Frost & Sullivan reports that firewall and IPSec VPN (Internet protocol security virtual private network) solutions continued to be the dominant choice, accounting for the bulk of revenues last year at 74.6 percent (US$1.34 billion), and that this trend is likely to continue through to 2015.
The SMB segment contributed slightly more than one-third to the total revenues in 2008, and Chandrasekaran says he expects this percentage to rise over the next few years.
“More and more SMBs are beginning to install at least first-layer perimeter defence on their corporate networks as converged or integrated security appliances have made network security affordable for smaller businesses. By 2015, SMBs will account for approximately 45 percent of the revenues.”
Chandrasekaran also says he believes that the banking sector will continue to be the biggest spender on network security moving forward, mainly due to rising regulatory compliance. Moreover, he says, “following the loss of public confidence in the banking system after the financial debacle of September 2008, the last thing any CIO would want is a security breach to further dent the confidence of existing and potential customers.”