Software & Services

China's information security products market reached 1.8 billion Yuan in 2Q 2008, up 25.4% YOY. Within CCID Consulting's information security product categories, Firewall and IDS (Intrusion Detection System) market shares continue to decrease in 2Q08, with Firewall share down 1.8% YOY.

The relatively new security product categories in China include Terminal Security, Security Management Platform, SOC (Security Operations Center) and UTM (Unified Threat Management), and their growth rates have been, respectively, 38.1%, 37.8%, 32.4% and 27%. Top overall vendors include EMC-RSA, VenusTech and Websense.

Availability, disaster planning and recovery are new and growing focuses.

As China encountered the 2008 natural disasters such as the drastic winter snowstorm and the Sichuan earthquake, communications were interrupted while governmental and industry IT systems were down, further exacerbating already difficult situations.

As a result, information systems high availability, disaster planning and recovery have become a new focus, especially for government, financial services, electric power, civil aviation, railway, taxes, customs sectors.

Demand for related services has grown in China, and will continue to grow rapidly, such as backup outsourcing; disaster planning and recovery; business continuity planning, consulting, and management; data recovery; continuous data protection; and remote data replication.

Vendors in China who provide more developed systems, software and solutions include IBM, HP, GDS, Symantec, SEPATON, NetApp and BakBone.

Within UTM, competition heats up with 10 gigabit.

As the UTM is the fastest growing category, both multinational and domestic Chinese vendors vie for this segment in China.

Fortinet and VenusTech are the top two vendors in this category; however, their existing products faced significant performance competition.

Vendors achieved the 10 gigabit benchmark. On May 28th, VenusTech launched the 10 gigabit multi-core UTM platform with its USG-10000, becoming the second vendor to offer such performance after Crossbeam. On June 25th, LeadSec launched its 10 gigabit UTM gateway solution. Along with Fortinet, the 10 gigabit UTM is now a vendor's sign of strength. This places R&D challenges to many of China's domestic vendors.

With many new information security service providers entering the China markets, certification becomes critical.

Beijing and Jiangsu have been active in developing e-government information security service qualification criteria for information security systems integration, risk assessment, consulting and security operations maintainability.

Top services providers such as VenusTech, Neusoft, TOPSEC, Taiji, 30 SAN Information Systems and NetPower have acquired first class certification by Beijing Information Security Services Evaluation.

Employee Internet productivity solutions market heats up in China.

Auditing and measuring employee Intranet site utilization can help an enterprise more efficiently use its resources. Security benefits include better management of security threats and sensitive information leakage. Such productivity and security solutions extend beyond the network and into the enterprise. Top vendors in China include NetentSec, Websense and SINFOR. Brand recognition will be a key to competitiveness.
 

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Unless otherwise specified, all information provided is sourced from CCID Consulting.

Ó 2008 CCID Consulting Co., Ltd.