Worldwide Firewall Revenues Grow 143% from 1996 to 1997

Latest IDC Research Indicates Market to Reach $1.8 Billion by 2002

In a year highlighted by mergers, acquisitions, and IPOs, firewall vendors experienced strong revenue growth. New IDC research reveals that from 1996 to 1997 overall firewall revenues grew 143 percent. The rapid growth of this market was driven by businesses upgrading their firewalls as the Internet matured and by a demand for multiple Internet firewalls to provide companies with high availability and throughput. In addition, a steady use of firewalls on intranets, and a steep growth in the use of extranets and virtual private networks (VPNs), contributed to this tremendous revenue increase. 

The top vendors in the 1996 firewall market retained their leadership positions in 1997, the IDC study found:

 

• Check Point Software Technologies remained number one with a 23% share of the market. 
• Cisco Systems gained sole possession of the number two spot with a 19% share. 
• AXENT Technologies (which acquired Raptor Systems) garnered 7%.
• Network Associates International was number four with 6%.
• Secure Computing and CyberGuard were fifth and sixth with a 5% each. 

The Worldwide Firewall Market, 1997 (IDC #B16557) is based on IDC's firewall market survey, which counts factory revenues. IDC considers factory revenues the better indicator of vendor success in the market because it concentrates on software that was paid for and is more likely to be used. The study provides a worldwide firewall vendor revenue ranking by vendor for 1997, and worldwide firewall revenues by region from 1997 to 2002. It provides a market segmentation analysis including an examination of buying pressure shifts, performance, consolidation, and criteria for successful acquisitions. Finally, the report provides profiles of the major firewall vendors.

The report is available for electronic purchase or by contacting Cheryl Toffel at 508-935-4389 or via email at ctoffel@idc.com.