Appliance-based solutions take center stage in booming market for IT security in the Persian Gulf, says IDC

According to a new IDC study on the six-country region, the popularity of appliance-based solutions has soared as appliances are easier to implement and integrate than straight software solutions. Moreover, the evolving nature of threats from the network to the application level has made an appliance-based approach a cost-effective option for many users.

'Most users would actually benefit most from some type of software-appliance hybrid solution,' says Vinay Nair, Senior Analyst, Software, IDC Middle East and Africa. 'The need for regulatory compliance, policy-based security management, and the alignment of business and IT goals are spurring demand for IT security, and appliances provide easy answers. In the long run, however, organizations short-change themselves if they make cost and ease of use the primary factor in deciding on a solution.'

The banking sector was the largest source of demand for security software and appliances in the Gulf States. The telecommunications sector comprised the second largest share and the central government the third. Together, these three verticals undertook more than half of the expenditure on IT security software and appliances last year. Other key sectors included process manufacturing and oil and gas.

The top three vendors on the GCC security software and appliances market were Cisco, Juniper, and Symantec. Together they captured more than 48% share of revenue last year. First-placed Cisco has established a solid base in the networking equipment space and maintains a strong partner network. Juniper more than doubled its revenue through the cultivation of partner relationships and awareness campaigns. Meanwhile Symantec faced tough competition in the appliance market and stiff competition from software players like Trend Micro and Microsoft in the small and medium-sized enterprise segment.

Threat management dominated the GCC security software and appliance market in 2005, followed by secure content management in second place and identity and access management in third. Together, these three areas accounted for more than 87% of spending in the GCC last year. Representing more than 56% of spending, threat management was tightly linked to the appliance-side of the market, and investments in TM appliances jumped by more than 85%. Identity and access management was also hot, with spending in the segment expanding by nearly 66%.

Given their relative level of development and population size, the United Arab Emirates and Saudi Arabia were the largest markets for IT security software and appliances, with the UAE being slightly larger. Together they accounted for more than 70% of the GCC market last year.

IDC's Gulf States Security Software and Appliances 2006-2010 Forecast and 2005 Vendor Shares presents the security software and appliance market in the Gulf States for 2005 and forecasts expenditure on security software and appliances through 2010. The study contains market size, vendor market shares, and forecasts for five discrete market categories. It also ranks the major security software providers by their 2005 revenue, and includes a profile of their activities and presence in individual country and vertical markets.