Take a look at ESG Research and you’ll see a number of simultaneous trends. Enterprises are consolidating data centers, packing them full of virtual servers, and hosting more and more web applications within them. This means massive traffic coming into and leaving data centers.
Yes, this traffic needs to be switched and routed, but this is actually the easiest task. What’s much harder is processing this traffic at the network for security, acceleration, application networking, etc. This processing usually takes place at the network edge, but additional layers are also migrating into the data center network itself for network segmentation of specific application services.
Think of it this way: There is a smart-fat network edge that feeds multiple smart-thin network segments.
The smart-fat network edge aggregates lots of network device functionality into a physical device, cluster of devices, or virtual control plane. This is the domain of vendors like Cisco, Crossbeam Systems, and Juniper Networks for security and companies like A10 Networks, Citrix (Netscaler), and F5 Networks for application delivery. These companies will continue to add functionality to their systems (for example, XML processing, application authentication/authorization, business logic, etc.) to do more packet and content processing over time. It wouldn’t surprise me at all if security vendors added application delivery features and the app delivery crowd added more security.
Once the smart-fat network edge treats all traffic, packets and content will be processed further within the data center (i.e., smart-thin network edge). This will most likely be done using virtual appliances like the Citrix VPX. Why? Virtual appliances can be provisioned on the fly with canned policies or customized for specific workloads. They can also follow applications that migrate around internal data centers or move to public clouds.
A few other thoughts here:
The smart-fat, smart-thin architecture is already playing out in cloud computing and wireless carrier networks today and I expect it to become mainstream in the enterprise segment over the next 24 months. The technology is ready today but many users have no idea how to implement this type of architecture or capitalize on its benefits. Vendors who can guide users along with knowledge transfer, best practices, and reference architectures are most likely to reap the financial rewards.
Tags: A10 Networks, application networking, Cisco Systems, Citrix, Cloud Computing, Crossbeam Systems, Dell, F5 Networks, HP, IBM, identity management, Juniper Networks, routing, server virtualization, switching, XML Posted in Uncategorized | No Comments »
If you look at revenue numbers, Cisco is the clear leader in network security. That said, the company has been far less visible over the last few years–especially at the high-end of the market in consolidated data centers, wired and wireless carrier networks, and cloud computing infrastructure. This opened this lucrative market to Juniper’s SRX and the security duo of Crossbeam Systems/Check Point.
As the saying goes, “never wake the sleeping giant.” In an unprecedented series of announcements yesterday, Cisco announced its new high-end security system, the ASA 5585X. Cisco’s deepening data center chops are clearly evident here. The ASA 5585X is a 2 rack unit appliance, a small form factor that one-ups the competition in terms of power, space, and cooling but still delivers massive data center performance from 2Gb to 20Gb of throughput. Cisco also demonstrated that it is paying attention to the mobile Internet market by emphasizing that the 5585X can deliver up to 350,000 connections per second — a metric that will really appeal to wireless carriers.
The ASA 5585X announcement was one drop of a veritable waterfall of news coming out of Cisco yesterday. Whether you love Cisco or hate it, you have to give the company credit — all of the announcements were strong on their own, tied together with overall company initiatives, and supported one another. For example, the ASA 5585X announcement:
I don’t know how the ASA 5585X compares to the competition, but speeds-and-feeds are somewhat beside the point. The ASA 5585X gets Cisco back in the game. Combined with Cisco’s growing portfolio, data center experience, and un-matched marketing messages, it will most certainly sell a lot of high-end security boxes.
Tags: AnyConnect, ASA 5585X, Borderless Networks, Check Point, Cisco Systems, Crossbeam Systems, Juniper Networks Posted in Uncategorized | No Comments »
ESG’s research indicates that network security spending will be a focus area for 2010. Nearly half (48%) of midsized (less than 1,000 employees) and enterprise (more than 1,000 employees) organizations will invest in network security technologies like firewalls, IDS/IPS, gateways, and threat management solutions.
Yes, all of these technologies are important components of a defense-in-depth security architecture, but they are also quite mature. Why the network security renaissance? Because of:
With all of this activity, many networking vendors stand to benefit. Cisco and Juniper have great network security offerings that interoperate with their core networking products. HP will pick up TippingPoint with 3Com, but it needs to build an architecture story quickly. Brocade is working with partners and must continue to make this a core part of its value. Other networking vendors need to make similar moves.
Security gets more complex each day, so state-of-the-art devices may have a short shelf life. Expect continuous investment in network security moving forward. Networking vendors that recognize this will put themselves in the best position.
Tags: Brocade Networks, Check Point, Cisco Systems, Crossbeam Systems, HP, Juniper Networks, McAfee, Sourcefire, TippingPoint Posted in Uncategorized | 3 Comments »
Cisco announced its financial results today, much to the delight of Wall Street. Cisco revenue beat estimates and posted 8% year-over-year growth. Net income rose 26% over last year. These stellar results prompted Cisco CEO John Chambers to declare, “we are hitting on all cylinders.”
No doubt, these are impressive results, but there is some hidden bad news in all of the confetti and champagne: year-over-year security revenue was flat.
