Symantec 2015 Annual Report Download - page 86

Research and development expenses were $1,144 million, $1,039 million, and $1,026 million in fiscal 2015,
2014, and 2013, respectively, representing approximately 18% of revenue in fiscal 2015 and 16% and 15% of
revenue in fiscal 2014 and 2013, respectively. The percentage fluctuates between periods as a result of a variety
of factors, including changes in sales level and foreign currency exchange rates. We believe that technical
leadership is essential to our success and we expect to continue to commit substantial resources to R&D.
Support
Symantec has support facilities throughout the world, staffed by technical product experts knowledgeable in
the operating environments in which our products are deployed. Our technical support experts assist customers
with issue resolution and threat detection.
We provide consumers with various levels of support offerings. Consumers receive automatic downloads of
the latest virus definitions, application bug fixes, and patches for most of our consumer products. Our consumer
support program provides self-help online services and phone, chat, and email support to consumers worldwide,
and our Norton Security products come with a “Virus Protection Promise,” which in some markets provides free
virus removal services to customers whose protected computers become infected.
We provide customers various levels of enterprise support offerings. Our enterprise security support
program offers annual maintenance support contracts, including content, upgrades, and technical support. Our
standard technical support includes: self-service options delivered by telephone or electronically during the
contracted-for hours, immediate patches for severe problems, periodic software updates, and access to our
technical knowledge base and frequently asked questions.
Customers
In fiscal 2015, 2014 and 2013, there were no customers that accounted for more than 10% of our total net
revenue.
Acquisitions
Our strategy will be complemented by business combinations that fit strategically and meet specific
profitability hurdles. Our acquisitions are designed to enhance the features and functionality of our existing
products and extend our product leadership in core markets. We consider time-to-market, synergies with existing
products, and potential market share gains when evaluating the economics of acquisitions of technologies,
product lines, or companies. We may acquire or dispose of other technologies, products, and companies in the
future.
We did not make any material acquisitions during fiscal 2015.
Competition
Our markets are consolidating, highly competitive, and subject to rapid changes in technology. The
competitive landscape has changed significantly over the past few years, with new competition arising. Much of
the market growth has come from startups whose focus is on solving a specific customer issue or delivering a
specific niche-oriented product and from larger integration providers that increasingly are looking to put various
types of protection, whether it is backup, high availability or security, into their platforms. We are focused on
delivering comprehensive customer solutions, integrating across our broad product portfolio and partnering with
other technology providers to differentiate ourselves from the competition. We believe that the principal
competitive factors necessary to be successful in our industry include product quality and effectiveness, time-to-
market, price, reputation, financial stability, breadth of product offerings, customer support, brand recognition,
and effective sales and marketing efforts.
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