A research firm reports that network security appliance and software revenue rose 4 percent between the first and second quarters of the year.
According to Infonetics Research's "Network Security Appliances and Software" report, that market rose 4 percent to $1 billion between 1Q05 and 2Q05, and is projected to grow 23 percent to $1.3 billion by 2Q06. The company said annual revenue will grow to $6.4 billion by 2008.
"Some vendors are starting to build integrated content security appliances (virus scanning, spam filtering, spyware/malware security, etc.) and are intentionally leaving out VPN and firewall functionality, so these products can act as a supplement to existing embedded VPN/firewall products," said Jeff Wilson, principal analyst at Infonetics Research.
The market leader for the quarter was Cisco, with 34 percent of global revenue. Check Point placed second with ten percent, and Juniper placed third with eight percent. The company identified Enterasys, ISS, McAfee, Nokia, Nortel, SonicWALL and Symantec as "strong second-tier players for revenue market share," as each claimed between one and six percent of the total market.
The firm reported that VPN and firewall appliances and software represent 78 percent of total revenue, IDS/IPS (define) make up 14 percent, and gateway anti-virus makes up eight percent.