Network Security Appliance Segment Looking Good
1/9/2006 -- The worldwide market for network security appliances and software may have experienced anemic growth in the second and third quarters of last year, but -- its temporary anemia notwithstanding -- industry watcher Infonetics Research expects says this segment will explode over the coming year.
Between Q2 and Q3 of 2005, worldwide network security appliances and software revenue grew by a meager 1 percent -- to $1 billion. But by Q3 of 2006, Infonetics says, that market will have swelled by 21 percent. And by 2008, researchers anticipate, worldwide revenues for network security appliances and software will grow to $6 billion. That isn’t chump change.
"There is a lot of talk in the security market about ‘network access control,’" said Jeff Wilson, principal analyst at Infonetics Research, in a statement. "NAC is really the holy grail of network security, and is no simple feat, as it will impact all types of products, from client software, to security appliances, to network infrastructure, to the back-end."
On top of this, Wilson argues, NAC implementations will drive purchases of network-integrated security products, SSL VPN products and an emerging category of NAC controller appliances.
Elsewhere in Q3, Cisco led the overall network security appliances and software market, controlling 35 percent of total revenue. Check Point was second with 10 percent of total revenue, while Juniper was third with 8 percent.
Drilling down into the market itself, VPN and firewall appliances and software comprise about 77 percent of all revenues; IDSes and IPSes 14 percent; and gateway anti-virus solutions 9 percent. -Stephen Swoyer
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