Data Center Security Solutions Downgraded
REDWOOD CITY, Calif., July 27, 2023 /PRNewswire/ — According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, enterprise spend on network security technologies focused on campus, branch and user edge deployments will offset the increased weakness of data center security solutions.
“During the depths of the Covid-19 pandemic, spending on data center security solutions, such as high-end firewalls and web application firewalls, accelerated as enterprises put their digital transformation initiatives into high gear but now have been decelerating and are expected to do so for the next couple of years,” said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell’Oro Group. “Instead, we see an increased focus towards the campus and ensuring employees have the best possible online experience, whether in the office or remotely. While security service edge (SSE) has been and is expected to remain strong for remote work, we raised our forecast for mid- and low-end firewalls that are being deployed on-premises,” added Sanchez
Additional highlights from Network Security July 2023 Five-Year Forecast Report encompassing the years from 2023 to 2027:
- In our current forecast, network security sales are projected to be $144 B versus $142 B in our previous forecast (January 2023).
- Five-year compound annual growth rate (CAGR) for high-end firewalls downgraded by one percent, representing $3 B less revenue.
- Web application firewall revenue forecast reduced by $355 M.
- Mid- and low-end firewall revenue forecast increased by $2 B.
- SSE revenue forecast increased by over $1 B.
- Network Security market to experience a low double-digit CAGR over the forecast period.
Dell’Oro Group publishes the Network Security 5-year forecast report offering a complete overview of the industry with tables covering the same segments and metrics captured in our quarterly reports. In addition, the forecasts provide a comprehensive overview of market trends by including historical data as far back as 1998. To purchase this report, please contact us at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, networks, and data center markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
SOURCE Dell’Oro Group