Small Businesses Embrace Effective, Efficient Unified Threat Management (UTM) Devices,...

Small Businesses Embrace Effective, Efficient Unified Threat Management (UTM) Devices, IDC Says

FRAMINGHAM, Mass.--(Business Wire)--
End-user spending for SOHO routers (under $1,500) has dropped from
$430 million in 2004 to just $377 million in 2007 as Unified Threat
Management (UTM) devices are filling the needs of small and medium
businesses looking for a simple, cost-effective way to enhance their
data communications capabilities. These devices, which combine managed
security and routing capabilities in a single box, offer an attractive
alternative to traditional routers and provide effective and efficient
access to data resources within small business environments.

Within the enterprise, routers remain critical for managing
traffic between branch offices and headquarters' datacenters. However,
in SMB environments, connectivity to the Internet is often sufficient.
"Although the demand for routing capacity continues to grow, just as
important is the concurrent increases in security requirements," said
Charles Kolodgy, research director, Security Products, IDC. "This has
resulted in a competitive market dynamic that has been largely
overlooked by network equipment vendors. Router vendors are being
forced to add a litany of new security services to router products in
an attempt to compete more effectively with these robust UTM devices."

Additional findings from this study include the following:

-- Consolidation between networking and security will continue in
the low-end and SOHO markets.

-- Single sites whose connectivity priorities are focused on
secure and reliable connection to the Internet are the best
candidates for UTM devices.

-- SOHO router ASPs have been in decline since 2004, while UTMs
of the same price segment have experienced robust growth
trends.

-- Business model differences between router sales and UTM
subscription services enable the acquisition of UTM products
competitive with (or even below) that of routers of a similar
class.

-- The battle over the WAN gateway will escalate as both router
and UTM vendors race to add new service options such as WLAN,
IP telephony, and application acceleration.

This study, Is UTM a Threat to Routers? We Think So! (IDC
#211133), examines current and future trends in the router and unified
threat management markets to identify the competitive dynamics between
them. The focus of this research is on routers and UTM devices that
sell for under $1,500. By examining shipments of routers and UTM
devices tracked in IDC's worldwide router and security appliance
trackers, we were able to compare differences in end-user spending
over the past several years. It is important to note that end-user
revenue for UTM devices excludes subscription revenue paid by
customers after the initial trial subscription runs out (typically
after one year).

Register to attend a complimentary IDC Web conference -- UTM a
Threat to Routers? We think so! - to be held April 2, 2008.

To purchase this document, call IDC's Sales hotline at
508-988-7988 or email sales@idc.com.

About IDC

IDC is the premier global provider of market intelligence,
advisory services, and events for the information technology,
telecommunications, and consumer technology markets. IDC helps IT
professionals, business executives, and the investment community make
fact-based decisions on technology purchases and business strategy.
More than 900 IDC analysts provide global, regional, and local
expertise on technology and industry opportunities and trends in over
90 countries worldwide. For more than 43 years, IDC has provided
strategic insights to help our clients achieve their key business
objectives. IDC is a subsidiary of IDG, the world's leading technology
media, research, and events company. You can learn more about IDC by
visiting www.idc.com.

All product and company names may be trademarks or registered
trademarks of their respective holders.

IDC
Charles Kolodgy, 508-935-4014
ckolodgy@idc.com
or
Patrick Gorman, 508-935-4369
pgorman@idc.com

Copyright Business Wire 2008