VPN/Firewall market up 11% in 1Q04, driven by Cisco’s strong quarter

Thursday, 10 June 2004, 12:08 PM EST

Worldwide VPN and firewall hardware and software revenue was up 11% at $733 million in 1Q04 from 4Q03, and will grow 12% to $823 million by 1Q05, according to Infonetics Research.

Most vendors reported single-digit growth this quarter, but Cisco had a phenomenal quarter, driving the market to double-digit growth.

"Appliances in the middle price-bands ($1,500 to $10,000) and application security gateways drive growth in 2004 and beyond because of large site-to-site and broadband VPN deployments, upgrades of firewalls to the latest technology, and SSL VPN deployments for the next generation of enterprise remote access," said Jeff Wilson, principal analyst at Infonetics Research.

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