UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2003
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from to
Commission File Number 000-30093
Websense, Inc.
(Exact name of registrant as specified in its charter)
Delaware |
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51-0380839 |
(State or other jurisdiction of incorporation or organization) |
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(I.R.S.Employer Identification Number) |
10240 Sorrento Valley Road
San Diego, California 92121
858-320-8000
(Address of principal executive offices, zip code and telephone number)
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Common Stock $0.01 par value (Title of class)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. (1) Yes ý No o (2) Yes ý No o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ý
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12(b)-2): Yes ý No o
The aggregate market value of the voting stock held by non-affiliates of the registrant, as of June 30, 2003 was approximately $303 million (based on the closing price for shares of the registrant’s Common Stock as reported by the Nasdaq National Market for that date). Shares of Common Stock held by each officer, director and holder of 10% or more of the outstanding Common Stock have been excluded in that such persons may be deemed affiliates. Exclusion of shares held by any person should not be construed to indicate that such person possesses the power, direct or indirect, to direct or cause the direction of management or policies of the registrant, or that such person is controlled by or under common control with the registrant.
The number of shares outstanding of the registrant’s Common Stock, $.01 par value, as of February 29, 2004 was 22,841,938.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the definitive Proxy Statement to be delivered to stockholders in connection with the Annual Meeting of Stockholders to be held June 2, 2004 are incorporated by reference into Part III.
Certain exhibits filed with the registrant’s prior registration statements and forms 10-K are incorporated herein by reference into Part IV of this Report.
Websense, Inc.
Form 10-K
For the Fiscal Year Ended December 31, 2003
TABLE OF CONTENTS
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Business................................................................................................................................................................ |
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Properties.............................................................................................................................................................. |
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Legal Proceedings................................................................................................................................................ |
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Submission of Matters to a Vote of Security Holders......................................................................................... |
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Market for the Registrant’s Common Equity and Related Stockholder Matters.................................................. |
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Selected Financial Data........................................................................................................................................ |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations.............................. |
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Quantitative and Qualitative Disclosures About Market Risk............................................................................. |
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Financial Statements and Supplementary Data.................................................................................................... |
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure….......................... |
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Controls and Procedures....................................................................................................................................... |
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Directors and Executive Officers of the Registrant.............................................................................................. |
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Executive Compensation...................................................................................................................................... |
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters............ |
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Certain Relationships and Related Transactions.................................................................................................. |
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Principal Accountant Fees and Services............................................................................................................... |
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Exhibits, Financial Statement Schedules, and Reports on Form 8-K................................................................... |
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Signatures............................................................................................................................................................. |
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This report on Form 10-K may contain “forward-looking statements” within the meaning of the federal securities laws made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which represent our expectations or beliefs concerning various future events, may contain words such as “may,” “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” or other words indicating future results. Such statements may include but are not limited to statements concerning the following:
• anticipated trends in revenue;
• growth opportunities in domestic and international markets;
• customer acceptance and satisfaction with our products;
• expected trends in operating and other expenses;
• anticipated cash and intentions regarding usage of cash;
• changes in effective tax rates; and
• anticipated product enhancements or releases.
These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this report. We assume no obligation to update any forward-looking statements to reflect events or circumstances arising after the date of this report.
You should carefully review and consider the various disclosures in this report regarding factors that could cause actual results to differ materially from anticipated results, including those factors under the caption “Risks and Uncertainties” under Item 7 below, and elsewhere in this report.
Item 1. Business
Overview
We provide employee Internet management (EIM) products that enable organizations to analyze, report and manage how their employees use computing resources, including Internet access, instant messaging (IM), peer-to-peer file sharing, network bandwidth and desktop applications. Our primary product offering is the Websense Enterprise® software application, our central policy engine and management console. Websense Enterprise gives businesses the ability to improve employee productivity, conserve network bandwidth, mitigate potential legal liability, and enhance network security by identifying potential risks and rapidly configuring and implementing policies to manage their employees’ Internet access and use of software applications. Websense Enterprise also serves as a platform for related Websense add-on modules, such as Client Application Manager™, Bandwidth Optimizer™, Instant Messaging (IM) Attachment Manager™, and Client Policy Manager™, and supports a variety of reporting options that allow organizations to document patterns of employees’ use of computing resources.
