FireEye faces tough competition in the network security space
Earlier in this series, we discussed the cybersecurity space in general and FireEye’s (FEYE) new offerings. The changing face of the enterprise security space has prompted companies to acquire smaller companies and startups with disruptive technologies in order to gain a competitive edge over their peers. By purchasing a smaller company that has a novel approach toward network security, the acquiring company can offer an exhaustive suite of offerings to customers.
It’s little wonder that FireEye faces significant competition from its peers, especially Cisco (CSCO) and Palo Alto Networks (PANW). For example, FireEye’s NX (Network Security) Power, a network security solution, has a maximum bandwidth of 4 Gbps (gigabits per second). In comparison, Palo Alto Networks noted that its PA 7080 firewall “can deliver up to 200Gbps throughput and 100Gbps with all security capabilities enabled.”
FireEye’s (FEYE) increasing competition prompted the cybersecurity company to launch two new offerings: MVX Smart Grid and Cloud MVX. These offerings are expected to strengthen FireEye’s presence in the network security space, which we discussed earlier in this series.
Cisco dominates the security space
Cisco Systems 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.