Network Security Sales Surpass $1.2 Billion in Q3 2006

Growth Driven by High End & Next Gen Hybrid Solutions, IPS Sales


RENO, NV -- (MARKET WIRE) -- November 17, 2006 -- According to a recently published report by Synergy Research Group, the worldwide Network Security market increased nine percent sequentially in the quarter and grew ten percent year-over-year.

Synergy Research Group segments the total Network Security market to include Hybrid Security Solutions (Firewall/VPN), Intrusion Detection/Prevention Systems (IDS/IPS), and SSL VPNs. Furthermore, SRG segments the Hybrid market into Low-End, High-End, and Next Generation Appliances, and Software Solutions.

Hybrid Solution sales increased nine percent sequentially and grew seven percent year-over-year. Furthermore, IDS/IPS sales increased 11 percent for the quarter and climbed 15 percent over Q3 2005 while SSL VPN sales increased eight percent in the quarter and climbed 47 percent year-over-year.

"As indicated by double-digit sales growth across multiple segments, network security build-out remains a critical IT priority, especially for large enterprises and service providers," said Aaron Vance, Senior Analyst at Synergy Research Group. "What's more, the market continues to be driven by tighter network integration, the integration of multiple functions onto a single device, local and remote network access initiatives, more robust perimeter solutions, regulatory standards compliance, and service provider managed security services."

Table 1. Q3 2006 U.S. Hybrid (Hardware only) Market Shares
                         Position        Q-Q Sales Growth
  Cisco                     1                   12%
  Juniper                   2                    3%
  SonicWall                 3                   14%
  Symantec                  4                   -4%
  Nokia                     5                  -10%

Table 2. Q3 2006 U.S. IDS/IPS Market Shares
                         Position        Q-Q Sales Growth
  Cisco                     1                   41%
  ISS                       2                    1%
  3Com                      3                    0%
  Symantec                  4                   -4%
  McAfee                    5                    1%

Table 3. Q3 2006 U.S. SSL VPN Market Shares
                         Position        Q-Q Sales Growth
  Juniper                   1                   -7%
  F5                        2                   18%
  Citrix                    3                    0%
  Cisco                     4                   72%
  Aventail                  5                   -1%
For the quarter Cisco, F5, and SonicWall all experienced notable market share gains.

Additionally, highlights from Synergy's SSL VPN research are available on Secure Access Central, the IT security industry's only information portal dedicated to secure remote access (www.secureaccesscentral.com).

About the Report

Synergy's Worldwide Network Security reports are available for purchase at www.srgresearch.com or by contacting Heather Wilson at 775-852-3330. Synergy provides separate Market Share and Forecast reports for WLAN for Worldwide, US, EMEA, APAC, and LAM regions.

About Synergy Research Group

Synergy Research Group is regarded as the definitive authority for networking and telecom market research by Wall Street firms, leading equipment vendors, and component manufacturers. Synergy can be found at www.srgresearch.com.

The contents of this press release represent SRG's interpretation and analysis of statistics and information collected from authorized company representatives, industry sources, and SRG estimates. SRG does not guarantee the accuracy or completeness of the statistics or information contained in this release.

Contact Information: Heather Wilson (775) 852-3330 Email Contact