Our flexible software applications operate in conjunction with our proprietary databases to manage employee access to websites, employee use of network bandwidth, and employee software application use at the desktop. They operate at three primary points of policy enforcement: the Internet gateway, the network and the employee desktop. Our databases, including website URLs, commonly used network and Internet protocols, software applications, and other executable files, are available for daily differential downloads. The Websense URL database is organized into more than 90 categories and encompasses more than 5.5 million websites as of December 31, 2003, representing more than one billion
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webpages. The software application database has classified over 250,000 software executable files in more than 50 categories. Our databases are updated each business day using a proprietary process of automated content assessment and classification, with manual verification.
Websense Enterprise and the add-on modules are easy to deploy and use. Our products are integrated with a wide range of network access platforms, including market-leading firewalls, caching appliances, proxy-servers, switches, routers and other network appliances, and can scale with our customers’ needs to serve an unlimited number of users across multiple locations.
We currently operate in one industry segment, as defined by generally accepted accounting principles.
Our business was incorporated in 1994 as NetPartners Internet Solutions, as a reseller of computer network security products. In 1996, we released Websense Internet Screening System, our first product as a software developer. In 1999, we released Websense Enterprise Version 4, a redesigned version of our software, and changed our name to Websense, Inc. to reflect the shift in our business focus from a value-added reseller of network security products to a developer of EIM software solutions. The newest generation of our EIM software, Websense Enterprise Version 5, was released in March 2003. Our principal offices are located at 10240 Sorrento Valley Road, San Diego, CA 92121.
Industry Background
As a highly flexible network capable of carrying almost any type of digital traffic, the Internet continues to evolve as a critical business tool and an important communications and commerce platform for enterprises worldwide. As part of their overall business strategies, many organizations are using the Internet to enable business applications that are accessed over their corporate networks. Companies utilize the Internet to optimize their extended supply chains, automate their sales forces, track shipments and communicate with employees, customers, partners and suppliers. Due to the efficiencies, cost-savings and competitive advantages that can be gained by leveraging the Internet, many businesses are continuing to build out their computer networks and information technology infrastructure. In order to accommodate a significant number of simultaneous users and the increasing volume of data transfer associated with enterprise Internet use, many organizations continue to make substantial investments in wide-bandwidth connections such as dedicated T-1 lines, enabling high-speed Internet access.
The Internet has also become a highly popular consumer medium for communication, entertainment, information and commerce. Market research firm International Data Corp. (IDC) has projected that the number of corporate Internet users worldwide will grow from an estimated 250 million in 2002 to more than 449 million in 2006. This rapid adoption of the Internet has been accompanied by remarkable growth in the number of consumer-oriented content and commerce websites and by an expanding assortment of Web-based consumer services and applications. Internet users today have the ability to communicate through e-mail and instant messaging, retrieve news and information from numerous Internet sources, download music, movies and other high-bandwidth content, share files over peer-to-peer networks, make online purchases of goods and services ranging from books to airline tickets, and generally access a broad range of non-business content and commerce websites. As the rapid evolution of Internet technology and Web content continues, the amount and types of data, as well as the way people access it, has increased, creating growing challenges for employers.
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Internet access in the workplace is fast, convenient and essentially free to employees. According to recent data from Internet research firm ComScore Networks, only approximately 28 percent of people accessing the Internet from home use a high-speed connection, compared to 87 percent at work. Therefore, in general, employees enjoy quicker and relatively unrestricted Internet access from their work desktop computers. As a result, many employees use their employers’ computing resources for recreational “web surfing,” peer-to-peer file sharing, downloading of high-bandwidth content, instant messaging and other personal matters during business hours. However, this unmanaged non-business use of company computing and network resources, including Internet access, can result in increased risk and cost to the employer, including lost employee productivity, increased network bandwidth consumption, increased network security risks, and potential legal liability. Additionally, an employee’s use of websites that offer free software downloads, pirated software and peer-to-peer applications may introduce spyware and other malicious code to the employee’s desktop and to the corporate network, placing valuable corporate data at risk. In recent years, the rapid rise in the use of instant messaging and peer-to-peer file sharing in the workplace has created new conduits for viruses and malicious code that bypass traditional network security measures. All of these factors can contribute to higher costs for companies that make computing and network resources available to their employees.
