Symantec at Credit Suisse Technology Summit Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Phil Winslow - Credit Suisse - Analyst : Terrific, Tom. Now obviously AntiVirus is a big component of your division, enterprise, SMB AntiVirus. I was wondering if you could just give us a sense for the other pricing environment there? Last year there had been some concerns about price competitions from some competitors. Just what are you seeing now in the competitive landscape?

Question: Phil Winslow - Credit Suisse - Analyst : I guess along the lines you just mentioned, Symantec Endpoint Security, again Hamlet, I was wondering if you could give us a sense for just where the revenue opportunity is there? And let's say I'm a customer on 10.0 and I'm on subscription. Do I have the right to upgrade to that or is it going to cost me more? How do you view it as sort of -- is it ASP increase, market share gains? Have do you think about what SEP could mean for you?

Question: Phil Winslow - Credit Suisse - Analyst : I guess when you do think about just with some of your new product releases but also the change that you've had in the fiscal year on the storage side of the business to moving obviously a couple years ago to the March end, how do you think about seasonality across both -- because you control the Backup Exec side and the Enterprise Security side? How do you think about seasonality when you think about December and March there -- or between those two? Or is there any seasonality anymore?

Question: Phil Winslow - Credit Suisse - Analyst : Great, then also just a little bit of innovation to the storage side. With Backup Exec 11d, John Thompson talked a lot about that last quarter having a particularly strong June quarter. Just what trends are you seeing there and do you feel that you finally have sort of some of the momentum back with that product with the new functionality that is in this of course?

Question: Phil Winslow - Credit Suisse - Analyst : Now, before pausing to see if the audience has any questions on the table, I just wanted to thank -- you mentioned financial institutions, so I guess I will ask the topic du jour is just what are you seeing out there in the market? A lot of people have talked about maintenance and the government vertical financial services. When you look at sort of in your roadmap this quarter and the last couple of quarters, any sort of discernible changes that you are seeing?

Question: Phil Winslow - Credit Suisse - Analyst : I have a some more questions but I will just pause for a minute and see if anybody around the table has any questions. Well, as I think about it, I will just continue for a sec. But I guess also too, enterprise also falls under the storage umbrella here. I'm just curious what you are seeing from an interest perspective an just email archiving, especially with some of these new federal rules and federal procedure that have gone through, and also when you think about the time with some of the core backup products? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. SEPTEMBER 12, 2007 / 4:00PM, GEN.OQ - Symantec at Credit Suisse Technology Summit

Question: Phil Winslow - Credit Suisse - Analyst : And how much leverage do you think you get off of your big installed base from a backup perspective actually to try to upsell the archiving? Is there that synergy there between the two?

Question: Phil Winslow - Credit Suisse - Analyst : I guess -- I mean -- we talked about Symantec Endpoint Protection, Enterprise Vault, Backup Exec 11d. How should we think about real license growth, new business growth in your division when you think about the different markets? What type of rate do you think you would expect in the next couple of years there?

Question: Phil Winslow - Credit Suisse - Analyst : Okay, then also just when you do think about the AntiVirus side of your business, obviously you've got pretty good penetration on the large enterprise from a desktop perspective. You've talked about more live network access control. But when you think about just broadening into gateway, mail server, I wonder if you could talk us through just what you are seeing in those two markets? Obviously trend was one of the leaders there. Do you feel from a functionality perspective that you are par in taking share or how do you think about those two?

Question: Phil Winslow - Credit Suisse - Analyst : Okay.

Question: Phil Winslow - Credit Suisse - Analyst : How you think about the growth rates on sort of the file and the gateway versus the desktop? What type of penetration levels from a long-term (multiple speakers) perspective?

Question: Phil Winslow - Credit Suisse - Analyst : $100 per unit. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. SEPTEMBER 12, 2007 / 4:00PM, GEN.OQ - Symantec at Credit Suisse Technology Summit

Question: Phil Winslow - Credit Suisse - Analyst : I think those data privacy regulations are now at 37 states. Have you seen those privacy rights actually have a positive impact on your business?

