fabric platform, which features automated protection, detection and responses.

    The focus areas of their business consist of:

    Network Security-We derive a majority of product sales from their FortiGate network security appliances. Their FortiGate network security appliances involve a broad set of built-in security and networking features and functionalities, including firewall, SD-WAN, SSL data leak prevention, VPN, switch and wireless controller and WAN acceleration. Their network security appliances involve their FortiOS operating system, which provides the foundation for FortiGate security functions, and FortiASIC integrated circuit, which is designed to accelerate the processing of security and networking functions. Their customers may moreover purchase FortiGuard subscription services to receive threat intelligence updates. They provide yardstick technical champion across entire of their products through their FortiCare champion services. They moreover tender services to end-customers including TAMs, REs and professional service consultants for implementations, as well as training services to their end-customers and channel partners.

    Fortinet Security Fabric-The Fortinet Security Fabric platform is an architectural approach that protects the entire digital assail surface, including network core, endpoints, applications, data centers and private and public cloud. Together with their network of Fabric-Ready Partners, the Fortinet Security Fabric platform enables disparate security devices to drudgery together as an integrated, automated and collaborative solution.

    Cloud Security-We assist customers connect securely to and across their cloud environments by offering security through their virtual firewall and other software products in public and private cloud environments. Their Cloud Security solutions, including their Client Access Security Broker Solution, FortiCASB, extend the core capabilities of the Fortinet Security Fabric platform to provide businesses with the very even of cybersecurity and threat intelligence in cloud environments that they receive on their physical networks. Fortinet cloud security offerings are available across entire major cloud providers, including Amazon Web Services, Microsoft Azure, Google Cloud, Oracle Cloud and IBM Cloud.

    Internet of Things and Operational Technology-The proliferation of IoT and OT devices has generated unusual opportunities for us to grow their business. IoT and OT possess created an environment where data Move freely between devices across locations, network environments, remote offices, mobile workers and public cloud environments, making the data difficult to consistently track and secure.

    Financial Highlights

    We recorded total revenue of $1.80 billion in 2018, an expand of 20% compared to $1.49 billion in 2017. Product revenue was $674.4 million in 2018, an expand of 17% compared to $577.2 million in 2017. Service revenue was $1.13 billion in 2018, an expand of 23% compared to $917.7 million in 2017.

    We generated operating income of $231.0 million in 2018, an expand of 110% compared to $109.8 million in 2017.

    Cash, cash equivalents and investments were $1.72 billion as of December 31, 2018, an expand of $367.3 million, or 27%, from December 31, 2017.

    Deferred revenue was $1.69 billion as of December 31, 2018, an expand of $350.5 million, or 26%, from December 31, 2017.

    Table of Contents

    We generated cash flows from operating activities of $638.9 million in 2018, an expand of $44.5 million, or 7%, compared to 2017.

    In 2018, they repurchased 3.8 million shares of common stock under the Repurchase Program for an aggregate purchase expense of $209.1 million. In 2017, they repurchased 11.2 million shares of common stock for a total purchase expense of $446.3 million.

    Our revenue growth was driven by both product and service revenue. On a geographic basis, revenue continues to be diversified globally, which remains a key might of their business. Product revenue grew 17% in 2018. FortiGate unit shipments increased year-over-year. Sales of non-FortiGate products, such as the Fortinet Security Fabric and cloud products and services, moreover grew significantly. Service revenue growth of 23% in 2018 was driven by the might of their FortiCare technical champion and other service revenue, which combined grew 26%, and FortiGuard security subscription revenue, which grew 20%.

    The percentage of their FortiGate-related billings from entry-level products increased from 31% in 2017 to 33% in 2018, the percentage of their FortiGate-related billings from mid-range products increased from 30% in 2017 to 32% in 2018 and the percentage of their FortiGate-related billings from high-end products decreased from 39% in 2017 to 35% in 2018. They continue to behold their enterprise customers purchasing a fairly balanced coalesce of products across these product groups.

    In 2018, operating expenses as a percentage of revenue decreased by 5 percentage points compared to 2017. The lessen in operating expenses was primarily driven by a lessen of 4 percentage points in sales and marketing expenses as a percentage of revenue, benefiting from the adoption of Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) ("Topic 606") for deferred condense costs, which reduced their commissions expense in absolute dollars and as a percentage of total revenue. In addition, general and administrative expenses as a percentage of revenue decreased by 1 percentage point while research and evolution expenses as a percentage of revenue remained consistent. Their sales and marketing expenses included a benefit of $45.5 million in 2018 from the adoption of Topic 606 related to deferred condense costs. Under Topic 606, they capitalized inescapable commissions on service contracts and amortize the amount over a inescapable period. Prior to the adoption of Topic 606, they expensed the commissions related to these service contracts upfront. Excluding this benefit, sales and marketing expense as a percentage of revenue would possess been 46% in 2018 compared to 47% in 2017. advert to Note 1 to their consolidated financial statements for more information. Headcount increased by 15% to 5,845 employees and contractors as of December 31, 2018, up from 5,066 as of December 31, 2017.

