Check Point Software Technologies Expands Market Share
International Data Corporation confirms Check Point's clear market leadership over Cisco Systems, Network Associates and Axent Technologies
REDWOOD CITY, CALIF., Aug. 4, 1998 Check Point Software Technologies Ltd. (Nasdaq: CHKPF), the leader in policy-based management solutions for IP networks, today announced that it has extended its position as the world's leading provider of firewall security solutions amid explosive growth, intense competition and market consolidation. According to the newly-published research report prepared by International Data Corporation (IDC), entitled "The Worldwide Firewall Market, 1997," Check Point "maintained its position as the clear market leader,...[and] greatly expanded its sales outside of the US, which represented 45% of sales in 1997."
According to the report, the worldwide firewall market grew exponentially in 1997, with revenues mushrooming 143% over 1996 revenues. With the 1997 report, IDC introduced a new research methodology based on factory revenues instead of units shipped. Using this new revenue metric, IDC restated 1996 market share revenues for each vendor as well. According to the IDC report, Check Point extended its market leadership, capturing a 23% revenue share in 1997, compared with a 22% revenue share in 1996.
In comparison, the nearest competitor, Cisco Systems (Nasdaq: CSCO) dropped to a 19% share in 1997 from a 21% share in 1996. Network Associates (Nasdaq: NETA), which acquired firewall vendor Trusted Information Systems, declined from 8% market share in 1996 to 6% in 1997. Raptor Systems, which was acquired by Axent Technologies (Nasdaq: AXNT), remained constant at 7% market share for both 1996 and 1997.
Check Point's increased market share, using factory revenue rather than units shipped, is even more significant, given that all of Check Point's revenue comes entirely from software, as compared with other competitors, such as Cisco, which sell hardware-based solutions at a higher unit cost. From this perspective, Check Point dominated the other software vendors, posting a 34% market share with the next closest competitor at 11%.
"In light of the firewall market's astonishing revenue growth--a 143% increase in revenues in 1997 over 1996the scope of Check Point's market leadership is even more significant," said Dr. Deborah Triant, president and CEO of Check Point Software Technologies, Inc. "The pie is significantly larger and yet Check Point not only maintained, but actually expanded, its market-share leadership."
"We are delighted that our strong customer focus and relentless drive to deliver the best enterprise security solutions has widened our lead in the worldwide firewall market," Dr. Triant continued. "Our strategy to provide an industry-standard integration platform with the OPSEC standard, and new products that build on customers' FireWall-1 investments for complete enterprise security solutions, has served to propel Check Point's flagship product even further ahead in global market share."
In addition to noting Check Point's surging growth in overseas markets, "The Worldwide Firewall Market, 1997" highlights Check Point's impressive entry into the Internet service provider (ISP) and managed service provider (MSP) markets: "Check Point announced agreements with a number of ISPs and managed firewall service providers, grabbing a dominant position in this high-growth market. The high availability and centralized management features of Check Point's FireWall-1 continue to give it the leadership position for environments that require multiple firewalls to operate in parallel or to be based on the same security policy."
Check Point Software Technologies Ltd. is a leading provider of policy-based management solutions for IP networks. Through its Secure Enterprise Connectivity strategy, the company is dedicated to enabling secure, reliable, and manageable business communications. The company's products include the world's leading enterprise security suite, FireWall-1, the industry's leading VPN family of solutions, VPN-1, and the industry's premier bandwidth management solution, FloodGate-1. MetaInfo, Inc., a wholly-owned subsidiary of Check Point, is a leader in network and IP address management software that simplifies the set-up, integration and administration of complex networks. The company has U.S. headquarters in Redwood City, California and international headquarters in Ramat-Gan, Israel. For product information, please call (800) 429-4391 or (650) 628-2000 or visit our web site at http://www.checkpoint.com.
1998 Check Point Software Technologies Ltd. All Rights Reserved.
Check Point, the Check Point logo, FireWall-1, FireWall-1 SecuRemote, FireWall-First!, OPSEC, INSPECT, UAP, FloodGate-1 and IQ Engine are trademarks or registered trademarks of Check Point Software Technologies Ltd. Meta IP and Meta DNS are trademarks of MetaInfo, Inc. All other product names mentioned herein are trademarks of their respective owners.