Security Appliances will Grow Steadily as Market Transitions to Services

In-Stat: With the melding of security into networking equipment and the growth of managed services, the security market is transitioning from a product to a service focus . Despite this transition, the security appliance market is expected to grow steadily; reaching $5.4 billion by 2010 . Integrated security appliances will grow the fastest, especially among small and medium businesses. An important revenue source will be the subscription services that are bundled with these products.

• 52% of respondents plan to purchase security appliances to replace out-of-date equipment, as compared to 22% in 2004.

• Less than 10% of the respondents in companies with less than 100 employees have deployed integrated security appliances.

• IPSs are increasingly being distributed at critical segments instead of concentrated at network perimeters. Only 44% of the survey respondents reported using IPS technology inline at the perimeter; as compared to 74% in 2004.

Trends and Spending Plans for Security Appliances: The Move from Products to Services

Publ 20060725