The market for virtual and SaaS-based network security solutions has experienced its twentieth consecutive quarter of growth, according to a report by the Dell’Oro Group. With a 20% revenue growth in Q1, this market has outpaced the growth of traditional network security hardware appliances. As enterprises adopt cloud-centric IT architectures, there is an increasing demand for more flexible and agile solutions, driving the shift towards virtual and SaaS-based network security products, such as firewalls, security service edge (SSE), secure web gateway (SWG), and web application firewalls (WAF).
Mauricio Sanchez, Research Director at Dell’Oro Group, suggested that the traditional approach of deploying hardware “just doesn’t cut it anymore” in an increasingly globalized world where applications, data, and users require agility and flexibility. The growing market for virtual and SaaS network security solutions has been dominated by companies such as Zscaler, Palo Alto Networks, and Akamai, accounting for over a third of the market. Zscaler led the SSE market, Palo Alto Networks excelled in the SSE and virtual firewall markets, and Akamai dominated the SaaS-based WAF market.
The increase in security threats from various sources has prompted enterprises to look for cutting-edge security tools to protect their organizations. President Biden has encouraged companies to be proactive in securing their infrastructure, following similar calls from security agencies around the world. As a result, the market for virtual and SaaS-based network security solutions is likely to continue expanding, as companies seek the necessary protection against ever-evolving cyber threats.
The important trend of moving away from traditional hardware-based network security appliances, in favor of more agile and flexible solutions like virtual and SaaS-based offerings, reflects the ongoing transformation in the IT landscape. Enterprises need to remain vigilant and innovative in their approach to network security in order to stay ahead of the ever-changing cyber-threat landscape that affects organizations across the globe. With its rapid growth, the virtual and SaaS network security market will continue to play a significant role in shaping enterprise security strategies.
