Giga Information Group announced today that it had ranked Check Point (Nasdaq: CHKP) third out of four tier-one vendors in the global IP address management system market. Giga said that its latest overview of the industry found that Check Point gained 14% of the market in 2001, with annual licensing revenue of $20.3 million out of a total market size of $145 million.
Giga’s report said IP address management systems were a good way to reduce the manual effort involved in IP management.
“Chasing a duplicate IP address, or simply tracking the additions, changes and deletions in a large dynamic network, can use up a lot of administration time. IP address management tools make the task much easier, completely automating the assignment, reservation and revocation of IP addressing,” the report noted.
The company with the largest market share of the market in 2001 was Lucent, which gained 37% of the market with licensing revenue of $53.6 million. Second place went to Cisco Systems, with licensing revenue of $36.25 million, reflecting a 25% market share.
“In terms of feature and function comparisons, the leading vendors offer very few clear differentiators,” Giga said. “Instead, Cisco and Checkpoint particularly try to distinguish themselves by focusing on the value of integration into their other products. Cisco, for example, leverages integration with its networking hardware products and Checkpoint with its firewall offerings.”
Looking to the future, Giga expects the IP address management systems market size to increase to $200 million by 2005. One key trend that could help elevate this market well above the Giga predictions would be the explicit market entrance of Microsoft or Novell, either through a new product or acquisition.
Check Point shares closed on Friday at $29.80 on Nasdaq.
Published by Israel's Business Arena on 18 February, 2002