Bucking a trend, security appliance market grows

IDC data from Western Europe suggests that companies are prioritizing security during the recession

The security appliance market in Western Europe grew 14.4 percent in 2008 and is expected to continue to expend this year, albeit at a slower rate, according to the latest figures from analyst firm IDC.

Revenue for security appliances in 2008 was US$1.48 billion. That figure is projected to rise to $1.65 billion this year, resulting in about 9.4 percent growth, said Romain Fouchereau, an IDC research analyst.

Compared to other hardware markets such as servers, PCs or storage systems, security appliances was one of the only ones to record double-digit growth in 2008, Fouchereau said. That contrasts with overall IT spending, which is expected to decrease due to the global recession.

"Businesses can't afford not to protect their networks or protect their data particularly in moments where the economy is uncertain," Fouchereau said.

High-end appliances that have multiple security functions such as a firewall, intrusion protection and VPN capabilities are driving the market, particularly for enterprises with more than 10,000 employees, Fouchereau said.

Revenue for so-called Unified Threat Management (UTM) appliances totalled $130.27 million for the fourth quarter of 2008, 18.7 percent more than fourth quarter 2007, IDC said. Fortinet was the top vendor, followed by Cisco Systems and Check Point, IDC said.

High-end firewalls are selling better than lower-end ones, with many smaller customers opting for UTM appliances instead, IDC said.

In another area, Intrusion Detection System (IDS) appliances are ceding ground to Intrusion Protection System (IPS) devices.

IDS is an older technology that will monitor and report on network traffic but often does not intervene unlike IPS, which can be programmed to take action in certain attack scenarios, Fouchereau said.

IPS is more popular as companies strive to comply with security standards from the payment card industry dealing with the storage and transfer of sensitive financial data, Fouchereau said.

For the fourth quarter of 2008, IPS revenue grew to $87.49 million, 22.9 percent more than the same period a year before. Cisco leads in both IDS and IPS, followed by IBM and TippingPoint Technologies, IDC said.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags IDCsecurityappliance

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?