Dell’Oro Group has published a report about network security and data center appliance market. It shows the nearly $18 B Network Security and Data Center Appliance market experienced robust growth as the COVID-19 pandemic continued to loosen its grip. However, the new market headwind is the ongoing semiconductor supply crunch that has also ensnared the Network Security and Data Center Appliance market.
As pandemic subsides, semiconductor supply crunch grows
Network Security is encompassing more threat types and unique application vulnerabilities than ever before with the pandemic. According to 1Q 2021 Network Security & Data Center Appliance quarterly report, web application firewall maintained strong growth by shooting up 27 percent year-over-year, driven by the continued priority to protect Internet-facing web apps.
Mauricio Sanchez, Research Director of Network Security and Data Center Appliances, said,
“This quarter’s growth reflects increasing enterprise confidence and the need to invest in critical network-based security technologies. While the worst of the pandemic appears behind us, we are tracking the effects of the chip crunch. We estimate an impact of $300 M in 1Q 2021 caused by some product lead times tripling to eighteen weeks.”
Firewall revenue accelerated 14 percent a year by year. By comparison, a year ago, growth was just three percent. Additionally, secure web gateway/zero-trust network architecture rose 18 percent year-over-year as enterprises continued to focus on moving away from legacy VPN architectures.
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