2018 Global Network Firewall Market Leadership Award

1. 2018 Global Network Firewall
Market Leadership Award
2018

2. BEST PRACTICES RESEARCH
© Frost & Sullivan 2019 2 "We Accelerate Growth"
Contents
Background and Company Performance .................................................................................... 3
Industry Challenges......................................................................................................... 3
Market Leadership ........................................................................................................... 4
Conclusion ..................................................................................................................... 6
Significance of Market Leadership............................................................................................. 7
Understanding Market Leadership............................................................................................. 7
Key Performance Criteria ........................................................................................................ 8
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices...... 9
The Intersection between 360-Degree Research and Best Practices Awards ...................................10
Research Methodology ....................................................................................................10
About Frost & Sullivan ...........................................................................................................10

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Background and Company Performance
Industry Challenges
Networks are evolving rapidly with new technologies and business practices such as cloud
computing, Software Defined Wide Area Networks (SD-WANs), Internet of Things (IoT),
and remote and mobile employees. As these technologies and practices have been
redefining the concept of a security perimeter, a plethora of new security gaps are
opening up for Information Security (InfoSec) teams to address.
For current users of firewalls, they want additional firewall capabilities and features to
assist them in managing the growing variety and velocity of cyber risks with higher levels
of proficiency. Correspondingly for firewall solution vendors, market demand is poised for
double-digit year-over-year growth over the next five years if they can ramp up their
product capabilities to meet the rising expectations of their users.
Firewall vendors should also note that organizations have made significant investments in
bespoke security products over the years, but are finding these collections too complex to
function optimally and lack expected inter-operability. The steady march of new
cybersecurity technologies and cyber threats ensures that this trend will continue and
place further stress on the scarce InfoSec teams of most organizations. As foundational
security platforms, firewalls are ideal consolidators of multiple security technologies. In
concept, expanding firewall capabilities, within the platform or via seamless integration,
would produce technology consolidation and optimization, and management simplification.
Frost & Sullivan points out that this need for security technology consolidation is
particularly acute in the small and mid-sized business (SMB) segment and with distributed
enterprises. Not only do IT and InfoSec organizations need fewer standalone appliances to
manage, they also need management to be simplified and easily segmented by user and
role. Technology consolidation should also produce out-of-the-box synergies across the
technologies. Essentially, firewall users want technologies consolidated onto a single
platform to not only operate as one, but operate even better as one.
Another consolidation trend that is building is among networking and security platforms.
This trend follows the market interest and demand for SD-WANs. Rather than have a
standalone router to provide application-aware routing and bandwidth optimization and
separately a firewall to conduct a variety of security functions, organizations are
considering single platforms that combine all of these functions and have them
manageable through a single console. Frost & Sullivan monitors how several firewall
solution vendors are actively pursuing this market opportunity - yet in doing so need to be
cognizant that the competitive market is not limited to security vendors adding networking
functionality, but also network vendors that are incorporating the security functions
traditionally associated with firewalls.

