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Palo Alto dollar revenue skyrockets +45% more than Cisco security dollar revenue

Even after buying Sourcefire for $2.7 billion, the dollar revenue growth rates of Cisco security are continually "trounced" by itty-bitty Palo Alto Networks.

Hummelstown, PA:   Thu, 5/29/14 - 10:25pm    View comments

Palo Alto NetworksCiscoGartner's most recent report dated April 15, 2014:

Gartner Magic Quadrant for Enterprise Network Firewalls

Clearly states:

"Cisco firewall products are selected more often when security offerings are added to a Cisco infrastructure, rather than when there is a shortlist with competing firewall appliances. In the survey to vendors, Cisco's product was the second most frequently listed as the one vendors claimed to replace the most, and it did not appear on the list of their top competitive threats

"Cisco is assessed as a Challenger for enterprises over the evaluation period, mostly because we did not see it frequently displacing Leaders based on vision or feature; also, it does not effectively compete in the NGFW field that is visible to Gartner. Instead, Gartner sees Cisco winning firewall procurements mostly through sales/channel execution or aggressive discounting for large Cisco networks when firewall features are not highly weighted evaluation criteria (that is, as part of a solution sell in which security is one component). Cisco's large firewall market share is a testament to the success of this strategy."

By the numbers, how itty-bitty Palo Alto is crushing Cisco

3rd Quarter

In the following year-over-year comparison, during Q3'FY14 Palo Alto dollar revenue grew by +$49.411 million (+45%, i.e. +$15.411 million) more than Cisco Q3'FY14 security dollar revenue growth of a mere +$34 million.

3rd Quarter dollar revenue comparison: Cisco security vs. Palo Alto Networks
(without frames)

Source: U.S. Securities and Exchange Commission


In the following 9-month FY14 year-over-year comparison, tiny little Palo Alto grew its dollar revenue by +$136.226 million, that's +15% (i.e. +$18.226 million) more than the growth of Cisco security dollar revenue of +$118 million (even though Cisco spent $2.7 billion purchasing Sourcefire).

9-month dollar revenue comparison: Cisco security vs. Palo Alto Networks
(without frames)

Source: U.S. Securities and Exchange Commission


Sequentially, Palo Alto Networks has grown its dollar revenue every single consecutive quarter since Q2'FY12.

Cisco security?

Well, Q3'FY14 dollar revenue is still lagging behind Q1'FY14 dollar revenue.

Quarterly dollar revenue comparison: Cisco security vs. Palo Alto Networks
(without frames)

Source: U.S. Securities and Exchange Commission

Related document

Gartner Magic Quadrant for Enterprise Network Firewalls

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Cisco vs. Palo Alto Networks security sales revenue comparison

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View the insiders cashing in IPO shares at Palo Alto Networks

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What's your take?

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