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REDWOOD CITY, Calif. – December 18, 2017 – A recently published report, Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, shows that virtual network security appliance revenue grew 11 percent year-over-year (Y/Y) in 3Q17. Cisco, Fortinet, and Palo Alto Networks all experienced strong revenue growth in the Network Security Appliances (NSA) market during the quarter.

“The NSA market continues to move towards a software subscription revenue model,” said Casey Quillin, Director at Dell’Oro Group. “We view the next several quarters as transitional as recurring, subscription-based revenue becomes an increasingly larger portion of revenue for all major network security vendors. This revenue model disruption is occurring as customers adjust timing for product upgrade cycles,” Quillin continued.

Additional highlights from the 3Q17 Network Security & Data Center Appliance Quarterly Report:

  • The Application Delivery Controller market revenue declined three percent Y/Y and unit shipments were flat.
  • The WAN Optimization market also declined three percent Y/Y as revenue growth in virtual appliances could not offset declines in physical appliance sales.

About the Report

The Dell’Oro Group Network Security & Data Center Appliance Report Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, units shipped and average selling prices for Application Delivery Controller, WAN Optimization Appliances, and Network Security Appliances.  Each of these markets is further segmented by Physical and Virtual technologies. The Network Security Appliance market is also segmented by: Content Security, Firewall, IDS and IPS, and VPN and SSL.  To purchase this report, please contact Matt Dear at +1.650.622.9400 x223 or email

About Dell’Oro Group

Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets.  Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions.  For more information, contact Dell’Oro Group at +1.650.622.9400 or visit