Network Security Revenue Up

CAMPBELL, Calif. -- Worldwide network security appliance and software revenue climbed 2% to $1.2 billion between 4Q05 and 1Q06, and is forecast to reach $6 billion in 2009, according to Infonetics Research's Network Security Appliances and Software report.

Many customers, while still investing in firewalls, VPNs, IDS/IPS, and gateway AV, are also looking deeper into NAC and content security solutions, which is delaying some core network security purchasing until later in 2006.

"VPN/firewall functionality -- the core of most integrated security appliance products -- is truly reaching the commodity stage," said Jeff Wilson, principal analyst at Infonetics Research. "New silicon vendors are making it possible for manufacturers to build and sell multi-gigabit VPN/firewall appliances for under $5,000, with that number declining rapidly over the next year. In addition, new security vendors are building Ethernet switches that offer full security on every single port at very affordable prices, driving prices down and making competition fiercer for all integrated security products."

Infonetics Research Inc.