Question: Phil Winslow - Credit Suisse - Analyst : Then I will actually pause for a moment just to if there are anymore. I've got a whole load of questions still left, though. I will just continue then on -- sorry -- go-ahead. Unidentified Audience Member This is more on the consumer side of the business, but I think two years ago I think the market probably when Microsoft was coming in at the AntiVirus business, Onecare, felt that Microsoft would have an impact. But it doesn't really seem like Microsoft has had an impact in the space and that maybe it has even been a positive for Symantec. Can you comment on that topic?

Question: Phil Winslow - Credit Suisse - Analyst : And then I will even take that stuff, take the question further onto enterprise side (multiple speakers).

Question: Phil Winslow - Credit Suisse - Analyst : A question along those lines just on the enterprise side, what do you think are some of the main barriers for Microsoft to get in the space? Obviously functionality can maybe be overcome -- you can get past that over time, but there still a perception of wanting to have an independent sort of third party check so to speak?

Question: Phil Winslow - Credit Suisse - Analyst : Yes, now recently you guys have been introducing more software as a service type solutions out into the market on the security side, and it seems like there's potentially getting into the archiving and backup potentially over time. Just wondering how does Symantec think about the SAS market, think about security and almost storage as a service? How do you see that market opportunity evolving?

Question: Phil Winslow - Credit Suisse - Analyst : Okay, and then also thing on sort of the services topic, John talked about it. It's a $10 billion company by 2010 and 10% of revenue coming for services, I guess 10 by 10 by 10 (multiple speakers). I mean, how do you think -- from your perspective how do you see services becoming a component of this business? You've talked about it being sort of [5.3]% right now.

Question: Phil Winslow - Credit Suisse - Analyst : I think somebody has pressed you on that one before.

Question: Phil Winslow - Credit Suisse - Analyst : Just along those same lines of sort of the SAS topic here, Google buying, Postini, what effect do you think that has on the Brightmail business? Is that something that you can also see offering as a service? What do think sort of Google's end game is here with the Postini now inside that company?

Question: Phil Winslow - Credit Suisse - Analyst : Okay, just getting back to one of the [comments] that you mentioned just the ERP and sort of the systems and on the licensing issues that you've gone through and also may be sort of the reseller support. I heard things about that waiting on the phone for an hour. I wonder if we could -- if you could give us an update sort of where you stand on the effects on the ERP system, the lights on the new portal, but also just the channel and phone support? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. SEPTEMBER 12, 2007 / 4:00PM, GEN.OQ - Symantec at Credit Suisse Technology Summit

Question: Phil Winslow - Credit Suisse - Analyst : Okay. And also we talked a little bit about the sort of channel oriented and now just thinking about sort of the direct sales force that Symantec does have. I'm wondering if you could talk about just sort churn that you have been seeing and obviously they were sort of very [high posts], Veritas, and just what they have gone down to. But also from a productivity standpoint, bang for your buck out of that headcount, has -- is that sort of anything bottomed out and maybe starting to potentially trend higher?

Question: Phil Winslow - Credit Suisse - Analyst : Okay. Also when you do look at your sales force right now, I mean a lot of things -- has been talked about just sort of compensation structure the old Veritas model, sort of (inaudible) very licensed versus putting maybe more of a subscription and total deal size focus. How are you all structured right now and where are you starting to place more emphasis between those two?

Question: Phil Winslow - Credit Suisse - Analyst : Okay, we just have a couple more minutes, so I was going to pause to see if there is anything from any of the others around the table. Unidentified Audience Member Can you just go through how you feel the inspiration of the disparate sales forces, you talk about how Veritas (inaudible) Symantec sales force or the different sales force, where you are in terms of them learning new products if they would have to cross sell?