Security appliance and software sales dip in first quarter

Security appliance and software market dips 4% in Q1 says Infonetics

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By  Sean Robson Published  June 5, 2008

The network security appliance and software market has had a sluggish sales start in 2008. According to a recent report from market research firm Infonetics, the first quarter sales figure of $1.3 billion indicates a downturn of around four percent.

"Most network security vendors reported some slightly higher than normal sluggishness in North America, primarily among large customers, though most vendors reported that customers didn't plan to decrease spending overall, just delay it slightly," said Jeff Wilson a principal analyst for network security at Infonetics Research.

Infonetics attributes the downturn to normal seasonal trends. While the North American market saw the biggest decreases in spending, the Middle East region also went down by one to two percent. However, the report states that the region held relatively firm.

The report also forecasts that secure routers and SSL VPN gateways will enjoy single-to double-digit growth every quarter for the most part through 2011. It identified Cisco as the revenue-leading vendor overall with 39% of total network security appliances and software in the first quarter. Integrated appliances and software made up 85% of all network security revenue, while IDS/IPS made up 15%.

"We project a return to very slight growth in the last three quarters of 2008, with stronger growth forecast in 2009," continued Wilson.

Infonetics' report provides worldwide and regional market size and forecasts and worldwide market share for integrated security appliances in 6 price categories, secure routers, SSL VPN gateways, VPN and firewall software, and inline and traditional network-based intrusion detection and prevention (IDS/IPS) products.

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