Worldwide VPN and firewall product revenue totaled $670M in 2Q02 and should reach $2.9B in calendar 2002, according to Infonetics

August 21, 2002

1 Min Read

SAN JOSE, Calif. -- Worldwide VPN and firewall product revenue totaled $670 million in 2Q02, and is forecasted to reach $2.9 billion in CY02, according to Infonetics Research’s quarterly worldwide market share and forecast service, VPN and Firewall Products. “The current carrier disaster will stimulate VPN sales because VPNs can be used to create resilient, cost-effective, carrier-independent WANs and extranets; as more large carriers experience financial troubles, users will see VPNs as a good way to get around their dependence on individual carriers,” said Jeff Wilson, executive director of Infonetics Research. “Competition is really heating up. Cisco and Check Point are clear revenue leaders, but neither has dominant share yet. NetScreen continues to grow strongly quarter over quarter, and Nokia, Symmantec, Nortel, SonicWALL, and WatchGuard are all challenging as well. Commodity players are starting to come on strong, and will do very well in the low end. There’s even room for new competitors to exploit niche opportunities.”2Q02 Market Share Highlights:

  • VPN and firewall appliance hardware and software make up 60% of the total VPN and firewall market revenue

  • Routers with integrated security are making strong headway, representing 25% of total revenue

  • Appliances appeal to both the low end of the market (very small sites/telecommuters and day extenders) and the high end (central sites, traffic aggregation points, and data centers), while routers do well for branch office connectivity

  • North America accounts for 46% of VPN and firewall hardware and software revenue in 2Q02, a number that holds fairly steady through CY03

Infonetics Research Inc.

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