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Data Center Security ProductsBiannual Worldwide and Regional Market Share,Size, and Forecasts: ExcerptsData Center Security –The Increasing Requirements forData Center-Class Performance

WHITE PAPER: AGILE NETWORK SECURITY IN THE AWS ENVIRONMENTData Center Security – The IncreasingRequirements for Data Center-Class PerformanceAs organizations shift to becoming increasingly knowledge-driven businesses,the data center continues to grow in size and importance, accelerated byinitiatives such as cloud, big data and SaaS. This is leading to rapid increasesin network bandwidth and refresh of networking and firewall hardware.Data centers have increasingly distinct security and performance requirements from traditional enterprise firewallsand edge security use cases. Fortinet’s unique strengths based on ASIC-driven hardware acceleration andconsolidated security architectures have led to industry-leading capabilities in performance and throughput,scalability, high-speed ports and port density, including the release of the world’s first device to exceed 1 Tbpsof firewall throughput. This leadership has resulted in rapid growth to becoming a leading vendor for data centerclass appliances from the enterprise to leading telecommunications and service providers.In the following report from Infonetics Research, Principal Analyst Jeff Wilson discusses the data center marketand adoption drivers for firewalls, integrated security, and other appliances. Wilson introduces criteria for datacenter class capabilities, and discusses the leading vendors who are poised to deliver on the new r-firewalls.html1

INFONETICS RESEARCH REPORT EXCERPTSData Center Security ProductsBiannual Worldwide and RegionalMarket Share, Size, and Forecasts: 2nd EditionReport ExcerptsDecember 2014By Analyst Jeff Wilson6 9 5 C a mp b e l l T e c h n o l o g y P a r k w a y S u i t e 2 0 0 C a mp b e l l C a l i fo r n i a 9 5 0 0 8 t 4 0 8 . 5 8 3 . 0 0 1 1 f 4 0 8 . 5 8 3 . 0 0 3 1w w w . i nf o ne t i c s . c o m S i l i c o n V a l l e y , C A B o s t o n , M A Lo n d o n , U K

Table of ContentsTOP TAKEAWAYS1DATA CENTER SECURITY APPLIANCES1Overall Market: 2014 Strong for Data Center Appliances1Manufacturers and Market Share Analysis: Cisco Continues to Lead, but There Are ManyChallengers3DATA CENTER SECURITY APPLIANCE ROADMAP5DATA CENTER SECURITY PRODUCT DRIVERS6Service Provider Survey Results7REPORT AUTHOR8ABOUT INFONETICS RESEARCH8REPORT REPRINTS AND CUSTOM RESEARCH8List of ExhibitsExhibit 1Data Center Security Appliance Revenue by Category2Exhibit 2Data Center Security Appliance Market Share4Exhibit 3Data Center Security Product Roadmap5Data Center Security Products: ExcerptsThis is a paid service intended for the recipient organization only; reproduction and sharing with third parties is prohibited. 2014 Infonetics Research, Inc.

TOP TAKEAWAYSEnterprises and service providers are upgrading data centers to support huge increases in traffic and handle themassive waves of attacks they face every day; they’re investing in data center security solutions now becausethey need to increase overall security throughput, increase their ability to handle sessions/connections, and addnew threat protection capabilities.Key data points from this edition: Revenue for data center security appliances was up 5% in 2Q14 from 1Q14, rising to 599M, and it willhit 2.7B by CY18, a 5-year CAGR of 4%; 2Q14 revenue was up 14% from 2Q13. Revenue for datacenter security appliances was up 6% in CY13, rising to 2.2B from CY12, and is expected to increase12% to 2.5B in CY14. Market share for security appliances in the data center fairly closely mirrors overall market share forsecurity solutions, with Cisco leading in 2Q14, followed by Fortinet, Juniper, Check Point, and McAfee. InCY13, Cisco lead, followed by Fortinet, Juniper, Check Point, and McAfee.DATA CENTER SECURITY APPLIANCESOverall Market: 2014 Strong for Data Center AppliancesRevenue for data center security appliances was up 5% sequentially in 2Q14, rising to 599M, and it will hit 2.7Bby CY18, a 5-year CAGR of 4%. 2Q14 revenue was up 14% YoY, and looking at the annual data 2013 revenuewas up 6% from 2012, hitting 2.2B, and 2014 will be up 12% from 2013. The market will continue strong through2014, but transformation in data center infrastructure will start to cause tectonic shifts in the revenue makeup fordata center security.The data center security appliance data presented in this report covers security products deployed in data centerenvironments, including integrated security appliances, secure routers, IPS appliances, web and mail securitygateways, and DDoS prevention systems. The products in this service tend to be higher-end, but not all datacenter security appliances are large 100K devices; there are small and mid-sized data centers that use lowerend gear than someone like an Amazon or Google, there are many commercial hosting environments withcolocation facilities or per-customer appliances. Roughly 60-70% of the revenue for integrated appliances trackedhere are what the industry would consider data center class ( 30K and up, 40G aggregate throughput, etc.).DDoS shows the most growth but is also the smallest segment by far. The following table summarizes actual dataand historical data.1Data Center Security Products: ExcerptsThis is a paid service intended for the recipient organization only; reproduction and sharing with third parties is prohibited. 2014 Infonetics Research, Inc.