    Business Model

    Our sales strategy is based on a two-tier distribution model. They sell to distributors that sell to networking security and enterprise-focused resellers and service providers, who in turn sell to their end-customers. In inescapable cases, they sell directly to big service providers and major systems integrators. They moreover tender their products across major cloud providers, and possess recognized on-demand revenue from Amazon Web Services and Microsoft Azure and from customers who deploy their products at a cloud services provider in a bring-your-own-license ("BYOL") such as from Amazon Web Services, Microsoft Azure, Google Cloud, Oracle Cloud and IBM Cloud. In a BYOL arrangement, a customer purchases a perpetual license from us through their channel partners and deploys the software in a cloud provider's environment. Similarly, customers may purchase such a license from us and deploy in their private cloud. While the revenue from such sales is still relatively insignificant, it has increased significantly in recent periods on a percentage basis.

    Typically, their customers purchase their hardware products and software licenses, as well as their FortiGuard security subscription and FortiCare technical champion services. They generally invoice at the time of their sale for the total expense of the products and security and technical champion services. The invoice is payable within 30 to 45 days. They moreover invoice inescapable services on a monthly basis.

    Our SPU hardware architecture is an primary allotment of their approach to network security. The SPU includes three lines of proprietary ASICs: SPU CP, SPU NP and SPU SOC. The ASICs are designed for highly efficient execution of computationally intensive tasks, including policy enforcement, threat detection and encryption. As such, ASIC-based solutions can Run many security applications simultaneously without a significant reduction in performance.

    Key Metrics

    We monitor a number of key metrics, including the key financial metrics set forth below, in order to assist us evaluate growth trends, establish budgets, measure the effectiveness of their sales and marketing efforts, and assess operational

    Table of Contents

    efficiencies. The following table summarizes revenue, deferred revenue, billings (non-GAAP), net cash provided by operating activities, and free cash rush (non-GAAP). They discuss revenue below under "-Components of Operating Results," and they discuss net cash provided by operating activities below under "-Liquidity and Capital Resources." Deferred revenue, billings (non-GAAP), and free cash rush (non-GAAP) are discussed immediately below the following table.

    Year Ended or As of December 31, 2018 2017 2016 (in millions) Revenue $ 1,801.2 $ 1,494.9 $ 1,275.4 Deferred revenue $ 1,686.8 $ 1,336.3 $ 1,035.3 Billings (non-GAAP) $ 2,153.3 $ 1,795.9 $ 1,515.1 Net cash provided by operating activities $ 638.9 $ 594.4 $ 345.7 Free cash rush (non-GAAP) $ 585.9 $ 459.1 $ 278.5

    Deferred revenue. Their deferred revenue consists of amounts that possess been invoiced but that possess not yet been recognized as revenue. The majority of their deferred revenue equipoise consists of the unrecognized portion of service revenue from FortiGuard security subscription and FortiCare technical champion service contracts, which is recognized as revenue ratably over the contractual service period. They monitor their deferred revenue balance, growth and the coalesce of short-term and long-term deferred revenue because it represents a significant portion of revenue and of free cash rush to be recognized in future periods. Deferred revenue was $1.69 billion as of December 31, 2018, an expand of $350.5 million, or 26%, from December 31, 2017.

    Billings (non-GAAP). They define billings as revenue recognized in accordance with generally accepted accounting principles in the United States ("GAAP") plus the change in deferred revenue from the rise to the immediate of the epoch and adjustments to the deferred revenue equipoise due to adoption of Topic 606 less any deferred revenue balances acquired from business combination(s) during the period. They consider billings to be a useful metric for management and investors because billings drive current and future revenue, which is an primary indicator of the health and viability of their business. There are a number of limitations related to the expend of billings instead of GAAP revenue. First, billings involve amounts that possess not yet been recognized as revenue and are impacted by the term of security and champion agreements. Second, they may figure billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue. Total billings were $2.15 billion for 2018, an expand of 20% compared to $1.80 billion in 2017.

    A reconciliation of revenue, the most directly comparable financial measure calculated and presented in accordance with GAAP, to billings is provided below:

    Year Ended December 31, 2018 2017 2016 (in millions) Billings: Revenue $ 1,801.2 $ 1,494.9 $ 1,275.4 Add: Change in deferred revenue 350.5 301.0 244.1 Add: Deferred revenue adjustment due to adoption of Topic 606 4.1 - - Less: Deferred revenue equipoise acquired in business combinations (2.5 ) - (4.4 ) Total billings (non-GAAP) $ 2,153.3 $ 1,795.9 $ 1,515.1

    Free cash rush (non-GAAP). They define free cash rush as net cash provided by operating activities minus capital expenditures such as purchases of existent estate and other property and equipment. They believe free cash rush to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in their business, making strategic acquisitions and strengthening the equipoise sheet. A limitation of using free cash rush rather than the GAAP measure of net cash provided by operating activities is that free cash rush does not delineate the total expand or lessen in the cash, cash equivalents and investments equipoise for the epoch because it excludes cash provided by or used in other investing and financing activities. Management accounts for this limitation by providing information about their capital