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In consideration of these many trends and market opportunities, the market growth
prospects for network firewalls will be robust. At the same time, competition will intensify.
Frost & Sullivan defines market leaders are those that recognize the varied needs of the
market and steadily evolve their firewall platforms to meet those needs - now and into the
future.
Market Leadership
For Cisco’s 2018 fiscal year (ended July 28, 2018), the company reported total corporate
revenues of $49.3 billion. Known extensively for its expansive suite of infrastructure
platforms (i.e., switching and routing), Cisco has also built a strong and growing market
presence in multiple categories of cybersecurity as exemplified by two consecutive years
of 9% year-over-year revenue growth in Cisco’s security products.
In the global network firewall market (inclusive of Unified Threat Management platforms),
Frost & Sullivan determined Cisco holds the leading market share at nearly 19% for
calendar year 2017. Indicative of the competitiveness of the network firewall market, the
next three competitors each has a market share between 17% and 18%. Collectively, the
top four vendors represent 72% of the global market. Also distinguishing Cisco in the
global firewall market is how the company is positioned as the only top 4 vendor
in the overall market that is also a top 3 vendor in all four business size market
segments (small and midsized business, large business, enterprise, and large
enterprise) — a true testament to Cisco’s ability to effectively tune its firewall
product lines to align with the varied needs of a wide spectrum of customers.
Also contributing to Cisco’s success in the network firewall market are the following
aspects of Cisco’s approach:
 Growth Strategy
 Brand Strength
 Vendor Rationalization
Growth Strategy
Frost & Sullivan estimated a global network firewall market of $6.2 billion for 2017,
representing a 10.7% increase over 2016 and project the market will expand by 12.7% in
2018. As a multi-billion global market and one that has been and will continue to expand
at double-digit rates, competition, as previously stated, is fierce and an effective growth
strategy is imperative in order for any vendor to grow on par or faster than the market.
Frost & Sullivan determined from 2016 to 2017 Cisco grew faster than the market and
increased its market share lead over the second and fourth largest network firewall
vendors. For the reasons we describe in this award, we project that Cisco will continue to
maintain its market share leadership into 2018.

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Paramount to Cisco’s growth strategy has been its suite of firewall product lines designed
to meet the needs of multiple market segments. This, as noted earlier, contributed to
Cisco’s top 3 position in all four business size market segments. Joining the Cisco ASA
router-based firewall product line are the enterprise-class Firepower NGFW platforms
(attributed to the acquisition of SourceFire) and the Cisco Meraki product line suitable for
enterprise branch locations and small & midsized businesses.
Bolstering all of these firewall product lines is Cisco Talos, the company’s source of threat
intelligence. As cybersecurity is increasingly an agility battle with cyber adversaries, rules
and policies in security platforms, like firewalls, must be routinely refined to thwart the
ever-changing tactics of cyber adversaries. Cisco Talos provides valuable insights for Cisco
customers’ firewall users to take preemptive steps.
Brand Strength
Cisco has been a highly recognizable and respected brand in infrastructure platforms. Until
recently, the company’s strategy and, correspondingly, brand in security has wavered.
Positively over the last few years, Cisco’s brand strength in security has solidified. Driving
this positive development has been Cisco’s aggressive product development strategy,
which includes a mix of internal development and acquisitions in core security platforms,
such as firewall, web security (Cisco Web Security Appliance-WSA), email content security
(Cisco Email Security), and network access control (Cisco Identity Services Engine-ISE);
advanced malware defense (Cisco Advanced Malware Protection - AMP) and sandboxing
(Cisco Threat Grid); and newer security categories that add extra layers of protection and
threat prevention for the burgeoning cyber risks and data protection issues faced by
digital businesses. Examples of the latter are Cisco’s acquisitions and on-going
development in DNS security (Cisco Umbrella) and Cloud Access Security Broker (Cisco
Cloudlock). Also of note is that Cisco Umbrella and Cisco Cloudlock are cloud-delivered
security services.
As cloud-delivered services, Cisco is expanding upon its physical and virtual appliance
approach with the scalable, usage-based consumption model of cloud-delivered services.
The recently completed acquisition of Duo, a provider of as-a-service access security and
multi-factor authentication, is another indicator of Cisco’s brand-building strength in
security and expansion into cloud service delivery. Collectively, Cisco’s expanding portfolio
of security product and services add to customers’ justification for investing in Cisco’s
firewall product lines as core security platforms that interoperate with Cisco’s broadening
security portfolio.
Vendor Rationalization
With its near ubiquitous market position in infrastructure solutions and a growing portfolio
of security products and services, few businesses will be devoid of Cisco in their network
and cybersecurity footprints. From this incumbent position, Cisco presents a compelling

