Infonetics Research: Network security market softer than usual in North America in 1Q08

Market Wire, June, 2008

Communications market research firm Infonetics Research says in a new report that the worldwide network security appliance and software market is down 4% to $1.3 billion from 4Q07 to 1Q08, primarily due to normal seasonal trends.

Infonetics' report, Network Security Appliances and Software , indicates the North American network security market is down sequentially for the first time in almost 4 years, decreasing 7% in 1Q08, representing a loss rather than just slightly slower growth, as is typical. As a comparison, Asia Pacific, Europe/Middle East/Africa (EMEA), and Caribbean/Latin America are down only 1% or 2%, in line with typical 1st quarter results.

"Most network security vendors reported some slightly higher than normal sluggishness in North America, primarily among large customers, though most vendors reported that customers didn't plan to decrease spending overall, just delay it slightly. We project a return to very slight growth in the last 3 quarters of 2008, with stronger growth forecast in 2009," said Jeff Wilson , principal analyst for network security at Infonetics Research.

Other highlights from the report:

--  The overall worldwide network security appliance and software market
    was down 4% to $1.3 billion
--  Secure routers and SSL VPN gateways are forecast to grow in the single-
    to double-digit percents quarterly for the most part through 2011
--  Cisco remains the revenue-leading vendor overall with 39% of total
    network security appliances and software in 1Q08 (up 2.5 points from 4Q07),
    in large part due to strong IDS/IPS and high-end appliance sales
--  Integrated appliances and software made up 85% of all network security
    revenue in 1Q08, IDS/IPS made up 15%
    

Infonetics' report provides worldwide and regional market size and forecasts and worldwide market share for integrated security appliances in 6 price categories, secure routers, SSL VPN gateways, VPN and firewall software, and inline and traditional network-based intrusion detection and prevention (IDS/IPS) products.

Companies tracked include 3Com/TippingPoint, Alcatel-Lucent, Array, Celestix, Check Point, Cisco, Citrix, CA, D-Link, Enterasys, F5, Fortinet, GTA, Intrusion, Juniper, ISS, McAfee, Nokia, Nortel, Secure Computing, SonicWALL, Sourcefire, Symantec, WatchGuard, ZyXEL, and others.

For report highlights , log in to Infonetics' online portal from www.infonetics.com (see Network Security area). For sales, contact Larry Howard, vice president, at larry@infonetics.com or 1 (408) 583-3335.

Infonetics Research ( www.infonetics.com ) is an international communications market research firm. Tracking emerging markets since 1990, Infonetics covers a broad range of service provider, product manufacturer, and enterprise and SMB markets, including network security , enterprise voice, unified communications, broadband networks, IPTV, IP video, mobile TV, optical networks, metro Ethernet, carrier routing and switching, wireless, FMC, VoIP, IMS, policy management, subscriber management, service management, carrier capex and opex, and more. Services include quarterly market share and forecasting, end-user survey research, service provider survey research, service provider capex analysis, and custom research and consulting.

Press Contact: Jeff Wilson Principal Analyst, Network Security Infonetics Research (408) 583-3337 Email Contact