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    expenditures and other investing and financing activities on the physiognomy of the consolidated statements of cash flows and under "-Liquidity and Capital Resources" and by presenting cash flows from investing and financing activities in their reconciliation of free cash flows. In addition, it is primary to note that other companies, including companies in their industry, may not expend free cash flow, may figure free cash rush in a different manner than they Do or may expend other financial measures to evaluate their performance, entire of which could reduce the usefulness of free cash rush as a comparative measure. A reconciliation of net cash provided by operating activities, the most directly comparable financial measure calculated and presented in accordance with GAAP, to free cash rush is provided below:

    Year Ended December 31, 2018 2017 2016 (in millions) Free Cash Flow: Net cash provided by operating activities $ 638.9 $ 594.4 $ 345.7 Less: Purchases of property and rig (53.0 ) (135.3 ) (67.2 ) Free cash rush (non-GAAP) $ 585.9 $ 459.1 $ 278.5 Net cash used in investing activities $ (134.9 ) $ (76.8 ) $ (74.1 ) Net cash used in financing activities $ (202.6 ) $ (415.6 ) $ (105.9 ) Components of Operating Results Revenue. They generate the majority of their revenue from sales of their hardware and software products and amortization of amounts included in deferred revenue related to previous sales of FortiGuard security subscription and FortiCare technical champion services. They moreover recognize revenue from cloud business relationships and from providing professional services and training. Their total revenue is comprised of the following: Product revenue. Product revenue is primarily generated from sales of their appliances. The majority of their product revenue has been generated by their FortiGate product line, and they Do not hope this to change in the foreseeable future. Product revenue moreover includes revenue derived from sales of FortiGate software licenses and other software. As a percentage of total revenue, they hope that their product revenue may vary from quarter-to-quarter based on inescapable factors, as discussed below under "-Quarterly Results of Operations," and they hope the trend to continue in 2019. Service revenue. Service revenue is generated primarily from FortiGuard security subscription services and from FortiCare technical champion services. They recognize revenue from FortiGuard security subscription and FortiCare technical champion services over the contractual service period. Their typical contractual champion and subscription term is one to three years and, to a lesser extent, five years. They moreover generate a little portion of their revenue from professional services and training services, for which they recognize revenue as the services are provided, and cloud-based services, for which they recognize revenue as the services are delivered or on a monthly usage basis. As a percentage of total revenue, they continue to hope service revenue to be higher than product revenue. Their service revenue growth rate depends significantly on the growth of their customer base, the expansion of their service bundle offerings, the expansion and introduction of unusual service offerings and the renewal of service contracts by their existing customers.

    Our total cost of revenue is comprised of the following:

    Cost of product revenue. The majority of the cost of product revenue consists of third-party condense manufacturers' costs and the costs of materials used in production. Their cost of product revenue moreover includes supplies, shipping costs, personnel costs associated with logistics and property control, facility-related costs, excess and obsolete inventory costs, warranty costs, and amortization of intangible assets, if applicable. Personnel costs involve direct compensation and benefits. Cost of service revenue. Cost of service revenue is primarily comprised of salaries, benefits and bonuses, as well as stock-based compensation. Cost of service revenue moreover includes third-party repair and condense fulfillment, data headquarters and cloud hosting, supplies and facility-related costs.

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    Gross margin. low profit as a percentage of revenue, or low margin, has been and will continue to be affected by a variety of factors, including the dispassionate sales expense of their products, product costs, the coalesce of products sold and the coalesce of revenue between products, software licenses and services and any excess inventory write-offs. Service revenue and software licenses possess had a positive outcome on their total low margin given the higher low margins compared to product low margins. During 2018, service low margin benefited from renewals and continued sales of hardware bundled with services and subscriptions, growing faster than related expenses. Product low margin was negatively impacted by unusual product introductions. As a result, the service margin expansion was partially offset by a decline in product low margin in 2018. Overall low margin in 2019 will be impacted by service and product revenue mix, but they hope it to be comparable to overall low margin in 2018.

    Operating expenses. Their operating expenses consist of research and development, sales and marketing and general and administrative expenses. Personnel costs are the most significant component of operating expenses and consist primarily of salaries, benefits, bonuses, stock-based compensation, and sales commissions, as applicable. They hope personnel costs to continue to expand in absolute dollars as they expand their workforce.

    Research and development. Research and evolution expense consists primarily of personnel costs. Additional research and evolution expenses involve ASIC and system prototypes and certification-related expenses, depreciation of property and rig and facility-related expenses. The majority of their research and evolution is focused on both software evolution and the ongoing evolution of their hardware platform. They record entire research and evolution expenses as incurred. Their research and evolution teams are primarily located in Canada and the United States. Sales and marketing. Sales and marketing expense is the largest component of their operating expenses and primarily consists of personnel costs. Additional sales and marketing expenses involve promotional lead generation and other marketing expenses, travel, depreciation of property and rig and facility-related expenses. They intend to hire additional personnel focused on sales and marketing and expand their sales and marketing efforts worldwide in order to capture market share in the enterprise market. general and administrative. general and administrative expense consists of personnel costs, as well as professional fees, depreciation of property and rig and software and facility-related expenses. general and administrative personnel involve their executive, finance, human resources, information technology and legal organizations. Their professional fees principally consist of outside legal, auditing, accounting, tax, information technology and other consulting costs.

