Infonetics: Cisco tops data center security market

Data center security appliance market projected to reach $2.7 billion by 2016

Cisco (Nasdaq: CSCO) is the leading vendor in the data center security market, followed by Juniper Networks (NYSE: JNPR), Intel's (Nasdaq: INT) McAfee, Fortinet and Check Point, according to the latest research by Infonetics Research.

Cisco's strength in the overall data center security market was reflected in its most recent financial results, which saw a 61 percent year-over-year growth in its data center business, the largest increase of any of its business segments.

"Service providers and enterprises are rebuilding data centers, and they need new security infrastructures to keep up with the performance requirements, network architectures, and threats brought about by the move to virtualization and the cloud. As a result, data center security spending is growing rapidly, and new vendors are finding opportunities to grow their share of the data center security pie," commented Jeff Wilson, principal analyst for security at Infonetics.

Infonetics forecasts that the data center security appliance market will grow to $2.7 billion by 2016.

The fastest growing portion of that market is the virtual security appliance segment, where revenue increased 34 percent in the second quarter compared to the same quarter last year. The virtual appliance vendor landscape is comprised of a mix of established security players, virtualization platform vendors and specialist vendors.

The segment is being fueled by cloud infrastructure buildouts, security concerns about cloud computing and the rapid adoption of server virtualization. Annual revenue for the segment is expected to increase at a 21 percent compound annual growth rate (CAGR) through 2016.

The continued adoption of the cloud by enterprises, combined with their ongoing security worries about that adoption, suggests continued strong growth in the data center security market.

For more:
- see Infonetics Research's data
- check out Cisco's financial results (.pdf)

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