Our forecast for data center security appliances is divided into 4 product categories (shown in the chart below).The most obvious trend is the growth peak in 2014; we’ve already discussed this in great detail, but it is importantto point out that though growth slows, we still forecast YoY growth through 2018 (meaning only growth isdeclining, not the overall market).The largest market is integrated appliances, followed by IDS/IPS, contentsecurity gateways (web and mail) and DDoS appliances. The content security gateways show the least growthlong term, but they are the backbone of data center security, and advancements in performance and theavailability of products tailor-made for data centers, as well as tighter coupling between hardware appliances,virtual appliances, and server software help all segments continue to grow through 2018.Exhibit 1Data Center Security Appliance Revenue by Category2Data Center Security Products: ExcerptsThis is a paid service intended for the recipient organization only; reproduction and sharing with third parties is prohibited. 2014 Infonetics Research, Inc.

The key drivers for data center security appliances are: The need to upgrade hardware appliances to new physical interfaces (10G, 40G, 100G) The need for higher aggregate throughput (40G and up, but in some cases approaching 1 terabit) The need for massive performance increases in connection rate and concurrent connections for keyweb/data center protocols (like TCP); in many cases, data centers’ connection performance needs haveincreased 10x in the last 2 to 3 years, and their firewalls are having a hard time keeping up A growing need for lower-latency data center security solutions in latency-sensitive environments, likefinancial data centers, and any data center serving real-time communications applications The need to integrate some security functions at high speeds in small to medium-sized data centers(consolidating firewall, IPS, and DDoS in a platform that supports 5G to 10G aggregate throughput) Deployment of high-end appliance solutions that are aware of or can interface with virtualized securitysolutions and/or SDNs/NFV Availability of new products that are specifically focused on data center security (like F5’s data centerfirewall solution) or offer significantly better performance than previous generations of productsManufacturers and Market Share Analysis: Cisco Continues to Lead, but There Are ManyChallengersMarket share for security appliances in the data center fairly closely mirrors overall market share for securitysolutions. Cisco has a broad product portfolio (selling integrated appliances, IPS, and content security) and hasthe sales and support infrastructure (as well as a deep interest in data center business outside of security) toserve data center customers well. Over a year ago Cisco announced a bevy of new data center security solutions,and they closed the Sourcefire acquisition, which will give them a full line of next generation firewall and IPShardware, which they will aim directly at the data center as well.Cisco led data center security appliance revenue market share in 2Q14. Fortinet moved up to second place,followed by Juniper in the third spot, Check Point in fourth, and McAfee in fifth.Fortinet moves past Juniper into second due to its strong position in many mid-sized data centers and strongprice/performance position (their 3700D has been wildly successful in some high profile data center deals), and itslaunch of the 3810D (300G throughput and 100G interfaces) should help it gain some ground at the very highend of the market.3Data Center Security Products: ExcerptsThis is a paid service intended for the recipient organization only; reproduction and sharing with third parties is prohibited. 2014 Infonetics Research, Inc.

Exhibit 2Data Center Security Appliance Market Share4Data Center Security Products: ExcerptsThis is a paid service intended for the recipient organization only; reproduction and sharing with third parties is prohibited. 2014 Infonetics Research, Inc.

DATA CENTER SECURITY APPLIANCE ROADMAPExhibit 3Data Center Security Product RoadmapBefore 20092009-20142015-2018Hardware appliancesHigh-end firewall, IPS, and DDoS,and web/mail security appliancesused in data centers, but notpurpose built for data centerdeploymentVendors investigate specificneeds for the data center forhardware appliances as well aslook at integrating hardwareappliance and virtual appliancesolutions, and begin to makeplans for SDN and NFV, butcontinue accelerating investmentin hardware appliancesPurpose-built data center firewallswith high performance for key datacenter protocols and attacks areavailable from a range of vendorsand have mainstream data centeracceptance, but major shifts indata center infrastructure driverevenue growth towards virtualappliances and SDN/NFVcompatible software solutionsMost large security companieshave virtual appliances, andspecialized players emerge withported versions of their existingofferings in virtual appliance formfactors; virtualization vendorscontinue to build their ownsolutions and partner where itmakes sense; a few securityvendors build (or acquire) purposebuilt solutions and start developingsolutions specifically for SDN/NFVenvironmentsMost, if not all, specializedproduct vendors consolidated, andmost data centers are protectedby a mix of hardware appliances,ported and purpose-built virtualappliances, and server software;most growth comes frominvestment in SDN/NFVcompatible solutionsVirtual appliancesVMSafe API launched in 2008,only a few true virtual appliancesolutions available frommainstream security vendors;virtualization vendors initiate athree-pronged strategy ofdelivering some security with theirplatform, selling security products,and partnering with securityvendors5Data Center Security Products: ExcerptsThis is a paid service intended for the recipient organization only; reproduction and sharing with third parties is prohibited. 2014 Infonetics Research, Inc.