Blue Coat Obtains Majority Interest in S7 Software Solutions

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that it has obtained majority interest in S7 Software Solutions Pvt. Ltd., an IT research and development firm based in Bangalore, India. Blue Coat announced its entry into a stock purchase agreement with stockholders of S7 Software on November 5, 2009. Having now obtained a majority interest in S7 Software, Blue Coat can move forward with its plans to turn the Bangalore entity into one of four major product development centers around the world.

“We are pleased to achieve control of S7 Software Solutions,” said Brian NeSmith, president and chief executive officer, Blue Coat Systems. “Moving forward with our plans to establish our new development center in Bangalore will facilitate the expansion of our Application Delivery Network solution portfolio while balancing investment for innovation with higher profitability.”

Blue Coat intends to acquire the remainder of the shares of S7 Software Solutions upon the receipt of regulatory approval by the Indian government.

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Blue Coat Introduces Industry’s First IPv6 Secure Web Gateway Solution

Blue Coat Systems, Inc., the technology leader in Application Delivery Networking, today introduced the industry’s first IPv6 secure Web gateway solution to enable the secure and seamless migration of applications, services and content between IPv4 and IPv6 environments. As a secure IPv6 application migration platform, the Blue Coat® ProxySG® appliance enables enterprises, government agencies and service providers to reduce costs and increase efficiencies by leveraging the technology advantages of IPv6.

“While the network infrastructure to support IPv6 is largely built out, Blue Coat is the first to provide a solution that will smoothly migrate existing Web sites and services to IPv6 without affecting the performance of those services,” said Katsuyasu Toyama, director and general manager of the technology department at INTERNET MULTIFEED CO., a pioneer of Internet data center services in Japan and a leading provider of Internet Exchange services through its Japan Network Access Point (JPNAP®). “The Blue Coat solution reconciles IPv4 and IPv6 to make large-scale Web sites with complex content available to all users regardless of the domain they access content from.”

In the Blue Coat IPv6 secure Web gateway solution, the ProxySG appliance acts as an intelligent intermediary between requests and content, making the retrieval of applications, services and data in either an IPv4 or IPv6 environment transparent to users. To minimize network disruption and simplify the migration, Blue Coat ProxySG appliances consistently enforce corporate IT policies across IPv4 and IPv6 applications and content spaces. This provides business process continuity without the complications associated with address translations, rewriting applications or upgrading the underlying network infrastructure.

By enabling the seamless deployment of IPv6, the Blue Coat solution frees organizations from the confines of IPv4 and allows them to begin deploying and utilizing IPv6 applications over their existing network infrastructure. Support for a mixture of IPv4 and IPv6 applications on the same infrastructure enables organizations to realize the technology advantages of IPv6 without disrupting business-critical processes.

“The Blue Coat migration platform permits IPv4 and IPv6 to co-exist in the same infrastructure with little or no incremental overhead on existing clients, empowering organizations to leverage the best of both technologies simultaneously,” said Qing Li, chief scientist and senior technologist at Blue Coat Systems. “By bridging the applications and services gap between the two domains, the Blue Coat solution affords organizations the same level of visibility, acceleration and security regardless of whether the content is delivered over IPv4 or IPv6.”

The Blue Coat IPv6 secure Web gateway solution is built into SGOS 5.5 and is available immediately. It is available at no extra cost to customers with service contracts.

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Blue Coat Expands K9 Web Protection to Windows 7

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today expanded its free K9® Web Protection software to include support for the new Windows 7 operating system, providing families with an easy-to-use tool for blocking objectionable Web content, such as pornography, and Web-based threats like phishing and malware.

In addition to support for the 32-bit and 64-bit versions of Windows 7, K9 Web Protection also supports the Windows XP and Vista operating systems, as well as Mac OS X. Blue Coat K9 Web Protection is available at no cost at www.getk9.com.

“With the escalating growth of dynamic Web-based threats and the proliferation of new content, it is critical that families have an Internet security solution that provides continuous protection without requiring downloads or other updates,” said Mikko Valimaki, chief scientist at Blue Coat Systems. “K9 Web Protection utilizes the same real-time categorization and ratings technologies that we provide to the world’s most demanding enterprises in a free, easy-to-use consumer application.”

