InfoSecurity

August 7, 2006
Network Security Revenue Up Two percent in Q1-06

UNITED STATES -- Worldwide network security appliance and software revenue climbed two percent to US $1.2 billion between Q4-05 and Q1-06, and is forecast to reach US $6 billion in 2009, according to Infonetics Research's Network Security Appliances and Software report.

Many customers, while still investing in firewalls, VPNs, IDS/IPS, and gateway AV, are also looking deeper into NAC and content security solutions, which is delaying some core network security purchasing until later in 2006.

Jeff Wilson, principal analyst, Infonetics Research, said: "VPN/firewall functionality, the core of most integrated security appliance products, is truly reaching the commodity stage. New silicon vendors are making it possible for manufacturers to build and sell multi-gigabit VPN/firewall appliances for under US $5,000, with that number declining rapidly over the next year. In addition, new security vendors are building Ethernet switches that offer full security on every single port at very affordable prices, driving prices down and making competition fiercer for all integrated security products."

Q1-06 Highlights

- Integrated security appliances and software make up 76 percent of worldwide network security appliances and software revenue, IDS/IPS 14 percent, gateway anti-virus 10 percent; by 2009, gateway anti-virus grows to 14 percent of the total;

- Cisco remains the revenue leader overall, with 35 percent of total network security appliances and software; strong router sales helped Cisco increase share this quarter;

- Check Point and Juniper are tied for second at nine percent; and

- ISS, McAfee, Nokia, Nortel, SonicWALL, and Symantec are strong second-tier players, each with between one percent and seven percent of the market.