Hmm, I guess one of those cylinders has a little carbon buildup after all. While Cisco security revenue flatlined, other security vendors prospered: Check Point grew revenue by 25% in Q4 2009, Juniper Networks revenue beat Wall Street estimates as did Symantec, and back in October, McAfee announced its biggest financial quarter ever with 8% revenue and 26% net income growth.
Okay, so if other security vendors are growing, why isn’t Cisco? Because:
Cisco used to give away a lot of security stuff to win bigger dollar networking deals. This strategy, along with IronPort sales, seems to be the only things keeping the security ship afloat.
From a Wall Street perspective, who cares? If Cisco revenue and earnings shine, share prices go up and everyone gets rich. True, but Cisco seems to be willing to shed information security sales in favor of greener pastures. If this is the case, enterprise customers should plan accordingly by assessing their Cisco security portfolio and crafting a “plan B” replacement strategy as a hedge.
Tags: Cisco Systems, Crossbeam Systems, Juniper Networks, McAfee, Symantec, Wall Street Posted in Uncategorized | 1 Comment »
Last week I blogged about ESG’s new data on IT spending. Here is a bit more detail with regard to networking and security.
Nearly half of all mid-market (i.e. 100 to 999 employees) and enterprise (i.e. 1,000 employees or more) companies will increase their spending on network hardware in 2010. Top priorities include WLAN, IP telephony, and WAN optimization.
Fifty-five percent of mid-market and enterprise organizations will increase their spending on information security technologies. In this case, there are differences between the sectors: 48% of mid-market organization will increase their spending on information security technologies while a whopping 61% of enterprises will increase their spending on information technologies. Top priorities are network security, endpoint security, and messaging/web security.
What does this mean for the tech industry?
All in all, the data points to more positive momentum. A good year for vendors to re-engage with customers, build long-term partnerships, and help them move beyond the Status Quo.
Tags: 802.11n, Aruba Networks, Brocade Networks, Cisco Systems, Crossbeam Systems, endpoint security, HP, Juniper Networks, McAfee, network security, Palo Alto Networks, WLAN Posted in Uncategorized | 1 Comment »
I never really believed the rumors about HP buying Brocade. No disrespect to Brocade, I just thought that HP’s interest was really in Ethernet and IP networking and not Fibre Channel.
Will another company acquire Brocade? I can’t think of any obvious takers. The financial analyst rumors that Juniper would buy Brocade were ridiculous and obviously spread by someone who doesn’t know Juniper. IBM and Dell? I don’t think either company is gung-ho to get back into the networking game. Besides, both companies already have a Brocade OEM relationship in place.
Since Brocade is likely to remain independent, my advice would be to prepare for the long-haul by filling in product gaps with innovative startups and doubling down on its direct sales and distribution channel resources.
If I were in charge of M&A at Brocade, here are a few areas that would top my Christmas shopping list.
1. WLAN. Yes, I know Foundry has a wireless offering but I can’t imagine that it is selling a lot of equipment. If Brocade’s board can stomach another big deal, Aruba Networks would give the company an immediate WLAN leadership position where it could upsell other switches and routers. If Aruba is too rich for Brocade’s taste, Meru Networks has great technology and would probably sell for a song.
2. Network security. The pickings are slim here but one interesting play might be Crossbeam Systems. Crossbeam is one of a few high-end “Network Security Super Gateways” (NSSG) and has been very successful in the service provider and ISP markets. This could help Brocade in both areas and also bring an instant relationship with Crossbeam OEMs like Check Point and ISS (now IBM). This would also complement Brocade’s data center strength.
3. Security management. Like Aruba, Brocade could reach for the stars and pick up market leader ArcSight but this would cost over $1 billion. Again, if this price is a bit too scary, Brocade could choose networking-savvy Nitro Security or feisty LogRhythm. Any of these choices could give Brocade a Cisco MARS alternative.
4. WAN optimization/Application Delivery. Brocade has a pretty good portfolio of Application Delivery Controllers but it could become a market upstart by grabbing A10 Networks. A10′s economic value proposition could be extremely attractive for companies with large and growing web applications and A10′s founder has roots at Foundry. This could also leverage Brocade’s data center prowess. On the WAN optimization side, SilverPeak has some strength in data center-to-data center networking and is likely available.
5. Network management. Lots of niche players here, too many to name. My advice would be to work closely with CA.
Brocade could stand firm as it has the Fibre Channel market pretty much locked up but Cisco, Dell, and even HP have internal agendas that probably favor FCoE over time. Nevertheless, FC isn’t going away any time soon. This gives Brocade a data center beachhead to build from. In this regard, Crossbeam and A10 Networks would definitely be a short-term fit while the others mentioned above would provide instant diversification.
In my humble opinion a creative M&A or aggressive partnering strategy would be extremely useful for Brocade in 2010 and beyond.
Tags: Aruba Networks, Brocade Networks, CA, Cisco Systems, Crossbeam Systems, Dell Computer, HP, IBM, Juniper Networks, Meru Networks Posted in Uncategorized | No Comments »
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