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High Growth of Network Security Software Subdues Hardware Appliances Market, Says ABI Research

The enterprise network is in full transformation. The decades of status quo in network architecture is suffering as BYOD, remote access, smart devices, cloud computing, and managed services stake their claim in modern enterprise environments. This evolution is making the network more permeable and harder to delineate. Too often, endpoints and data are residing in places outside of the defined network and of the purview of network administrators, seriously undermining the security of corporate assets. As a result, network security has been propelled to the top of the agenda.

The changing network requires a new approach to security and better-defined strategies. IT administrators have to completely rethink network security, not only in light of changing business practices, but also in a digital environment where cyberthreats are increasingly more advanced and stealthy. Finer-grained controls are required at various layers of the enterprise network. Multiple perimeters need to be built tightly around the separate corporate resources: the applications, the users, and the data. Network security calls for a more defensive, in-depth approach focusing on network visibility, management, and flow analysis.

“Virtual appliances are being favored over more traditional hardware appliances, as they provide greater flexibility in deployment and management, the costs are greatly reduced and they are increasingly available as managed and cloud services by third party providers,” says Michela Menting, ABI Research’s senior analyst in cybersecurity. ABI Research estimates the growth rate for virtual security appliances will hit 17.7% CAGR between 2014 and 2019, versus only 3% for hardware products.

As next-generation network security appliances come into the market, the various product distinctions are progressively melding together: firewalls, IPS/IDS, VPN, UTM, SIEM, etc. Features of one are now often found in many of the others, and vice versa. Further, network equipment specialists are butting heads with security vendors as their markets converge and enterprises demand security at the core of newer networking products.

These findings are part of ABI Research’s Cybersecurity Technologies Research Service (https://www.abiresearch.com/research/service/cyber-security/).

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

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