    Interest income. Interest income consists of income earned on their cash, cash equivalents and investments. They possess historically invested their cash in corporate debt securities, certificates of deposit and term deposits, commercial paper, money market funds, and U.S. government and agency securities.

    Other income (expense)-net. Other income (expense)-net consists primarily of foreign exchange gains and losses related to foreign currency remeasurement, as well as the gain on the sale of an investment in a privately held company.

    Provision for (benefit from) income taxes. They are matter to income taxes in the United States, as well as other tax jurisdictions or countries in which they conduct business. Earnings from their non-U.S. activities are matter to income taxes in a local country, which are generally lower than U.S. tax rates, and may be matter to U.S. income taxes. Their efficacious tax rate differs from the U.S. statutory rate primarily due to foreign income matter to different tax rates than in the U.S., federal research and evolution tax credit, withholding taxes, excess tax benefits related to stock-based compensation expense and the tax impacts of the 2017 Tax Act.

    . . .

    Feb 27, 2019

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    10 Principles for Modernizing Your Company’s Technology | killexams.com existent questions and Pass4sure dumps

    The life cycle of information technology is becoming shorter every year. unusual competitors are disrupting industries by leveraging state-of-the-moment digital practices and processes. Customer expectations are constantly evolving in an accelerating race for the most advanced, hyperconnected, seamless experiences. IT functions are under unrelenting pressure to champion leading-edge capabilities such as data analytics, cybersecurity, automated processing, and integration with third-party systems. The easiest pass to Do this is through platforms that connect everyone to the very cloud-based cross-industry digital infrastructure.

    In this context, your company’s legacy IT system, which seemed so capable a few years ago, is rapidly becoming obsolete. The systems modernization you exigency today is more than an upgrade; you’re playing a unusual game with unusual rules, in which you modernize not just the tools and functions, but the pass you Do IT. The vendors are largely the same, but the options and principles of the past no longer apply. Hardware no longer stands alone. Sensors and Internet connections are embedded in practically every tool, including those that used to be purely mechanical. Software is no longer sold as a package to install. It is offered as a platform, by subscription from the cloud, is automatically upgraded, and is programmed in unusual ways.

    Yet some of the most primary factors possess not changed at all. Organizations must remain focused on their competitive edge. Modernization efforts must create value for the enterprise. Investors and other stakeholders are as demanding as ever.

    Understanding what to win perquisite — the elements of your IT system necessary to attain your goals — is essential. Knowing how to win it perquisite — how to plan, sequence, invest, design, and engage the enterprise around your technological modernization — is equally important. Some efforts fare better than others. They possess distilled 10 principles that are common to successful efforts. You can reflect of these principles as essential guidelines for your digital transformation, from your legacy system to the platforms of the future.

    1. do Customer Value First

    Although any number of factors may trigger an IT modernization decision, one explicit goal is paramount: to deliver value. Every investment in technology should amplify the benefits for immediate customers, whether through better experiences, higher product quality, or operating efficiencies that reduce prices and add value.

    Start by developing a solid business case for the modernization effort, showing expected value and innovation. Explicitly involve (and disagree upon) the most primary outcomes for customers. Articulate, with clarity and precision, how each facet of the unusual IT system will contribute. You should be able to point to measurable improvements in key metrics — for example, customer retention, user experience, sales, productivity, and recruiting.

    Use cross-functional teams to contrivance and design this modernization effort. Functional experts from areas such as IT, strategy, R&D, customer interaction, and operations can entire drudgery together in an agile “sandbox” environment to design the changes around a set of coordinated specifications. In this early stage, and throughout the initiative, you thus link leading-edge learning of the changing technology with deep, day-to-day awareness of the desired results. As you bring these teams together, you will establish a shared frame of reference — a common language to characterize the features you want and the capabilities you are building. This moreover will assist engage unusual stakeholders as they combine in the effort.

    A major transportation company revamped its online system this way, improving the integration between the website that handled passenger bookings and the back-office functions that, among other things, routed travel. In its intensive sandbox sessions, the company set up temporary cross-functional working groups, which became known as “tribes.” Charged with planning and executing the modernization, the tribes included IT specialists along with people from finance, operations, and R&D.

    In the public sector, customer value translates to public service, but the principle still holds. When the Ottawa Police Service (OPS) in Canada’s capital city resolved to fundamentally transform its service delivery model to better connect with and serve the public, its leadership recognized that the change needed to be driven by the needs of frontline officers and the public. They do in residence a robust process to ensure that these officers would generate and validate ideas for technology modernization and IT innovation. OPS’s initiative has been successful enough to be held up as an specimen for many other policing organizations contemplating similar transformations.

    Questions for putting customer value first:

  • Why Do they exigency to enhance or transform their technology perquisite now?
  • What problems Do they hope to solve?
  • How will this change deliver value to their customers?
  • 2. Simplify Your Architecture

    As organizations possess evolved over the past 10 years, the underlying architecture of information technology has tended to evolve with them, often in a haphazard and as-needed fashion. A single organization might possess had IT systems based on a variety of coding languages, data structures, integration requirements, and champion arrangements. The result was often a complicated network of technologies: providential for purpose in each individual application, but difficult to adapt, refresh, and integrate. It often required significant endeavor to obtain changes, or even to understand the implications of changes on stakeholder needs and business performance.

