Security Appliance Market Growth Lowest Since 2010 Q1

According to the latest Q1 figures, security appliance revenue remains above $2 billion, but grew only 3.4 percent compared to 7.2 percent in the previous quarter.

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  

Editor’s note:  As part of our special editorial partnership, Channelnomics is publishing this recent article from CRN in the UK.

The year-on-year growth rate for revenue in the security appliance market in Q1 2013 was the lowest since the start of 2010, according to IDC.

Related articles

In 2013's first quarter, global factory revenue was up 3.4 percent annually -- reaching the $2 billion mark -- but shipment levels dropped year on year by 6.8 percent to 472,306. IDC claims Cisco Systems Inc.'s transition to newer, more expensive security appliances drove the shipment decline.

In the previous quarter, security appliance revenue rose 7.2 percent to $2.3 billion.

Cisco continued to lead the market, but its share dropped to 16.6 percent following a 3.4 percent year-on-year dip in its revenue to $335 million. Third-place Juniper Networks Inc.'s security appliance sales slumped 17.7 percent annually to $152 million, widening the gap between it and second-place Check Point Software Technologies Ltd. The latter's security appliance sales jumped 5.7 percent annually to $252 million, meaning its market share (12.5 percent) was more than double Juniper's (6.2 percent).

The majority -- 51 percent -- of the security appliance market revenue was transacted through the "other" vendors outside the top five, and IDC pinpointed Blue Coat Systems Inc., Palo Alto Networks and Sophos Ltd. as having enjoyed strong annual growth in the quarter.

John Grady, research manager for security products at IDC, said security continues to be a priority for all businesses. This will act to drive further market growth in the segment.

"All organizations continue to prioritise security within their overall IT budget. With advanced, targeted threats a growing concern, IDC expects continued high single-digit growth in the overall security appliance segment over the course of 2013," he said.

Western European factory revenue rose 3.9 percent annually, trailing the growth levels in the Canadian and Japanese markets, which rocketed 16.4 percent and 8.6 percent respectively.

For more UK channel coverage from CRN, visit

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  

Want more articles like this?

Subscribe to Channelnomics for a daily newsletter roundup direct to your inbox

More on Distribution

Keeper Security enterprise entrance helps resellers branch out

Distributor 3Eye Technologies says vendor's enterprise efforts should help resellers reach new areas of business


immixGroup partnership ‘important’ step' for GlobalSCAPE channel

GlobalSCAPE exec says partnership will help vendor serve federal and public sector organizations


Tech Data sees income soar in Q2

Net profits almost double at global distie


D&H Distributing hails strong first quarter

Firm bucks general distribution market trend by reporting a solid performance most areas of its business

Visitor comments
Add comments
blog comments powered by Disqus

Channelnomics' top five stories of the week - 2 October 2015

Check out which articles grabbed the most attention this week


Editor's voice: The week's channel chatter - 2 October 2015

What's been happening this week on Channelnomics?


Wave of consolidation set to wash over backup channel

The sale of cloud backup specialist Intronis to security vendor Barracuda Networks heralds consolidation in the backup space that will have a profound impact on the channel


Money talks: Bottom line driving sustainable datacenter demand

Channel players say despite the growing popularity of being eco-conscious, when it comes to energy efficient datacenters, end users only care if it affects their own invoice