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 www.channelweb.co.uk

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  
More on Distribution
Business handshake

Arrow joins Microsoft Surface Hub sales channel

Distributor providing offering support

Three businesspeople meet and shake hands

Vendors taking partners from indirect to direct, 'upsetting' for disties

Tech Data explains what a VAR might lose when switching to a direct model

builder3333

Disties continue to build on managed security success

Part 2 of 2: Two-tier channel players have a lot to offer when it comes to SECaaS; partners should capitalize on this trove of resources

Road sign indicating rewards just ahead on sunny day with clouds

Cisco resales rewarded with new D&H Distributing program

Distributor announces enablement program for Cisco partners

Visitor comments
Add comments
blog comments powered by Disqus
In-depth
newspapers-and-glasses

Channelnomics' top five stories of the week - 3 July 2015

Check out which articles grabbed the most attention this week

jessica-m-225x300

Editor's voice: The week's channel chatter - 3 July 2015

What's been happening this week on Channelnomics?

Microsoft Surface Hub

Microsoft going big with partners on Surface Hub launch

Partners report strong demand for the wall-mounted collaboration device, anticipate even more opportunities when application development program rolls out in September

communication1

Communication breakdown: Getting vendor marketing and partner sales on the same page

Channel players talk struggles, consequences and solutions to poor communication among vendor marketing teams and channel sales teams