Revenue growth of 11% YoY
In fiscal 1Q17, Cisco (CSCO) continued to maintain significant YoY (year-over-year) growth of 11% in the network security business segment. Cisco’s Security business saw double-digit growth for the fourth consecutive quarter in 1Q17. Deferred revenue rose 39% YoY driven by Cisco’s ongoing shift from hardware to more software and subscription services. Revenues rose from $466 million in fiscal 4Q15 to $540 million in fiscal 4Q16.
The CEO of Cisco, Charles Robbins, stated, “Our competitive position in security is growing stronger as our integrated architecture approach and best-of-breed portfolio resonates with our customers. In fact, we’re the only company with security product revenue exceeding $2 billion annualized run rate with double-digit growth.”
Cisco continues to dominate the security space
Security is one of the key areas for clients, and Cisco has driven the adoption of its advanced threat solutions by catering to customer requirements. Revenues from the company’s AMP (advanced malware protection) rose 70% YoY in 1Q17. The company’s next generation firewall revenue also rose 35% YoY driven by the addition of 5,300 customers in 1Q17.
According to IDC (International Data Corporation), the worldwide security appliance market grew YoY (year-over-year) in vendor revenues and unit shipments in 2Q16 (fiscal 4Q16 for Cisco). This was the 12th consecutive quarter of YoY growth in the security appliance segment.
Worldwide vendor revenues in the worldwide security appliance market in 2Q16 rose ~5.8% YoY to ~$2.8 billion. Units rose 15.2% YoY for a total of ~659,000 shipments. In 2015, worldwide security appliance revenues rose 9.9% to $10.6 billion.
Cisco Systems (CSCO) continued to dominate the security appliance market in 2Q16 with a 16.3% share. Other top players in this space include Check Point Software Technologies (CHKP), Palo Alto Networks (PANW), Fortinet (FTNT), and Blue Coat with market shares of 13.0%, 12.1%, 9.8%, and 4.2%, respectively, at the end of 2Q16.