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Cisco’s Security Business: FirePOWER Series Drives Its Growth

Puneet Sikka - Author

May 21 2015, Updated 9:07 a.m. ET

FirePOWER series drives growth

In the last part of this series, we discussed how Cisco’s (CSCO) Data Center business showed the best growth among other segments. However, the company’s security business is also showing strong growth. In fiscal 3Q15, Cisco’s security business experienced YoY (year-over-year) revenue growth of 14%. This was much better than the segment’s growth in fiscal 2Q15.

Cisco acquired Sourcefire in July 2013 for $2.7 billion. Sourcefire’s intrusion detection products have helped Cisco gain business from the US government and enterprises looking to protect their networks. As the above chart shows, the YoY revenue growth for Cisco’s security segment has been increasing by double digits since Cisco acquired Sourcefire. The growth came down to a nominal 6% in the last quarter, as fiscal 2Q14 and fiscal 2Q15 both include additional revenue from Sourcefire.

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However, Cisco’s security business revenue growth rebounded in fiscal 3Q15. During the earnings conference call, Cisco mentioned that it signed a record number of security contracts with enterprises in the last quarter. Particularly, it mentioned the FirePOWER series of security solutions, which is showing strong momentum.

Cisco continues to lead the network security market

Cisco has always been a major player in the network security market. According to a report from Synergy Research Group, Cisco’s share of the worldwide network security market was 30% in calendar 3Q14. This was followed by players like Check Point (CHKP), Symantec (SYMC), Huawei, Juniper Networks (JNPR), and Palo Alto Networks (PANW). The report also mentions that the global network security market reached $9 billion in the last year.

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