It's not just Microsoft, though. Cisco and some major platform vendors are also expanding into the security space. How does that affect pure-play security vendors?

Chaudhry: If you look at where the Ciscos of the world are playing, it is at the network level. But if you look at the application gateway level, that is a newly emerging market -- and so is the Web gateway market. Our belief is that with our focus and with our innovation we are going to be moving forward with some leading-edge solutions.

Gartner recently stated there's going to be less of a need for best-of-breed products over the next few years and that, instead, companies will be looking for integrated products. What do you think?

Chaudhry: In the last six or seven years, there has been a debate over best-of-breed versus integrated products. [Some companies] have been making a big deal about best-of-breed. I think both approaches have issues. We are seeing customers out there who have 10 to 15 boxes doing just the enterprise e-mail gateway. So they do want an integrated solution, but they are not willing to take chances with second- and third-tier solutions. Where the market is moving is you need the best-of-breed technology. But if you can deliver it in an integrated solution, that is when you win.

How has the threat landscape changed?