Cisco and WatchGuard Are the Companies to Watch in the Firewall Appliance Market, According to IDC

FRAMINGHAM, Mass., January 5, 2000 — According to market research firm International Data Corporation (IDC), Cisco and WatchGuard are the companies to watch in the fast-growing firewall appliance market. Cisco dominates the high-end price band of the firewall appliance market. In the low-end price band, however, WatchGuard rules.

"While Cisco dominates the total market and high-end price bands, the low end is the most competitive price band, and IDC expects newcomers, such as server, security software, and network equipment vendors, to change the dynamics of the market," said Chris Christiansen, director of IDC's Internet Security research.

Over the next five years IDC predicts firewall appliance revenues will grow at 51% compounded annually to more than $1.4 billion. The firewall market contains a diverse selection of vendors and it will become even more competitive. Currently, Cisco leads the market followed by Check Point/Nokia and WatchGuard. RadGuard and Lucent are the remaining two vendors in the top five.

"While IDC does not expect challenges to Cisco's position in the near future, by 2001, low-price band revenues for firewall appliances will equal high-price band sales for the first time, and by 2003, the low-price band will gain the greatest share of the market. Vendors who compete in this segment will be better positioned to give Cisco a run for its money," Christiansen said.

People are finding that firewall appliances provide a convenience and ease of installation that software-based firewalls have not addressed. Therefore, the firewall appliance market is emerging as both a potent partner and competitor to the software firewall market.

IDC recently published a report on the firewall appliance market. Worldwide Firewall Appliance Market: Hot Growth, Diverse Competitors (IDC #B21087) specifically looks at the firewall appliance segment of the market. It shows market shares for the top vendors and shows each vendor's 1998 revenues, units, and average selling price. The report discusses issues affecting the market, looks at vendors who might enter the market, and provides a worldwide forecast segmented by region. Lastly, it examines the market by price band. To order a copy of the report, contact Patrick Steeves at 1-800-343-4952, ext. 6787 or at psteeves@idc.com. If you are interested in IDC's Internet Security research service, contact Pat Duhl at 949-442-4038 or at pduhl@idc.com.

About IDC

IDC delivers dependable, relevant, and high-impact data and insight on information technology to help organizations make sound business and technology decisions. IDC forecasts worldwide IT markets and technology trends and analyzes IT products and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC is committed to providing global research with local content through more than 500 analysts in 42 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of International Data Group, the world's leading IT media, research, and exposition company.

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