Q1 Highlights – Tremendous Momentum Underway

Q1 was the best quarter in the company’s history. Thanks for making me look good in my first quarter in the new role. We achieved balanced growth across all theaters and all segments. In fact, several areas of the business came in ahead of plan, including – Network Security, Application and Change Control and Enterprise Security Manager (fueled by our NitroSecurity SIEM business.)

We’ve also received various industry accolades in Q1, that validate our momentum, including:

• SC Magazine — Best Global Security Company of the Year
• CRN  — Top 20 Coolest Cloud Security Vendors
• CRN — 5-Star Partner Program

The Database Security Market: A Greenfield Growth Opportunity

Mike Fey, our SVP of Advanced Technologies and Field Engineering, pointed out in our Tech Chat that database security will double to a $1.2B market by 2013. Combine that with the fact that more than 90% of all data breaches involve a database, and it is easy to see that together we have a massive opportunity to protect our mutual-customers. We want to help you build or strengthen your database security practice. To build a practice step 1 is to get Risk & Compliance certified by logging into our Partner Portal and going to our new Partner Learning Center. To strengthen your practice I highly recommend checking out our database security sales play, which you can access by logging into our Sales and Marketing Portal. And be on the look out for a database security ACE in July.

Key Priorities for Q2: Build Your Expertise, Amplify Your Value

Become a trusted advisor to your customers by building your expertise and amplifying your value through these resources:

• VSKO – Take advantage of these online sales resources to grow your product and sales expertise. Complete a Sales Play and learn how to sell more while demonstrating value.
• Accredited Channel Engineer Program (ACEs) – Our data shows that, together, we have won business deals about 90% of the time when ACE Proof-of-Concepts (POCs) have been completed. Over 200 POCs were completed or in progress by our partners in Q1.  Our goal is to continue to have partners deliver more POC’s without the help of a McAfee SE.
• Capture the SMB Opportunity – SMB represents a significant growth opportunity (nearly $7.5 billion by 2015).  To help motivate you to go after that SMB market, we are doubling the rewards points in our SMB program, under TSB, TSA, and STP suites.
• Win Great Prizes with the Rewards Extravaganza – Every deal you book in the Commercial and SMB segments makes you eligible for great prizes, including our grand prize drawings in Q3–$20,000 SMB Extravaganza and $25,000 for Commercial Extravaganza.

Finally, our Partner Summit will take place October 23-25 in Las Vegas. More details to follow, but please save the date, as I look forward to seeing you there in person.

Good selling!

The momentum we are building together already encourages me, especially when you consider our recent industry accolades. In Q1 we garnered two industry awards from CRN – McAfee placed on the Top 20 Coolest Cloud Security Vendors list and we earned the coveted 5-Star Partner Program Award, which is based on our level of commitment to the channel, breadth of program offerings and services offered to partners. Both of these awards put McAfee in exclusive company and are a testament to our hard work and commitment to deliver superior products and programs that drive mutual success.

As we kick off Q2, we continue to focus on driving mutual profitability by investing in, growing with, and optimizing for you. I want to quickly highlight a few areas we are investing in to help fuel growth in Q2:

• SMB — We see an enormous growth opportunity in the SMB market. With this in mind we have made an investment in our SMB Rewards Program; SMB Extravaganza, as much as quadrupling our payout on 1-250 nodes of TSA, TSB and STP products. Yes, you can earn $2/node you sell! Log on to McAfee Rewards to get started.
• Commercial – This is another market opportunity where together I see tremendous growth potential. To help compensate you for driving McAfee sales in this market we more than doubled our Commercial Rewards; McAfee Extravaganza, payout on 251-1000 node deals that include EPA, STP, TSA and TEB products.
• Partner Enablement – In Q1 we announced the evolution of our partner enablement strategy, unveiling the McAfee Partner Learning Center, our new continuing education approach to maintaining annual certifications and our first continuing education learning module; the 2012 Virtual Sales Kickoff. I encourage all of our partners to login to our partner portal and access informative “Sales Plays”. Not only is it fresh and valuable content, participating allows you to earn credits toward your annual certification.

In closing, I wanted to remind you that our next Town Hall meeting is Thursday, May 3^rd where  we will feature McAfee Co-President, Mike DeCesare as well as  McAfee SVP, Advanced Technology and Field Engineering, Mike Fey, who will outline our market opportunity in Database Security. Please mark your calendars for this important webcast.

Welcome to Q2 and good selling.

As I outlined during the meeting, I’m excited about the opportunities in front of us in 2012, especially in Commercial and SMB, where our goal, together with you, is to drive double digit growth in each of these markets.

To capture these opportunities, we’re focused on transforming our engagements with you to strengthen relevancy and drive our mutual profitability. To achieve this transformation we’re focused on 3 key pillars:

• Invest – we will continue to make key investments in the channels: We have made a massive investment in partner enablement. Our new, more robust Partner Learning Center is paramount to our ability to evolve to a continuing education approach and allows us to reward you for broadening and deepening your McAfee knowledge.
• Grow – you are how we accelerate growth: We see explosive growth in the SMB market and want to encourage you to become SMB Specialized today.
• Optimize – we are committed to improving our partner engagement: The PARC (Partner Acceleration Resource Center) is a perfect example for how we are optimizing our engagement with you in the SMB space.

Learn more about how we’re driving these three key pillars with you by watching the Q1 Town Hall recording.

As we settle into Q1, here are some specific areas I believe can help us jumpstart our year together:

• Deal Registration & Protection
  Register your deals and expand your margins!
• Rewards Extravaganza
  We’ve made a significant investment for 2012 to reward your teams for accomplishments in both SMB and Commercial. Sign up and start cashing in.
• Make ACE (Accredited Channel Engineer) Count
  Your ACE team members are a key differentiator for your business. Through ACE you can develop hands-on technical skills and deliver proof-of-concepts that will help you demonstrate additional value to our mutual customers.
• Virtual Sales Kickoff – February 15
  Mark your calendar for this unique opportunity to hear about our growth strategies for 2012 via the Virtual Sales Kickoff 2012, our first continuing education learning module.

This coming year is full of great growth opportunities for us, however, we cannot achieve our full potential without solid execution and working TOGETHER!

Our Go-to-Market strategy and segmentation remains unchanged from 2011, so I encourage you to make a decision for McAfee, identify the areas you want to play in, engage our resources and programs, and become a trusted security advisor for our customers. Together, we can make our vision for 2012 a reality!

Good selling,