Infonetics Reports on Security

Content security gateway appliance revenue jumps 70% in 2006

CAMPBELL, Calif. -- The worldwide content security gateway market grew 33% in 2006, fueled by strong appliance sales, which shot up 70% in the same period, says Infonetics Research in its fourth quarter "Content Security Appliances and Software" report.

Annual worldwide revenue for content security appliances is forecast to grow 168% between 2006 and 2010, when it will reach $2.3 billion. Revenue for content security software will grow steadily as well, though more moderately, as software appeals mainly to large companies, whereas appliances appeal to companies of all sizes.

"A major driver for enterprise investment in content security solutions is that content-related attacks tend to be productivity crippling, directly affecting end-users. In the past, when most companies worried primarily about data theft, most users were unaware of the threats passing across the network, but now users are inundated with malware that interrupts their ability to work. The productivity loss aspect of content security threats induces many companies to invest in content security solutions," said Jeff Wilson, principal analyst at Infonetics Research.

Market Highlights

  • Worldwide content security appliance revenue grew 14% from 3Q06 to 4Q06; new products are expected to be introduced at a wide variety of price points, though average revenue per unit is forecast to decline significantly
  • Worldwide content security software revenue grew 9% in 4Q06
  • 4 main groups of vendors will play significantly in the content security gateway market:
    • Large established content security players like Symantec, McAfee, and Trend Micro
    • Established content security segment players like Barracuda, IronPort (acquired by Cisco), BlueCoat, and Websense
    • Startups and small vendors building integrated content security gateway appliances from day-1, like Anchiva and eSoft
    • Large established networking/security product manufacturers looking to expand into new markets, such as Juniper, Cisco, and Check Point, etc.
  • North America accounts for 52% of all content security gateway revenue in 2006, Asia Pacific for 25%, EMEA for 21%, and CALA for 2%

Infonetics Research Inc.

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