Network Security Market on the Upswing

Security appliance revenues grew by nearly 6 percent in the third quarter of 2012

By Sean Michael Kerner | Posted Jan 3, 2013
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Security threats aren't going away anytime soon and neither is demand for network security appliances.

IDC reported its third quarter 2012 Worldwide Security Appliance Tracker results this week showing both revenue and unit shipment growth. Revenue during the third quarter hit $2.0 billion, which a is a 5.7 percent year-over-year gain. Some 499,022 units were shipped during the quarter for a 1 percent yearly gain.

Security appliance growth varied on a global basis. In the U.S., shipments declined by 1.2 percent, while revenue increased by 4.6 percent. In contrast, Japan had unit growth of 8.3 percent.

Looking inside the specific appliance segments, IDC reported that the Unified Threat Management (UTM) market experienced the most growth during the quarter. UTM appliances accounted for a third of all security appliance revenue during the quarter with year-over-year growth of 24.3 percent.

"The shift in network security for continuous security processes in detecting threats that other solutions miss is leading the move for unified security management for protection against advanced threats, modern malware, and data theft," said Ebenezer Obeng-Nyarkoh, senior research analyst, Worldwide Trackers Group, in a statement.

The Firewall segment grew by 7.3 percent and now holds 26.7 percent of global security appliance revenues.

Vendors

From a vendor perspective, Cisco leads the pack with $326 million in revenue for a 16.2 percent market share. Cisco's third quarter performance is actually a 1.5 percent year-over-year decline.

In contrast, the number two vendor, Check Point, grew by 12.8 percent with revenues of $258 million, for a 12.8 percent market share. Juniper rounds out the top three vendors with $160 million in revenue, a decline of 6.4 percent.

Sean Michael Kerner is a senior editor at InternetNews.com, the news service of the IT Business Edge Network, the network for technology professionals Follow him on Twitter @TechJournalist.

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