Cato Networks Innovation Cato Networks built its SASE platform with a global and cloud-native architecture as its foundation to deliver SASE services through a converged platform, with no local hardware configuration needed. Customers can adopt Cato SASE Cloud as a co- managed, fully managed, or self-managed solution. Regardless of the option taken, Cato always manages the underlying shared infrastructure. It runs in its global network of interconnected PoPs via its global private backbone network for a consistent and low-latency path between sites and users. The company consistently adds 3 to 4 new PoPs every quarter to better support its customers. Cato Single Pass Cloud Engine (SPACE) is the core element of the company’s SASE platform, and it utilizes a single pass architecture to analyze and process customers’ networking and security policy and configurations, allowing the company to deliver high-performance and low-latency services. Cato Networks has expanded its security capabilities by introducing CASB and DLP in 2022 and RBI in 2023. The company is also looking to incorporate XDR and an endpoint protection platform (EPP) into its SASE platform by end of 2023. Growth Based on Frost & Sullivan’s estimates, Cato Networks is one of the fastest-growing companies and achieved tremendous growth in its SASE business in 2022, with a YoY increase of 71.8%. North America, the biggest region for Cato Networks, contributed more than half of the company’s total SASE revenue in 2022, with triple-digit YoY growth, while all other regions grew by strong double-digit YoY growth. In 2022, the company expanded its footprint to LATAM, and the region contributed about 1.0% of its total SASE revenue. Cato Networks is strong in the small and medium business segments, which have = lean IT infrastructure and are more open and flexible to adopting the cloud-native security model. These business segments contributed more than 80.0% of the company’s SASE business in 2022. Cato Networks has also seen strong adoption of its SASE platform from business, financial services, and insurance (BFSI); retail; manufacturing; and tech companies. Customers can opt for a managed service package, including 24*7 multi-tier support services, professional services, and managed services, to outsource the management to the Cato team or partners. Frost perspective Cato Networks is a leader on the Growth and Innovation Indexes of this Frost Radar. The company’s consistent revenue growth in its SASE business during the past 3 years helps to solidify its growth leadership position. Cato Networks showcases its commitment to innovation by building its SASE platform from the ground up, and the cloud-native platform allows it to stand apart from other competitors that rely on the rearchitecting or service-chaining approach to SASE. However, its cloud-native SASE approach may not work well with highly regulated companies due to compliance concerns or the desire to maintain a legacy on-premises architecture. In addition, Cato Networks’ global SASE revenue is mainly contributed by North America and Europe, the Middle East, and Africa (EMEA), whereas business in APAC and LATAM remains relatively minimal. The company should focus on strengthening brand awareness and go-to-market strategies in these fast- growing regions to capture growth opportunities. © 2023 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied, or otherwise reproduced without the written approval of Frost & Sullivan.