SSL becomes key to Layer 4-7 switching

Opinion
Jun 17, 20032 mins

* More Layer 4-7 switches incorporate SSL support

It’s probably not a big surprise that Secure Sockets Layer capabilities are becoming increasingly important in Layer 4-7 switches and load balancers. What may be somewhat surprising is that in most cases users can get those SSL capabilities without paying much extra.

As companies do more business via the Internet, the need to keep that traffic secure is growing, so vendors are incorporating SSL features into their switches and load balancers.

A recent study by Infonetics Research found that the Layer 4-7 switch and load balancer market is growing, while the market for dedicated SSL appliances and peripheral cards is on the decline. That’s because SSL-enabled products are becoming part of the entire Layer 4-7 switch and load balancer market.

“We expect this category to pick up momentum in 2003 as companies like Cisco and Nortel continue to integrate SSL functionality into their high-end switching portfolios,” Infonetics analyst Neil Osipuk says.

As for what users should expect to pay for the SSL-enabled products, Osipuk says it should be about the same as what traditional Layer 4-7 switches and load balancers go for today.

“We do not see significant price differentials between Layer 4-7 switch/load balancers with and without SSL either in [the first quarter of this year] or during the forecast period to 2006, which should help in the adoption of the Layer 4-7 switch/load balancers with SSL,” he says.

Worldwide revenue for Layer 4-7 switches and load balancers reached $129 million in the first quarter of 2003, up 3% from the fourth quarter last year. Overall, the market is expected to hit $527 million this year, the report says. Meanwhile, worldwide revenue for dedicated SSL hardware, including dedicated SSL appliances and SSL server peripheral cards, hit $8 million in the first quarter this year, down 15% from the fourth quarter last year.

According to the report, titled “SSL and Intelligent Traffic Delivery Products,” Cisco leads the market with a 43% share of total Layer 4-7 switch and load balancer revenue.

Nortel leads the dedicated SSL appliance category with 29% of units shipped and 48% of the revenue.