Snapshot: Zix Corporation

Vendor Name: Zix Corporation
Date of Publication: February 15, 2005
Author: David Ferris
Source of Information: Emily Ward, Product Manager.
Quick Summary of Firm's Offerings. Two sides to business:
· Email encryption and policy management
· Electronic healthcare prescriptions

Company Statistics

· # Full-Time Staff: 252
· # Full-Time Product Development Staff. Include architects, coders, testers, maintenance staff, documentation staff, etc: 50 spread across both product lines
· Stock Market Status: Public
· Revenues: $US 5.8M for FYE 12/31/03; $US 14.1M for FYE 12/31/04; No guidance for 2005
· Profitability: Profitability planned for year end of 2005.
· # Live Customer Seats: ZixVPM has 300 customers, ZixMail about 10,000 customers, ZixPort about 300 customers. Some customers have multiple products

ZixVPM (Virtual Private Messenger)

Product Name, Platforms. ZixVPM. This is an appliance running Linux internally.
Product Functionality:
· On-site, centralized and policy-driven control of email.
· Policy definition and enforcement.
· Has predefined profanity, health care, personal finance lexicons.
· Encryption.
· Routing to alternative addresses.
· Outgoing email can be blocked depending on content. Eg emails containing profanity can be stopped, or sent with a customized message back to sender warning that profanity should not be sent.
· Can brand messages. Eg, adding a legal disclaimer to the foot of emails.
· Top Three: Tumbleweed, PostX, PGP.
· Others: Certified Mail, CipherTrust.
Release Date: v2.3 available Feb 24, 2005.
Pricing. $10 to $40 per seat per year. Depends on # users.
Main Plans--Next 12 Months:
· Interoperability is the main theme. PGP, S/MIME, TLS are the main contenders being evaluated.
· Notes/Domino 6 support may be provided
Special Characteristics Claimed by Vendor:
· VPM is a hybrid of customer- and ZIX-maintained products. Zix owns and maintain the appliance. All user keys are maintained in Zix's data center.
· Unlike its competitors, ZixVPM provides a low and very predictable total cost of ownership (TCO).
· ZixVPM’s content filtering capability enables corporations to apply policies for content control of their emails.
· Unlike other content filtering companies, ZixVPM can be used to encrypt and deliver sensitive messages, enabling businesses to continue their workflow without interruption.
· Zix's approach makes sending and receiving encrypted email particularly simple for the user. The policy server determines the method of encryption, depending on the recipient's preferences.



Product Name, Platforms: ZixMail 1.8. Runs as plug-in for Outlook, Lotus Notes. Alternatively, there is a standalone client for Windows.
Product Functionality:
· Email encryption is desktop to desktop
· Chooses best method for delivery, based on the recipient's preferences, but can be sent to any recipient.
Main Competition: PGP, then Entrust.
Release Date: v1.8 was available as of 7 February, 2005.
Pricing. $50/user/year is the list price. Prices are lower in volume.
Main Plans--Next 12 Months:
· Plug-in for Outlook 2003 will be available in April.
· Plug-ins for Notes 6 and Outlook Express clients are being considered.
Special Characteristics Claimed by Vendor:
· As a desktop-to-desktop solution, this is more secure than encryption at a server.
· Zix believes it has done a particularly good job of adding add-in buttons for a range of Outlook, Word, and Windows systems. This translates to making life much easier for users.

Other Ferris Research Comments

· The email encryption market is still very small, and has yet to take off.
· Zix is one of the top five vendors in the field of email encryption.
· Zix acquired Elron in 2003

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