Zynga 2015 Annual Report Download - page 23

Table of Contents
our data, our players’ data or our advertisers’ data. Additionally, outside parties may attempt to fraudulently induce employees or players to disclose sensitive
information in order to gain access to our players’ data or our advertisers’ data. We must continuously examine and modify our security controls and business
policies to address the use of new devices and technologies enabling players to share data and communicate in new ways, and the increasing focus by our players
and regulators on controlling and protecting user data.
Because the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently or may be designed to remain
dormant until a predetermined event and often are not recognized until launched against a target, we may be unable to anticipate these techniques or implement
adequate preventative measures. Though it is difficult to determine what harm may directly result from any specific interruption or breach, any failure or perceived
failure to maintain performance, reliability, security and availability of our network infrastructure to the satisfaction of our players may harm our reputation and our
ability to retain existing players and attract new players.
If an actual or perceived security breach occurs, the market perception of the effectiveness of our security measures could be harmed, we could lose players
and advertisers, and we could suffer significant legal and financial exposure due to such events or in connection with remediation efforts, investigation costs or
penalties, changed security and system protection measures. Any of these actions could have a material and adverse effect on our business, reputation and operating
results.
Anyfailureorsignificantinterruptioninourinfrastructurecouldimpactouroperationsandharmourbusiness.*
Our technology infrastructure is critical to the performance of our games and to player satisfaction, as well our corporate functions. Our games and company
systems run on a complex distributed system, or what is commonly known as cloud computing. We own, operate and maintain elements of this system, but many
elements of this system are operated by third-parties that we do not control and which would require significant time and potential expense to replace. We have
experienced, and may in the future experience, service disruptions, outages and other performance problems due to a variety of factors, including infrastructure
changes, human or software errors and capacity constraints. For example, the operation of CityVille was interrupted for several hours in April 2011 and the
operation of most of our games was interrupted for several hours in January 2013, in each case due to network outages. If a particular game is unavailable when
players attempt to access it or navigation through a game is slower than they expect, players may stop playing the game and may be less likely to return to the game
as often, if at all. A failure or significant interruption in our game service could harm our reputation and operations. We have suffered interruptions in service when
releasing new software versions or bug fixes for specific games in the past and if any such interruption were significant it could harm our business or reputation.
We expect to continue to maintain our technology infrastructure to maintain and improve our player experience and game performance and maintain our corporate
system functionality. To the extent we do not effectively address capacity constraints, upgrade our systems as needed and continually develop our technology and
network architecture to accommodate increasing traffic, our business and operating results may suffer. We do not maintain insurance policies covering losses
relating to our systems and we do not have business interruption insurance. Furthermore, our disaster recovery systems and those of third-parties with which we do
business may not function as intended or may fail to adequately protect our critical business information in the event of a significant business interruption, which
may cause interruption in service of our games, security breaches or the loss of data or functionality, leading to a negative effect on our business.
Werelyonthird-partyhostingandcloudcomputingproviders,likeAmazonWebServices(“AWS”),tooperatecertainaspectsofourbusiness.Asignificant
portionofourgametrafficishostedbyasinglevendor,andanyfailure,disruptionorsignificantinterruptioninournetworkorhostingandcloudservices
couldadverselyimpactouroperationsandharmourbusiness.*
Our technology infrastructure is critical to the performance of our games and to player satisfaction. Our games run on a complex distributed system, or what
is commonly known as cloud computing. We own, operate
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