    Modern modular platforms possess changed entire that. Standardization of software code and integration standards possess enabled systems to interact more fully without requiring bespoke designs. Tools such as application programming interfaces (APIs) allow companies to develop interoperable components that providential together in yardstick ways and interact seamlessly. Formerly separate systems, such as those for payments or customer relationship management (CRM), can now be linked to a single, configurable platform, with the capacity to share data across the enterprise.

    Instead of assuming a trade-off between simplicity and the features you need, behold for systems that give you both. Many modern systems can combine simplicity at the back immediate with enhanced functionality at the front end. The leaders at GE Digital exploited this when they designed their modular platform that they expend in-house and for customers such as airlines. Based on a cloud infrastructure and incorporating the Internet of Things, the system integrates applications built by other companies (such as Oracle), by GE’s customers, and by GE itself. GE followed the model of smartphone apps, but on an enterprise scale.

    Simplicity makes it easier to seize handicap of the software-as-a-service (SaaS) model, which allows organizations to procure increasingly complicated functions on claim from their existing software providers without needing to manage the implementation or underlying resources. As with the consumer smartphone apps revolution, the unusual SaaS enterprise-level apps compete on property and ease of use. The best ones soar to the top, containing costs and providing better experiences for the people interacting with your organization. As you implement these systems, you’ll learn that most customers and employees don’t want an overabundance of menus and features. They prefer simple, flexible commands that Move them quickly to their desired results.

    Embracing a simplified architecture requires a change in thinking, particularly when considering options for unusual systems and partnering arrangements. Establish limpid IT design principles, focused on simplicity and strategic functionality. Shift from asking “How Do they connect their components?” to asking questions about adding value, attracting customers, and making life easier for your employees.

    Questions for simplifying your architecture:

  • How can they best simplify their technology systems environment?
  • Where is the modularity in their current system environment? Is it flexible enough for their needs?
  • What data and functionality will be accessible — from customers, business partners, and operations — when they better integrate their system?
  • 3. Design for Flexibility and Speed

    Modern organizations possess a constant exigency to adapt within an ever-changing environment, requiring continuous innovation in products, services, and practices. Their systems must moreover possess the flexibility to retain up.

    The technology systems of the past competed on functionality. They were designed to Do one or two things very well, and the organization adapted to focus on those one or two activities. When the enterprise needed to change its focus, the structures and processes of the system held it back.

    Today’s more modular systems can be much more flexible. They can rapidly accommodate a ambit of possibilities for connection and configuration. So quest out modular platforms that can accommodate a wide ambit of plug-and-play functions for your business — including those that haven’t been designed or even imagined yet.

    Develop your own capabilities for the design and deployment of future-ready IT systems that can flex as needed for innovation. Learn to expend them to quickly reorient your operations while retaining the property of user undergo that your customers and staff expect. For example, your sales and service staff can reconfigure your customer tryst systems as the market changes. Your CRM system can lead teams to reflect more creatively about identifying and approaching customers.

    Modular IT design is future-ready — it can flex as needed for innovation.

    To assess the fitness of unusual IT systems or upgrades, adopt a minimum viable product (MVP) approach. This approach consists of a “bare-bones” installation, covering the few features that are absolutely necessary to demonstrate the system’s value. Release an MVP to a little group of employees or customers, and then question those early adopters for responses — or better yet, commemorate them using the system. You will learn what features customers custody about, what features they don’t, and what features are missing.

    The expend of synthetic intelligence and machine learning is moreover censorious for flexibility and speed. Employees and customers are used to apps and search engines that guess what they are going to nature or select. They understand and accept systems that learn their habits. Already, users hope as much from their enterprise software. A company whose systems understand their behavior, and lead them rapidly to drudgery more productively, will gain their commitment.

    Questions for designing with flexibility and speed:

  • What aspects of their existing systems are constraining their hasten with respect to change?
  • Are these aspects necessary? Are there better ways to change direction while managing risks?
  • What kinds of unexpected changes possess they needed to deal with in the past? What Do they suggest about future designs?
  • 4. Engage with Your Workforce and Culture

    IT modernization is often seen solely as a matter of changing technology. But changes in technology sustain themselves only if people accept and embrace them. You must therefore align your unusual systems with the company’s culture — starting with a limpid recognition of the unusual habits that people will exigency to adopt.

    An evolution in technology architecture may well involve a significant cultural shift, with a unusual structure and unusual competencies. consider where the stumbling blocks may be. For example, Do employees understand how to resolve the data your company collects while protecting your privacy? Do they possess the operational skills to coordinate with external partners? Do they possess concerns or qualms that possess not been addressed? Armed with that information, your leadership can determine what types of training, support, recruitment, and workforce changes are needed.

    Engage users of the unusual technology, encouraging them to play an vigorous role in the transformation effort. At GE Digital, for example, managers fostered tryst by bringing in entire stakeholders from 20 different departments to be inescapable the perquisite voices were heard. They made positive that users felt they were allotment of the process, giving them roles to play in implementation and providing regular updates on the delivered benefits. As a result, employees who used the system felt invested in the outcomes. tryst on that scale isn’t easy, but it is essential.