K9 Web Protection works in conjunction with the Blue Coat WebPulse™ service, a cloud-based collaborative defense that provides on-demand security intelligence about emerging threats and unknown content. WebPulse builds industry-leading awareness of known and unknown Web content with more than 62 million users worldwide to provide continuous protection against emerging threats. Families using K9 Web Protection benefit from the shared intelligence of WebPulse.

With the on-demand intelligence of K9 Web Protection, parents can protect their children from inappropriate or malicious content while allowing acceptable content. For example, K9 Web Protection can block a malicious link that has been posted on a social networking site with compromised login credentials while providing access to the rest of the content on that site.

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Land Bank of the Philippines Speeds Delivery of Applications to 36 Branches

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that Land Bank of the Philippines (LANDBANK), the official depository of the Philippines and the country’s largest formal credit institution in rural areas, has deployed Blue Coat® ProxySG® appliances in 36 branches across the Philippines to speed the delivery of key business applications and improve customer experience.

“Many of our branches are located in remote areas with limited bandwidth, yet it is essential that they have uncompromised access to centralized applications that are crucial in providing our customers with consistently high quality service,” said Senior Vice President, Alan Bornas. “With Blue Coat appliances, we are now managing our applications to effectively utilize available bandwidth and accelerate response time to our branches. As a result, we can provide faster transaction processing for our customers and a better, more responsive experience.”

With a network of branches spanning the Philippines archipelago, optimizing and securing the delivery of applications can be challenging. Prior to deploying Blue Coat ProxySG appliances, LANDBANK used Web-based applications for local branches with limited wide area network (WAN) bandwidth or VSAT satellite communications systems.

Blue Coat ProxySG appliances combine protocol optimization, caching and compression techniques to optimize the delivery of business applications over the limited bandwidth that is available to most of LANDBANK’s remote offices. Additionally, the ProxySG appliances enable LANDBANK to manage and control recreational or less time-sensitive applications. By reclaiming bandwidth from non-business applications, LANDBANK is both optimizing its existing bandwidth and further improving the delivery of business-critical applications.

“Blue Coat appliances speed application delivery while reducing bandwidth consumption, so employees at remote locations enjoy nearly the same performance level as employees at LANDBANK’s corporate headquarters,” said Matt Young, vice president of Asia Pacific, Blue Coat Systems. “For LANDBANK, it means that business runs faster and more efficiently with lower WAN costs, and for customers, it means a better customer service experience.”

LANDBANK is a government financial institution that now ranks among the top five commercial banks in the country in terms of deposits, assets, loans and capital. From its initial role as the financing arm of the agrarian reform in the Philippines, LANDBANK has evolved into a full-service universal bank while meeting the needs of those residing in the countryside.

WAN optimization is a fundamental technology of the Blue Coat Application Delivery Network infrastructure, which combines visibility, acceleration and security to optimize and secure the delivery of applications across the distributed enterprise.

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Blue Coat Leads Content Security Gateway Appliance Market for 11th Quarter

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that it continued to lead the worldwide content security gateway appliance market for the third calendar quarter of 2009, according to the most recent market share report released by Infonetics Research. Blue Coat increased its market share in the third quarter to 23.8 percent, extending its market leadership for the 11th consecutive quarter.

“Blue Coat continues to bring technological innovation to the market quarter after quarter to better protect users from emerging and evolving Web-based threats,” said Bethany Mayer, senior vice president of worldwide marketing and corporate development at Blue Coat Systems. “The industry-leading Web awareness and on-demand security intelligence offered by Blue Coat solutions provide enterprises with seamless protection and underscores why we remain the market leader.”

According to Infonetics, the Content Security Gateway Appliance market is expected to grow from $1.2 billion in 2009 to $1.9 billion in 2013. During that same period, Infonetics projects that the Web/malware appliance segment of the market will grow 60 percent from $650 million to $1.03 billion.

