Security app market continues steady growth in Q4 of 2012

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Worldwide factory revenue was up 7.2 percent year-on-year to $2.3 billion, as shipments increased 5.2 percent to 538,428 units. In the previous quarter, factory revenue growth was 6.3 percent and unit growth was 1.3 percent compared to Q3 2011. Geographically, Asia-Pacific excluding Japa (APeJ) with a revenue share of 19.3 percent continued to see the highest growth at 18-percent year-over-year. Western Europe growth picked up in the final quarter of 2012, with factory revenue rising 3.9 percent versus Q4 2011. Japan had the highest unit growth year over year at 25.1 percent, followed closely by APeJ at 17.4 percent. The United States recorded 4.1-percent revenue growth and a unit decrease of 1.1 percent compared to Q4 2011, indicating some softness in lower price bands and that revenue growth was driven by larger enterprises and service providers. “Typical fourth quarter seasonality seemed to help the market a bit, with overall growth picking up thanks to end of year initiatives on the vendor side and budget flush on the buyer side,” said John Grady, research manager for security products at IDC. “Organizations continue to prioritize security within their overall IT budget. With advanced, targeted threats a growing concern, IDC expects continued high single-digit growth in the security appliance segment.” Cisco continues to lead the overall security appliance market with 15.5 percent share in factory revenue for the fourth quarter, but this was down from 17.7 percent in the prior year period. Check Point held the number two spot with a 12.7 percent share for the quarter as revenue increased 7.8 percent compared to the fourth quarter of 2011. Fortinet saw the largest revenue growth among the top five vendors at 27.2 percent. The combined shares of the top 5 global vendors represented 46.3 percent of the market in Q4 2012 losing 2.6 points compared to a year ago. The share of Others increased primarily due to strong quarters from Blue Coat, Palo Alto Networks, Barracuda, Sourcefire, and Dell SonicWALL. At the functional market level, the Unified Threat Management (UTM) segment saw the largest year-over-year revenue growth at 34.3 percent and accounted for 35.0 percent of security appliance revenue in 4Q12, as multi-function appliances continue to drive growth in the overall market. The Firewall/VPN market represented 24.0 percent of security appliance revenue despite a year-over-year decline of 2.8 percent after ten consecutive quarters of steady growth. The IPS segment declined by 3.6 percent compared to the prior year as these dedicated products continue to battle for share in the mid-market with UTM appliances. “While businesses continue to explore the opportunities for migrating to a private cloud network as a new technology paradigm, unified security prospects will continue to expand rapidly into small and medium-size businesses where demand is greater than ever,” said Ebenezer Obeng-Nyarkoh, senior research analyst at IDC. ]]>

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