Press Release

For more information contact:
Heather Wilson
(602) 287-9097
hwilson@srgresearch.com

Network Security Market Exceeds $4 Billion in 2004
Hybrid Solutions, IDS/IPS, and SSL VPN Segments
All Grow Over 40 Percent According to Synergy Research Group, Inc.

Scottsdale, Arizona – In Q4 2004 the total Network Security market grew eight percent sequentially and grew 28 percent over 2003. Synergy Research Group, Inc. (SRG) segments the total Network Security market to include Hybrid Security Solutions (Firewall/VPN), Standalone Virtual Private Network (VPN) Gateways, Intrusion Detection/Prevention Systems (IDS/IPS), and SSL VPNs. Furthermore, SRG segments the Hybrid market into Low-End, High-End, and Next Generation Appliances, and Software Solutions.

Hybrid Solution sales were up 10 percent sequentially and were up 45 percent year-over-year, while VPN Gateway sales fell six percent for the quarter and 36 percent year-over-year. Additionally, IDS/IPS sales increased 11 percent for the quarter and were up 43 percent over 2003, while SSL VPN sales were up eight percent in the quarter and were up 184 percent year-over-year.

“The Network Security market surpassed the $4 billion dollar mark in 2004, reaching its highest levels to date,” said Aaron Vance, Senior Analyst at Synergy Research Group, Inc. “Furthermore, this growth continues to be driven by emerging solutions designed to combat the perpetually evolving myriad of threats. Moreover, SRG found that Next Generation Hybrid solutions, IDS/IPS and SSL VPNs, drove the bulk of the growth in 2004.”

Notable market share gainers for the quarter were Cisco, F5, ISS, Nokia, Nortel, and SonicWall.

This 53-page report containing 42 market share tables is available for purchase at www.srgresearch.com.

Synergy Research Group, Inc. (SRG) is a market research firm, which specializes in quarterly market analysis, market share, forecasting, and strategic consulting. SRG offers a wide breadth of market research services to the equipment manufacturing, semiconductor, and financial communities. SRG can be found at www.srgresearch.com.

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The contents of this press release represent SRG’s interpretation and analysis of statistics and information collected from authorized company representatives, industry sources, and SRG estimates. SRG does not guarantee the accuracy or completeness of the statistics or information contained in this release.