The Blue Coat Secure Web Gateway solution uses a hybrid architecture that combines presence at the corporate Web gateway with a collaborative cloud defense and protection for remote users to deliver on-demand security intelligence. By uniting 62 million users in the Blue Coat® WebPulse™ service, the Blue Coat solution delivers industry-leading Web awareness and extensible defenses that provide seamless protection for customers without the need for patches or updates.

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Blue Coat Maintains Lead in WAN Optimization Market

Blue Coat Systems, Inc. , the technology leader in Application Delivery Networking, today announced that it continued its lead in the Wide Area Network (WAN) optimization market for the first three calendar quarters of 2009, according to the latest market share report from Infonetics Research.

“Our market share validates the strength of Blue Coat’s approach to WAN optimization, which is to accelerate only relevant, business-critical applications while mitigating the impact of unwanted or recreational applications and stopping malicious ones,” said Bethany Mayer, senior vice president of Worldwide Marketing and Corporate Development. “Blue Coat appliances deliver intelligent acceleration that enables enterprises to optimize their WANs according to their business priorities, while lessening the need for additional investments in bandwidth.”

Infonetics Research forecasts that the WAN optimization appliance market will grow by 50 percent over the next three years, from 932 million in 2009 to $1.5 billion in 2013.

WAN optimization is a foundational technology in the Blue Coat Application Delivery Network (ADN) infrastructure. By combining visibility, acceleration and security technologies, the Blue Coat ADN infrastructure enables network managers to optimize and secure the delivery of applications across the extended enterprise.

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Blue Coat Announces Employee Inducement Award

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today reported that on December 2, 2009, it awarded restricted stock units covering 33,350 shares to Gordon C. Brooks, who joined the Company as senior vice president and chief financial officer in September. This award was made in accordance with the terms of his initial offer letter with the Company. The restricted stock units vest in equal annual installments over four years, with the first annual installment vesting on December 15, 2010.

In accordance with NASDAQ Listing Rule 5635(c)(4), the award was not made under a stockholder approved equity incentive plan. NASDAQ rules require a public announcement of equity awards that are not made under a stockholder approved plan. The foregoing award was approved by Company’s Compensation Committee in accordance with the provisions of the Company’s Equity Award Policy.

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Blue Coat to Hold Analyst/Investor Meeting

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, will hold a meeting for financial analysts and institutional investors at the San Mateo Marriott in San Mateo, Calif., from 1:00 p.m. to 5:00 p.m. PT on Monday, December 7, 2009. Presentations by senior executives will provide insight into Blue Coat’s vision and strategies, product offerings, sales and marketing, financial highlights and recent restructuring program.

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Blue Coat ProxySG Achieves Industry’s First FIPS 140-2 Certification

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that its Blue Coat® ProxySG® appliances and SGOS 5.3 operating system have achieved Federal Information Processing Standard (FIPS) 140-2 certification. The Blue Coat ProxySG appliances are the first and only Secure Web Gateway appliances that have been FIPS 140-2 certified. Blue Coat has also received ICSA Labs certification for its SGOS 5.3 operating system and its ProxySG appliances are the only Secure Web Gateway appliances that are certified at Common Criteria Evaluation Assurance Level (EAL) 2.

"Blue Coat appliances feature a purpose-built, highly secure operating system and architectural elements that are designed to meet the most rigorous security standards in the world," said Bethany Mayer, senior vice president, Worldwide Marketing and Corporate Development for Blue Coat Systems. “These security certifications underscore our commitment and ability to provide government organizations and enterprises with the high levels of security they require.”

Federal Information Processing Standards are publicly announced standards developed by the United States Federal government for use by all non-military government agencies and by government contractors. FIPS 140-2 covers the secure design and implementation of a cryptographic module, including roles, services, and authentication; physical security; operational environment; cryptographic key management; electromagnetic interference/electromagnetic compatibility; self-tests; design assurance; and mitigation of other attacks.

In addition to achieving FIPS certification, Blue Coat has also received ICSA certification for its SGOS 5.3 operating system. ICSA Labs has been providing independent third-party security product testing and certification for 20 years. In the tests, ProxySG appliances running SGOS 5.3 successfully identified and filtered Web traffic according to the configured security policy while keeping end users and the internal network secure from external attack.

