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6/24/2010
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WebNew Industry Study Benchmarks Total Cost Security Purchases

TCA consists of three main drivers, according to study commissioned by Web filtering solutions provider St. Bernard Software

San Diego, CA – June 14, 2010 – St. Bernard Software, Inc. (OTCBB: SBSW), a leader in Web security appliances, in conjunction with market research firm Robert Hale and Associates, today announced findings of the first US mid- enterprise market study quantifying four key areas that identify and define Total Cost of Acquisition (TCA) associated with Web security solutions. Among several key findings, the study confirmed that expenses surrounding TCA can be far greater than the initial purchase price, which significantly impacts an organization’s return on investment (ROI) and total cost of ownership (TCO). Translating beyond the upfront initial purchase price, the study defines total cost of acquisition as all costs required to fully enable or deploy a Web filter solution or service. This latest study provides an objective measurement of IT time and investment in the following drivers of TCA for Web security:

  • Total installation costs (includes servers, licenses, and other hardware purchases)

  • Total set-up costs (includes costs associated with IT time, technical support, and professional services)

  • Total purchase price of the Web filter

  • Other relevant costs (includes technical support agreements and industry specific costs)

    “Our goal was to identify and examine all costs associated with acquiring and fully deploying a technology solution, beyond the initial purchase price,” said Robert Hale, founder of Robert Hale and Associates. “So often buyers focus solely on the price tag, and aren’t aware that the total acquisition cost typically includes additional, unexpected expenses that weren’t accounted for when determining the ROI of their investment. For some companies these other costs can frequently be as high as 5x the purchase price of the Web filter.” The study compared total acquisition costs between St. Bernard and Websense Web security solutions. Primary findings of the study included:

  • St. Bernard’s iPrism is almost half as costly to acquire and deploy than Websense. For a normalized (or typical) 750 seat enterprise, St. Bernard customers spent $24,774 in total Web filtering acquisition costs, compared to $43,138 for Websense

  • 60% of Websense customers were required to purchase additional servers on top of the initial Web filter expense, compared to only 4% of St. Bernard customers

  • Nearly 30% of Websense customers were required to purchase other additional hardware, compared to only 6% of St. Bernard customers

  • 27% of Websense customers reported that the total amount of time for setup and installation of the Web filter solution was more than expected prior to purchase, versus only 9% of St. Bernard customers. Conversely, nearly 30% of St. Bernard customers reported that their setup and installation experience was easier than expected, compared to only 12% of Websense customers

    “In today’s economy, it has become increasingly important for businesses to better manage their Total Cost of Ownership in order to maximize ROI. Better management of TCO begins with a clear understanding and examination of TCA,” said Steve Yin, VP of global sales and marketing. “We understand that today’s IT administrators have a responsibility to ensure that all technology investments are based on best overall efficiency and value, and we’re pleased that our lower TCA will result in a higher ROI for our customers.” Robert Hale and Associates conducted the study with a sample of 250 mid- enterprise IT professionals from commercial, financial, healthcare and manufacturing industries. The respondents were selected randomly from a database of companies sized 250 – 1,500 employees. The results are significant at the 95% level of confidence, and show important differences between St. Bernard and Websense in each of the measured areas.

    For more information about the study and the summary report, please visit www.stbernard.com/tcastudy

    For more information regarding St. Bernard please visit www.stbernard.com or call 1-800-782-3762. About Robert Hale and Associates Robert Hale and Associates specializes in providing market research and consulting services for technology companies. With over 10 years experience in conducting market research, planning, strategy, and implementation support, our clients in the technology space include Qualcomm, Motorola, Samsung, Panasonic, Cisco, Microsoft, Mitchell International, and ViaSat. For more information, please visit www.roberthaleassociates.com

    About St. Bernard St. Bernard Software develops and markets Internet security appliances and services that empower IT professionals to effectively, efficiently and intelligently manage their enterprise’s Internet-based resources. Originally founded in 1995 as a market-leader in data security with its flagship product, Open File Manager™, the company is now recognized for delivering today’s #1 Web filtering and security appliance, iPrism'. With millions of end users worldwide in more than 5,000 enterprises, educational institutions, SMB, and government agencies, St. Bernard strives to deliver simple, high performance solutions that offer excellent value to our customers.

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