Weaker First Quarter for Western European Quarterly Security Appliance Tracker, but Security Hardware Market Still on the Rise, Says IDC

LONDON – June 17, 2008 – According to IDC's Western European Quarterly Security Appliance Tracker, 1Q08 revenues for the Western European security appliance market reached $332.08 million, an 8.1% increase over the same quarter a year ago.

According to Romain Fouchereau, research analyst at IDC, "Following the very strong results seen in 4Q07, the security appliance market saw a negative quarterly growth in its total revenue for the first time in three years. This decrease was seen across all five workloads of the security appliance tracker and reflects the weakness of the general economy rather than the decline of a particular segment. However, UTM, content management, and IPS are still showing an overall strong growth and will continue to drive the market."

The firewall/VPN market represented $92.9 million in 1Q08, a -0.3% decrease over last year's first quarter. The firewall/VPN market is becoming more mature in Western Europe, explaining the slow growth for this workload. This is also due to the fact that vendors are increasingly moving away from offering traditional firewall/VPN appliances and are starting to offer UTM solutions instead. Cisco remained the number 1 vendor in the segment, followed by Juniper Networks.

UTM represented the largest market of the tracked security appliances, with total revenue of $102.2 million in the last quarter, corresponding to 12% growth over 1Q07. Unified threat management appliances are proving very popular in Western Europe, and IDC believes UTM appliances have a role to play in organizations of all sizes. However, it is important to note that because security requirements vary between business sizes, so will the role of UTM appliances and the way in which they are deployed. Fortinet was the market leader, followed by Cisco and Checkpoint.

IDS appliances revenue reached $10.1 million in 1Q08, a 22% decrease over 1Q07. This market will cease to grow due to the shift towards IPS solutions. IPS grew 8.3% over last year's final quarter, representing a $70.6 million market. IPS growth is driven by compliance – particularly PCI in Europe – and IDC believes that IPS solutions will continue to increase as more and more compliance issues come to Europe. Cisco was market leader in both the IDS and IPS markets, followed by IBM-ISS and McAfee for IPS.

Content management appliance revenue grew by 26% year on year, reaching $56.3 million in 1Q08. The messaging security and Web security segments of SCM are following the same evolution as the threat management market, from software to appliance form factor. Given the fact that security appliances can lower costs, ease administrative overheads, facilitate management, consolidate support, scale efficiently, and integrate multiple security technologies into a single platform, their success is not surprising in the SCM market. IronPort remained the number 1 vendor in the content management appliance segment and the messaging security subcategory. Secure Computing led the Web security appliance submarket, while McAfee dominates the Web and messaging subcategory.

Top 5 Vendors, Western European Security Appliance Market Factory Revenue ($M), 1Q08 Vendor 1Q07 Revenue 1Q07 Market Share 1Q08 Revenue 1Q08 Market Share Growth 1Q08/ 1Q07 Cisco $92.45 30.1% $98.45 29.6% 6.5% Juniper $32.46 10.6% $26.65 8.0% -17.9% Fortinet $11.81 3.8% $15.95 4.8% 35.0% Nokia $12.26 4.0% $13.33 4.0% 8.7% Secure Computing $10.88 3.5% $11.06 3.3% 1.6% Others $159.87 48.0% $165.42 50.3% 3.5% Total market $307.20 100% $332.08 100% 8.1% Source: IDC, 2008

IDC's Quarterly Security Appliance Tracker offers the ability to quickly and effectively respond to today's dynamic security server appliance market by keeping pace with evolving functionality and the rapid deployment of new models competing in the marketplace. The product provides insight into customer trends by delivering geography-specific product line and vendor market share information in an easy-to-use product interface, enabling quick table customization for business planning activities.

To purchase this document, please contact your local IDC office or visit www.idc.com.

IDC will hold security conferences in the following cities:

28-Aug-08 Germany: Security Conference 2008: Zurich, Switzerland

04-Sep-08 Germany: Security Conference 2008: Frankfurt, Germany

10-Sep-08 Central and Eastern European Security Conference 2008: Vienna, Austria

11-Sep-08 Normay: Security Conference 2008: Oslo, Norway

18-Sep-08 United Kingdom: IT Security Conference 2008: London, UK

23-Sep-08 Denmark: Security Conference 2008: Copenhagen, Denmark

23-Sep-08 Central and Eastern European Security Conference 2008:

Sarajevo, BIH

25-Sep-08 Netherlands: Security Conference 2008: Amsterdam, Netherlands

25-Sep-08 Sweden: Security Conference 2008: Stockholm, Sweden

Nov-08 Spain: Identity and Access Management Conference 2008: Madrid, Spain

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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