Common Criteria is an internationally recognized set of guidelines that define a common framework for evaluating security features and capabilities of information technology security products. To achieve a particular EAL, the computer system must meet specific assurance requirements involving design documentation, design analysis, functional testing, or penetration testing.

Customers interested in availability and pricing of FIPS 140-2 certified ProxySG appliances should contact their authorized Blue Coat partner.

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Gammon Construction Deploys Blue Coat Application Delivery Network

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that Gammon Construction Limited (Gammon), one of Asia’s leading construction contractors, has deployed the Blue Coat® Application Delivery Network infrastructure to align its network resources with business requirements across six offices and more than 50 construction sites throughout Southeast Asia.

Last year, Gammon deployed Blue Coat ProxySG® and ProxyAV™ appliances in its Hong Kong headquarters and its regional offices in mainland China, Singapore and Macau to optimize and secure the delivery of business applications to its distributed workforce. In addition to accelerating the delivery of content and applications over the Wide Area Network (WAN) or Internet gateway, ProxySG and ProxyAV appliances also protect against malicious content. Now, Gammon has extended the deployment to include Blue Coat PacketShaper® appliances in its Hong Kong headquarters.

With PacketShaper appliances Gammon has granular visibility into the applications running on its network, in-depth intelligence about those applications and the ability to apply policy-based controls to them. By introducing this level of application accountability, Gammon can now prioritize business-critical or latency-sensitive applications over other applications to speed response times and improve the user experience.

Together, Blue Coat PacketShaper and ProxySG appliances enable Gammon to accelerate applications across the Wide Area Network (WAN) while maintaining visibility into those applications. Legacy WAN optimization products treat all network traffic equally as a single indiscernible block. The integration between the ProxySG and PacketShaper appliances enables Gammon to discover, classify and apply quality of service policies and prioritization to the applications that have been optimized by the ProxySG appliances. This combined ability has reduced Gammon’s bandwidth consumption by 25 percent.

Gammon has also deployed Blue Coat ProxyClient™ software to accelerate the delivery of engineering diagrams and other critical files to remote workers from more than 50 construction sites. ProxyClient provides enforcement of the company’s Internet acceptable usage policy and protection against Web-based threats through the Blue Coat WebPulse™ collaborative cloud defense service regardless of location. All URL requests forwarded by ProxyClient are analyzed and categorized by WebPulse to detect threats and enable the consistent enforcement of corporate IT policies. Policies for ProxyClient are centrally managed from corporate headquarters to reduce management costs and enforce consistent policy compliance across the distributed enterprise.

“With a distributed workforce, protecting our employees and improving the delivery of critical applications requires centralized policies that can be implemented and enforced across all regional offices and remote workers,” said Horace Chu, Head of Information Management Services at Gammon. “Effective corporate IT policies can substantially reduce bandwidth consumption, and the Blue Coat application delivery solution provides us with the means to control and optimize our network.”

With more than 2,500 employees and six offices throughout Southeast Asia, Gammon is one of the largest construction contractors in the region and manages a wide range of projects, including commercial and residential properties, retail shopping malls, hotels and recreational facilities, railway, roads and bridges, logistics and underground projects.

“Gammon’s ongoing investment in the Blue Coat Application Delivery Network infrastructure validates the competitive advantages that the combination of visibility, acceleration and security technologies can bring to a distributed enterprise,” said Matt Young, vice president of the Asia Pacific region for Blue Coat Systems. “As Gammon continues to strive for operational excellence, the Blue Coat infrastructure will provide an enabling foundation that will allow the company to implement more efficient business processes, deliver new applications and maximize the return on networking investments.”

The Blue Coat Application Delivery Network infrastructure combines the visibility, acceleration and security technologies that enable distributed enterprises to align network and application resources with business requirements.

