Cisco leads global security appliance market in second quarter of 2012

Infotech Lead India: Cisco leads the global security appliance market in the second quarter of 2012 (2Q12).

IDC said in the security appliance market, factory revenue grew 6.3 percent year over year to $2 billion, as shipments increased 6.5 percent to 496,697 units.

In the first quarter, factory revenue increased 9.7 percent and unit growth was 12.9 percent compared to Q1 2011.

In Latin America, shipments grew 18.6 percent year-over-year.

Growth in shipment in Central & Eastern Europe was 18.5 percent.

Asia/Pacific (excluding Japan) and Canada were the only regions with double-digit year-over-year growth in factory revenue.

The United States market increased 8 percent in revenue on 4.8 percent growth in units, due to strong results in the unified threat management (UTM) segment.

“Security professionals with the responsibility of providing applicable cyber intelligence and timely technical information for defending against emerging threats in rapidly growing emerging markets require multiple levels of security to protect everything from small- and medium-sized businesses to corporate data centers,” said Ebenezer Obeng-Nyarkoh, senior research analyst, Worldwide Trackers Group at IDC.

Cisco has 17.6 percent share in factory revenue for the second quarter, but this was down from 18.9 percent in the prior year period.

Check Point is the second largest player with 13.0 percent share for the quarter as revenue increased 15.8 percent compared to the second quarter of 2011.

At third place, Fortinet has grown at 26.9 percent.

McAfee also saw double-digit revenue growth and a modest share increase of 0.3 points.

Top 5 Vendors, Worldwide Security Appliance Revenue, Second Quarter of 2012
(revenues in $ millions)
Vendor       2Q12
      2Q12 Share       2Q11
      2Q11 Share       2Q12/2Q11
1. Cisco       $345       17.6 percent       $349       18.9 percent       -1.1 percent
2. Check Point       $255       13.0 percent       $220       11.9 percent       15.8 percent
3. Juniper       $143       7.3 percent       $143       7.7 percent       -0.1 percent
4. Fortinet       $116       5.9 percent       $92       5.0 percent       26.9 percent
5. McAfee       $110       5.6 percent       $98       5.3 percent       12.2 percent
Others       $993       50.6 percent       $944       51.2 percent       5.2 percent
Total       $1,962       100 percent       $1,846       100 percent       6.3 percent
Source: IDC Worldwide Quarterly Security Appliance Tracker, September 28, 2012


At the functional market level, the Firewall/VPN segment again saw the largest year-over-year revenue growth at 21.2 percent and accounted for 28.3 percent of the overall security appliance market in 2Q12.

IDC said this is a bit misleading as the growth is entirely due to shifts in Cisco’s revenue.

The UTM market represented 27.8 percent of security appliance revenues thanks to 19 percent year-over-year growth.

The IPS, Content Management, and VPN segments all saw revenue declines compared to 2Q11.

“While the macroeconomic environment remains somewhat uncertain, these latest tracker results show that companies continue to prioritize security and will spend the dollars necessary to secure their organizations’ infrastructure,” said John Grady, senior research analyst, Security Products at IDC.

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