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case to its customers in vendor rationalization, that is, reducing the number of vendor
relationships in order to simplify, streamline, and synergize for better business outcomes
in networking and cybersecurity.
The Meraki product line is a prime example. Meraki appliances are all-in-one appliances
encompassing wireless LAN, SD-WAN, and UTM functionality centrally managed through a
cloud-based portal. In the decentralized approach, wireless LAN, SD-WAN, and UTM would
have been separate appliances with separate administrative interfaces. In addition, the
cause-and-effect relationships among these appliances and disciplines (e.g., a
compromised host inadvertently affecting application-level routing decisions) are more
likely to be missed, allowing a misappropriation of scarce resources and impact on end-
user productivity.
Focusing exclusively on cybersecurity, Cisco is positioned to quell the alert overload and
fatigue that InfoSec analysts encounter. With visibility across endpoint, network, and
cloud, Cisco is also positioned to assist its users in first visualizing alert correlations across
Cisco’s security technologies, confirming cause and effect, and then moving into, manual
or automatic, mitigation (e.g., isolation or quarantine) and eventual remediation. With a
market leading position in firewalls and firewalls strategically situated at network traffic
aggregation points, Frost & Sullivan believes Cisco can legitimately argue that through
customers’ expanded use of Cisco security products, firewall effectiveness and the
customer’s overall security readiness for active defense moves to an even higher tier.
Conclusion
Cybersecurity challenges that organizations face are not dissipating, but growing.
Unfortunately, many of those challenges are operational and the result of years of
purchasing bespoke cybersecurity technologies. While the purchase decisions were
justifiable then, organizations are now coming to grips with how to operationalize their
vast cybersecurity holdings better and build in greater agility to thwart new types of cyber
threats that have yet to be seen. This is a tall order - but one that can and should be
undertaken. By leveraging firewalls, a foundational security platform, organizations have
an anchor point to build upon.
Frost & Sullivan ongoing research concludes that Cisco is well placed to serve
organizations in this endeavor. The reasons are several: Cisco is a leading provider of
firewalls, offers a wide breadth of firewall options, has extensive product incumbency with
organizations worldwide in networking and security, and has a growing portfolio of
security products and cloud-delivered services that can be integrated with its firewalls to
create an agile and comprehensive security fabric.
With its strong overall performance, Cisco has achieved a leadership position in the Global
Network Firewall Market, with a market share of 19% in 2017; Frost & Sullivan is thus
proud to bestow the 2018 Market Leadership Award to Cisco.

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Significance of Market Leadership
Ultimately, growth in any organization depends upon customers purchasing from a
company, and then making the decision to return time and again. Loyal customers
become brand advocates; brand advocates recruit new customers; the company grows;
and then it attains market leadership. To achieve and maintain market leadership, an
organization must strive to be best-in-class in three key areas: understanding demand,
nurturing the brand, and differentiating from the competition.
Understanding Market Leadership
Driving demand, strengthening the brand, and differentiating from the competition all play
a critical role in a company’s path to market leadership. This three-fold focus, however, is
only the beginning of the journey and must be complemented by an equally rigorous focus
on the customer experience. Best-practice organizations, therefore, commit to the
customer at each stage of the buying cycle and continue to nurture the relationship once
the customer has made a purchase. In this way, they build a loyal, ever-growing customer
base and methodically add to their market share over time.

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Key Performance Criteria
For the Market Leadership Award, Frost & Sullivan Analysts focused on specific criteria to
determine the areas of performance excellence that led to the company’s leadership.
Criterion Requirement
Growth Strategy Excellence
Demonstrated ability to consistently identify,
prioritize, and pursue emerging growth
opportunities
Implementation Excellence
Processes support the efficient and consistent
implementation of tactics designed to support the
strategy
Brand Strength
The possession of a brand that is respected,
recognized, and remembered
Product Quality
The product or service receives high marks for
performance, functionality, and reliability at every
stage of the life cycle
Product Differentiation
The product or service has carved out a market
niche, whether based on price, quality, or
uniqueness of offering (or some combination of the
three) that another company cannot easily
duplicate
Technology Leverage
Demonstrated commitment to incorporating
leading-edge technologies into product offerings,
for greater product performance and value
Price/Performance Value
Products or services offer the best value for the
price, compared to similar offerings in the market
Customer Purchase Experience
Customers feel they are buying the most optimal
solution that addresses both their unique needs
and their unique constraints
Customer Ownership Experience
Customers are proud to own the company’s product
or service, and have a positive experience
throughout the life of the product or service
Customer Service Experience
Customer service is accessible, fast, stress-free,
and of high quality