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Blue Coat Reports Financial Results for Second Fiscal Quarter Ended 10-31-2009

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today reported its financial results for its second fiscal quarter ended October 31, 2009. Total net revenue for the second quarter of fiscal 2010 was $120.4 million, an increase of 1% compared with net revenue of $119.0 million in the second quarter of fiscal 2009, and an increase of 4% compared with net revenue of $116.0 million in the first quarter of fiscal 2010.

“I am very pleased with Blue Coat’s financial performance in the second quarter, and believe it further validates that our unique Application Delivery Network strategy is resonating strongly in the market,” said Brian NeSmith, president and chief executive officer, Blue Coat Systems. “In the quarter, we experienced solid sequential revenue growth in North America and in Europe. We saw strong demand in both the U.S. Federal and enterprise segments of our business for Application Delivery Network solutions, which help contain network and bandwidth costs, enhance business productivity, and mitigate exposure to evolving threat environments.”

On a GAAP basis, the Company reported net income of $8.4 million, or $0.19 per diluted share, in the second quarter of fiscal 2010, compared with net loss of $0.3 million, or $(0.01) per diluted share, in the second quarter of fiscal 2009, and net income of $4.0 million, or $0.09 per diluted share, in the first quarter of fiscal 2010.

The Company reported non-GAAP net income of $13.1 million, or $0.29 per diluted share, in the second quarter of fiscal 2010, compared with non-GAAP net income of $11.6 million, or $0.27 per diluted share, in the second quarter of fiscal 2009, and non-GAAP net income of $10.1 million, or $0.23 per diluted share, in the first quarter of fiscal 2010.

“Blue Coat’s second quarter results featured strong improvement in operating profitability, which is an important initiative for the company in Fiscal 2010,” said Gordon Brooks, senior vice president and chief financial officer, Blue Coat Systems. “In the quarter, our non-GAAP operating margin percentage increased sequentially 300 basis points to 15.5% compared with 12.5% in the prior quarter. This improvement further highlights our commitment to increasing operating profitability.”

Non-GAAP net income excludes charges related to the fair value write-up of acquired inventory sold, stock-based compensation expense, amortization of intangible assets, expenses for matters related to the stock option investigation, and restructuring expenses, and assumes a long-term effective tax rate of 30% on non-GAAP pre-tax income. A discussion of non-GAAP financial measures is provided under the section “About Non-GAAP Financial Measures” later in this press release. A detailed reconciliation of the GAAP to non-GAAP financial measures is included in Table 2 of this press release.

The Company ended the quarter on October 31, 2009, with cash, cash equivalents, and restricted cash of $142.5 million, an increase of $19.8 million from the prior quarter. Cash flow provided by operations in the second quarter of fiscal 2010 was $18.2 million.

Financial Outlook
For the third fiscal quarter ending January 31, 2010, the Company currently expects net revenue in the range of $121 to $126 million. On a GAAP basis, the Company currently expects net income of $0.01 to $0.12 per diluted share. On a non-GAAP basis, the Company currently expects net income of $0.31 to $0.36 per diluted share. For the third quarter of fiscal 2010, the Company is assuming a diluted share count of approximately 46.5 million shares. The increased range in GAAP net income per diluted share is due to the variability of the timing of restructuring expenses.

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Campus Veolia Deploys Blue Coat Appliances to Deliver Videoconferencing

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that Campus Veolia, the training centre established by Veolia Environment, has reduced its bandwidth consumption by 40 percent with Blue Coat® ProxySG® appliances and ProxyClient® software. As a result of the bandwidth savings, Campus Veolia can now provide videoconferencing services and broadcast video feeds to its 300 internal and 100 external users.

To gain better control of the applications running on its network, Campus Veolia deployed Blue Coat ProxySG appliances together with Blue Coat WebFilter software to set, enforce and report on network users’ compliance with corporate IT policies across the organization. Campus Veolia also deployed Blue Coat ProxyClient software to extend IT policy enforcement to all of its remote and mobile workers. Using the ProxySG appliance, Campus Veolia can analyze and filter Web traffic, including encrypted traffic, to protect its employees and optimize the delivery of critical business applications.

