Network security appliances sales surge

Sales of high-end security appliances have surged in Q3 2003 as enterprises install them in their main networks, having seen lower-end devices prove themselves in branch offices, according to the latest figures from analyst firm IDC. Companies are also waking up to the fact that security appliances can be much easier to manage than software. Some 20% of these cost over $25,000, compared to just 10% in Q2, according to IDC's figures.

Cisco and NetScreen continue to dominate the market for security appliances, said IDC, and both companies have seen revenue growth of over 20% compared to the same period last year. Of the big players, Nokia has fared the worst, losing market share both in terms of units and revenue. While it is now number two for revenue, with 15.1% of the market, it is comes fifth in unit shipments, with only 6.8% of the market, behind Cisco (27.7%), NetScreen (20.8%), SonicWall (13.2%), and WatchGuard (12.1%). Western Europe now accounts for a quarter of security appliance sales, with 43,303 units generating $97.2m worth of shipments in Western Europe during the quarter. The market grew 22% in Q3 2003 against the third quarter of 2002.