    For more guidance on organizational culture, behold The censorious Few: Energize Your Company’s Culture by Choosing What Really Matters, by Jon Katzenbach, James Thomas, and Gretchen Anderson. There already are some powerful elements of your culture — including attributes of the company and behaviors that drudgery well — that you can muster on the side of efficacious change. In addition, every company has “authentic informal leaders,” people at every even of the hierarchy who are already demonstrating the behaviors you exigency for modernization because they believe in the unusual direction. Find these individuals and drudgery closely with them. They can divulge you about the readiness of your organization to change, the places where resistance will occur, and the magnitude of endeavor required to overcome resistance.

    For a big insurance provider in Australia, the censorious starting point for modernization was to create cultural acceptance of the thought “decommission the old, and embrace the new.” To achieve this, the technology leadership provided a strong mandate for simplification, and communicated it consistently. The mandate helped to rally the teams around a common set of priorities, decisions, and behaviors.

    At Ottawa Police Service, where there was a strong culture and deeply held values and beliefs, the unusual initiative sought to modernize censorious policing applications with newer foundational technologies to enable frontline mobility. Staff needed to be convinced that security and privacy issues could be properly addressed. As the technologies changed, PwC helped OPS to do in residence a strong and collaborative change management process, along with providing expertise in cybersecurity and public safety, to create self-confidence that the technical solutions were arrogate for expend given the many regulatory, privacy, and security considerations. In the end, more than 150 police officers regularly contributed ideas. When they were valued and implemented, that created a virtuous set of more engagement, faster uptake, and still better results.

    Questions for engaging your workforce and culture:

  • What Do people exigency from the unusual IT systems to be productive? How Do they know?
  • How technologically capable is their existing workforce? What skills Do they already possess and what Do they exigency to develop?
  • What benign of cultural changes exigency to occur for unusual systems to be adopted? How Do they create this?
  • 5. Adopt a Services Mind-Set

    The traditional approach to technology treats systems as assets that a company owns and operates. A modern approach treats technology as a set of services that a company can consume and integrate as needed, without necessarily owning the systems at all. Companies can then select and combine services from a ambit of best-in-class providers, within an overall framework that suits the organization’s unique needs.

    This approach redefines the IT function. Where once you hosted and managed systems internally, now you oversee a more open platform. Services are outsourced and dynamically managed; when a service component is not effective, you can adapt or supersede it. You no longer custody as much about the source of a service; you custody about how well it serves your needs and creates value. You referee its financial performance in operational terms — productivity and results measured against cost — rather than by revert on asset costs and the costs of maintenance.

    One major bank redesigned or replaced a big number of censorious systems within a five-year time frame. The refresh affected customer systems, analytics, product development, and core ledgers. When communicating the changes with the bank leadership, the IT group explicitly avoided describing their hardware and software assets; instead, they focused on the services they would provide to internal functions.

    This approach made it easier to add unusual IT functions. For example, when the group installed analytics packages, they naturally gravitated to talk about unusual ways to expend them. The very was actual of unusual marketing tools and the unusual network for linking branches. Ultimately, the bank made its message about services public. It was investing in modernization, it announced, because it knew the investment would assist the bank become the nature of financial institution that its customers and partners needed.

    Adopting a services mind-set moreover promotes a more open approach to sharing value with service providers. By using your providers as ongoing partners in innovation, you can shift your focus from negotiating terms to collaboratively generating results.

    Questions for adopting a services mind-set:

  • What are the essential technology services they provide to their organization?
  • Are they organized and funded according to the outcomes they provide rather than the assets they manage?
  • What other services could they tender in a cost-effective pass if they were better organized to Do so?
  • 6. Plot the Journey before Starting

    Just as successful transformation is a staged journey, so too are systems modernization efforts. In their article “The Four pile Blocks of Transformation,” PwC organizational change experts Al Kent, David Lancefield, and Kevin Reilly characterize how iconic companies — the likes of Apple, IKEA, Starbucks, and Honda — possess achieved their success through a fully coherent, differentiated, strategic identity. They methodically developed the capabilities and business models they needed to deliver this vision.

    Your systems modernization can assist you Do something similar. Having set a direction based on customer value (as in principle number 1), you now plot a systems modernization road map, that is, a sequence of milestones and markers that you can hope along the way. For example, you might interlard cloud-based capabilities early, so they can be used for other initiatives. Or you may exigency to modernize some legacy systems as a prerequisite for improving time-to-market for product launches.

    For a technology modernization at GE, the business units and geographies shared the responsibility to win core applications up and running. Progress was tied to explicit deadlines and goals, including “reduce quarter immediate time by 50 percent” and “cut 40 percent in IT expenditures.” Each milestone moreover included progress toward a predetermined set of core business needs: expanding market share, automating processes, deploying common platforms, rethinking shared services, and ensuring quick wins.

    When your organization is early in this journey, ensure up-front buy-in from key senior stakeholders. In his reserve Leading Change, John Kotter calls this the “powerful guiding coalition.” It consists of change champions from every key zone of the business at entire line management levels. This coalition helps to ensure ongoing business alignment.

