Security appliance market growth slows slightly in Q2

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Worldwide factory revenue was up 6.3-percent year-over-year to just under $2.0 billion, as shipments increased 6.5 percent to 496,697 units. In the first quarter, factory revenue growth was 9.7 percent and unit growth was 12.9 percent compared to Q1 2011. Geographically, shipments grew fastest in Latin America with an 18.6 percent year-over-year increase, just ahead of Central & Eastern Europe at 18.5 percent. Asia-Pacific (excluding Japan) and Canada were the only regions with double-digit year-over-year growth in factory revenue. The United States saw 8.0 percent growth in revenue on 4.8 percent growth in units, due to strong results in the unified threat management (UTM) segment. “Security professionals with the responsibility of providing applicable cyber intelligence and timely technical information for defending against emerging threats in rapidly growing emerging markets require multiple levels of security to protect everything from small- and medium-sized businesses to corporate data centers,” said Ebenezer Obeng-Nyarkoh, senior research analyst at IDC. The combined shares of the top 5 global vendors represented 49.4 percent of the market in 2Q12. Cisco continues to lead the overall security appliance market with 17.6 percent share in factory revenue for the second quarter, but this was down from 18.9 percent in the prior year period. Check Point held the number 2 spot with 13.0 percent share for the quarter as revenue increased 15.8 percent compared to the second quarter of 2011. Fortinet saw the largest growth among the top five vendors at 26.9 percent. McAfee also saw double-digit revenue growth and a modest share increase of 0.3 points. At the functional market level, the Firewall/VPN segment again saw the largest year-over-year revenue growth at 21.2 percent and accounted for 28.3 percent of the overall security appliance market in 2Q12. However, this is a bit misleading as the growth is entirely due to shifts in Cisco’s revenue. The UTM market represented 27.8 percent of security appliance revenues thanks to 19.0 percent year-over-year growth. The IPS, Content Management, and VPN segments all saw revenue declines compared to 2Q11. “While the macroeconomic environment remains somewhat uncertain, these latest tracker results show that companies continue to prioritize security and will spend the dollars necessary to secure their organizations’ infrastructure,” said John Grady, senior research analyst for security products at IDC. ]]>

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