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Network security takes a dip

Worldwide network security appliances and software revenue dipped 1% from 4Q06 to 1Q07, stated Infonetics Research in a new report entitled ‘Network Security Appliances and Software.'

Worldwide network security appliances and software revenue dipped 1% from 4Q06 to 1Q07, stated Infonetics Research in a new report entitled ‘Network Security Appliances and Software.' However, vendors are expected to post gains for the rest of 2007, ending the year on a high note.

"Many vendors were flat or slightly down in the first quarter, including the top three vendors (Cisco, Juniper, and Check Point), who represent nearly 60% of the total market. As we've noted earlier, content security and NAC are now standard line items in security budgets and are pulling money away from core network security spending," said Jeff Wilson, principal analyst at Infonetics Research. Worldwide network security revenue is forecast to hit US$5.3 billion in 2010.

EMEA accounted for 30% of the overall market revenue, with North America at 45%, Asia Pacific at 20% and CALA at 5%.

VPN and firewall appliances and software made up 87% of network security revenue in the first quarter of the year; IDS/IPS makes up the balance at 13%. Secure routers accounted for 28% of the appliance market and will continue to increase their share. Unit shipments of SSL VPN gateways were up 11% worldwide during the same period, the report says.

The report stated that Cisco leads the overall network security market, with 38% share, followed by Juniper and Check Point. Nortel, Nokia, Secure Computing, Fortinet, SonicWALL, ISS, and McAfee proved to be strong players in the market, each with between 2% and 6%.

In a separate report entitled ‘Content Security Appliances and Software', Infonetics stated that content security gateway vendors of all sizes are performing well, leading the worldwide market to a sequential 9% gain in the first quarter of 2007, with revenues close to $352 million.

EMEA accounted for 21% of the first quarter 2007 revenues with North America making up 52%, Asia Pacific 25% and CALA 3%.

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