IDS/IPS sales to hit $1bn by 2006

Global sales of intrusion detection/prevention systems (IDS/IPS) are set to bounce back after dipping slightly to $104m in the second quarter this year.

Infonetics Research has predicted that the IDS market will grow 43 per cent to $149m by this time next year.

The market watcher believes that annual IDS revenue will hit $1.1bn by 2006, a compound annual growth rate of almost one third.

Infonetics reported that the IDS/IPS market is currently experiencing disruptive technology shifts. Athough growth will continue during 2003, the market will only really take off in 2004.

The research suggests that this sudden sales surge will be due to increased global demand from customers of all sizes, as well as innovations in IDS/IPS technology that make it easier to use, more accurate, and more widely available.

"As more and more firewall vendors announce their intentions for application-aware firewalls, many users are getting confused about the difference between next-generation firewalls and intrusion detection/prevention products," said Jeff Wilson, principal analyst at Infonetics Research.

"Until we have clarity, which could take up to another year, the crystal ball for standalone intrusion detection and prevention is a little cloudy."

The Infonetics study found that Internet Security Systems is the number one player in the IDS space, with 20 per cent revenue market share.

But the company faces significant challenges as it tries to transform its business with the addition of appliance products.

Cisco and Symantec tied for second place, each with 13 per cent. But Cisco continues to lead the network-based IDS market with a 19 per cent share and the IDS hardware market segment with 27 per cent of revenues.

Analysts are split as to whether IDS technology provide the additional layer of security promised by vendors. A recent Gartner report argued that too often it has proven to be a costly and ineffective investment.