Date: 03/09/2012

Global n/w security appliance and software revenue grew 4.4% in 2Q12, as per a study

Worldwide network security appliance and software revenue grew 4.4% between 1Q12 and 2Q12, to $1.5 billion, according to the latest study by Infonetics Research . Infonetics also reports network security spending is up in all major world regions, with year-over-year growth ranging from 6% to 15%, From the year-ago 2nd quarter, market leaders Cisco and Check Point each posted 13% increases in quarterly network security revenue, and #3 player Juniper is up 1%, finds Infonetics.

“Customers are starting to buy and deploy integrated security solutions, including firewalls with mail and gateway antivirus, IPS, DLP, mobile device security, and application control—instead of standalone solutions—which is driving up the overall network security market but weighing down on sales of standalone content security gateways,” says Jeff Wilson, principal analyst for security at Infonetics Research. “Security-as-a-service (SaaS) and hosted security services are outgrowing product markets, and until recently, standalone content security product sales were outgrowing integrated appliance sales.”

Wilson adds: “SaaS is a real bright spot. Revenue for SaaS content security gateways is up more than 50% year-over-year and is forecast by Infonetics to grow at a 23% compound annual growth rate (CAGR) from 2011 to 2016. Any serious player in the content security market who doesn’t currently have a SaaS offering is missing out on the fastest growing segment.”

Content security market findings reported by Infonetics:
In 2Q12, the global content security gateway market, including appliances and software, sequentially decreased 1.7% to $721 million
In the highly competitive race for overall content security gateway revenue market share, McAfee held onto the top spot in 2Q12, and Cisco moved into 2nd with the highest sequential revenue growth among the leading vendors
Appliances accounted for 3/5 of total content security gateway revenue in 2Q12; web/malware led this segment