    Although it’s planned, your IT modernization should not be rigid. Set it up as a self-correcting journey. In each step, you learn from previous iterations and discuss what could be done better next time.

    Questions for plotting the journey:

  • What are the censorious steps in their migration to a unusual system? Who will they bring together to implement each step?
  • How will they adapt their contrivance to “course correct” when things don’t Move as expected?
  • Who needs to be allotment of their powerful guiding coalition?
  • 7. Organize by Capabilities

    Most big and midsized companies cannot reorganize their legacy IT system entire at once. Their efforts must be divided, prioritized, and sequenced, or they will be too big and complicated to manage. Most IT modernization efforts are organized by project; they are short-lived efforts, framed by conventional enterprise software categories, budgeted and delivered through evolution teams that disband when the project is complete. This leads to a short-term focus that can distract efforts from the most primary goal: pile the capabilities that deliver value.

    What if you organized by capabilities instead? Your organization’s most distinctive capabilities are the combinations of systems, processes, and functions that deliver value in a pass that no other enterprise can match. reflect of your systems modernization initiative as an opportunity to energetically ameliorate these capabilities, drawing on your digital expertise. For example, Inditex (the Spanish apparel company best known for its retail brand Zara) has long had distinctive capabilities in customer insight, fashion-forward product design, rapid-response manufacturing, and globally consistent branding. In recent years, it has enhanced these capabilities with an IT modernization that included, among other things, setting up RFID tags for every item it sells. Now it moreover has an integrated online–offline inventory capability, so that any clerk in a Zara store can instantly locate a garment in a specified size and color, and marshal for it to be shipped directly to the customer — giving the company strengths in customer satisfaction that few, if any, other retailers can match.

    Your organization’s customer-facing products and services are central in this approach (it’s sometimes called the “product management–based IT operating model [pdf].”) You logically group applications and infrastructure by the business capabilities they primarily support. Then you find the necessary applications and hardware needed to fill the gaps in those capabilities, and (better yet) to refine and expand your conception of those capabilities, staying steps ahead of competitors.

    Organizing the IT operating model in this pass offers many benefits. They involve enhanced business–IT alignment, capacity to deliver faster innovation and greater value, more efficacious investments, and a simplified vendor landscape. consider procuring a managed services and solutions provider with which to partner; they may be more intimate with the newer technologies and thus able to deliver more quickly and effectively than you can.

    When you organize by capabilities, you don’t worry about the different layers of the technology stack. They’re entire in scope. Your IT organization is no longer wedded to legacy concepts; it can assist accelerate a digital transformation by applying principles such as mobile access, API-based design, microservices, cloud-based infrastructure, and modular IT structures.

    Questions for organizing by capabilities:

  • What are the most censorious capabilities that differentiate their company and provide value?
  • How will their IT modernization enable and enhance these capabilities?
  • What technological solutions and vendors providential best with these censorious capabilities?
  • 8. be Agile and User-Centric

    When executing the modernization, behold for ways to realize benefits faster. Avoid the “big bang” approach, in which you gradually build toward a single all-encompassing systems release. This can involve many months’ wait before results start to be seen. Divide the modernization road map into discrete delivery increments, releasing usable functions on a frequent release cycle. It’s better to be incomplete and rapid than complete and slow, as long as you obtain system user feedback frequently and let that feedback lead you to shift your direction. (Users of your systems involve customers, employees, and anyone else who interacts with your company, including regulators, suppliers, and sometimes community members.)

    Use established agile frameworks for design and development. These involve scrum (consisting of self-organizing teams), disciplined agile delivery (a process for team decision making), the scaled agile framework (which aligns multiple teams), DevOps (practices aimed at reducing software evolution time), and skinny IT (which is based on property and continuous improvement approaches). Whichever frameworks you choose, train entire stakeholders properly in it, so they possess a shared understanding of the practices involved.

    Even as you embrace agility, remain user-centric, that is, attentive to customer and employee responses, and responsive in the pass you incorporate their reactions into your designs. Roll out unusual features in a pass that allows you to test them on different user and customer profiles. For example, you might roll out two different features to members of the very customer group or geographic region to behold if they trigger different responses.

    Establish a disciplined and consistent approach to user-centricity. You might track people’s deportment on your system by monitoring keystrokes, through surveys, or through direct observation of users struggling with the prompts on their screens or smartphones. adapt and adjust your system iteratively, pile your own capacity for interpreting user feedback. Adopt a continuous improvement mind-set, so you are always looking for opportunities to learn and obtain your system better. Seize those opportunities.

    Questions for taking an agile and user-centric approach:

  • Who will benefit most from the changes, and how are they engaged?
  • How Do their analytics ameliorate their learning of their experiences?
  • How Do they pivot and change their approach when they exigency to?
  • 9. Invest in Resources That obtain the Change Stick

    Before commencing modernization, achieve a careful analysis of the breadth and diversity of resources needed for a successful outcome. Project management and transformational leadership capabilities are as primary as technical capabilities. be highly selective in forming the team that oversees the effort. choose people with a strong warp for change, a strong crave and capacity to learn, a elevated tolerance for complicated and uncertain situations, and a solid reputation for collaboration and teamwork.

