Strong Growth in Western European Security Appliance Market
Dec 17, 2004
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European customer demand for network security solutions delivered as an appliance continues to increase, according to IDC.

The research firm's European Quarterly Security Server Appliance Tracker recorded another period of strong growth for security appliances in the third quarter. Around U.S. $155 million in factory revenue was generated in the region from security appliance sales in the third quarter of 2004 -- an increase of 54 percent over the same quarter in 2003. Growth from a unit shipment perspective was 79 percent, with almost 80,500 units shipped. Compared to the second quarter of 2004, unit shipments were flat and factory revenue increased by around 6 percent.

The quarter saw the newer, less established security appliance categories -- intrusion detection and prevention (ID&P) appliances and unified threat management (UTM) appliances -- capture further share of the total market from the larger, more mature firewall/VPN category.

UTM appliances exhibited triple-digit growth over the annual period, with growth also coming from ID&P appliances. Despite its share of the total security market dropping, growth from firewall/VPN appliances, although not as strong as the other two categories, remains good, IDC reports. For the quarter, firewall/VPN appliances made up 71 percent of revenue generated, ID&P appliances 19 percent, and UTM appliances 10 percent. The firewall/VPN category constituted 79 percent of all unit shipments, UTM appliances 18 percent, and ID&P appliances 3 percent.

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