The continued use of the Internet as a communications medium will sustain demand for hardware and software products that secure those networks, including firewall technologies. However, the growth of virtual private network solutions will come at the expense of firewall revenues. Consequently, participants will have to refocus their strategies on adding value to remain profitable.

This Frost & Sullivan study analyzes the U.S. markets for firewall hardware and software. It highlights drivers and restraints, tracks pricing and technology trends, and provides accurate revenue forecasts. By examining current market strategies and pinpointing successful tactics, this research will enable your company to develop an effective business plan.

Improved Usability Encourages Firewall Adoption

"Much of the difficulty associated with administering firewalls has been alleviated through intuitive user interfaces," reports the study’s author. "Firewall manufacturers are focusing less on developing security technology, and more on management consoles and features." Improvements in ease of deployment, setup, and administration have relieved complications associated with using firewalls and have significantly contributed to the market’s development.

Implementation of centralized management capabilities and graphical user interfaces will allow networks to be monitored, controlled, and administered from a central location. "These innovations are driving sales from customers with geographically disparate gateway deployments," states the analyst. This study follows technological advances and assesses their impact on the marketplace, giving your firm a privileged view of the industry.

Government Sales Lag Behind Financial Sectors

"Sales to government customers are declining in relation to commercial sectors, which pay higher prices," says the author. Many participants have built their business on government applications. While these companies continue to realize high unit sales to government customers, revenues are restrained because those customers receive significant discounts.

"Nevertheless, the government market is expected to catch a second wind in 2002," according to the analyst. "The continuing effect of self-imposed legislation and the increased role of security from a nation at war with terrorism will create a new surge in demand." With its evaluation of specific application markets, this research identifies emerging opportunities, helping your company determine the most lucrative segments.