Businesses are increasingly recognizing the multiple risks and hidden costs associated with personal Internet and computer use in the workplace. For example, recent studies indicate that as many as nine out of 10 desktop computers are infected with spyware. Additionally, 45 percent of businesses in a 2003 FBI survey detected unauthorized access to corporate data by inside employees. According to a study we commissioned with Harris Interactive, more than 75 percent of mid- to large-sized companies surveyed had reprimanded or disciplined employees for Internet misuse while at work with nearly half of those companies having also terminated employees for inappropriate Internet activity.
Traditionally, employers have attempted to mitigate the legal liability, productivity and bandwidth waste risks through written policies governing acceptable employee use of computing resources, and they have sought to protect against security risks with a combination of external firewalls and anti-virus software. With the growth in multi-media content, the proliferation of blended viruses and the rapid increase in employee use of instant messaging and peer-to-peer file sharing, employers are finding that these measures are increasingly inadequate. Written Internet access and software application use policies are easily ignored, difficult to enforce and often require manual review of log files, which is both cumbersome and time-consuming. Because this method of enforcement does not proactively curtail undesirable Internet and software application usage, employers are forced to take potentially costly disciplinary actions after the fact. Firewalls can provide protection against external threats such as hacking, but do little to prevent employees from accessing unauthorized data from within an organization. Anti-virus software provides protection from e-mail borne viruses, but does not prevent the possible theft or corruption of corporate data by spyware and offers only limited protection against viruses that proliferate via peer-to-peer networks and instant messaging.
To address these problems, businesses are recognizing the need for a proactive approach to managing employee use of the Internet and computing resources, as well as the need to layer security and policy enforcement measures across multiple network access points, including the Internet gateway, the internal network infrastructure, and employees’ desktops. In the past, many businesses have sought products that enable them to proactively manage their employees’ Internet access through filtering of URLs. Early Internet filtering software for the enterprise was largely derived from products that were originally
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developed to help parents prevent their children from accessing adult content at home or in schools, and used keyword matching and dynamic page review to block content. These products, and other more recent products, are limited to filtering of website URLs and do not address the evolving nature of Internet use with the accompanying rise in the use of instant messaging and peer-to-peer file sharing. Additionally, they typically lack the ability to meet the needs of growing organizations, cannot operate on multiple network platforms, do not provide the flexibility required by management and can be labor-intensive to deploy, consuming valuable information technology resources. Moreover, these applications generally do not operate in conjunction with a comprehensive database that is consistently refreshed and as effective.
Workplace management of non-business-related use of computing resources and Internet access is an increasingly important priority because of its impact on employee productivity, network bandwidth consumption, network and data security and potential legal liability. Given the necessity of corporate Internet access and consumers’ continuing adoption of the Web as a mass communication, entertainment, information and commerce medium, we believe there is a significant opportunity for an employee Internet management solution that effectively addresses the needs of businesses to manage employee usage of the computing environment, including Internet access and desktop application use. Additionally, although the Web and e-mail are the primary drivers of Internet traffic today, the rapid emergence of Internet-enabled applications creates the need for software that applies management policies to file types, applications, and protocols, as well as Web pages, at multiple points on the network. Software tools are needed to implement policy-based bandwidth management and regulation of applications such as instant messaging, peer-to-peer file exchange tools, interactive games and desktop software applications. These solutions must also be adaptable enough to manage new applications and technologies as they are developed.
Our Employee Internet Management Solutions
We provide EIM products that enable businesses to analyze, report, and manage how their employees use the Internet, the network and their desktop computers. Our primary product is Websense Enterprise, a software application and database package that gives business managers the ability to implement customized Internet access and use policies for different users and groups within the business, and supports an organization’s efforts to improve employee productivity, conserve network bandwidth, enhance network security, and mitigate potential legal liability. Websense Enterprise also serves as a policy platform and management console for related add-on modules. Websense Enterprise and the add-on modules are sold on a subscription basis.
The application component of Websense Enterprise allows managers patented flexibility to select the types of Internet content and applications they wish to allow, block or continue access to based on the database categories we have defined. Our software enforces these managerial selections at the Internet gateway, on the network, and at the desktop by comparing website and application launch requests with management-defined policies and the URLs, applications and protocols we have categorized in our databases.
