Security Software Preview:Thoughts into March Quarter Earnings-Security Spending Remains a Top Prior

Bullish on Secular Trend, but May See Volatility in Results this Quarter

    While across IT security and software there have been several data points that have pointed to a weaker selling environment in 1Q (weak CIO and reseller surveys as well as Juniper Networks and SAP’s negative preannouncements), we remain positive on the Security theme as it remains the Top priority among CIOs we speak with.

    Given i) 1Q is a seasonally weaker quarter and ii) the IT selling environment seems less robust than in prior quarters, we would expect to see some volatility in results in 1Q’16 but no overall change to our positive secular thesis on the Security Software space.