{"id":63996,"date":"2024-06-13T09:14:34","date_gmt":"2024-06-13T01:14:34","guid":{"rendered":"http:\/\/www.upgrademag.com\/web\/?p=63996"},"modified":"2024-06-13T09:14:37","modified_gmt":"2024-06-13T01:14:37","slug":"network-security-growth-stalls-as-industry-continues-shift-from-hardware-to-cloud-virtual-based-solutions","status":"publish","type":"post","link":"http:\/\/www.upgrademag.com\/web\/2024\/06\/13\/network-security-growth-stalls-as-industry-continues-shift-from-hardware-to-cloud-virtual-based-solutions\/","title":{"rendered":"Network security growth stalls as industry continues shift from hardware to cloud, virtual-based solutions"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>According to a recently published report from Dell\u2019Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the network security market saw a modest single-digit revenue growth in 1Q 2024, reaching $5.5 billion. <\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This muted growth, down from double-digit a year ago, was driven by a significant decline in hardware-based solutions and a contrasting surge in cloud-delivered and virtual network security solutions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"> The shift away from traditional hardware to more adaptable, cloud-based solutions is reshaping the industry as enterprises respond to evolving cyber threats and the need for scalable security measures.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;In a market facing economic headwinds and shifting architectural preferences, the decline in hardware-based network security solutions was expected but still notable,&#8221; said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell\u2019Oro Group. &#8220;As enterprises continue to navigate the complexities of modern cyber threats, the pivot to more adaptable, cloud-centric solutions is unmistakable and essential for future resilience.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additional highlights from the 1Q 2024 Network Security Quarterly Report:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Firewall Market<\/strong>: Overall firewall revenue declined for the third consecutive quarter, dipping by single digits to just shy of \u00a0$3 billion. On a sub-segment basis, there was significant variation in revenue performance, ranging from a 14 percent year-on-year (Y\/Y) decline in high-end firewalls to a 28 percent Y\/Y increase in virtual firewalls.<\/li>\n\n\n\n<li>The top four firewall vendors (Palo Alto Networks, Fortinet, Cisco, and Check Point) owned 68 percent of the total market, representing an all-time high that has been steadily increasing over time as enterprises consolidate on a core set of vendors.<\/li>\n\n\n\n<li><strong>SSE Market<\/strong>: SSE revenue grew by 24 percent Y\/Y, which was its lowest-ever growth rate<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;and the first time revenue did not rise on a quarter-on-quarter basis since tracking began in 1Q 2019. Despite this, Zscaler, Palo Alto Networks, and Netskope, whose aggregate revenue represented over half of the market, together saw a 38 percent Y\/Y revenue rise as a reflection of the breadth of their solution and strong customer appeal.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The top SSE vendors by revenue continued to be Zscaler, Broadcom\/Symantec, and Palo Alto Networks.<\/li>\n\n\n\n<li><strong>WAF Market<\/strong>: WAF revenue increased by 23 percent Y\/Y, marking a continuation of a rebound that started in 1Q 2023 as enterprises placed renewed attention on application transformation and its security needs. Akamai continued to be the number one vendor by revenue.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p> The shift away from traditional hardware to more adaptable, cloud-based solutions is reshaping the industry as enterprises respond to evolving cyber threats and the need for scalable security measures.<\/p>\n","protected":false},"author":6,"featured_media":61826,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[96,2727,1656],"class_list":["post-63996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-white-papers","tag-technology","tag-technology-adaption","tag-technology-investment"],"_links":{"self":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/63996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/comments?post=63996"}],"version-history":[{"count":0,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/63996\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/media\/61826"}],"wp:attachment":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/media?parent=63996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/categories?post=63996"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/tags?post=63996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}