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Network security revenues rose 30% last year

Worldwide network security appliance and software revenue topped US$3.7 billion in 2004, up 30% from 2003, and is p...


March 4, 2005  


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Worldwide network security appliance and software revenue topped US$3.7 billion in 2004, up 30% from 2003, and is projected to grow to US$5.5 billion in 2008, according to Infonetics Research’s quarterly worldwide market share and forecast.

Worldwide network security revenue is up 5% between 3Q04 and 4Q04, with growth in all categories except VPN/firewall software. Revenue is expected to grow 25% to US$1.2 billion in 4Q05.

Strong growth in the network security market is being driven by the many new viruses, malware, and targeted attacks that surface every day, compelling companies of all sizes to invest in security. Many areas in the market will continue single and double-digit quarterly growth over the next few years, the research firm said.

“VPN and firewall appliances are the backbone of network security, and will continue to function as such for a long time,” said Jeff Wilson, principal analyst at Infonetics Research.

“New technologies will appear, and often start life as standalone products, but eventually their key features will be absorbed into the multi-function VPN/firewall appliances. IPS and gateway anti-virus technology are good examples of this.”

Cisco remains the revenue-leading vendor overall, with over 30% of the total network security appliances and software revenue in both 4Q04 and 2004, a share position they have more or less maintained since 2002.

Other companies tracked in the service include Avaya, Computer Associates, Enterasys, Intel, Lucent and McAfee.