We are innovating in security

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1 We are innovating in security

2 Security Network Network Innovation Day Day We are We in are in threat and defense Complex mix of multiple vendors without effective orchestration IoT connected devices forecast 32B 30,73 Threat landscape highlights 30% 24% 25% 16% 5% 24B 17,68 20,35 23,14 26,66 16B Attack Surface expansion Mobile devices Public cloud Cloud infrastructure IoT 2016: 45% 2016: 29% 2016: 18% Vendors 2016: 7% 2016: 3% 8B 0B Attacker behaviour evolution Multi-purpose Malicious infrastructure Monetization motive Sophistication of attacks increase Exploiting gaps in IoT security Use of legitimate resources for backdoor C2 8,500% Detections of coin miners on endpoint in 4Q of % Number of new mobile malware in 2017, as compared to M. people in 20 countries were affected by cybercrime in 2017 X

3 Security threat and defense The challenge The network environment has changed so radically that traditional cyber-defense strategies have become obsolete and an equally radical transformation is necessary VANISHING NETWORK PERIMETER DYNAMIC NETWORK CONTROL & VISIBILITY IaaS / PaaS SaaS IoT Mobility Network provision automation Workloads mobility Hybrid clouds Bandwidth on Demand Holistic view Global and coherent security policies Valuable security data at Big Data level X3

4 Telcos have a leading role Telefónica has a privileged position to deliver service excellence while protecting client against new security challenges LEADERS IN NETWORK AND SECURITY INNOVATION Innovation centers: Barcelona / Granada / Huesca Madrid / Valladolid END-TO-END SECURITY (PEOPLE, TECH & PROCESSES) 360O VISIBILITY Tier-1 Network Traffic analysis SDN & NFV leaders Threat understanding Security services Customer holistic view of security imssp & Global SOC X 4

5 Security is the network 4th attribute NETWORK ATTRIBUTES SPEED LATENCY COVERAGE SECURITY DIGITAL EXPERIENCES Faster + Broader + Safer Security features FROM THE CORE Activated and consumed whenever and wherever they are requested X5

6 Security service layer Use cases X6

7 Security service layer Use Case #1 Deep defense AntiDDoS Shield DNS Security 1st line of defense DACI Illicit content access control Clean Pipes Malware Intrusion Protection ATP Clean Antispam Antimalware ATP DNS PROTECTION High capacity DDoS scrubbing Blocked queries to malicious domains Illegal content denied Webs filter, antimalware, sandbox Mail protection 91% DDoS attacks increased thanks to IoT In ,3% of malware uses DNS in attacks 78,589 reports as child sexual abuse URLs in 2017 (IWF) 230k new malware samples are produced every day (Panda) 91% of cyberattacks start with phish (PhishMe) X7

8 Security service layer Use Case #2 Secure connectivity services for corporate networks Secure Internet Secure WAN Secure Cloud Provider Access Cloud Security Sec. DNS SEC VNF SEC VNF Clean Pipes SEC. VNF CSP Sec. VM IaaS / PaaS 8

9 Security service layer Use Case #3 Secure IoT: Leveraging Telco assets to tackle the IoT challenges IoT specific security challenges Must address the IoT scale and limitations Traditional IT security Known field but must be done properly Devices Networks and Managed connectivity Platforms and Applications IoT stack SmartM2M Security Layers SIM-based identity Secure credentials distribution Anomaly detection DNS-based protection 9

10 Security service layer Use Case #4 Secure connectivity services for consumers: Security4all Available through new digital experiences of Telefónica Deployment in 3G-4G Networks www Deployment in routers and fixed networks Aura SAFE BROWSING Movistar Home user Unified experience Without apps in the user device Smart Wifi 10

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