Cleveland Research has distributed a security market report several days ago. Although this document is not publicly available, I am allowed to quote from it.
Look at the comparison table of security vendor's revenues:
*PANW has not reported 4Q14 yet - revs based on Factset est. (Cleveland Research)
As you can see, year to year growth is quite different. Check Point has managed to achieve just above 7% growth the last year, although both PAN and Fortinet growth is tens of percents.
I can see it on the field as well. Check Point is constantly and seriously challenged by both Fortinet and Palo Alto Networks, when it come to FW security projects.
I have put FireEye in the table as well, although it is not a firewall vendor. FireEye is addressing one specific security task - APT protection. Even with just that, its revenue in 2014 is almost 30% of Check Point entire security revenue. And its growth rate is enormous.
I wonder if Check Point indeed takes this seriously. It should, in my personal opinion.
Look at the comparison table of security vendor's revenues:
Security Vendor Comparison
| |||||||
Revs ($000s)
|
1Q14
|
2Q14
|
3Q14
|
4Q14E
|
2014E
| ||
Checkpoint
|
$342
|
$363
|
$370
|
$421
|
$1,496
| ||
Y/Y
|
6.0%
|
6.6%
|
7.6%
|
8.8%
|
7.3%
| ||
Palo Alto*
|
$151
|
$178
|
$192
|
$204
|
$725
| ||
Y/Y
|
48.8%
|
58.6%
|
50.0%
|
44.5%
|
50.2%
| ||
Fortinet
|
168.90
|
184.10
|
193.30
|
224.00
|
$770
| ||
Y/Y
|
24.4%
|
24.9%
|
25.0%
|
26.3%
|
25.2%
| ||
Fireeye
|
$74
|
$94
|
$114
|
$143
|
$425
| ||
Y/Y
|
160.3%
|
184.4%
|
167.3%
|
149.7%
|
163.4%
| ||
*PANW has not reported 4Q14 yet - revs based on Factset est. (Cleveland Research)
As you can see, year to year growth is quite different. Check Point has managed to achieve just above 7% growth the last year, although both PAN and Fortinet growth is tens of percents.
I can see it on the field as well. Check Point is constantly and seriously challenged by both Fortinet and Palo Alto Networks, when it come to FW security projects.
I have put FireEye in the table as well, although it is not a firewall vendor. FireEye is addressing one specific security task - APT protection. Even with just that, its revenue in 2014 is almost 30% of Check Point entire security revenue. And its growth rate is enormous.
I wonder if Check Point indeed takes this seriously. It should, in my personal opinion.
great post thanks
ReplyDeleteTo be fair, Check Point growth is in sync with overall market growth in this segment. That means market organic expansion but not something we might call growth at all. It looks like Check Point has reached its top market share and is not able to gain more for this time.
DeleteMy personal opinion, not really a good place to be. One needs some momentum to fight of competitors, both existing and emerging ones.