Following the deployment of the Blue Coat solution, Campus Veolia realized an immediate 40 percent reduction in bandwidth consumption. By blocking Web content and applications that do not comply with corporate IT policies, Campus Veolia optimized the performance of its business applications and significantly improved Web navigation. Campus Veolia also utilized the reclaimed network bandwidth capacity to deploy videoconferencing and broadcast video feeds to its employees.

Fadhil Amina, IT manager at Campus Veolia, commented: “We were attracted to the Blue Coat solution because of the high level of its performance, the flexibility it offered, the quality of its reporting and its granular control.”

With the Blue Coat ProxySG appliances and Blue Coat WebFilter software, Campus Veolia has also fortified its protection against viruses, spyware, malware and other malicious content. The ability to control Web content and applications allows Campus Veolia to proactively prevent malicious content from entering its network. Blue Coat WebFilter software works with the Blue Coat WebPulse™ cloud service, a community watch environment in which the discovery of malware by one member is shared with all, immediately protecting the community from emerging threats.

Campus Veolia uses the Blue Coat Reporter platform to provide a centralized, role-based view of all user activity. The flexible and customizable user interface allows IT managers to easily create and run reports charting cost per bit, user activity and likely malware sites and more. With the visibility into user behavior and network usage provided by the Reporter platform, Campus Veolia can more efficiently optimize its network to meet the changing requirements of its business and employees.

Emmanuelle Ribouleau, Director for Southern Europe at Blue Coat, said: “Blue Coat enables organizations like Campus Veolia to optimize and secure the flow of information, while enabling its network administrators to accelerate the deployment of new services that improve employee productivity. With a combination of Blue Coat products, Campus Veolia gains an understanding of user activity as well as the power to control that activity to increase the performance of its business applications.”

Blue Coat partner DCI managed the implementation and conducted user training to provide rapid time-to-value for Campus Veolia. Encouraged by the positive results of this initial deployment, Campus Veolia now plans to roll out the Blue Coat solution to other sites.

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Blue Coat Advances Hybrid SWG to Provide Enterprises with Threat Protection

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that it is expanding its hybrid Secure Web Gateway solution with new Blue Coat® ProxySG® Series and ProxyAV™ Series appliances, new cloud-based defenses in the Blue Coat WebPulse™ service and extended remote user protection through Blue Coat ProxyClient™ software. These new additions include:

* Blue Coat ProxySG 9000 Series appliances that set a new industry standard for performance
* Blue Coat ProxyAV 1400 and 2400 Series appliances for high performance inline malware scanning
* Enhanced security checks for Web-based threats in the ProxySG family of appliances
* Extensible custom filtering for Blue Coat ProxyClient software
* Additional defenses against Web-based threats added to the Blue Coat WebPulse cloud service

The Blue Coat Secure Web Gateway solution is a scalable, hybrid architecture that combines ProxySG and ProxyAV appliances with ProxyClient software and the cloud-based WebPulse service to provide Web awareness and on-demand intelligence about the latest Web threats across the extended enterprise at a lower total cost of ownership.

Throughput and Performance Scalability without Compromise
The new Blue Coat ProxySG 9000 and ProxyAV 1400 and 2400 appliances connect to the WebPulse collaborative cloud defense service to obtain threat intelligence and Web awareness. Innovations in design and processing for the new ProxySG appliances result in a 5X performance improvement over existing appliances. Additionally, the ProxySG 9000 appliances support a full Gigabit per second of throughput when deployed in high availability configurations, setting a new industry performance standard for gateway appliances. With these advances, the ProxySG and ProxyAV appliances can each scale to support enterprises with 250 to 60,000 users on a single appliance.

Blue Coat has also significantly advanced the threat analysis capabilities in its Secure Gateway Operating System (SGOS) version 5.5, boosting performance by 40 percent across the entire family of ProxySG and ProxyAV appliances and enabling in-depth scanning of suspicious attachments, including compressed files, without compromising performance.

Extensible Management Simplifies Policy Control and Reporting
The Blue Coat Secure Web Gateway solution provides the industry’s only centralized device, license and policy management, simplifying the creation and administration of global IT security policies across the extended enterprise. Security administrators can easily replicate and export policies through the intuitive visual policy manager in Blue Coat Director and make policy changes across the extended enterprise through secure remote access to the management console.