    Financial resource allocation is just as important. Align funding to your highest modernization priorities. be very limpid about which areas you will not expend money on. Scrutinize your choices about desired features and technologies to ensure that financial resources are aligned with highest value.

    Avoid locked-in situations, in which a single vendor has control over your interactions (because, for example, your data resides in a closed and proprietary system). Insist on open APIs that can connect to a ambit of other systems. Experiment with open source software and obtain interoperability and integration a censorious allotment of your technological due diligence. For example, if you expend commercial off-the-shelf software, obtain positive it can link to a variety of databases, including open source products. behold for technologies that easily integrate and drudgery together because of the languages they’re written in and the technology stacks they are built on.

    Think through resourcing for the legacy system to retain it running adequately while the unusual system is being built. Even during the transition, you may exigency to fund must-do modifications to the legacy system (for example, to meet unusual regulatory and legislative requirements). Ensure that funding for these types of changes, for both the conventional and the unusual systems, has been factored into the overall budget.

    Plan for funding to decommission and retire the conventional system, and to Move people to the unusual one. involve funding for learning and development. be limpid and up-front about the transition contrivance so that the team with responsibility for maintaining the legacy system understands how primary their role is, and what options are available to them. Provide incentives to obtain positive that these people remain highly motivated while doing what may look to be unglamorous work.

    Questions for investing in resources that obtain the change stick:

  • Which IT investments are linked to the greatest return?
  • How Do they realign resources to champion the transformation while running the business?
  • What skills will be needed with the unusual systems, and how Do they build them?
  • 10. colleague Based on Shared Values and Trust

    The technological systems that you are modernizing are key to your organization's future. Therefore, Do not deal modernization — or the procurement of the goods and services needed to champion it — as a transactional event. When selecting long-term partners, invest in special due diligence in excess of your yardstick evaluation criteria. Your goal is to find companies that can deliver mutual benefits and with which you can develop a working relationship that involves mutual commitment and creative collaboration as well as a just deal.

    If you don’t win this right, not only could the project fail, but the switching costs could be substantial. Therefore, expend informal as well as formal ways of gathering information. quest out companies whose values you share and whose leadership has proven trustworthy. Evaluate the credibility of their drudgery by looking at the technology systems they possess built for themselves. reflect about how well those systems champion their own distinctive capabilities, especially those that would benefit you as their customer.

    A capable specimen of how to find the perquisite colleague comes from ATB Financial, based in the Canadian province of Alberta. It was founded in 1938 as a government-owned corporation, with the mandate of providing the citizens of Alberta with sources of alternative credit. After a strategic review, the company’s leaders set out to reinvent the enterprise, modernize the core banking platform, and create a digital-first and mobile-first system, oriented toward millennials and other digital-savvy customers.

    They recognized the long-term relationships they would exigency to build, so ATB’s leaders were very deliberate in the pass they evaluated vendors. They started by conducting a yardstick procurement process via RFP to more than 50 potential colleague organizations. The list was shortened to 17 using yardstick criteria such as technological considerations, the capacity to meet requirements and commitments, references, financial health, and long-term viability.

    However, those criteria were just table stakes. The perquisite colleague moreover needed to share the values that ATB financial held, and to verify that it could be trusted. ATB thus conducted site visits for each of the 17 semifinalists. It tested each company’s flexibility and hasten by asking it to complete a proof-of-concept task, with only two days to drudgery on it after receiving the specs. In addition, during the visits, the evaluation team spoke to employees at multiple levels.

    ATB winnowed its short list down to five partners, and ultimately settled on just two: a first choice, and a second choice kept on standby. On a fee basis, the first-choice colleague delivered a two-month pilot designed to build out 5 to 10 percent of the censorious requirements. This allowed ATB financial to fully evaluate how open the colleague was to change, how likeaflash it actually worked, what tools it used, and overall how compatible the two teams were. The system modernization has made considerable progress and is meeting entire key metrics, and the companies’ superior working relationship is credited for much of this initial success.

    Questions for selecting a trustworthy colleague with shared values:

  • What are they looking for in a partner? What values are primary to us?
  • What criteria will they expend to ensure that their colleague has similar values?
  • In committing fully to a partner, how can they build mutual trust?
  • In modernizing your company’s technology, your goal is an efficacious and sustainable vehicle for strategic success. The censorious issues, as with any organizational IT effort, are not purely technical. They involve learning how to design systems more effectively, engage individuals, and assist facilitate constructive change throughout the enterprise. Taken together, these 10 principles can lead your way.

  • Leon Cooper is a director in the technology advisory drill with PwC Australia. Based in Sydney, he focuses on fintech innovation, applications of analytics and machine learning to resolve complicated business problems, and enhancing public- and private-sector partnerships.
  • Milan Vyas is a director in the technology advisory drill with PwC Canada and helps lead its cloud advisory service. Based in Toronto, he works with clients across industries to formulate and execute technology strategy, optimize IT operations, and deliver IT transformation programs.
  • Also contributing to this article were PwC Canada colleague Stovel Ferguson, PwC Australia colleague Jane Livesey, and PwC US director Alexis Hall.


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