According to a recent report by Dell’Oro Group, market revenue for the Network Security Appliance (NSA) segment will expand from just over $9 billion in 2015 to approximately $11.3 billion in 2019, marking a 25 percent increase. IT spending in the data center has begun to shift from server virtualization projects to cloud migration and services, creating new security challenges and ultimately new opportunities, said Casey Quillin, Director of Data Center Appliance Market Research at Dell’Oro Group.
Casey expects the NSA market to continue to move towards a software subscription model, in which security applications can be layered to provide flexible and scalable protection in both the data center and in the cloud.
Casey said that this will enable easier purchasing as well as investment protection, by providing a pay-as-you-grow option that allows customers to add security services without the having to upgrade hardware, and will also spur the growth of software-as-a-service (SaaS) offerings.