With the addition of identity-based filtering to ProxyClient, the Blue Coat security and application acceleration client software, security administrators can set, enforce and report on unique policies for remote users. This extension of custom filtering policies to remote users delivers protection against Web-based threats and enables compliance, reporting and visibility across the enterprise.

Cloud-Based Defense Eliminates Intrusive Upgrade Cycles
To enable enterprises to keep pace with today’s continually evolving Web-based threat landscape, Blue Coat has added new defenses and enhancements into the WebPulse service, including custom script analyzers, sandboxing, third party feeds, machine analysis and web correlation tools that provide security intelligence for human raters to validate new Web threats and content. With these new defenses, Blue Coat combines industry-leading Web intelligence and expertise with advanced malware detection technologies to identify Web 2.0 threats that utilize dynamic link chains across multiple Websites to evade detection.

WebPulse dynamically analyzes real-time URL requests and immediately shares threat intelligence with more than 62 million users worldwide. With these new additions, WebPulse now utilizes 16 advanced threat analysis technologies to provide continuous protection against Web-based threats. The hybrid architecture of the Blue Coat Secure Web Gateway solution is designed to seamlessly deliver the latest advances in protection without requiring incremental investment at the corporate gateway, software downloads or other update cycles.

Advanced Security Framework at Lower Total Cost of Ownership
The Blue Coat Secure Web Gateway architecture delivers innovations in design, power, scalable defenses and extended service and support to provide customers with long-term protection for their Blue Coat investments and lower operational costs.

“With a collaborative and scalable cloud-based service to deliver on-demand security intelligence, the Blue Coat Secure Web Gateway solution continuously adapts to the dynamic Web-based threat landscape that is challenging legacy security architectures,” said Mikko Valimaki, chief scientist at Blue Coat Systems. “By combining a high-performance Internet gateway appliance with remote user protection and a collaborative cloud environment in a hybrid architecture, Blue Coat provides enterprises with a security foundation that is built to last.”

Blue Coat ProxySG appliances now support up to 60,000 users in a single appliance, reducing required rack space by as much as 30 percent versus competitive offerings. For example, four Blue Coat ProxySG 9000 appliances can support 240,000 concurrent users while a comparable competitive configuration can require more than 90 appliances. The resulting reduction in required rack space for the ProxySG appliances can save enterprises as much as $32,000 per month.

To further reduce operating costs, the Blue Coat ProxySG 9000 appliances feature design-for-the-environment innovations. More efficient power supplies reduce power consumption per Gigabit by 33 percent. Additionally, sensor-controlled variable fans automatically respond to changing appliance temperatures, reducing fan speeds and conserving power when the appliance is not operating at capacity.

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Blue Coat “Scored Strongest” in WAN Optimization Report

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that it has “scored strongest among leaders” in the newly issued November 2009 The Forrester Wave™: WAN Optimization, Q4 2009. According to the report, Blue Coat ”scored strongest” among the eight vendors evaluated in the WAN optimization market.

The report states that Blue Coat appliances are " one of the most user-friendly offerings in this space, with policy and configuration templates and wizards, device auto-discovery, automated device configuration, and an object-oriented or visual policy manager, along with a basic startup time of 66 seconds.” Forrester further states that by “leveraging its PacketShaper product, Blue Coat allows for identification of applications, enhancing the visibility of traffic due to its ability to classify more than 600 applications along with the ability to add classifications for custom applications, defined by the administrator — making Blue Coat a clear leader in application visibility in the WAN optimization market.”

"We believe achieving a leading position in the Forrester Wave™ report, WAN Optimization, Q4 2009 recognizes the unique approach Blue Coat has applied to WAN optimization by first starting with application visibility and then applying acceleration, security or control technologies as appropriate to the nature or business value of the application or content,” said Bethany Mayer, senior vice president, Worldwide Marketing and Corporate Development for Blue Coat Systems. “WAN optimization is no longer about blind, indiscriminate acceleration but, rather, optimizing and securing the flow of information to any user, on any network, anywhere.”

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