Network Security Revenues Down Double Digits

network securityGlobal sales of network security appliances and related software slid 12 percent in Q1 2014 to $1.54 billion, according to an update from Infonetics Research.

Jeff Wilson, principal analyst for security at Infonetics, said the market had finished 2013 well but then registered a decline in the new-year quarter although year over year the market is up 1.9 percent.

“Vendors’ long-term success will have a lot to do with how they deliver their core security technology, as standalone products, integrated products, and hosted or SaaS, and how they tie these together with a common threat, cloud, common policy and management interface, and common reporting tools,” Wilson said.

“Security buyers are becoming quite skeptical and intelligent. They know that until their security platform shares a common threat, policy, and reporting structure, it will have coverage gaps that can be exploited.”

Suppliers able to deliver core security technology in a flexible way will be able to side-step the shifts in popularity between standalone and integrated kit versus on-premises and hosted deployments. And virtualization as well as network function virtualization would play a role in customer choice, he suggested.

Integrated offerings are gaining share while legacy firewall software and intrusion prevention systems are stalling, Wilson indicated.

Of the five leading vendors – Check Point, Cisco, Fortinet, Juniper and Palo Alto Networks – only Palo Alto expanded sales in Q1.

Infonetics’ Q1 report tracks integrated security appliances, secure routers, SSL VPN gateways, VPN and firewall software, and anti-intrusion systems.

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One Response to “Network Security Revenues Down Double Digits”

  • craig kensek:

    Without seeing the report, some of this could be explained by saturation in the market place, needing to grow into the existing capacity of devices, rapid growth of security as a service, price decreases in new versions of the appliances themselves. Did the Infonetics report conjecture on any of this? Legacy firewalls and intrusion prevention devices are also missing more advanced threats which isn’t helping (hence the growth the Advanced Persistent Threats sales) Craig Kensek

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