The add-on modules extend and enhance the policy enforcement capabilities of Websense Enterprise to the network and to the employee’s desktop computer. Client Application Manager installs an agent on the employee’s desktop that allows managers to apply block, continue, and allow policies to the launch of more than 50 categories of software applications and executables, including business productivity, instant messaging, peer-to-peer file sharing, games and hacking applications. Client Application Manager compliments existing network and desktop security measures by blocking the launch of malicious applications at the desktop, such as hacking tools, keystroke loggers, spyware and worms. The functionality of Client Application Manager will be enhanced through the planned release of Client Policy Manager in May 2004. Bandwidth Optimizer utilizes a network agent to monitor and manage network traffic, allowing managers to create Internet use policies that disable non-business related traffic when available network bandwidth drops
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below pre-determined thresholds. IM Attachment Manager enhances the built-in instant messaging management capabilities of Websense Enterprise by allowing managers to control the sending and receiving of file attachments. All of these add-on modules are enabled and managed from the central management console of Websense Enterprise.
The principal benefits of our products include:
Enhanced Network and Data Security. Websense Enterprise adds an additional layer of protection to an organization’s network and data security by blocking employee access to security-risk sites such as those containing malicious mobile code or spyware. This allows an organization to proactively reduce the risk of malicious mobile code attacks - such as Web-based worms, viruses, Visual Basic scripts and more – and prevent back-channel communication of important corporate or personal data by spyware programs. Additionally, Client Application Manager can be used to prevent the launch of viruses, hacking tools, peer-to-peer file sharing programs and other malicious executable files or otherwise unauthorized applications at the employee’s desktop or laptop computer, including when disconnected from the network, preventing the spread of viruses throughout the network and reducing the risk of unauthorized data access by employees.
Increased Employee Productivity. Our software gives businesses the ability to more effectively manage employees’ use of corporate computing resources, including Internet access, application use at the desktop and network bandwidth, thereby reducing non-productive use of these assets by employees. Websense Enterprise enables organizations to identify the pattern and scope of employees’ Internet use, and to manage access to non-business related content and applications such as instant messaging and peer-to-peer file sharing. In addition, our software allows managers to permit or deny Internet access based on the employee, type of user, time of day, amount of personal surfing time, and type of content being accessed. Websense Enterprise may also be configured to set time-based quotas for each employee, allowing for limited personal surfing during the workday, limiting workplace distractions but allowing appropriate use of the organization’s high-speed Internet connection. Our Client Application Manager add-on module allows managers to apply similar policies to employees’ use of non-business related applications on their desktop computers, such as games and hacking tools.
Conservation of IT Resources. We believe Websense Enterprise allows organizations to reduce bandwidth consumption by managing personal Internet use and access to websites, in particular those which may contain bandwidth-intensive content, such as streaming audio and video, MP3 music files, multi-player games and other new media. The Bandwidth Optimizer add-on module, used in conjunction with Websense Enterprise, further enhances bandwidth management capabilities by monitoring network usage in real-time and by allowing employee access management based on bandwidth thresholds. For example, Bandwidth Optimizer can temporarily disable non-business network traffic when available bandwidth drops below pre-determined thresholds. Reducing the bandwidth consumed by non-business-related Internet traffic allows an organization to use its network more efficiently and effectively, and helps ensure that bandwidth is available for mission-critical business applications such as voice-over-IP. In addition, by limiting access to bandwidth-intensive content, organizations are able to save valuable network storage from being cluttered with MP3s, images and other files. This avoids costs arising from the need to buy additional networking equipment or storage servers.
Reduced Exposure to Potential Legal Liabilities. Websense Enterprise supports organizations’ efforts to reduce exposure to legal liability resulting from the improper use of the Internet in the workplace. By implementing our products in conjunction with an overall corporate Internet usage policy, organizations can proactively curtail access to objectionable Internet content such as adult entertainment, illegal activities, hate and racism. Websense Enterprise can also manage the use of peer-to-peer file sharing, reducing the risk that unauthorized copyrighted material is being downloaded and stored on company servers.
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In addition to the benefits above, our products provide these key features:
Access to Comprehensive Databases of URLs, Software Applications and Network Protocols. We provide access to proprietary databases that categorize website URLs, software applications and executables and commonly used network and Internet protocols. We have categorized more than 5.5 million websites in our URL database, and more than 1.5 million dead links that have been purged from the database. These website URLs have been classified into more than 90 different categories to enable organizations to determine the types of Internet content that are appropriate for their workplace culture. We add approximately 5,000 newly categorized websites each business day to our URL databases and make these updates available to our customers for daily differential downloads. This daily two-way communication with our customers allows us to refresh the databases to remove inactive links and irrelevant content and identify changing content and newly emerging sites. In the software application database, we have categorized over 250,000 software executable files in more than 50 categories, such as instant messaging, spyware, hacking and games.
