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January 2, 2013

Worldwide security appliance revenue grew 5.7% in Q3 of 2012: IDC

Revenue rose 13.3% in Asia/Pacific and the US reported 4.6% revenue growth

By CBR Staff Writer

Worldwide security appliance factory revenue increased 5.7% to more than $2bn in the third quarter of 2012, as shipments rose 1% to 499,022 units, according to a new report from IDC.

Revenue rose 13.3% in Asia/Pacific (excluding Japan) while Western Europe’s revenue increased 0.5%.

The report claims that Japan had the highest year over year unit growth of 8.3%, followed closely by combined Central and Eastern Europe and Middle East and Africa at 7.9%.

The US reported 4.6% revenue growth on a unit decrease of 1.2% compared to Q3 of 2011, the report revealed.

Revenue growth in the US indicated some softness in lower price bands and was driven by larger enterprises as well as service providers, said IDC.

IDC research manager of security products John Grady said: "Overall, macroeconomic conditions have been questionable at best. While the security market remains more resilient than others, there was a definite slow-down in growth rates in the third quarter."

"That being said, the evolving threat landscape continues to drive spending on security products as organizations battle to keep their infrastructures secure and their data protected," Grady said.

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Fortinet had the largest growth at 17.2% share in factory revenue for the Q3 and Cisco had 16.2% share. Check Point had 12.8% share for the quarter while Juniper and McAfee had 7.9% and 5.7% share respectively.

IDC’s report found that the Unified Threat Management (UTM) segment had the largest year-over-year revenue growth at 24.3% and accounted for 33.3% of security appliance revenues in Q3 of 2012.

The Firewall/VPN market represented 26.7% of security appliance revenues with 7.3% year-over-year growth primarily due to Cisco and Juniper.

According to the report, the IPS and VPN segments were the only markets to show revenue declines compared to Q3 of 2011.

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