What is network security?
Network security consists of policies adopted to prevent and monitor unauthorized access, modification, misuse, or denial of a computer network. It involves authorization of access to data in a network that’s controlled by the network administrator. Network security is accomplished through hardware and software.
Major players in the security space
According to IDC (International Data Corporation), the worldwide security appliance market grew YoY (year-over-year) in vendor revenues as well as unit shipments in 1Q16. This was the 11th consecutive quarter of YoY growth in the security appliance segment.
Worldwide vendor revenues in 1Q16 rose by ~5.5% YoY to ~$2.5 billion, and units rose by 9% YoY, for a total of 580,007 shipments. In 2015, worldwide security appliance revenues rose by 9.9% to $10.6 billion.
Cisco Systems (CSCO) continued to dominate the security appliance market in 1Q16, with a share of 17.4%. Other top players in this space include Check Point (CHKP), Palo Alto Networks (PANW), Fortinet (FTNT), and Blue Coat, with shares of 13.8%, 12.4%, 10%, and 4.6%, respectively, at the end of 1Q16.
In 1Q16, Cisco’s revenue in this segment rose by 5.4% YoY to $429 million. Palo Alto Networks was the biggest gainer with revenue increase of 40.9% YoY, followed by Fortinet and Check Point at 29.6% and 11.1%, respectively.
Revenues rose by 17% YoY in fiscal 3Q16
In fiscal 3Q16,[1. quarter ended April 2016] Cisco continued to maintain significant YoY growth of 17% in the Network Security Business segment. Deferred revenue rose by 31% YoY, driven by Cisco’s ongoing shift from hardware to more software and subscription services. Revenues rose from $412 million in fiscal 3Q15 to $482 million in fiscal 3Q16.