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Network Security Market Faces A Slowdown: Survey

The market for network security appliances and software appears to be slowing down, as hardware prices drop, and as security features are increasingly built directly into Ethernet switches, according to a new report from Infonetics Research.

The report found that revenue grew only two percent between the fourth quarter of 2005 and the first quarter of 2006, to $1.2 billion. Overall, revenue will hit $6 billion in 2009, the reports concludes.

The report also found that many customers are exploring network access control and content security solutions, which is delaying their purchase of core network security products until later in 2006.

In addition, Jeff Wilson, principal analyst at Infonetics Research, noted in a statement, "VPN/firewall functionality -- the core of most integrated security appliance products -- is truly reaching the commodity stage. 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."

The report also found:

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