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Security Server Market Grows By 22 Percent: Page 2 of 2

Among the top five vendors, there was little change. Cisco Systems held on to the No. 1 spot with a 12 percent revenue increase to $133 million. No. 2 Netscreen reported the largest year-over-year growth rate at 91 percent to $57 million.

The remaining top vendors posted slight declines in revenues and market share. Nokia's revenues dipped to $42.5 million from $45.81 million; SonicWALL, $19.9 million from $21.7 million; and WatchGuard, $12.6 million from $14.4 million.

The declines, however, did not necessarily point to trouble for the vendors. "All of the vendors have just introduced new models which, in a time of growing demand, should result in some strong growth over the next few quarters," Kolodgy said.

The three most expensive price bands for appliances had growth rates of more than 100 percent, with the largest price band, $100,000 to $249,900, experiencing a 348 percent increase in the quarter.