Commercial Firewall Market To Experience Exponential Growth, 1996 the Year of the Firewall IPO; New IDC Report Forecasts the Worldwide Firewall Market From 1995 Through 2000.

FRAMINGHAM, Mass.--(BUSINESS WIRE)--March 4, 1996--The emergence of the commercial firewall market broke speed records in 1995, according to new research from International Data Corporation (IDC). Driven by the adoption of Internet technology and Web servers (both Internet and intranet), IDC expects the phenomenal growth of the worldwide firewall market to continue through 2000 with a forecasted compound annual growth rate (CAGR) of 174 percent.

"The firewall market epitomizes the hyper-growth and accelerated evolution associated with the Internet," said Ted Julian, research manager for IDC's Internet Commerce Research program. "In the span of roughly twelve months, the market for firewalls has not only commercialized, but is now beginning to segment into distinct categories. In addition, for perhaps the first time ever it appears an entire IT market segment will emerge and go public in roughly a year as evidenced by recent IPOs from Secure Computing and Raptor, and anticipated offerings from other vendors, including CheckPoint Software Technologies."

This rapid expansion, however, will be at the expense of average system price, which will rapidly erode through 2000. Ultimately, though, falling prices will be offset by burgeoning volume, resulting in robust revenue growth through the end of the decade.

As was the case in the early growth stages of other information technology markets, executive-level commitment to the development of marketing and sales - as opposed to technological advancement - may be the primary determinant of success in firewalls. IDC believes firewall vendors need to be not only technically savvy, incorporating the latest security mechanisms on an ongoing basis, but also marketing wise, communicating how their products fit into a firm's broader security strategy.

This report (IDC #11138) is available for purchase by contacting Cheryl Toffel at [phone]. For additional information about IDC's Internet Commerce Research program, please contact Elizabeth Freedman at [phone].

About IDC

International Data Corporation is the world's leading provider of information technology data, analysis, and consulting. With research centers in 40 countries and more than 300 research analysts worldwide, IDC is uniquely positioned to provide a global perspective on IT market and technology trends.

IDC's subsidiary, IDC/LINK, specializes in the convergence of the information, telecommunications, personal computing, and electronic entertainment industries.

Based in Framingham, Mass., IDC is a subsidiary of International Data Group (IDG), the world's largest publisher of computer-related information and the leading global provider of information services on information technology. -0-

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Elizabeth Freedman, Group Marketing Manager

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Ted Julian, Research Manager, Internet Commerce

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