November 17, 2003

NetIQ Survey Finds Organizations Spend More Than $2.5 Million a Year Battling Spam

Half of Respondents Have Yet to Install Anti-Spam Solutions Due to Fear of False Positives

Press Release

SAN JOSE, Calif.

NetIQ Corp. (Nasdaq: NTIQ), a leading provider of Systems & Security Management and Web Analytics solutions, today announced the results of the “Secret Costs of Spam” market survey jointly conducted with Windows & .NET Magazine, which highlights spam-related business issues now plaguing organizations.

Survey results found that spam costs the average business more than $2.5 million a year in productivity lost, bandwidth consumed, storage capacity used and support issues created. More than 750 organizations with an average of 12,000 employees responded to the survey, which took place in October 2003.

“These types of surveys validate the need for an anti-spam solution, but more and more, companies are beginning to understand that spam is just the tip of the iceberg,” said Matt Cain, senior vice president at the META Group, a leading provider of information technology research, advisory services and strategic consulting. “Content security solutions help organizations save money by reducing operational costs associated with spam such as manual inbox culling by users, storage management and help desk calls.”

While content security technology is the defacto standard in the fight against spam, survey participants also recognized that teaching users about spam-attracting practices through Internet usage policies could be an effective first line of defense against spam.

According to the survey, organizations are most concerned with the loss of efficiency, increased security risks and heightened legal risks associated with spam.

Heather Pazak, a consultant at The Hillman Company, one of the 2.5 million users of NetIQ® MailMarshal™, said the company replaced a competitive product with NetIQ MailMarshal earlier this year because unwanted email was affecting corporate efficiency.

“NetIQ MailMarshal improved our efficiency by filtering out spam, which accounts for 37 percent of the 140,000 email messages we receive each month. MailMarshal is also extremely accurate and reliable blocking only a few business correspondence emails per week,” she said. Although spam is widely recognized as a costly issue, less than half of the respondents said they had purchased an anti-spam solution. The risk of false positives was cited as one of the most significant reasons not to purchase.

Survey results also showed that while the ideal solution would completely contain and prevent spam, IT personnel set more realistic goals, looking for 80 to 90 percent spam detection rates and 0.5 - 4 percent false positive ratings. NetIQ MailMarshal exceeds those goals with a detection rate of 90 to 95 percent and a false positive rate of .01 to 0.1 percent.

“Spam is such a hot-button issue right now because everyone with an email account is affected, but the larger issues for corporations are security, loss of confidential information and network resources,” said Art Costigan, managing principal for Global Network Security Consultants, LLC. “NetIQ MailMarshal SMTP and VigilEnt™ Policy Center work together to not only educate users to ensure compliance with acceptable email usage policies but also enforce those policies reducing security risks and increasing network efficiency.”

“The Secret Costs of Spam”Audiocast

NetIQ is sponsoring “The Secret Costs of Spam,” a free audiocast on Nov. 18, 2003 at noon ET to review the results the “Secret Costs of Spam” market survey. NetIQ MailMarshal customer Heather Pazak from The Hillman Company and NetIQ Channel Reseller Art Costigan from Global Network Security Consultants, LLC, will discuss the savings they’ve realized by blocking spam with NetIQ MailMarshal. Also, NetIQ Product Manager, Clarence Morey will discuss the results from the “Secret Costs of Spam” market survey conducted with Windows & .NET Magazine. For more information or to register, go to

About the NetIQ Content Security Solution

The NetIQ Content Security Solution enforces organizations’ Acceptable Internet Use Policy for email, web browsing and instant messaging, as well as blocking spam and viruses. NetIQ’s VigilEnt Policy Center is the first step in preventing spam and other email and Internet abuse through user education on potential spam-attracting practices. To enforce email usage policies and protect against viruses, spam and loss of confidential data, NetIQ MailMarshal offers a fast, easy-to-use email scanning solution filtering internally distributed mail or incoming mail at the gateway. NetIQ MailMarshal has 2.5 million users and blocks up to 50 million spam messages per day based on an average of 25 spam messages per day per user.

About NetIQ

NetIQ Corporation (Nasdaq: NTIQ) is a leading provider of Systems & Security Management and Web Analytics solutions. Historically focused on the Windows management market, NetIQ now delivers cross-platform solutions that enhance business performance resulting in higher returns on infrastructure and Web investments. NetIQ products are sold across all continents directly and through a network of authorized NetIQ partners and resellers. The company is headquartered in San Jose, Calif., with development and operational personnel in Houston, Texas; Portland, Ore; Raleigh, N.C.; Bellevue, Wash.; Galway, Ireland and Auckland, New Zealand. For more information, please visit the company's web site at or call 1-888-323-6768.

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