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Best Practices Recognition: 10 Steps to Researching,
Identifying, and Recognizing Best Practices
Frost & Sullivan Awards follow a 10-step process to evaluate Award candidates and assess
their fit with best practice criteria. The reputation and integrity of the Awards are based
on close adherence to this process.
STEP OBJECTIVE KEY ACTIVITIES OUTPUT
1
Monitor,
target, and
screen
Identify Award recipient
candidates from around the
globe
 Conduct in-depth industry
research
 Identify emerging sectors
 Scan multiple geographies
Pipeline of candidates who
potentially meet all best-
practice criteria
2
Perform
360-degree
research
Perform comprehensive,
360-degree research on all
candidates in the pipeline
 Interview thought leaders
and industry practitioners
 Assess candidates’ fit with
best-practice criteria
 Rank all candidates
Matrix positioning of all
candidates’ performance
relative to one another
3
Invite
thought
leadership in
best
practices
Perform in-depth
examination of all candidates
 Confirm best-practice criteria
 Examine eligibility of all
candidates
 Identify any information gaps
Detailed profiles of all
ranked candidates
4
Initiate
research
director
review
Conduct an unbiased
evaluation of all candidate
profiles
 Brainstorm ranking options
 Invite multiple perspectives
on candidates’ performance
 Update candidate profiles
Final prioritization of all
eligible candidates and
companion best-practice
positioning paper
5
Assemble
panel of
industry
experts
Present findings to an expert
panel of industry thought
leaders
 Share findings
 Strengthen cases for
candidate eligibility
 Prioritize candidates
Refined list of prioritized
Award candidates
6
Conduct
global
industry
review
Build consensus on Award
candidates’ eligibility
 Hold global team meeting to
review all candidates
 Pressure-test fit with criteria
 Confirm inclusion of all
eligible candidates
Final list of eligible Award
candidates, representing
success stories worldwide
7
Perform
quality check
Develop official Award
consideration materials
 Perform final performance
benchmarking activities
 Write nominations
 Perform quality review
High-quality, accurate, and
creative presentation of
nominees’ successes
8
Reconnect
with panel of
industry
experts
Finalize the selection of the
best-practice Award recipient
 Review analysis with panel
 Build consensus
 Select recipient
Decision on which company
performs best against all
best-practice criteria
9
Communicate
recognition
Inform Award recipient of
Award recognition
 Present Award to the CEO
 Inspire the organization for
continued success
 Celebrate the recipient’s
performance
Announcement of Award
and plan for how recipient
can use the Award to
enhance the brand
10
Take
strategic
action
Upon licensing, company is
able to share Award news
with stakeholders and
customers
 Coordinate media outreach
 Design a marketing plan
 Assess Award’s role in future
strategic planning
Widespread awareness of
recipient’s Award status
among investors, media
personnel, and employees

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The Intersection between 360-Degree Research and Best
Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology represents the analytical
rigor of our research process. It offers a
360-degree-view of industry challenges,
trends, and issues by integrating all 7 of
Frost & Sullivan's research methodologies.
Too often companies make important
growth decisions based on a narrow
understanding of their environment,
leading to errors of both omission and
commission. Successful growth strategies
are founded on a thorough understanding
of market, technical, economic, financial,
customer, best practices, and demographic
analyses. The integration of these research
disciplines into the 360-degree research
methodology provides an evaluation
platform for benchmarking industry
participants and for identifying those performing at best-in-class levels.
About Frost & Sullivan
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360-DEGREE RESEARCH: SEEING ORDER IN
THE CHAOS