ArcSight Maintains Leading Market Share in Security Information and Event Management According to Data From Leading Analyst Firm

Market Wire, January, 2007

ArcSight, Inc., a leader in Network and Security Information Management solutions, today announced that it continues to maintain the highest market share of the Security Information and Event Management (SIEM) software market, according to market share data published by IDC, an IT market research and advisory firm. The SIEM market is expected to grow from $379.8 million in 2006 to $873.2 million in 2010, a compound annual growth rate (CAGR) of 25.2% (Source: IDC, Worldwide Security and Vulnerability Management Software 2006-2010 Forecast and Analysis: Managing Security Knowledge and Control, December 2006).

The IDC report provides sizing of the security and vulnerability management (SVM) software market, of which the SIEM market is the largest segment, which is projected to continue to at least 2010. The report currently forecasts that the SVM software market will increase at a 16.7% CAGR and reach $3.4 billion in 2010. The report also projects that by the end of the forecast period three submarkets, policy and compliance, SIEM, and patching and remediation, will each exceed half a billion dollars in vendor revenue.

"We believe our leadership in the SIEM market is validation of our mission to deliver innovative technology to support the evolving needs of our commercial and government customers," said Hugh Njemanze, CTO and EVP of Research and Development at ArcSight. "This mission has led us to the recent delivery of our first appliances for high performance log management, as well as network response and configuration management. We are expanding the value of our solutions in IT security operations to network operations, as we strive to provide them with the same benefits from leveraging network data to improve and streamline their operations."

"The SIEM market is one of the three fastest growing markets in the security and vulnerability management software space and our research shows that ArcSight has the largest market share," said Rose Ryan, J.D., research analyst, security products and services at IDC. "We will be watching ArcSight in 2007 with its recent release of a log management appliance, as well as network response and network configuration management appliance designed for network operations."

For more information on the IDC Worldwide Security and Vulnerability Management Software 2006-2010 Forecast and Analysis: Managing Security Knowledge and Control, December 2006, please visit http://www.idc.com .

About ArcSight

ArcSight, a leader in Network and Security Information Management, delivers mission-critical solutions for security, network and IT operations that enable enterprises to turn operational data into action. ArcSight solutions address today's complex enterprise networks that span multiple organizations and corporate business initiatives. By comprehensively collecting, analyzing, managing and responding to security and network data, ArcSight solutions mitigate information risk for real-time threat management, compliance reporting and automated network response. ArcSight's customer base includes leading global enterprises, government agencies and MSSPs.

ArcSight and the ArcSight logo are trademarks of ArcSight, Inc.

Contact Information: Erin O'Keeffe Horn Group for ArcSight 415-905-4005 eokeeffe@horngroup.com