Data center security appliance market to grow to $2.7 billion by 2016



Infotech Lead America: Data center security appliance market is likely to grow to $2.7 billion by 2016.

Quarterly data center security appliance market share closely mirrors the overall security solution market, with Cisco leading, followed by Juniper, McAfee, Fortinet and Check Point.

In the virtual security appliance segment, revenue is up 34 percent from the year-ago 2nd quarter and annual revenue is forecast to grow at a 21 percent CAGR through 2016, driven by cloud infrastructure build outs, the high visibility of security as a barrier for cloud adoption, and the rapid adoption of server virtualization.

The virtual appliance vendor landscape is a crowded one, comprising a mix of established security players, virtualization platform vendors, and specialist vendors.

“A wave of new spending on data center security is underway. 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,” said Jeff Wilson, principal analyst for security at Infonetics Research.

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.

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