Jump in Intrusion Detection/Prevention Product Revenue Expected in 2004

Infonetics Research, March 4, 2004

SAN JOSE, Calif., March 4 /PRNewswire/ -- After a strong third quarter, driven primarily by Cisco's robust earnings in 3Q03, the intrusion detection and prevention system (IDS/IPS) product market settled down in 4Q03, with ISS's market share up significantly and Cisco's down, and many other vendors holding steady or up only slightly, according to Infonetics Research's quarterly market share and forecast report, Intrusion Detection and Prevention Products. Worldwide IDS/IPS product revenue grew to $120 million in 4Q03, and is projected to grow to $888 million in CY07.

"Last year the focus in the IDS/IPS market was on technology development and integration," said Jeff Wilson, principal analyst at Infonetics Research. "Worldwide IDS/IPS product revenue grew a respectable but modest 12% from 2002 to 2003; we project growth to be more than double that from 2003 to 2004. We were expecting another growth quarter from Cisco in 4Q03, as well as a stronger quarter from several other players, notably Network Associates for host IDS. Still, our 3Q03 forecast of 4Q03 IDS/IPS revenue was within 5% of actual, reflecting ISS's phenomenal fourth quarter gains and the strength of the overall market."

Traditional network-based IDS products account for 57% of spending in 4Q03, with host IDS/IPS next at 26%, and in-line network based IDS/IPS closing in on host at 17%. In 2007 the numbers will be dramatically different due to strong growth in the in-line IPS hardware market: 40% traditional network based, 19% host, and 41% in-line network based.

North America accounts for 58% of IDS product revenue in 4Q03, with EMEA second at 22%, Asia Pacific third at 17%, and CALA a distant fourth at 3%. ISS had a very strong quarter in EMEA, creating the significant jump in that region's revenue share this quarter.

Intrusion Detection and Prevention Products tracks network-based traditional intrusion detection products, network-based in-line intrusion detection and prevention products, and host-based intrusion detection and prevention products. Forecasts are updated quarterly and cover all regions (worldwide, North America, EMEA, Asia Pacific, and CALA). Companies tracked in this service include Cisco, Computer Associates, DeepNines, Enterasys, Intrusion, iPolicy, Internet Security Systems, NetScreen, Network Associates, NFR Security, Niksun, Sourcefire, Symantec, TippingPoint, TopLayer, Vsecure, and others.

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Infonetics Research (www.infonetics.com) is an international market research and consulting firm covering the data networking and telecommunications industries in North America, Europe, and Asia. Infonetics helps companies develop, market, and sell products and services by providing objective analysis of end-users, service providers, and product manufacturers. Infonetics has offices in Silicon Valley, the Boston Metro Area, and London.