Ability to Configure and Manage Employee Internet and Application Usage Policies from a Single Management Console. Websense Enterprise allows organizations to configure specific Internet and application usage policies for various groups, user types or individuals from a single management console. Through our easy-to-use interface, we allow managers to implement Internet and application use policies with limited investment of information technology resources and personnel. Organizations may choose Internet use options which include blocking websites, setting time periods for access, allowing access but generating an exception report, allowing users a specified amount of personal surfing or deferring access until additional network bandwidth is available. Organizations can apply similar policies to the use of applications at the desktop, specifying permissions based on application category, user group, workstation, or IP address.
Multiple Options for Identifying, Analyzing and Reporting on Employee Internet and Application Use. Websense Enterprise includes several analysis and reporting modules to provide managers and IT administrators with multiple options for identifying, analyzing and reporting on Internet and desktop application activity and the risks associated with employee computing. These options include a full-featured reporting engine with pre-defined and customizable report templates, a real-time analyzer that provides a current view of network activity and browser-based reporting tools that allow non-technical managers to view Internet and application use data.
Ability to Adapt to our Customers’ Employee Computing Patterns. We utilize our relationship with our customers to help our software adapt to evolving employee computing and Internet access patterns. We accomplish this with WebCatcher™, a patent-pending feature by which customers anonymously send uncategorized websites visited by their employees to us for review and categorization into the Websense URL database. AppCatcher,™ another patent-pending feature, creates the same feedback mechanism for software applications and network protocols. As new websites, protocols and applications are categorized, the updated databases are available for daily download by the entire customer base.
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Premium Group Database Categories for Emerging Web Content. Websense has developed Premium Group (PG) categories for our database of URLs that encompass emerging Web content. Websense Productivity PG™ focuses on productivity management by allowing administrators to manage message boards and clubs, advertisements, freeware/shareware, instant messaging, online brokerage and trading, and pay-to-surf sites. Websense Bandwidth PG™ focuses on bandwidth management and features sites relating to Internet radio and TV, peer-to-peer file sharing, personal network storage/backup, Internet telephony and streaming media. Websense Security PG™ focuses on network security by categorizing websites containing malicious mobile code and spyware.
Ability to Scale and Operate on a Variety of Network Platforms. Our software is designed to have minimal impact on network performance. Websense Enterprise is available on a broad range of network platforms, and can support up to 50,000 users on a single server. Our software works with popular proxy servers, firewalls, cache engines, switches and routers offered by Internet infrastructure providers such as Blue Coat Systems, Check Point, Cisco, Microsoft, Netscreen, Network Appliance, and Nokia.
Products and Services
Websense Enterprise. Websense Enterprise is the foundation of our software offerings and includes our proprietary central policy engine, central management console and multiple reporting options. Websense Enterprise allows organizations to manage employees’ use of corporate computing resources by filtering access to websites, applications, protocols and bandwidth based on management-defined policies. We sell subscriptions to the Websense Enterprise platform and databases based on the number of users to be managed. Additional application modules and enhanced technical support are priced separately. Revenues from sales of subscriptions to Websense Enterprise accounted for 100% of total revenues in 2003 and 2002, and 99% of total revenues in 2001.
Websense Enterprise integrates with an organization’s network server, proxy server, switch, router or firewall and is designed to work in networks of virtually any size and configuration. We currently offer three deployment options:
• Integrated deployment on a separate server that is tightly integrated with the network gateway platform to offer pass-through filtering that maximizes stability, scalability and performance.
• Embedded deployment on an appliance or gateway product to reduce hardware expense and enhance ease-of-use, particularly in remote locations.
• Stand-alone deployment utilizing a network agent to deliver pass-by filtering capabilities in any network environment.
