Market Overview
Although cloud-based SWG services are a source of innovation and rapid growth, the overall SWG
market is still dominated by the sale of on-premises appliances. Gartnerestimates that, in 2014,
72% of the revenue in the $1.44 billion market was attributed to appliances, and the other 28%
was attributed to cloud services. In 2013, Gartnerestimates that the 77% of the market was
attributed to appliances and 23% was attributed to cloud services. The overall market grew
approximately 10% during 2014, and we anticipate that the market will grow 8% to 10% in 2015.
This year, the Visionaries quadrant remains empty again. Because of the grow thin cloud-based
SWG services, we heavily weighted these services when scoring the Completeness of Vision
criteria. Vendors that have a strong strategy for their cloud service and that also have a cloudfocused
sales and distribution channel scored well in Completeness of Vision. Strategies for SWG
cloud services need to include a cloud-based advanced threat defense service. Successful sales
and distribution channels include carriers and ISPs because they have proven to be effective
partners in selling cloud SWG services. It's challenging for vendors to develop a strong cloud
service strategy and a strong cloud sales and distribution channel. None of the Niche Players in
the 2014 version of the Magic Quadrant improved enough in Completeness of Vision scoring to
move into the Visionaries quadrant this year.