Cisco overcomes supply problem in security

Research firm reports component shortage issue resolved for appliances

Cisco has apparently overcome the component supply constraint and long product lead time issues it's been grappling with for the past few quarters - in security appliances, anyway. Infonetics Research reports that Cisco is shipping all security products with standard lead times now.

Products like the ASA 5500 firewall appliance were delayed by up to four to six months. Some of the lead time issues prompted customers to seek out alternatives from Cisco's competitors.

Resolution of the component issue helped Cisco realize an 8.3% sequential revenue increase in its network security appliance and software business in the second quarter, according to Infonetics. But Cisco trailed Juniper and Check Point in Q2, which saw revenue grow sequentially 11.9% and 9%, respectively.

The market overall is up 7% from Q1 and 21% from last year, to $1.4 billion, Infonetics reports. The firm expects it to grow to $7 billion in 2014, a CAGR of about 5%.

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