MIME 2017 Annual Report

4 Our Market Opportunity The United States Census Bureau estimates there are approximately 5.8 million organizations employing 121.1 million employees in the United States. Among them, there are over 610,000 small and mid-size organizations, which are defined as those organizations employing 20 to 4,999 employees that together have approximately 59 million employees. Based on a recent Gartner report, worldwide combined spending will total approximately $3.0 billion for the secure email gateway and data loss prevention markets. IDC Research estimates the markets for backup and recovery software, and e-discovery software will grow to $11.8 billion. Based on these reports, the combined markets catering to enterprise information and email security, continuity and archiving are estimated to be $14.8 billion in 2020. We believe there is a considerable need for a comprehensive integrated cloud solution that can address the needs of customers in these markets. We believe our immediate opportunity is to replace incumbent email security, continuity and archiving vendors. As we extend our products into adjacent areas, we anticipate this will open up additional opportunities to take further market share in a wider range of enterprise security and data management markets. We also expect to benefit from the growing popularity of cloud email services, specifically Microsoft Office 365 ® and Google, and the customer need for complementary security, archiving, back-up and continuity services. Our Solution Our integrated suite of cloud services for security, continuity and archiving is designed to offer true cyber resilience for email and deliver comprehensive email risk management beyond the primary mail server. We protect customers from the growing threat from email and to the corporate data it contains from malware, spam, data leaks and advanced threats such as impersonation attacks. Our continuity services ensure email and corporate information remain available in the event of a primary system failure or scheduled maintenance downtime. We also help organizations securely and cost effectively archive their growing email and file repositories to support employee productivity, compliance and e-discovery. Our customers benefit from: • Comprehensive Email and Data Risk Management in a Single, Unified Cloud Service . Our services integrate a range of technologies into a comprehensive service that would otherwise require an array of individual devices or services from multiple vendors. We enable customers to decommission these technologies, reduce the cost and complexity of their infrastructure, redeploy IT resources, and improve the security and risk management of their corporate email environment.