IDS revenues tumble in Q2

It seems enterprises are still unconvinced of the benefits that intrusion detection and prevention systems (IDS/IPS) can offer them. According to figures from Infonetics Research, revenues in this space fell in Q203.

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By  Zoe Moleshead Published  September 28, 2003

It seems enterprises are still unconvinced of the benefits that intrusion detection and prevention systems (IDS/IPS) can offer them. According to figures from Infonetics Research, revenues in this space fell in Q203 to US$104 million.

However, the technology looks set for a brighter future with the group predicting that the market will grow 43% year on year to reach US$149 million by Q204, while the annual revenue for 2006 is expected US$1.1 billion.

Infonetics says the IDS/IPS market is currently undergoing some “disruptive technology shifts” but anticipates that will have overcome these by next year, when it will really begin to pick up pace.

“As more and more firewall vendors announce their intentions for application-aware firewalls, many users are getting confused about the difference between next-generation firewalls and intrusion detection/prevention products,” says Jeff Wilson, principal analyst at Infonetics Research.

“Until we have clarity, which could take up to another year, the crystal ball for standalone intrusion detection and prevention is a little cloudy,” he adds.

In terms of the vendors, ISS garnered the largest revenue share with 20%, followed by Cisco and Symantec both with a 13% share.

While network-based IDS/IPS hardware accounted for 47% of revenues, followed by host-based IDS/IPS with 33% and network-based IDS/IPS software with 20%, this picture will shift considerably as the hardware section grows “astronomically.”

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