Network Security Up 15% in 2005, Led by Cisco

Infonetics: Worldwide network security appliances and software revenue increased 15% between 2004 and 2005 to $4.3 billion, and was up 3% for the quarter, to $1.1 billion in 4Q05. Annual revenue is forecast to grow 32% to $5.7 billion in 2009.

Infonetics’ 2005 revenue forecast, made in 4Q04, was within 3% of actual revenue.

The fourth quarter of 2005 didn’t have it’s usual seasonal bump; we believe that many customers, while still investing in firewalls, VPNs, IDS/IPS, and gateway AV, are also looking deeper into network access control (NAC) and content security solutions, which is delaying some core network security purchasing until 2006l . We’re adding coverage for these new fast-growing technologies in the near future.

2005 Highlights

• Cisco remains the revenue-leading vendor overall, with 34% of total network security appliances and software; strong router sales helped Cisco increase share in 4Q05

• Check Point is second at 10%, Juniper is third at 8%, and ISS, McAfee, Nokia, Nortel, SonicWALL, and Symantec are strong second-tier players

• North America accounts for 45% of integrated security appliances and software revenue, EMEA is next at 29%, then Asia Pacific at 21%, and CALA at 5%

• Integrated security appliances and software make up 78% of worldwide network security appliances and software revenue, IDS/IPS makes up 14%, gateway anti-virus 8%; by 2009, IDS/IPS makes up 15%, gateway anti-virus 13%

Network Security Appliances and Software Publ 20060306