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The table below describes many of the platforms with which Websense Enterprise can be integrated:
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Firewall Solutions: |
Cache/Proxy Solutions: |
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• Check Point |
• Cisco Content Engine |
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• Cisco PIX |
• Dell PowerApp Cache |
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• CyberGuard |
• HP ProLiant |
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• Lightspeed |
• HP Web Cache |
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• Netscreen |
• IMimic DataReactor |
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• ServGate |
• InfoLibria DynaCache |
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• SLMsoft |
• Inktomi Traffic Server |
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• SonicWall |
• Microsoft ISA Server |
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• Microsoft Proxy Server |
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Switch/Router Solutions: |
• Network Appliance NetCache |
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• Cisco Catalyst 6500 |
• Novell Volera Excelerator |
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• Cisco Router Series 800 through 7400 |
• ServGate |
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• Squid |
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Appliance Solutions: |
• Stratacache StrataCORE |
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• Blue Coat Systems |
• Sun ONE Web Proxy Server (formerly iPlanet) |
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• Crossbeam X40S Blade Server |
• 3Com Webcache |
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• Immunex |
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• Nokia |
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Web Filtering. Websense Enterprise enables employers to proactively analyze, report and manage employee access to websites based on the content of the requested website. Our software application gives managers patented ability to customize, implement and modify Internet access policies for various groups, user types and individuals by filtering access to websites. A graphical interface enables business managers to define the categories of websites to which access will be managed. The filtering software examines each Internet access request, determines the category of the requested website and applies the policies that have been defined by the company. Some examples of management options include:
• Allow. The request is allowed to proceed, because the organization has chosen not to restrict access to the category applicable to the website.
• Block. The requested website is in a category that is not allowed to be accessed according to the policy in effect.
• Time-based Quotas. Users are allowed a specified amount of personal surfing time within categories that are determined by the administrator. Once the user reaches his or her quota time, he or she is no longer able to access sites in those categories.
• Continue with Exception Report. The user is reminded about the organization’s Internet usage policy, but can choose to access the requested website.
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• Time of Day. Filtering options can be managed by time of day. For example, access to shopping sites could be blocked during business hours and permitted at all other times.
The Websense URL Database. We offer extensive and regularly updated databases of websites. Our URL database currently catalogs more than 5.5 million websites, representing approximately one billion webpages in more than 50 languages, cataloged into more than 90 categories. Through proprietary techniques that create unique digital fingerprints of individual webpages, as well as customer features such as WebCatcher, we add approximately 5,000 newly categorized websites per business day to our database and make these updates available for daily differential downloads. In addition, our database is refreshed daily to remove dead links and irrelevant content and to identify changing content and newly emerging sites.
The breadth and specificity of website categories we have defined provide flexibility in selecting which types of material should be allowed, blocked or reported. We identify the types of content that we believe employers would deem to be unacceptable, inappropriate or undesirable in a work environment based on input we receive from our customers, and define the categories accordingly. Categories in our databases include the following:
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• Abortion |
• Image Servers |
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• Pro-Choice |
• Image (Media) |
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• Pro-Life |
• Network Error |
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• Adult Material |
• Private IP Address |
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• Adult Content |
• Uncategorized |
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• Lingerie & Swimsuit |
• News & Media |
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• Nudity |
• Alternative Journals |
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• Sex |
• Productivity PG |
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• Sex Education |
• Advertisements |
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• Advocacy Groups |
• Freeware & Software Download |
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• Business & Economy |
• Instant Messaging |
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• Financial Data & Services |
• Message Boards & Clubs |
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• Drugs |
• Online Brokerage & Trading |
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• Abused Drugs |
• Pay-to-Surf |
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• Marijuana |
• Bandwidth PG |
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• Prescribed Medications |
• Internet Radio & TV |
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• Supplements & Unregulated Compounds |
• Internet Telephony |
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• Education |
• Peer-to-Peer File Sharing |
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• Cultural Institutions |
• Personal Network Storage and Backup |
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• Educational Institutions |
• Streaming Media |
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• Educational Materials |
• Security PG |
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• Reference Materials |
• Malicious Web Sites |
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• Entertainment |
• Spyware |
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• MP3 |
• Racism & Hate |
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• Gambling |
• Religion |
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• Games |
• Non-Traditional Religions & Occult & Folklore |
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• Government |
• Traditional Religions |
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• Military |
• Shopping |
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• Political Organizations |
• Internet Auctions |
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• Real Estate |
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• Health |
• Social Organizations |
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• Illegal or Questionable |