As reported on Trefis, Cisco’s (CSCO) revenues from sales of network security products like Virtual Private Networks (VPNs) and firewalls have risen from an estimated $1.1 billion in 2005 to around $1.9 billion in 2009. Although the company is more dominant in the routers and switches business, it does have up to 40 percent of the market share for network security products. Other companies including McAfee and HP are seeing growth in revenue as well.
“Cisco’s revenues in network security products are tied to its network routers and switches business. Customers generally tend to buy an entire solution to meet their network infrastructure requirements, and Cisco has capitalized on its ability to deliver both – core network equipment and security products.
The network security market slowed in 2009 mainly due to restricted spending by companies due to the recession but is now beginning to pick up. According to Infonetics Research, network security appliance and software revenue increased 7% worldwide between Q1 and Q2 2010, totaling $1.4 billion.”