Small Businesses Hold Huge Potential for Firewall Vendors, According to IDC

FRAMINGHAM, MA – MARCH 21, 2000 — Plenty of opportunity still exists in the firewall market, with small businesses holding the most promise. According to IDC, at the very least, the worldwide firewall market will create $1.6 billion in revenues in 2000, and there is a possibility that total could climb higher than $2.1 billion.

IDC believes the firewall market won't even approach saturation until 2004 at the earliest. In the United States, 50% of large businesses and 41% of medium-sized businesses will have installed firewalls by yearend. However, only 14% of small businesses will have them.

"After 2000, the number of firewalls per company will most likely increase, and as a result there will still be good growth potential in all markets," said Chris Christiansen, program director for IDC's Internet Security research. "However, the firewall market will shift toward the small business market. The large number of small businesses, combined with the low saturation rates, represents an untapped market that can't be ignored."

The United States is the largest market for firewalls. IDC expects it will account for almost 61% of worldwide revenues in 2000. However, revenue growth in the U.S. market will be slower than in other regions, and by 2003, U.S. share will decline to under 48%.

IDC splits the overall firewall market into three segments: firewall appliances, router-based firewalls, and software-based firewalls. Firewall appliances are the largest part of the market, but router-based firewalls are the fastest-growing segment.

Check Point and Cisco lead their respective markets. Check Point rules the software-based firewall market while Cisco owns the firewall appliance segment. IDC expects vendors such as IBM, Microsoft, Novell, Lucent, and Sun will play a larger role in this market in the future.

IDC recently published Firewall Market Saturation in 2000 (IDC #B21672). This report presents IDC's Firewall Saturation Model, sizes the overall market for 2000, and forecasts each market segment through 2003. Additionally, the forecast for the overall market is segmented by region. The report also looks at the firewall market's leading vendors. To order a copy of the report, contact Patrick Steeves at 1-800-343-4952, ext. 6787 or at If you are interested in IDC's Internet Security research service, contact Pat Duhl at 949-442-4038 or at

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 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, and the financial community. Additional information can be found at

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

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